When considering whether or not to start a small business, there are several factors to keep in mind while determining where you would start your business. Fit Small Business compiled a 2018 ranking of all 50 states to determine the best states to start a small business, using the following categories:
Taxes – This includes corporate, sales, property tax, individual income, and unemployment insurance tax rates. The ranking demonstrates how much you can expect that your business would have to pay in taxes in the state ranked.
Labor Market – This category was assessed by including unemployment rates well as education levels (% of adults ages 25 to 34 who have attained at least a bachelor’s degree). This is meant to measure availability of desirable employees and the overall strength of this market in the state ranked.
Cost of Living – This includes costs of utilities, grocery, healthcare, housing, and transportation.
Quality of Life – This category is based on access to education, physical safety, and healthcare.
Cost to Start a Business – Using per capita income in the state ranked, this is meant to evaluate costs to staff your business as well as the per sq. ft/year cost to rent a commercial building.
Startup Activity – Meant to illustrate how likely new businesses are to succeed or fail in the state ranked, this represents the # and survivability of new businesses in that state.
Access to Capital – This assesses the likelihood of your business attaining startup capital by evaluating the size and # of small business loans granted and by measuring access to capital based on the availability and amount of venture capital funds.
Taking into account these factors, the survey ranked Alaska 36th out of the 50 states, with each of the categories above ranked accordingly:
Taxes: 3 out of 50
Labor Market: 46 out of 50
Cost of Living: 47 out of 50
Quality of Life: 41 out of 50
Cost to Start a business: 39 out of 50
Startup Activity: 33 out of 50
Access to Capital: 35 out of 50
Alaska may have some of the highest labor costs and the longest average work week, but it also has the highest availability of human capital. If dog mushing, record low temperatures, long summer days, beautiful northern lights, and outhouse races are your kind of thing, then Alaska may be the right place for you and your new business!
Alaska Department of Revenue PO Box 110400 Juneau, AK 99811-0400 P 907-465-2300
On or before the 15th day of the fourth month after the close of the tax year. The payment due date cannot be extended.
Up to 3%, varies
First half installment is due June 15. Second half installment is due August 15.
The last day of the month following the end of the quarter
Annual Report Required?* *(C-Corp & LLC only)
Biennial report due once every 2 years by January 2nd. If you initially filed/registered in an even numbered year the Biennial Report will be due in January of every even numbered year. If you initially filed in an odd numbered year the Biennial Report will be due in January of every odd numbered year. You can start filing 3 months prior.
Reserving your name in Alaska: Current Alaska Statutes do not restrict issuing multiple business licenses with the exact same name. The department is required to issue a business license under AS 43.70, even if exclusive rights to a name have been secured under AS 10.06. Name reservation is for exclusive use of the name for a period of 120 days. Reserve Your Name in Alaska