Incorporate in Alaska

Situated in the northwest extremity of the North American continent, Alaska is one of the best business-friendly environments, servicing both small and large companies. This American state’s economy is dominated by oil, natural gas, fishing and tourism industries.

It also offers the best legal protection to incorporations. If you think you can handle well the low temperatures in Alaska, then here are the state’s incorporation requirements.

Benefits of incorporating in Alaska:

Protection of personal assets

When incorporating in the USA, foreign entrepreneurs should feel confident knowing that their personal assets are protected. Corporations and limited liability companies separate the assets and liabilities of companies from the personal assets of the business owner.

Ability to Open a Bank Account

In most cases, forming a company is the necessary first step which allows a non US resident to open a bank account. Internet commerce is made much easier with a US bank account, because this gives you access to a debit card, and the potential to open a merchant service account. Companies such as Paypal, Amazon and EBay considered you more qualified as a vendor.

Enhanced credibility

Whether starting a new business or incorporating an existing one, incorporating makes a business appear more credible to potential customers, suppliers and investors. You also have the security of operating under US law.

Your corporate name can boost your brand

Alaska requires that a C corporation or an LLC must not have a name that is the same or could be confused with a business already in existence. To make sure your business name is eligible Inc. Plan can help you with choosing a unique C-Corp or LLC name. A unique corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Residency Requirements

There is no residency requirement in Alaska. You or your directors do not have to live in Alaska to own or operate an Alaska company. However, before your firm is legally eligible to operate, you will need all the required filings, business licenses, permits, and tax registrations. If you need help, Inc. Plan can help you through the bureaucratic process.

Other incorporating requirements

Both C-Corps and LLCs must have one or more members, but the names and addresses of directors are not mandatory to appear in the Articles of Incorporation or the Articles of Organization. Only the CEO or Vice-president is allowed to sign the biennial report. No incorporation age restrictions are imposed by the Alaska Secretary of State.

Requirements for forming an LLC in Alaska

When forming a Limited Liability Corporation certain steps must be taken to keep the business in compliance on an ongoing basis.

Name requirements for LLCs

Limited liability corporations must have distinctive names ending with “Limited liability company”, “LLC” or “L.L.C.” . Moreover, the term “limited” can be reduced to “Ltd.” , and the word company to “Co.”. LLC names including words such as “Bank”, “Banking”, “Banque” or “Insurance” require state approval and designations such as “Borough”, “City”, “Municipality” and “Village” are forbidden.

LLC filing requirements

If you decide to incorporate an LLC in Alaska, then you must file a formation document called the Articles of Organization. The information that must be listed on this report varies from one state to another.

Required information for the Articles of Organization

The Articles of Organization must contain the name and address of a registered agent who resides in Alaska, available to receive and manage legal and tax business documentation. LLC owners must also file an initial report within six months of incorporating and a biennial report by January 2 of the year following the incorporation process and two years after.

LLC taxes and fees

Alaska doesn’t charge LLCs for personal and business income. However, LLC owners may choose to be taxed as a C-Corp for federal tax purposes. The flat fee for the biennial report is $100, but additional fees may be applied if the report is not filed by February 1. The state also requires an EIN for Limited Liability Companies which hire employees and for opening a US Bank Account.

Requirements for forming a C corporation in Alaska:

Each of the 50 American states has its own requirements for incorporating. The most essential requirements for C- corporations established in Alaska are as follows.

Name requirements for C corporations

In Alaska, the permitted name designations for corporations are: “Corporation”, “Incorporated”, “Company” or “Limited”. Also, you can use the abbreviations: “Corp.”, “Inc.”, “ Ltd.”, “Co”. Also, if companies want to use “Bank”, “Banking”, “Banque” or “Insurance” as an corporate name, they must seek approval. Names including “City”, “ Municipality” and “Village” are prohibited.

Filing requirements in Alaska

In order to form a corporation in Alaska, entrepreneurs must file a document of formation called Articles of Incorporation. This is filed with the Division of Corporations Business and Professional Licensing. Additionally, by January 2 of the year following incorporation, businesses must submit their first biennial report on their activity.

Required information for the Articles of Incorporation

It is not mandatory for officer and director names and addresses to be included in the Articles of Incorporation. However, Alaska corporations must list the name and address of a registered agent with a physical Alaska address. Also, shares and per value must be specified in the Articles of Incorporation. Inc. Plan (USA) can help you with the necessary filings and also with qualified registered agent service and other mandatory requirements.

Taxes and fees requirements

The state of Alaska enforces no individual income fees or sales taxes for C-corps. However, corporations are subjected to income taxes imposed on their entire taxable revenue. Additionally, the fee for filing the biennial report is $100, and if the first report is not submitted by February 1, corporations may suffer penalties. If you plan on hiring employees, Alaska law will ask you for a tax identification number (EIN).

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.

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