How to Start a Alaska Corporation


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.

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Start a Alaska Corporation

When you plan to start a business in Alaska, you must decide on the appropriate structure. Starting a corporation may be more complicated than creating an LLC in Alaska or a sole proprietorship. However, it is not that difficult as well. There are a few guidelines that you should be aware of when it comes to creating Alaska corporation. Starting a corporation involves a legal process, that is, the process of incorporation.

In this article, I will share a step-by-step guide to start a corporation in Alaska. I will also enlighten you on the advantages and disadvantages of having a corporation. Some people consider starting a corporation in Alaska more than other business structures since it has many advantages over other forms.

What is a Corporation in Alaska

In definition, a corporation is a formal organization established by stockholders, shareholders, or other people to make a profit. Like individuals, corporations can undertake contracts, own assets, sue and be sued, pay taxes, limit state and federal taxes, and loan funds from banking institutions.

Common Types of Corporations

Before you start with the process of forming a corporation, you should know what type of corporation you will form. There are several different forms of corporations you can take into consideration, depending on your corporation’s objectives and ownership structure.

  • C-Corporation: C-Corporation is the most known type of incorporation. They have almost all corporate distinguishing characteristics. Profits are distributed to corporate owners who are taxed at an individual level. The corporation is taxed similarly to a business unit.
  • S-Corporation: An S-Corporation is set up similarly to a C-corporation but has different tax implications and owner limits. S-corps have no more than 100 stockholders and are not taxed separately. These business units must also file paperwork with the Internal Revenue Service (IRS) to obtain their status.
  • Non-profit Corporation: Nonprofit businesses are frequently used by religious, educational, and charity institutions to run their operations without making a profit. Thus, a nonprofit corporation is exempt from paying taxes. The nonprofit organization’s gifts, contributions, or cash are reinvested in the company to fund its growth, future endeavors, or operations. Read how to start a nonprofit corp in Alaska to learn about nonprofit corporations.

If you have a small business, it is recommended that you form an LLC instead of a corporation in Alaska. LLCs have more tax benefits than other structures. Besides, LLCs protect your personal assets. However, it is wise to consult a legal expert before you start setting up your business in Alaska.

– LLCBuddy Editorial Team

How to Start a Corporation in Alaska

To start a corporation in Alaska, you must follow the below steps that, include forming a corporation name, appointing a board of directors, filing for Articles of Incorporation, drafting corporate bylaws, meeting with the board of directors, issuing stocks, creating a shareholders agreement, requesting for an EIN, and getting a license and permit. All these steps are basic ones. It can be changed depending on the type of corporation you form and the nature of your business.

Step 1: Choose a Corporation Name in Alaska

Naming your business is one of the most crucial activities during the startup phase. Your corporation name serves as the foundation for your brand. Legal procedures should be taken into account when choosing your corporation name. Choose a corporation name that will enable you to develop a strong brand identity without being hampered by irrelevant factors.

If you are forming 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 corporation in Alaska-

  • Your business name must contain entity identifiers, such as “Incorporated,” “Limited,” “Corporation,” or “Company,” or an abbreviation, such as “Inc.,” “Co.,” or “Ltd.”
  • Exclude any words in your business name, such as “Trust,” “Bank,” “Credit Union,” or “Trustee,” or words related to a government agency, such as “FBI,” “State Department,” or “Treasury.”

Step 2: Board of Directors Initial Appointment

To form a corporation in Alaska, you must appoint an initial board of directors before making them permanent once the corporation is formed. In Alaska, you may appoint at least Three board of directors. The initial board of directors is in charge of guiding the overall strategy of your business. The structure, responsibilities, and powers given to a board of directors are determined by the bylaws of a company or organization. So, appointing your corporation’s initial board of directors in Alaska is a big step in forming a corporation.

Step 3: Filing the Articles of Incorporation in Alaska

After you appoint the initial board of directors in your Alaska corporation, the next step is to write and file a Articles of Incorporation. In writing, the Alaska Articles of Incorporation, the corporation name, principal place of business, the purpose of business, Alaska Registered Agent contact information, and the names and addresses of incorporators and/or initial board members, should be written.

Filing a Articles of Incorporation in Alaska may be done with two ways, online and by mail. The Articles of Incorporation fee may vary from different states. However, in Alaska, it costs $250 for filing online and by mail.

