- Anyone with a suitable business idea can form a corporation in Alaska by following some steps. The overall process is easy to comprehend, even for beginner entrepreneurs.
- Online services have transformed the way of starting a business in Alaska. Earlier, it was a lengthy procedure, but now you can do it quickly.
- It is crucial to check the requirements before forming a corporation in Alaska. This way, you can avoid mistakes in the process.
- Alaska is a country where you can get numerous benefits while starting a corporation. So, read the policies and programs carefully and select accordingly.
Alaska is one of the most influential countries in the world. It offers entrepreneurs many opportunities for incorporating diverse businesses. Why? Because the country is rich in resources and has an ideal business environment. There are other benefits too, which you should be aware of. These include tax benefits, loan programs, suitable policies, and more.
Almost every corporation in Alaska is doing well in growing its business. The credit goes to the robust business environment in the country. Besides, the government also supports young entrepreneurs in building successful businesses.
If you have a business idea and want to implement it, you can consider Alaska. Various reasons make it a perfect choice for developing new startups. You can quickly form a corporation in Alaska by following some straightforward steps. It doesn't matter whether it is your first time learning the formation procedure.
We have compiled all the steps in this article. Let's dive right into it.
Choose A Name For Your Corporation
The first thing you need to do to form a corporation in Alaksa is select your business name. It should be distinct, memorable, understandable, straightforward in pronunciation, and related to the business. Also, consider deciding on two names. This way, you will have a backup option if one is not working.
Here are some specific conditions that you have to fulfil before choosing a name-
- The business name must have the term "corporation,” "company,” or "limited.” You can also consider an abbreviation instead of writing the entire term.
- The name should not be similar to other Alaska companies. The best way to find whether it is distinct is by searching. You can use the Secretary of State search tool for it on the Alaska Department of Commerce's site. Other tools are also available, but make sure they are reliable.
- You can include a place's name (village, borough, or city) in your corporation name. But you should avoid using these terms if it is not a municipality.
- You cannot use the terms in the name that imply government agencies. These include the State Department, Treasury, FBI, etc.
- The corporation name should always represent the business. Avoid using unnecessary and misleading terms in the name.
- It is better to choose a name that has a unique domain name. Once finalising a particular name, you can secure its URL.
Appoint a Registered Agent
A registered agent is a professional who receives official documents from the government on behalf of the corporation. You can also consider getting this service from an entity. The legal documents that a registered agent manages are-
- Tax forms
- Official documents
- Annual reports
- Lawsuit notice
Before selecting a particular individual, you must remember some things. An ideal registered agent-
- Has an age of eighteen years or older
- Should be available at all times during business hours
- Should be a citizen of Alaska, having address proof
- Should have extensive knowledge regarding the procedure
You will find plenty of options regarding registered agents. Online platforms are also present to provide you with reliable information.
It is essential to check the experience of the individual. This way, you can choose a suitable registered agent for the tasks.
File Articles of Incorporation
The next step in forming a corporation in Alaska is filing the Articles of Incorporation. This document is necessary because it contains information about your business. You can file Articles of Incorporation through mail or the official website.
Here are the things you need to mention in the application-
- The name and address of your Alaska business entity
- The name and address of your registered agent
- The mission or purpose of your corporation
- The name and address of incorporators
- The overall amount of shares that the company can issue
The filing fee for filing this document is $250.
Prepare Corporate Bylaws
The Corporate Bylaws of a corporation are the rules decided by the board of directors. These include the management structure of the company.
Preparing corporate bylaws is not compulsory when incorporating a business in Alaska. However, it can be beneficial. You can conduct meetings with the board of directors to get this process done.
