There are many aspects of Alaskan company formation that appeal to investors looking to set up a new business abroad. Alaskan laws are among the most progressive in the US, and offer a number of unique estate planning and tax saving benefits that are not available in most other states.
Alaska was the first state to pass legislation authorizing self-settled domestic asset protection trusts (commonly called “Alaska Trusts”). The state continues to be at the forefront in updating and improving its statutes to provide favourable protections for individuals, families, and family-owned entities. As a result Alaska has become one of the top states for the location of trusts and family Limited Liability Companies (LLC).
Starting a business in Alaska is a relatively easy process. One of the first decisions to make is which type of company to incorporate. The main company forms in Alaska include Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Company, or Business Corporation.
Many company incorporation services for filing can be completed online at www.corporations.alaska.gov. This will enable you to obtain a Certificate of Organization or Certificate of Incorporation. Articles of incorporation must be filed for an Alaska corporation or Limited Liability Company.
Newly formed companies must register to do business in Alaska and file an initial report within 6 months of the incorporation date. A federal tax ID number (FEIN or EIN) must also be obtained from the IRS – proof of your approved Alaska business by State of Alaska articles is required for this.
The requirements for setting up an LLC in Alaska include the following:
1. File Alaska articles of organisation
2. Choose a business name – which must be significantly different from any other registered Alaska businesses.
3. Register an Alaska corporate agent and physical office address
4. Submit the names and addresses of initial company members
5. List the names and addresses of LLC managers
6. Mail the stamped form to the Alaska corporate agent
Business Corporations in Alaska have slightly different incorporation requirements. Alaska articles of incorporation costing $250 must be filed, along with an application to the Secretary of State Division of Corporations.
Alaska corporations require the following:
1. The Corporation’s name must end in either incorporated, corporation, or an abbreviation of these
2. Authorised issuance of the number of Corporation shares
3. Register an Alaska corporate agent and physical office address
4. Submit the name and address of the directors and Alaska incorporators who will sign the articles of incorporation
5. File the name and address of the person preparing the Corporation’s articles of incorporation
Additional requirements during the incorporation process may include:
Registration with the AK department of revenue is required if you are going to employ staff.
Most cities or counties don’t have a general license but you may have to obtain one if your business industry requires it.
If you are opening an office or shop, you may need approval from the city zoning for your type of business.