Summary
The fact that you may need to register with state agencies like Alaska Department of Commerce is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in Alaska, use this guide to:
- Explore the that triggers the need to register with the Alaska Department of Commerce, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the Alaska Department of Commerce.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the Alaska Department of Commerce?
In Alaska, a business license is required if you engage in trade, service, profession, or activity within the state with the goal of receiving financial benefit. This includes:
- Physical presence: Having a physical storefront, office, warehouse, or similar location in Alaska.
- Employees: Hiring employees who work within the state of Alaska.
- Sales activity: Selling goods or services to customers in Alaska, even without a physical presence. This can include online sales, sales representatives, or participating in trade shows.
- Services: Providing any type of service to Alaska residents, physically or remotely.
- Professional Activity: Engaging in a regulated profession that requires an Alaska professional license (such as doctors, lawyers, engineers, etc.)
Important Notes
- Non-profits: Even non-profit organizations may need a business license if they meet the criteria above.
- Exemptions: There are very few exemptions to Alaska's business licensing requirements. However, you can always check the Department of Commerce website for any updates and the full list of exemptions.
Activities that are NOT considered "doing business"
Certain actions don't necessarily require foreign entity registration:
- Defending or settling a lawsuit
- Holding board meetings or shareholder gatherings
- Maintaining bank accounts
- Owning debt obligations or securities
- Isolated transactions that are completed within a 30-day period and not part of a recurring business activity
Where do I register, and what else is required?
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in Alaska. Here's a Alaska specific guide we put together.
What is the registration fee?
The fee charged by Alaska is $350.
How long does Alaska usually take to process?
Alaska usually takes approximately 1 - 2 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at Alaska's:
C-Corporation
- Filing Date: January 2
- Filing Frequency: Biennial
LLC
- Filing Date: January 2
- Filing Frequency: Biennial
Non-Profit
- Filing Date: January 2
- Filing Frequency: Biennial
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for Alaska. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