The following details are necessary to include in the corporate bylaws-
- Corporation's name
- Meeting guidelines
- Dispute resolutions
- Board of directors
- Voting rights
- Officers, members, and other individuals
- Stock certifications
- Dates and timings of yearly meetings
You can create corporate bylaws by following these steps-
- Conduct meetings with the owners
- Consider everyone's perspectives
- Maintain proper records
- Use the proper structure to write the bylaws (by finding a suitable template)
Every corporation in Alaska should authorise the issuance of shares. You can do the same by providing the shareholders with a stock certificate. It should include the following-
- The name of the shareholder
- The number of shares owned by the shareholder
- Purchase date
- Identification number
- Corporate seal
You can create certificates using different software applications like Adobe Acrobat, Accredible, Sertifier, and more. However, the certificates should have the required details.
Set Up a Corporate Records Book
A corporate records book contains all the official documents of your business. If you maintain a corporate book, you won't struggle when finding crucial documents.
A corporate record book should have-
- Articles of Incorporation
- Corporate bylaws
- Duration of meetings
- Annual reports
- Names and addresses of directors
- Names and addresses of shareholders
- Stock transfer documents
- Duration of meetings
- Stock certificate ledger
Nowadays, you can buy corporate record kits online to prepare them.
Obtain an EIN
An Employer Identification Number plays a crucial role in filing taxes, hiring employees, and opening a business bank account. So, getting an EIN is necessary to form a corporation in Alaska.
The Internal Revenue Service provides them to businesses in Alaska. You can apply for the same online or offline through the mail. Once the IRS checks all the documents, they will approve the application, and you will get it.
File Initial and Biennial Reports
The next step is to file initial and biennial reports. The initial report must be filed within six months after the formation. On the contrary, you have to file biennial reports every two years.
The deadlines of the biennial report might vary according to the business type. So, make sure to keep an update on the same. The process of filing it is as follows-
- Visit Alaska State's website and click on Alaska Corporations Database.
- Then you have to enter your corporation's name.
- Click on the link to the Biennial report that the website has generated.
- You can either fill it out online or download the same for mailing. Both methods work perfectly.
The overall cost of filing biennial reports also differs according to the business type. The cost ranges from $9 to $300.
Skipping this step might increase the overall amount to a great extent. In some cases, there are some dissolutions as well. That is why you must keep yourself updated regarding the deadlines.
The rules and regulations about filing initial and biennial reports keep changing in Alaska. You can get all the information on the official state website.
Comply with Alaska Tax requirements
Alaska corporations must pay 2% - 9.40% of tax on the overall income. You can file the taxes by using the IRS form 1120. You can make the payments quarterly on the 15th of every month.
Obtain Necessary Business Licenses and Permits
Business licenses and permits are also mandatory to form a business entity in Alaska. Without these licenses, the government might take legal action against your corporation.
The type of licenses might vary from company to company. You can get information regarding it through some official websites. For Federal licenses, you can check the U.S. Small Business Administration guide. For state licenses, you can consider the Alaska Department of Commerce website. For local ones, you can ask a local county clerk.
Foreign Corporations Doing Business in Alaska
The last step is filing an Alaska Foreign Business Certificate of Authority with the Alaska Division of Corporations. It costs $350 to complete this procedure. You can submit the document online or offline through the mail. Some service providers also provide these services at reasonable rates.
Your business is eligible as a foreign corporation in Alaska under the following conditions-
- You wish to buy a commercial space or property.
- You want to hire remote employees.
- You want to accept orders in Alaska.
- You have a business bank account in Alaska.
- You already have a commercial property in Alaska.
Forming a corporation in Alaska has now become convenient and straightforward.
Before starting a business in Alaska, prepare all the documents beforehand. It is beneficial as you can prevent some mistakes in the procedure. We hope the above steps helped you understand the entire procedure.
Next steps for forming a corporation in Alaska
- Create a business bank account by using the Employer Identification Number
- Apply for a business credit card
- Get insurance from a reliable company
- Look for business credit and investors
Is Alaska a suitable country to form a corporation?
Yes, Alaska provides many growth opportunities to corporations. That is why it is a suitable option.
What is the cost of incorporating a corporation in Alaska?
The overall cost to form a corporation in Alaska lies between $50 to $250.
How much corporate tax do you have to pay in Alaska?
You need to pay 2%-9.40% of tax, depending upon the overall income.
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