How to Start an S-Corp in Alaska


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.
Start an S-corporation in Alaska

Alaska, popularly known as The Last Frontier, offers a bunch of benefits for business owners, especially the state capital Juneau has a lot to offer to the rising entrepreneurs in the state. If you want to start a business in Alaska, you must choose an appropriate corporate structure. You can have a corporation or a sole proprietorship or set up an LLC in Alaska. There are a few guidelines that you should be aware of when it comes to starting an S-Corporation. In Alaska, S-Corporation is businesses’ most common corporate structure, especially start-ups. It was developed in order to give companies limited liability protection while preserving the advantages of being a distinct legal organization.

In this article, you will learn about how to start an s-corporation in Alaska. You will also learn whether an s-corporate business structure suits your business. Please read all the points carefully before starting your business in Alaska.

What is an S-Corp in Alaska?

An S corporation (S-corp) is not a type of corporate entity, unlike a limited liability company (LLC) or other business structures. It’s a tax classification that might result in significant financial savings for both corporations and LLCs but in different ways. S-corp is similar to LLC, except that the IRS treats it as a corporation for tax purposes.

If you want an S corp status for your business, you can always form an LLC to protect your personal assets from business debts. It takes some basic steps to have a successful s-corporation in Alaska. S-Corps do pay corporate income taxes, but they are still treated as disregarded companies for federal tax purposes.

S-corps pay corporate taxes that LLCs do not have to pay. If you want to have an S-corp status, then we would recommend you have an LLC instead. This will protect your personal assets from your business liabilities and you don’t have to pay any corporate taxes.

–LLCBuddy Editorial Team

Limitation and Requirements of S-Corp in Alaska

As you have decided to have an S-Corp structure for your business, you must know the limitations and requirements to qualify for S-Corp status. We have listed some important points to consider following for your reference-

  • Be a domestic corporation.
  • Not be an ineligible corporation, such as specific financial institutions, insurance providers, or domestic corporations engaged in overseas sales.
  • Have just one type of stock.
  • Have a maximum of 100 shareholders or members.
  • Have only permitted individuals, certain trusts, and estates as stockholders or members.

If you are qualified for the limitations and requirements, you can apply for an S-Corp in Alaska.

How to Start an S-Corporation in Alaska?

To create S-Corp in Alaska, you must follow the below guidelines that include forming a business name, hiring a Registered Agent, filing your Articles of Organization, creating an operating agreement in Alaska, requesting an EIN, filing a form 2553.

Step 1: Register a Business Name in Alaska

After you have decided on the idea to start an S-Corp in Alaska, deciding the name for your corporation is significant. Legal procedures should be taken into account when choosing your partnership name. Choose a business name that will enable you to develop a strong brand identity.

If you want to set up an LLC, there is a complete guide on Alaska LLC name guidelines for a proper LLC name. Here are some guidelines you must follow while naming your S-corp.

  • Avoid profanities
  • The name should be available, and no other entity should have the same name in Alaska.
  • Limit of restricted words that need a license in Alaska, for example, doctors, attorneys, etc.
  • Do not use a business name that sounds like a government agency or entity (like “police,” “county,” and “state”)

Step 2: Hiring the Alaska Registered Agent

The next step in starting an S-corp in Alaska is hiring a Alaska Registered Agent, a person that accepts legal paperwork on behalf of your business. This person or business will receive important tax forms, legal documents (such as subpoenas), all notices of lawsuits, and other official government correspondence in Alaska. Forming an LLC and an S-corp will be easier if you have Registered Agent in Alaska.

Step 3: File Your Alaska Articles of Organization

The Articles of Organization is an important document to start your limited liability company (LLC). Alaska Articles of Organization is a simple document that contains the business name and address as well as the name and address of the person who received lawsuits on behalf of the organization. In order for the “Articles of Organization” to be filed, you need to pay a filing fee to the state. In Alaska, the filing fee is $250.

In California, along with the Articles of Organization, you must send the Statement of Information to file your company. The statement of information is a mandatory document in California, but other states do not have this document.

Step 4: Creating an Operating Agreement in Alaska

After you have filed your Articles of Organization in Alaska, the next step is to create an LLC operating agreement in Alaska. The Alaska LLC operating agreement is essential and necessary since it will cover your corporation’s important documentation and rules. The operating agreements usually include the following-

  • Article I: Organization
  • Article II: Management and Voting
  • Article III: Capital Contributions
  • Article IV: Distributions
  • Article V: Membership Changes
  • Article VI: Dissolution

After creating the LLC operating agreement, you can benefit in several ways since it will discuss how decisions for the business will be made, including management and member voting structure. For more details about how an operating agreement works, please check Operating Agreement.