  • Online Filing: Get the online form from Secretary of State, fill it up, and submit. Don’t refresh the page during the process. It will erase everything.
  • Offline filing: Send the form to State of Alaska Corporations Section, P.O. Box 110806, Juneau, AK 99811

Step 4: Draft Corporate Bylaws

Now you are done filing a Articles of Incorporation in Alaska, the next step is to draft corporate bylaws. Corporate bylaws are the basic rules that control a corporation. It includes the organization’s structure, processes, laws, and rules. As a result, all personnel, managers, and corporation members must obey the firm’s rules.

In creating corporate bylaws, you should include the following on how the decisions will be made-

  • The responsibilities are given to each officer.
  • How will judgments in business be made?
  • Where and when are the annual shareholder meetings?
  • The minimum number of shareholders required for decision-making.
  • Location and timing of dividend payments.

Step 5: Hold the First Board of Directors’ Meeting

After drafting the corporate bylaws, gather all the board of directors for the first meeting. This meeting will be finalized by appointing directors to manage the company’s daily operations, approve the bylaws, choose the corporation’s accounting year, and approve the stock issue. All board meetings should have minutes taken and stored with the company’s records.

Step 6: Issuing Stock in a Corporation

After starting your Alaska corporation, one of the first official corporate actions is issuing stock to the shareholders. Keep track of the number of shares issued to each shareholder and the purchase price. A corporation in Alaska is managed by its shareholders, who contribute to the business in exchange for ownership shares.

Step 7: Draft and Finalize a Shareholders Agreement

Even though drafting and finalizing a shareholders agreement is unnecessary, I suggest you still comply since it will benefit your corporation and its shareholders. A small business’s shareholders enter into a shareholder agreement contract. It establishes how ownership will be handled in unexpected situations, like a shareholder passes away, retires, becomes disabled, or quits the corporation. Early on in the life of your Alaska corporation, signing a shareholders’ agreement can help maintain corporate continuity and prevent future disputes.

Step 8: Request an EIN in Alaska

After everything is in place, you should get or request an Employer Identification Number (EIN). An EIN will serve as the tax ID for your Alaska corporation. 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- The EIN online application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that Form SS-4 contains all of the required information.
  • 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.

After you have your EIN number, you can benefit in a number of ways. It will give your corporation the final advantage necessary to operate at full capacity without encountering legal or judicial issues.

Step 9: Get Licenses and Permits for your Corporation in Alaska

Before your corporation operates in Alaska, you must have a business license. A business license is a document issued by a government agency that permits you to operate your business in the geographic region that that agency governs. To legally operate your corporation, you’ll need a business license. Numerous corporate licenses need to be filed and renewed regularly. Check out how to get business licenses and permits in Alaska to know more.

You must also register a DBA name if you intend to conduct business using a name other than your corporation’s legal name. The DBA name is sometimes known as “doing business as” or a “fictitious business name.” Depending on your location, you may need to register the DBA with your state, city, and county. You can skip this step if your business solely uses your legal company name.

Important Information

Paying your Taxes in Alaska

Even if you have established your corporation in Alaska, pay your taxes and keep everything up to date so you won’t pay any penalty. Unlike an LLC, there is a corporate tax that every corporation in Alaska has to pay. On the other hand, they must pay income taxes based on their business income. Some other types of taxes in Alaska are sales tax, franchise tax (not applicable to all the states), and other state taxes.

Cost of Forming a Corporation in Alaska

A filing and annual fee must be paid to form a corporation in Alaska. Without it, your corporation won’t operate. The initial filing fee for a corporation may vary depending on the state. However, in Alaska, it costs $250 for filing online and by mail. The corporation in Alaska also has to file an annual report (though it might not be mandatory, it is recommended to file one). Ensure you comply with all the necessary fees and costs so your corporation will run successfully and smoothly. If, in the future, you make any changes to your corporation, you must file the Alaska Amendment. It costs $25 to file an amendment in Alaska.

Advantages of Starting a Corporation in Alaska

  1. Limited Liability: The biggest advantage of setting up a Alaska corporation is that the shareholders are not personally responsible for the debts of the company. As a result, when you incorporate as a corporation, personal assets like homes, vehicles, and other possessions are prohibited. One of the main benefits of setting up a corporation over a general partnership or sole proprietorship business structure is that neither the business nor the owners are held legally responsible for the obligations of the business, even if it means giving up their personal assets.
  1. Limitless Corporation: The fact that a corporation’s existence is independent of its owners is another significant benefit of incorporation. In other words, a corporation has an endless life and will continue operating normally even if the owner dies or decides to sell their ownership.
  1. Advantages in Tax: The deduction of health insurance premium payments made on behalf of an owner-employee is one of the many financial benefits to which corporations are entitled. Corporations also save on self-employment taxes since their revenue is not subject to workers’ compensation, Social Security, or medical taxes. Tax rates on corporate profits are lower than those on individual income.

