How Much Does It Cost to Form a Corporation in Alaska?
Legal business registration — and maintaining business compliance — involves necessary expenses and investment. Some of these costs are payable to the Division of Corporations, while others are due to additional state entities or the federal government. Here are some common requirements and fees.
Please note that fees for a permit or business license in Alaska may be due when you first form your business, on an ongoing schedule or on an ad hoc basis. Find more details below.
Initial Alaska Corporation Filing Fee
When setting up a corporation in Alaska, you’ll need to file a form and pay a filing fee. Here are the current Alaska corporation fees and filing times:
When you use Incfile to form a corporation in Alaska, we charge you the state filing fee and forward it to the Division of Corporations when we file your incorporation paperwork.
Employer Identification Number
Every corporation in the country should have a unique EIN (Employer Identification Number) from the Internal Revenue Service. You'll use your EIN when you open a business bank account, file taxes and pay employees. You can get one directly from the IRS, or Incfile can get one for you.
If you want to do business in a state other than the one where your business is based, you must create a Foreign Corporation.
Alaska Foreign Corporation Registration
Before you can bring an arm of your business from another state into Alaska, you must request Foreign Qualification in Alaska. This means the state gives you permission to conduct business there.
To request registration of an Alaska Foreign Corporation, you must file a Certificate of Authority and pay a processing fee of $350. If you wish, you can file online. The state may have additional registration requirements, so contact the Division of Corporations directly for more information and to ensure you're in compliance with state law.
Foreign Qualification to Operate in Another State
If you plan to expand your Alaska corporation into another state, you’ll first need Foreign Qualification or a Certificate of Authority from that state. This is necessary before you can create a physical presence, hire employees or bank in that state.
You'll likely have to complete at least one application and pay a filing fee, but each state has its own requirements. Before you begin the process, compare state filing times and state filing fees so you can plan accordingly.
Above all, contact the state government entity that administers business (usually the Secretary of State) to confirm their requirements and for specific instructions.
If you need assistance, Incfile provides a complete Foreign Qualification service for all states.
Alaska Annual Report Requirements
Most states - including Alaska - require business entities to file an annual (or other periodic) report. In Alaska, the Division of Corporations requires an initial report to be filed during the year of incorporation followed by a biennial report once every two years.
When you complete your biennial report you may file it online using the online filing engine accompanied with a filing fee of $100.
Alaska Business Licenses and Permits
Before you start doing business, you must secure the necessary state, federal or local business licenses and permits to operate your corporation. Some of the fees will only need to be paid once, while others may be ongoing charges.
Permits and licenses vary based on:
You're not legally required to have Alaska corporation bylaws.
The bylaws must then be adopted (and amended, if necessary) by the board of directors and shareholders.
Despite their not being legally required, a set of bylaws can be extremely helpful in making sure you’re organized and can help protect your business from any future changes and events that may affect your business.
Other Alaska Corporation Filing Requirements and Fees
The State of Alaska requires you to complete a few more tasks before you can begin conducting business.
Appoint a Director
Some states require corporations to appoint a full board of directors. Alaska corporation law requires all corporations to have at least one director, as well as a president, a secretary and a treasurer. Per Alaska Corporations Code Title 10, Chapter 6, Article 6, § 10.06.483, any two or more offices may be held by the same person, except the offices of president and secretary.
In Alaska, the board of directors (or the single director) elects officers, such as the president, CEO, etc. Alaska corporation law requires corporations to have at least a president, a secretary and a treasurer. A single person can hold two or more offices, except the offices of president and secretary.
Issue Stock to Shareholders
To raise business capital and keep it separate from company owners' money, every corporation in the state must sell stock to its shareholders. The Articles of Incorporation must authorize the sale of at least one share, and the corporation cannot sell more shares than are authorized.
Hold Annual General Meetings
This is one area where Alaska differs from other states. You may hold annual meetings, and it's generally a good idea to do so. But if you fail to do so, Alaska Corporations Code Title 10, Chapter 6, Article 5, § 10.06.405 states, "The failure of a corporation to hold an annual meeting at the time stated in or fixed under its bylaws does not cause the corporation to forfeit its status, does not cause a dissolution of the corporation, and does not affect the validity of corporate action."
Change the Registered Agent
If your corporation is based in Alaska, then you must have a Registered Agent in Alaska. You'll need to appoint one when you file your Articles of Incorporation. You can also change to a new Registered Agent later by filing a form and paying a fee of $25.
Reserving a Name for Your Corporation
If you're not quite ready to start your business, you can reserve a name for 120 days with the Alaska Division of Corporations by filing a form and paying a fee of $25. First, conduct an Alaska corporation search and learn the state's business naming rules to ensure you select a name that meets legal requirements.
Amending Facts About Your Corporation
When you incorporate, the Alaska Division of Corporations forms you fill out include certain facts about your business at that time. Over the years, some or all of this information may change. If it does, you'll need to file Articles of Amendment with the Division of Corporations along with a filing fee of $25. You can do this yourself or Incfile can do it for you.
Get a Certificate of Good Standing
Some organizations may request that you prove that your corporation has maintained compliance with laws and tax requirements. In most states - including Alaska - this proof is provided with a Certificate of Good Standing. In some cases it may be referred to as a Certificate of Compliance.
If you need to prove you have met your commitments, you’ll need to request an Alaska Certificate of Good Standing from the Division of Corporations. You can do this via the state's online portal for a fee of $10.
The information listed above details many of the fees a standard corporation will be required to pay in Alaska. In some circumstances, there may be other one-off, periodic or ad hoc fees not listed above.
Of course, your corporation will also probably need to pay federal, state, self-employment (if it's an S Corp) and other taxes. You'll find more information on the Alaska taxes page.