Incorporating a business in Alaska offers many advantages such as a straightforward tax structure and digital-first filings. It is an important step that can turn a business idea into a legal entity that’s able to raise capital and scale. The incorporation process is relatively straightforward once you understand how the filings, fees, and legal steps fit together.
Below, we’ll explain how to incorporate in Alaska, including the legal requirements and how much it costs.

What’s in this article?

• What does it mean to incorporate a business in Alaska?
  
• What’s the difference between an S corporation and a C corporation?
  
• What are the advantages of forming a corporation in Alaska?
  
• What are the steps to incorporate your business in Alaska?
  
• What are the legal requirements after you incorporate in Alaska?
  
• How much does it cost to incorporate in Alaska?
  
• How Stripe Atlas can help
  

What does it mean to incorporate a business in Alaska?

Incorporating in Alaska turns your company into its own legal entity. That means your corporation can own assets, sign contracts, pay taxes, and be sued in its own name. The separation limits your personal liability and gives your business permanence beyond any one founder. To keep these benefits, your corporation must stay in good standing by following the state’s legal requirements.

What’s the difference between an S corporation and a C corporation?

It’s common for corporations in Alaska to begin as C corporations (C corps), but they can also become S corporations (S corps). These two are formed the same way and follow the same corporate rules. The differences between them relate to taxes and ownership. Here’s a closer look.

C corp

A C corp is the default and pays tax as a separate entity. In Alaska, corporate income tax rates range from 0%–9.4%, depending on the company’s income. Any dividends paid to shareholders are taxed again at the federal individual level. C corps can have unlimited shareholders, different classes of stock, and foreign or institutional investors. This structure works well for businesses that plan to raise money from investors or go public in the future.

S corp

A corporation can also choose to be an S corp. This special tax status passes on profits (and losses) to shareholders, who report them on their individual tax returns. This means an S corp doesn’t pay corporate income tax. To qualify, a company must have 100 or fewer shareholders, all of whom are US individuals, and only 1 class of stock. This setup is often chosen by small to midsize businesses that want to avoid double taxation and keep a corporate structure.

What are the advantages of forming a corporation in Alaska?

Alaska offers an efficient system for incorporating and managing business taxes. Forming a corporation here provides strong liability protection, clear rules, and potential long-term tax advantages for growing businesses.

Here are the benefits of forming a corporation in Alaska.

Stronger statewide name protection

Once you incorporate your business, your corporate name is protected. That means other entities can’t register the same name or a similar one. You can also reserve a name for 120 days or register alternate names for 5 years. This protection is much stronger and lasts longer than in many other states.

Simple, unified filings

The Division of Business, Corporations, and Professional Licensing (DCBPL) handles all core filings online, with instant confirmation for submissions and a typical turnaround of 10–15 days for paper filings. You’ll need to file an Initial Report within six months and then a Biennial Report, whereas many states require an annual report.

Minimal tax friction

Alaska keeps things simple, as there’s no statewide personal income tax and no general state sales tax. You can handle all local filings and payments in one place through the Alaska Remote Seller Sales Tax Commission (ARSSTC) portal, instead of working with multiple city offices.

Real incentives and financing

Alaska offers several ways to save and grow your business. For example, corporations can earn tax credits for hiring veterans (up to $3K per eligible employee). The state also provides low-interest loans through programs such as the Rural Development Initiative Fund and Small Business Economic Development, which are designed to support small, rural businesses.

What are the steps to incorporate your business in Alaska?

From choosing your corporate name to record keeping, it’s easy to form and maintain a corporation in Alaska.

To incorporate your business in Alaska, follow these steps.

Pick and clear your name

Choose a name that includes “Corporation,” “Incorporated,” “Company,” or an abbreviation such as “Inc.” or “Corp.” and is unique on the Alaska register. You can file your name immediately or reserve it in advance.

Appoint a registered agent in Alaska

Your corporation must list a registered agent with a physical street address in Alaska (no PO boxes). The agent, who can be an individual or a service, accepts legal documents for your company. They must agree to the role and be available during business hours. If you decide to switch your registered agent later on, you’ll need to pay a fee.

File articles of incorporation

You can file your formation documents online through the Department of Commerce, Community, and Economic Development website or by mail. You’ll need to provide your corporate name, registered agent, number of shares authorized, incorporator information, purpose, and other statutory items. Online filings are immediately approved, while filing by mail typically takes 10–15 business days.

Hold your organizational meeting

Arrange an organizational meeting to adopt bylaws, appoint directors and officers, authorize the issuance of shares, approve banking resolutions, and set your fiscal year. While not filed with the state, be sure to keep minutes and a stock ledger for your own reference and to show your corporation is operating properly.

Obtain your Alaska Business License

Typically, businesses that operate in Alaska must hold a state business license. You can file online for immediate issuance through the DCBPL’s online Business Licensing.

File your Initial Report

Within six months of incorporation, you’ll need to file your Initial Report. This adds your current officials and addresses to the public record.

Understand local sales tax obligations

Alaska doesn’t have a statewide sales tax, but over 100 cities and boroughs do. Each has its own rules and tax rates, and many require remote sellers to collect tax if they exceed certain sales thresholds. Check where you do business and confirm whether you need to register, collect, and file local sales tax through Alaska Remote Seller Sales Tax Commission (ARSSTC).

File your Biennial Report

Alaskan corporations must file a Biennial Report. Add the due date to your calendar and set reminders. Missing the deadline can lead to penalties or loss of good standing with the state.

Elect S corp status, if you’re eligible

To be taxed as an S corp, you must file Form 2553 with the US Internal Revenue Service (IRS). Alaska honors the federal election, which means S corps usually don’t owe Alaska corporate income tax. But they still need to file Alaskan returns. Confirm your election with the IRS and meet Alaska’s filing deadlines to stay compliant.

What are the legal requirements after you incorporate in Alaska?

Setting up your corporation is only the beginning. To maintain good standing and keep the legal benefits of incorporation, you must follow certain ongoing state requirements. These tasks are simple but necessary to protect limited liability, guarantee straightforward operations, and maintain trust with banks and business partners.

Keep internal corporate governance in place

Alaska doesn’t require you to file bylaws, minutes, or a stock ledger. But you will need to maintain them to show the corporation is operating properly and to preserve limited liability protections.

File ongoing reports

After you file your Initial Report, you’ll file a Biennial Report. You file these reports with the DCBPL.

Comply with state business licensing

You must hold a valid Alaska Business License and renew it regularly to stay in good standing. Update your license whenever your business address or industry classification—your North American Industry Classification System (NAICS) code—changes.

How much does it cost to incorporate in Alaska?

When you budget for incorporation, it helps to understand Alaska’s initial and ongoing state costs. Expect to pay $300–$400 in state fees up front, plus the cost of any agent service you choose. Then, plan on spending $50 a year for the license and $100 for the Biennial Report in applicable years.

Here’s a total breakdown of what you’ll pay.

Explore Alaska’s official online Forms by Entity for current fees and live links to each online filing.

How Stripe Atlas can help

Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your Employer Identification Number (EIN). Founders with a US Social Security number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Alaska registered agent for free in your first year. Plus, as an Atlas user, you’ll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payment volume.

Learn more about how Atlas can help you set up your new business quickly and easily, or get started today.