Managing healthcare compliance in Alaska presents unique challenges you won't find in other states. Unlike many states with explicit corporate practice of medicine prohibitions, Alaska doesn't enforce a traditional CPOM doctrine but instead imposes functional ownership restrictions through its Professional Corporation Act (AS 10.45.050), requiring all shareholders, directors, and officers to hold valid professional licenses. The state's biennial reporting structure (rather than annual), combined with the absence of franchise or corporate income taxes, distinguishes Alaska from most other jurisdictions and requires you to navigate a compliance framework that differs significantly from neighboring states.
You're limited to Professional Corporations (PCs) and LLPs for healthcare entity formation - Alaska doesn't recognize Professional Limited Liability Companies (PLLCs) or Professional Associations (PAs) as distinct entity types. The Alaska Division of Corporations, Business and Professional Licensing oversees entity formation, while the Alaska State Medical Board maintains separate jurisdiction over individual practitioner licensing.
Professional corporations represent the primary entity structure for Alaska healthcare organizations, governed comprehensively by Alaska Statutes Title 10, Chapter 10.45.
Key Requirements: AS 10.45.010 permits one or more licensed persons to incorporate by filing articles of incorporation with the Department of Commerce, Community, and Economic Development (DCCED). AS 10.45.050 restricts shares to licensed persons or revocable trusts where the settlor is licensed - no non-licensed ownership permitted. AS 10.45.030 requires professional corporations to render services exclusively through persons licensed in Alaska who must be shareholders, directors, officers, employees, or agents.
Governance: AS 10.45.060 mandates directors and officers must be shareholders, with no person allowed to serve as shareholder, director, or officer of more than one professional corporation simultaneously. AS 10.45.070 vests management exclusively in the board of directors.
Naming: AS 10.45.120 specifies names must include the surname of one or more shareholders (unless the regulatory board permits otherwise) and end with "Corporation," "Incorporated," "Limited," or abbreviations "Corp.," "Inc.," "Ltd.," or "P.C."
Limited Liability Partnerships are recognized under Alaska Statutes Title 32, Chapter 32.06, Article 9, but Alaska doesn't maintain a separate "Professional Limited Liability Partnership" framework with licensing requirements comparable to PCs under AS 10.45. This creates legal uncertainty for healthcare practices considering LLP structures, as individual healthcare licensing boards may require professional corporation formation to ensure compliance with professional licensing requirements. If you're considering an LLP structure, consult with Alaska healthcare attorneys regarding licensing board interpretations and whether professional corporation formation is necessary for your specific practice type.
Alaska doesn't recognize Professional Limited Liability Companies (PLLCs) or Professional Associations (PAs) as distinct entity types. While Alaska allows general LLCs under Alaska Statutes Title 10, Chapter 50, no Alaska statute creates professional-specific provisions comparable to those in AS 10.45 for professional corporations. If you need professional entity status, you must use the professional corporation form. For healthcare practitioners seeking limited liability protection with professional status, Alaska's Professional Corporation structure under AS 10.45 provides the functional equivalent of what other states offer through PLLCs, but with stricter single-profession ownership requirements.
Alaska doesn't have explicit CPOM doctrine language prohibiting corporate employment of physicians. Neither AS 10.45 nor AS 08.64 (the Medical Practice Act) contains explicit prohibitions, and the Alaska State Medical Board doesn't maintain published policies restricting corporate employment.
However, AS 10.45.050 functionally restricts non-physician ownership by requiring all shareholders of professional corporations to be licensed professionals in the same profession. This effectively prevents non-physician ownership of medical practices organized as professional corporations without invoking traditional CPOM terminology. Other employment structures - such as hospital employment or Management Service Organization (MSO) arrangements - remain legally uncertain under Alaska law.
Use the online filing portal for immediate processing; hardcopy submissions take 10-15 business days (longer during biennial peak periods of April-June and October-December). Professional corporations are automatically registered upon incorporation, though you can reserve names in advance using Form 08-559. All fees are non-refundable; email submissions are prohibited for security reasons.
Alaska's compliance framework can trip up even experienced practitioners - the state operates on a biennial (two-year) reporting cycle, not annual. For-profit healthcare entities file by January 2 of applicable years (entities registered in even-numbered years file in even-numbered years; odd-year registrations file in odd-numbered years). The filing window opens October 2, and late fees apply after February 1. Non-profit entities file by July 2, with the filing window opening April 2 and late fees after August 1.
File online through the Biennial Report Online Filing portal for immediate posting, or via hardcopy (10-15 business days, extended significantly during October-February peak months). The lack of published biennial report fees creates frustrating uncertainty - contact the Alaska Division of Corporations at (907) 465-2530 for current rates before filing.
Business licenses cost $50 per year or $100 for a two-year biennial option, expiring December 31 annually. Telemedicine providers must add a Telemedicine Business Registration (TBR) endorsement for $100 when applying online (renews every two years). For lapsed licenses, you'll pay $50 for each lapsed year plus current year(s).
The business license renewal system provides different renewal methods based on expiration length: licenses expired less than nine months permit online renewal; expired nine months to two years require hardcopy renewal; expired more than two years cannot be renewed and require new applications.
SB 115 (2024) - Physician Assistant Scope of Practice
SB 115 allows Physician Assistants (PAs) in Alaska to operate without a collaborating physician after accumulating 4,000 hours of practice, fundamentally altering supervision requirements. The bill was introduced March 27, 2023, with the latest amendment (HCS CSSB 115(L&C)) adopted May 10, 2024, when it was released from the House Rules Committee.