FAQs

What is required to start a corporation in Alaska?
In order to start a corporation in Alaska, you must file Articles of Incorporation with the Alaska Division of Corporations, Business & Professional Licensing. You will need to provide the corporation’s name, the names and addresses of the incorporators, the name of the registered agent, and a brief description of the company’s purpose.
What is the filing fee to start a corporation in Alaska?
The filing fee to start a corporation in Alaska is $250.
Do I need to register a corporate name in Alaska?
Yes, you must register a corporate name in Alaska before filing your Articles of Incorporation.
Is there an annual filing fee in Alaska?
Yes, there is an annual filing fee in Alaska. The current annual filing fee is $100.
What types of businesses can I form in Alaska?
You can form various types of businesses in Alaska, including corporations, limited liability companies (LLCs), limited partnerships (LPs), nonprofit corporations, and limited liability partnerships (LLPs).
What are the tax implications of forming a corporation in Alaska?
The tax implications of forming a corporation in Alaska depend on the type of business you form. For example, corporations may be subject to federal and state income tax, while LLCs may be subject to federal and state income tax, or may be treated as a pass-through entity for tax purposes.
What are the advantages of incorporating in Alaska?
Incorporating in Alaska may provide advantages such as limited liability protection for the owners, continuity of the business, and potential tax advantages.
What is the minimum capital requirement to form a corporation in Alaska?
There is no minimum capital requirement to form a corporation in Alaska.
What are the requirements to start a corporation in Alaska?
To start a corporation in Alaska, you’ll need to file Articles of Incorporation with the Alaska Division of Corporations, Business, and Professional Licensing. You’ll also need to appoint directors, issue stock, adopt bylaws, and obtain any necessary licenses or permits.
How much does it cost to start a corporation in Alaska?
The filing fee to incorporate in Alaska is $250. Additionally, you may also need to pay for registered agent services, which typically costs $100 to $300.
How long does it take to start a corporation in Alaska?
It typically takes around 5-7 business days to form a corporation in Alaska.
How do I file Articles of Incorporation in Alaska?
You can file Articles of Incorporation with the Alaska Division of Corporations, Business, and Professional Licensing by mail, fax, or in person.
What information is required for filing Articles of Incorporation in Alaska?
The information required for filing Articles of Incorporation in Alaska includes the corporation’s name and address, the names and addresses of the incorporators, the number of authorized shares of stock, and the name and address of the registered agent.
Do I need to appoint directors for my corporation in Alaska?
Yes, you will need to appoint directors for your corporation in Alaska. The Articles of Incorporation must identify the initial directors and the corporation must have at least one director.
What is the liability of directors in Alaska?
Directors of a corporation in Alaska are generally not liable for the debts and obligations of the corporation. However, they may be held liable for wrongful acts committed by them.
Are there any ongoing filing requirements for corporations in Alaska?
Yes, corporations in Alaska are required to file an annual report with the Alaska Division of Corporations, Business, and Professional Licensing. The annual report must include the name and address of the registered agent, the names and addresses of the directors, the number of authorized shares of stock, and any other relevant information.
What is the corporate tax rate in Alaska?
Corporations in Alaska are subject to a flat corporate income tax rate of 9.4%.
Are there any other taxes that corporations in Alaska must pay?
Yes, corporations in Alaska are subject to state and local taxes, such as sales taxes, real estate taxes, and personal property taxes.
Do corporations in Alaska need to register with the Department of Labor and Workforce Development?
Yes, corporations in Alaska are required to register with the Department of Labor and Workforce Development and obtain a Certificate of Registration.
What other licenses or permits may be required for a corporation in Alaska?
Depending on the nature of the business, corporations in Alaska may need to obtain a variety of licenses and permits, including occupational licenses, business licenses, and alcohol and tobacco licenses.
What is the process for dissolving a corporation in Alaska?
To dissolve a corporation in Alaska, you’ll need to file Articles of Dissolution with the Alaska Division of Corporations, Business, and Professional Licensing. You’ll also need to notify any creditors, and distribute any remaining assets to shareholders.
Is there a publication requirement for corporations in Alaska?
Yes, corporations in Alaska are required to publish a notice of the formation of the corporation in a newspaper of general circulation.
Is there an annual meeting requirement for corporations in Alaska?
Yes, corporations in Alaska are required to hold an annual meeting of shareholders. The meeting must be held within the state of Alaska.
What taxes do I need to pay to start a corporation in Alaska?
Depending on the type of business you are operating, you may need to pay state and local taxes. Additionally, Alaska has a corporate income tax which is calculated on the company’s net income.
Is it possible to form an LLC in Alaska?
Yes, it is possible to form an LLC in Alaska. The process of forming an LLC is governed by the Alaska Revised Statutes.
What is the filing fee to form a corporation in Alaska?
The filing fee to form a corporation in Alaska is $250.
What is the minimum number of directors required to form a corporation in Alaska?
The minimum number of directors required to form a corporation in Alaska is three.
How long does it take to form a corporation in Alaska?
It typically takes two to three weeks to form a corporation in Alaska.
What is the minimum amount of capital required to form a corporation in Alaska?
The minimum amount of capital required to form a corporation in Alaska is $1,000.
Is it necessary to have a registered office in Alaska for a corporation?
Yes, it is necessary to have a registered office in Alaska for a corporation. The registered office must be a physical address in the state.
What is the process for appointing officers of a corporation in Alaska?
The process for appointing officers of a corporation in Alaska is specified in the corporation’s Articles of Incorporation. Each officer must execute and file a Consent to Appointment form with the state.
Are there any other requirements to form a corporation in Alaska?
Yes, in addition to the filing fee and minimum capital requirements, corporations in Alaska must also publish a Notice of Incorporation in a newspaper of general circulation in the state.
What is the deadline for filing annual reports in Alaska?
The deadline for filing annual reports in Alaska is April 15th for corporations with a calendar year or December 31st for corporations with a fiscal year.
Are there any special requirements for foreign corporations in Alaska?
Yes, foreign corporations in Alaska are required to register and obtain a Certificate of Authority from the Corporations Section of the Alaska Department of Commerce, Community and Economic Development.

