Why Incorporate in Alaska?
Alaska is one of the few states with no personal income tax or sales tax, making it attractive for new businesses to set up shop. In addition to the desirable tax structure, Alaska also offers several business development incentives, provided your corporation meets certain criteria.
For example, the Rural Development Initiative Fund provides private sector employment by financing the start-up and expansion of businesses that will create significant long-term employment.
An Alaska corporation may be the best choice for many entrepreneurs looking to start a larger business. As a corporation, your business is able to buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than a limited liability company (LLC). A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.
Is an LLC Better Than a Corporation?
It all depends on your goals. Limited liability companies are usually better for smaller businesses. An LLC is easier to set up, and you receive many of the same benefits as a corporation, but with less regulation.
Learn more about forming an Alaska LLC so you can decide which business entity is right for you.
Benefits of Forming an Alaska C Corp
Benefits of Forming an Alaska S Corp
It offers several advantages similar to those provided by a C Corp including, but not limited to:
- Options for creating, transferring and selling stock, though not as many as a C Corp
- The capacity for up to 100 shareholders
- Simpler rules than those applicable to C Corporations
- Easy transfer of ownership simply by selling your stock
- The possibility of saving money by allowing you to pay less self-employment tax
In this guide, you’ll find information on naming your corporation, getting a Registered Agent, the fees you’ll need to pay, business taxes and much more. We also cover what you'll need to register your corporation and how you'll interact with the AK Department of Commerce, Community, and Economic Development, Division of Corporations.
How to Form an Alaska Corporation Yourself in 6 Steps
Choose a Unique Business Name and Complete a State Business Search
Every Alaska business must have a distinct name that hasn't already been claimed by another business in the state. If you’re having difficulty thinking of a name, try using our Business Name Generator to gather ideas. You'll need to follow a few naming rules, which you can read about in detail on the Alaska Corporation Names page.
Once you’ve chosen a name, you’ll need to make sure it’s available in Alaska. To learn whether another company in the state is using your desired business name, use our tool to do an Alaska entity search.
You can also carry out a name search via the business database on the AK Division of Corporations website.
Provide an Official Address for your Corporation
Every Alaska corporation must have a designated address. That could be your home address (if you’re running the company from your residence), a building where your office is located or any physical address of your preference. The address can be outside the state of Alaska and can be a P.O. Box.
You may also be able to use a virtual mailbox for your business address. Incfile can provide you with an Alaska virtual mailbox where we'll receive your mail, and scan it for your online review. This can be especially convenient if you run a home-based business and don't want your home address published as part of your business public record.
Assign a Registered Agent
Someone who receives official correspondence and is responsible for filing reports with the Secretary of State is known as a Registered Agent. Every Alaska corporation is required to have a Registered Agent.
You can fill this position yourself, assign another manager in your business or use a Registered Agent service. If your Registered Agent in Alaska is a person, they must have a physical street address in Alaska and must be available during business hours to receive important communications and documentation on behalf of your company.
You'll appoint your Registered Agent when you file your Alaska Articles of Incorporation with the AK Division of Corporations, and formally create your business.
All of Incfile’s business formation packages include Registered Agent service. It’s free for the first year and just $119 per year after that. You can also access a digital dashboard to view any document we've received on your behalf.
File Your Articles of Incorporation with the AK Division of Corporations
Once you've gathered all the information for your corporation, you’ll need to file your Articles of Incorporation with the Division of Corporations to officially create your business.
File by Mail
State of Alaska Corporations Section
PO Box 110806
Juneau, AK 99811-0806
What are the fees and requirements to incorporate in Alaska?
Alaska Compliance Requirements
Domestic (Alaskan) Entities are required to file within 6 months of creation. Failure to file will cause non-compliance and may lead to administrative dissolution.
Within 6 months of the date of formation.
By January 2nd of the filing year.
Entity organized or qualified in even-numbered years must file in even-numbered years; those in odd-numbered years file in odd-numbered years.
Get an Employer Identification Number (EIN) from the Internal Revenue Service
You'll need an EIN to identify your business to the IRS. You'll use this number when filing and paying taxes, when submitting payroll information and payments for your employees and for opening a business bank account. You can obtain one directly from the IRS, or Incfile can get one for you as part of the Alaska corporation formation process.
A set of rules that govern how a corporation will be run, bylaws detail how many directors the corporation will have, whether the board of directors will have annual meetings and what the voting requirements are, among other things.
Some states require companies to create bylaws. You're not legally required to have them in Alaska, but it’s always a good idea to write them to protect your business from any future changes and events.
Alaska Corporation Types
Check with the AK Division of Corporations to confirm whether your business should and can be a Professional Corporation.