How to Register a Business in Alaska

This guide will walk you through the steps to legally establish your business in Alaska state, from choosing a business structure to obtaining necessary permits and licenses.

1. Key Steps for Business Registration in Alaska

Alaska tax agencies

• The Alaska Department of Labor and Workforce Development – unemployment tax
• Alaska does not have state income tax.

2. Registration Steps

2.1 Choose a Business Structure

The first step is choosing your business structure. Here are the main options:

• Sole Proprietorship Simplest structure for single-owner businesses
• Partnership For businesses with multiple owners
• LLC (Limited Liability Company) Combines benefits of corporations and partnerships
• Corporation More complex structure with shares and shareholders

The structure you choose will determine your registration requirements with the Department of Revenue (DOR) and other agencies.

Visit the official government website to read more about Business Registration & Tax Rules.

2.2 Register for Unemployment

• New employers should register with the Alaska Department of Labor and Workforce Development to receive their assigned unemployment tax rate—which varies based on industry. Follow the agency's registration instructions for guidance.
• You'll receive a registration confirmation, and get your unemployment tax rate by email within 30 days, followed by a letter in the mail.

Alaska Total Contribution Rate

This appears on the "Contribution Rate Notice" and includes the combined employer and employee components.

If you don't know your rate, you can call the agency at (907) 465-2757.

3. Labor Laws

Alaska has established labor laws that protect workers' rights and set employment standards. These laws ensure fair treatment and safeguards for all workers in the state. For more detailed information or recent updates, employers and employees should consult the Alaska Department of Labor and Workforce Development or appropriate federal agencies.

Overview of key Alaska labor laws:

1. Minimum Wage

Visit the official website to check the latest minimum wage rate.

Unlike federal law, Alaska does not allow a tip credit, meaning all tipped employees must receive the full state minimum wage.

2. Overtime

Visit the official website to check the latest overtime guidelines.

The daily overtime rule (over 8 hours) is a unique feature of Alaska labor laws, as many other states only use the weekly standard.

3. Meal and Rest Breaks

Visit the official website to check the latest meal & rest breaks guidelines.

Many employers provide breaks as a matter of policy or in accordance with federal guidelines, but these are not legally required for adult workers in Alaska.

4. Paid Sick Leave

Alaska does not have a statewide paid sick leave law. Employers may provide paid sick leave at their discretion or as part of company policy. Some employers may be subject to federal laws, such as the Family and Medical Leave Act (FMLA).

5. Workplace Harassment & Discrimination

Alaska law prohibits employment discrimination based on race, religion, sex, age, national origin, physical or mental disability, marital status, pregnancy, and parenthood.

Sexual harassment is considered a form of sex discrimination, and employers are required to prevent and address harassment in the workplace.

6. Family and Medical Leave (FMLA)

Alaska follows the federal Family and Medical Leave Act (FMLA), which provides eligible employees with up to 12 weeks of unpaid leave for certain family or medical reasons.

In addition to the federal law, Alaska has the Alaska Family Leave Act (AFLA), which provides similar protections but applies to employers with 21 or more employees (compared to the federal threshold of 50 employees).

7. Youth Employment

Alaska has strict rules governing the employment of minors:

• Minors under 14 are generally prohibited from working, except in certain jobs like newspaper delivery, baby-sitting, or working for a parent’s business.
• 14- and 15-year-olds may work in non-hazardous jobs outside of school hours, with limits on the number of hours they can work during the school week and on school nights.
• 16- and 17-year-olds are allowed to work in a broader range of jobs but are still restricted from hazardous work environments (such as mining or manufacturing).

8. Wage Payment

Employers must pay employees at least semi-monthly.

Upon termination, employers are required to issue the final paycheck within 3 working days if they are terminated, or on the next regular payday if they resign voluntarily.

If an employee quits with at least 3 days’ notice, their final wages must be paid on the last working day.

9. Employment-at-Will

Alaska follows the at-will employment doctrine, meaning employers can terminate employees for any reason, at any time, unless doing so violates public policy or anti-discrimination laws.

Similarly, employees are free to leave their job at any time without notice.

10. Workers’ Compensation

Employers in Alaska are required to provide workers’ compensation insurance to cover employees who are injured or become ill due to their job.

Workers’ compensation provides wage replacement, medical benefits, and rehabilitation services to injured workers.

11. Prevailing Wage

Alaska has a prevailing wage law (known as Little Davis-Bacon Act) that applies to certain public works projects. It requires contractors and subcontractors on these projects to pay workers at least the prevailing wage rates, which are determined by the Alaska Department of Labor and Workforce Development.

12. Equal Pay

Alaska law requires equal pay for men and women performing comparable work. Employers are prohibited from discriminating based on gender in wage payments.

13. Right to Work

Alaska does not have right-to-work laws. This means union membership and dues can be required as a condition of employment if the workplace is unionized.

14. Rest Periods for Minors

Alaska law requires that minors (under 18) be provided with a 30-minute unpaid break after 5 consecutive hours of work.

15. Public Holidays

Employers in Alaska are not required by law to provide paid time off for holidays. However, many employers offer paid holidays as part of their benefits package.

16. Whistleblower Protections

Alaska law protects employees from retaliation for reporting illegal or unethical practices in the workplace. These protections extend to employees who refuse to participate in illegal activities.

17. Paid Leave for Voting

Employees in Alaska are entitled to paid time off to vote if they do not have sufficient time outside of working hours. Employers cannot deduct pay for time spent voting unless the polls are open for 2 hours before or after the employee’s work shift.

18. Overtime Exemptions

Certain types of employees, such as executive, administrative, and professional workers, may be exempt from overtime requirements under both state and federal laws, depending on their salary level and job duties.

19. Occupational Safety and Health

Alaska has its own Occupational Safety and Health (AKOSH) program, which enforces workplace safety standards to prevent injuries, illnesses, and fatalities. It operates in tandem with federal OSHA regulations but applies specifically to workplaces within the state.

20. Prevailing Wage

On public works construction projects, contractors and subcontractors must pay employees at least the prevailing wage rate, which is determined by the Alaska Department of Labor and Workforce Development.