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Starting a New Business in Alaska

 

This article will give you initial ideas as to which basic steps you should take in order to legally and successfully operate a business in the state of Alaska.

 

Create Your Business Plan

You should research and check the validity of each of your main business ideas by looking at the current market structure, competitors, marketing, financial abilities etc. When you identify a winning idea, continue by creating a well-thought, detailed business plan that will help you to start and grow a successful business. You can also visit the Alaska Business portal to get more information on start up businesses.

 

Choose a Location for Your Business

If you want your business to be successful, choosing the right business location for your company is one of the most important steps that should be considered. You can check with your Alaskan local government whether you need a zoning permit for your business location and check with local residents whether it makes sense to open a business in the chosen location.

 

Raise Funds to Start a Business

There are many ways to get funding for your business. You can find loans, local grants or professional investors to help you with the business initial financial needs. You can also contact the Small Business Association (SBA) and the Alaska Regional Authority Development Organization (ARDOR) for debt financing, equity financing and revolving loan funds.

 

Identify a Preferred Business Legal Structure

We suggest consulting with an attorney, as well as an expert in incorporations, as to what would be the most appropriate legal structure for your business. You can operate your company in Alaska as sole proprietorship, partnership, limited liability company (LLC), limited partnership (LLP) or corporation. Is it recommended that you hire a professional registered agent to receive important documents in the name of your business entity and deliver them to you.

 

Register Your Business Name

Register your business name with the Alaska Department of Revenue. You should know that the business name may be reserved for up to four months (120 days) in the state of Alaska. Once you have registered your business name and started business operations, the name of your business entity will be valid for five years and then you will need to renew it.

 

Get an Employer Identification Number

Obtain an Employer identification number (EIN) from the Internal Revenue Service (IRS). This is an obligatory step for setting up your business. EIN is used to identify your business entity by the state of Alaska and federal authorities.

 

Register with the State's Unemployment Compensation Program

If you are planning to have employees in your store/office, you will need to pay state employment taxes to the local Employment Security Division.

 

Obtain Required Licenses and Permits for Your Business

All businesses in Alaska must have a state business license, which you can get from the Alaska Division of Corporations, Business and Professional Licensing. Depending on the type of business you are starting, you may need additional types of licenses.

 

Purchase Business Insurance

A good insurance will protect your business against physical damage, disaster-related losses, litigation or accident. You can consult with licensed insurance agents or Alaska Department of Insurance to find out more.