Also Read

Why Alaska Corporation is So Important

One of the key reasons why Alaska Corporation is so important is its role in driving economic growth and development. As a major player in various industries such as oil and gas, fishing, tourism, and mining, Alaska Corporation is a significant contributor to the state’s economy. Through its operations, the corporation generates revenue, creates jobs, and stimulates investment in local communities, thereby supporting overall economic prosperity and stability.

Furthermore, Alaska Corporation plays a crucial role in providing employment opportunities for thousands of individuals across the state. By hiring a diverse workforce with a wide range of skill sets, the corporation not only helps to reduce unemployment rates but also contributes to the development of a skilled labor force. This, in turn, helps to foster economic growth and enhance the quality of life for residents of Alaska.

In addition to its economic impact, Alaska Corporation is also instrumental in fostering innovation and industry growth within the state. By investing in research and development initiatives, adopting new technologies, and implementing sustainable business practices, the corporation is able to stay competitive in today’s rapidly evolving global market. This not only benefits the corporation itself but also spurs growth and innovation in the industries in which it operates, helping to drive progress and expand opportunities for all stakeholders involved.

Moreover, Alaska Corporation plays a pivotal role in contributing to the overall well-being of the state and its residents. Through its corporate social responsibility programs, philanthropic efforts, and community engagement initiatives, the corporation works to support local communities, protect the environment, and improve the quality of life for all Alaskans. From supporting education and healthcare initiatives to promoting environmental conservation and sustainable development, Alaska Corporation demonstrates a commitment to being a responsible corporate citizen and a positive force for change within the state.

Overall, the importance of Alaska Corporation cannot be overstated. From its role in driving economic growth and development to providing employment opportunities, fostering innovation and industry growth, and contributing to the overall well-being of the state and its residents, the corporation plays a vital and indispensable role within the Alaskan economy and society. Moving forward, it is imperative that we continue to support and uphold the values and mission of Alaska Corporation, recognizing its significance and impact on our lives and communities.

Conclusion

When determining which corporate form is best for you, be selective. You must know which business structure is bet-fitted for your product/service in Alaska. Consult a legal professional before you take the first step while setting up your business. Finding the ideal ratio of corporate advantages and legal protection that meets your unique needs is very important. In forming a corporation in Alaska, you need to ensure that every detail is well-formed so that your corporation will be successful. And if you have any questions, share them in the comment section below.

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