Compliance Implications for Healthcare Entities Employing Physician Assistants:
The exact effective date of SB 115 isn't explicitly stated in accessible legislative summaries. If you employ physician assistants, verify the effective date with the Alaska Legislature before implementing compliance changes.
The Alaska State Medical Board regulates physicians, physician assistants, podiatrists, and osteopaths through licensing, renewals, disciplinary sanctions, and continuing education requirements. Individual practitioner licensing involves an initial screening phase requiring 4-6 weeks and a full licensure phase requiring 12-14 weeks or longer. Initial licensing fees total $750.00 ($400.00 nonrefundable application fee plus $350.00 license fee). Expedited processing is available through the Federation of State Medical Boards credentials verification service.
Requirements: You must complete 50 hours of Category 1 CME per biennial renewal cycle (effectively 25 hours per year), with a minimum of 2 hours in pain management and opioid use/addiction (effective for licenses issued on or after January 1, 2024). For licenses first issued between January 1, 2023 and December 31, 2023, only 25 hours minimum is required for first renewal.
Approved CME Types: Category 1 approved by the American Medical Association (AMA), American Osteopathic Association (AOA), or Council on Podiatric Medical Education (CPME), plus equivalent education as allowed by regulation.
Compliance Requirements: All hours must be earned within the two years immediately preceding renewal. The Alaska State Medical Board conducts random audits, and you must retain all CME documentation for at least four years. The ACCME's PARS system is accepted for verification (optional). Non-compliance may result in non-renewal of your medical license. Physicians holding retired status licenses are exempt from CME requirements. Regulatory authority: 12 AAC 40.200 through 12 AAC 40.240.
All medical licenses renew biennially, expiring December 31 of even-numbered years (current licenses expire December 31, 2026). Renewal fees: $350.00 active, $200.00 inactive, $150.00 retired. Prorated fees of $175.00 (active) and $100.00 (inactive) apply to licenses issued January 1, 2024 or later. Lapsed licenses (60 days to one year) incur a $50.00 late fee.
Alaska law requires all officials, directors, and shareholders of professional corporations to hold valid professional licenses relevant to the profession. For medical professional corporations specifically, all shareholders, directors, and officers must hold valid Alaska medical licenses under AS 10.45. If your license lapses, you're immediately disqualified from holding ownership in the professional corporation, and practicing medicine with a lapsed license is illegal with no grace period.
AS 10.45.050 restricts PC ownership to single-profession arrangements - all shareholders must be licensed in the same profession. You cannot create a multi-discipline PC where dentists and physicians co-own. Alaska doesn't recognize PLLCs as a distinct professional entity type (AS 10.50 has general LLCs but no professional-specific provisions comparable to AS 10.45 for PCs). Individual licensing boards including the Medical Board, Dental Board, and Chiropractic Board don't provide explicit guidance on alternative multi-discipline structures.
Can a non-physician owned corporation employ physicians in Alaska?
No. AS 10.45.050 requires all PC shareholders to be licensed in the same profession, effectively preventing non-physician ownership of medical PCs. Alaska doesn't have explicit CPOM doctrine language, but this ownership restriction creates a functional barrier. Other employment structures (hospital employment, MSO arrangements) remain legally uncertain under Alaska law.
What happens if a physician's license lapses while they hold ownership in a professional corporation?
If your license lapses, you're immediately disqualified from holding ownership under AS 10.45. Practicing medicine with a lapsed license is illegal with no grace period. Licenses lapsed 60 days to one year face a $50.00 late renewal penalty, and the Alaska Department of Commerce may issue cease and desist orders. You must renew your license before continuing to hold shares or serve as director/officer.
Does Alaska require annual reports for healthcare professional entities?
No. Alaska operates exclusively on a biennial (two-year) reporting cycle. For-profit healthcare entities file by January 2 of applicable years according to their registration year. Online filing provides immediate processing, while hardcopy filing requires 10-15 business days (extended during biennial reporting periods).
What are the key differences between forming a professional corporation versus a general LLC in Alaska?
Professional corporations under AS 10.45 require all shareholders, directors, and officers to hold professional licenses in the relevant profession and must render services exclusively through licensed individuals. Alaska doesn't recognize PLLCs as a distinct entity type - healthcare professionals seeking professional entity status must use the PC form. Both require registered agents and biennial reports. Formation fees are $250.00 for Articles of Incorporation, with biennial reports at undisclosed fees (contact Division of Corporations for current rates).
Can dentists and physicians co-own the same professional entity in Alaska?
No. AS 10.45.050 restricts ownership to licensed professionals in the same profession for which the corporation is organized. Shares may only be issued to persons licensed by a regulatory board to render the specified professional service. This structural limitation prevents multi-discipline co-ownership arrangements between dentists and physicians. Healthcare practitioners considering multi-discipline arrangements should consult Alaska healthcare attorneys.
Tracking Alaska's dual regulatory framework - separate entity formation through the Alaska Division of Corporations and individual licensing through professional boards - creates significant administrative burden. Under AS 10.45 and Alaska Administrative Code 12 AAC 40, you must maintain continuous compliance with biennial reports (due January 2 for for-profit entities), business license renewals (expiring December 31), and individual CME compliance (50 hours per biennial cycle).
Discern automates Alaska's unique biennial reporting cycles, business license renewals, and compliance tracking across all your healthcare entities. Our platform eliminates manual deadline tracking and ensures your professional corporations maintain continuous compliance with both entity formation requirements and individual licensing obligations.
Ready to simplify your healthcare entity compliance? Book a demo with Discern today and see how we can reduce your administrative burden while ensuring your Alaska entities stay in good standing.
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