Step 5: Request for EIN in Alaska

After documenting the operating agreement, you should get or request an Employer Identification Number (EIN). An EIN will serve as the tax ID for your general partnership. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Alaska can be through the following:

  • Apply Online- You can apply for EIN online, the most desirable and fastest method for users.
  • Apply by Fax- Another method of obtaining EIN is to fax Form SS-4 (PDF) after entering all the correct information to (855) 641-6935.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is 4 weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

If you would like to be assisted in getting an EIN in the Internal Revenue Service, we can get your EIN for you. Our EIN service is quick and hassle-free. For more details about EIN for your business, check why you need EIN.

Step 6: File Form 2553 for Your S-Corp Business in Alaska

Once you have obtained your EIN and Articles of Organization to form an S-Corp, you must file Form 2553, Election by a Small Business Corporation, to apply for S-corp status. Filing a form 2553 should be done 75 days after the formation of your S-Corp, or not more than 75 days after the beginning of the tax year in which the election is to take effect.

If your LLS-Corp has passed the deadline of 75 days, you must also file Form 8832, Entity Classification Election, in order to opt to be taxed as a corporation. Then you would send Form 2553 and Form 8832 jointly by certified mail from the USPS. In Alaska, you can send your form 2553 to the Department of the Treasury Internal Revenue Service Center – Ogden, UT 84201 Fax: 855-214-7520 .

Advantages of Starting an S-Corporation in Alaska

Filing an S-Corp in Alaska has numerous benefits and advantages.

  • Writing Off Losses: With S-corp, owners can deduct business losses from their individual income statements. If the company loses money in the first few years, it may balance its other sources of revenue. Even so, understand the shareholder loss limitations set by the IRS.
  • Pass-Through Taxation: Starting an S-Corp is the widely known advantage in forming this kind of business structure since an s-corp uses a pass-through taxation structure. The company does not pay twice the tax in this kind of taxation. Because of this structure, most start-ups and entrepreneurs in Alaska apply for an S-Corp LLC.
  • Qualified Business Income Deduction: A qualified business income, or QBI, is the total of all qualified items of income, gain, deduction, and loss from any qualified trade or business, including S-Corp. With this, S corp owners may deduct up to 20% of their eligible earnings under the Tax Cuts and Jobs Act.

FAQs

What is an S-Corp in Alaska?
An S-Corp in Alaska is a type of business entity that allows for pass-through taxation and corporate liability protection.
How do I start an S-Corp in Alaska?
To start an S-Corp in Alaska, you must file Articles of Incorporation with the Alaska Division of Corporations.
Does Alaska require an S-Corp to register with the state?
Yes, all S-Corps in Alaska must register with the state.
What information is required to register an S-Corp in Alaska?
To register an S-Corp in Alaska, you must provide the name of the corporation, the purpose of the corporation, the name and address of the registered agent, and the names and addresses of the initial directors.
How much does it cost to register an S-Corp in Alaska?
The filing fee for registering an S-Corp in Alaska is $250.
What is the timeline for registering an S-Corp in Alaska?
It typically takes 2-4 weeks for the Alaska Division of Corporations to process the Articles of Incorporation.
Does Alaska require annual reports for S-Corps?
Yes, all S-Corps in Alaska must submit an annual report to the Alaska Division of Corporations.
What information is required in an annual report for an S-Corp in Alaska?
The annual report must include the name and address of the corporation, the name and address of the registered agent, the names and addresses of the directors, and the type of business the corporation is engaged in.
Does an S-Corp in Alaska need to pay taxes?
Yes, an S-Corp in Alaska is subject to state income taxes, as well as federal income taxes.
Are there any benefits to forming an S-Corp in Alaska?
Yes, forming an S-Corp in Alaska can provide corporate liability protection and pass-through taxation, which can be beneficial to small businesses.
Does Alaska require S-Corps to hold annual meetings?
Yes, S-Corps in Alaska must hold annual meetings and keep minutes of the meetings.
Does Alaska require S-Corps to keep corporate records?
Yes, Alaska requires S-Corps to keep corporate records, such as financial records and meeting minutes.
Does Alaska require S-Corps to file tax returns?
Yes, all S-Corps in Alaska must file state and federal tax returns.
Does Alaska have any special regulations for S-Corps?
Yes, Alaska has special regulations for S-Corps, such as requirements for annual meetings and corporate records.
Does Alaska require S-Corps to have a registered agent?
Yes, all S-Corps in Alaska must have a registered agent, who is responsible for receiving service of process on behalf of the corporation.
What are the requirements for a registered agent in Alaska?
The registered agent must have a physical address in Alaska and must be available during normal business hours.
Does Alaska require S-Corps to have a board of directors?
Yes, all S-Corps in Alaska must have a board of directors, who are responsible for making decisions on behalf of the corporation.
Does Alaska require S-Corps to issue stock?
Yes, S-Corps in Alaska must issue stock to all of their shareholders.
Does Alaska require S-Corps to file a biennial report?
Yes, all S-Corps in Alaska must file a biennial report to the Alaska Division of Corporations.
What information is required in a biennial report for an S-Corp in Alaska?
The biennial report must include the name and address of the corporation, the name and address of the registered agent, the names and addresses of the directors, and the type of business the corporation is engaged in.
Does Alaska require S-Corps to have an operating agreement?
Yes, all S-Corps in Alaska must have an operating agreement, which outlines the rights and responsibilities of the shareholders and directors.
Does Alaska require S-Corps to have a corporate seal?
Yes, S-Corps in Alaska must have a corporate seal, which is used to authenticate corporate documents.
Does Alaska require S-Corps to have bylaws?
Yes, all S-Corps in Alaska must have bylaws, which outline the rules and procedures of the corporation.
Does Alaska require S-Corps to have an Employer Identification Number (EIN)?
Yes, all S-Corps in Alaska must have an Employer Identification Number (EIN) for tax and other legal purposes.
Does Alaska require S-Corps to file periodic reports?
Yes, S-Corps in Alaska must file periodic reports to the Alaska Division of Corporations.
Does Alaska require S-Corps to submit financial statements?
Yes, all S-Corps in Alaska must submit financial statements to the Alaska Division of Corporations.
Does Alaska require S-Corps to have insurance?
Yes, all S-Corps in Alaska must have insurance to protect their assets and operations.
Does Alaska require S-Corps to have a registered office?
Yes, S-Corps in Alaska must have a registered office, which must be located in the state.
Does Alaska require S-Corps to have an annual budget?
Yes, all S-Corps in Alaska must have an annual budget to keep track of their financial performance.
Does Alaska require S-Corps to have a business plan?
Yes, all S-Corps in Alaska must have a business plan to outline their goals and objectives.
Does Alaska require S-Corps to hold shareholder meetings?
Yes, all S-Corps in Alaska must hold shareholder meetings and keep minutes of the meetings.

Also Read

Why Alaska S Corporation is So Important

One of the key reasons why Alaska S Corporations are so important is their tax advantages. Unlike traditional C Corporations, S Corporations are considered “pass-through” entities, meaning that profits and losses are passed through to the shareholders and are taxed at their individual tax rates. This can lead to significant tax savings for small business owners, allowing them to reinvest more money back into their companies and grow their operations.

Another crucial benefit of Alaska S Corporations is the limited liability protection they offer to shareholders. This means that shareholders are typically not personally liable for the debts and liabilities of the corporation, providing a level of protection for personal assets. This can be particularly important for small business owners who have invested a significant amount of time and money into their ventures and want to protect themselves in case of unforeseen challenges or legal issues.

Additionally, Alaska S Corporations have a more flexible structure compared to other types of entities. They are allowed to have up to 100 shareholders, unlike traditional C Corporations which have no such limitation. This can be advantageous for small businesses looking to raise capital by bringing on investors without having to convert to a different entity type.

Furthermore, Alaska S Corporations are not subject to the double taxation that C Corporations face. In a C Corporation, the corporation itself is taxed on its profits and then shareholders are also taxed on any dividends they receive. This can result in a higher overall tax burden for shareholders. With an S Corporation, profits are only taxed once at the individual level, reducing the tax burden for shareholders.

Lastly, Alaska S Corporations are relatively easy to form and maintain, making them a popular choice for small business owners. The paperwork and administrative requirements are generally less cumbersome than with other entity types, allowing entrepreneurs to focus more on growing their businesses and less on compliance issues.

In conclusion, Alaska S Corporations play a crucial role in the success and sustainability of small businesses in the state. Their tax advantages, limited liability protection, flexibility, and ease of formation make them an appealing option for entrepreneurs looking to start or expand their ventures. By taking advantage of the benefits offered by S Corporations, small business owners can position themselves for long-term growth and prosperity.

Conclusion

In conclusion, starting an S-corp in Alaska is a strategic choice for entrepreneurs seeking the benefits of limited liability and favorable tax treatment. One can successfully establish an S-corp by following the outlined steps, including selecting a unique name, filing the Articles of Incorporation, obtaining necessary licenses, and adhering to state-specific regulations. Ultimately, this corporate structure offers a strong foundation for business growth and protection, making it a worthwhile consideration for those looking to launch a venture in Alaska.

Leave a Comment