How to start an Alaska corporation

It might seem like a lot at first, but once you understand the steps, it’s very doable. This guide will walk you through everything you need to know to start your Alaska corporation.

How to start a corporation in Alaska

Incorporating means registering your business as a corporation so the law sees it as its own entity, separate from you. Each state has its own rules for how to do this, so the process can seem confusing. Let’s go through each step: 

1. Choose a name for your Alaska corporation

Your corporation’s name should be unique and make a statement about your business. Make sure it complies with the following Alaska requirements:

• Your name should be distinguishable from that of any other registered business in Alaska and end with "Company," "Corporation," "Corp.," "Incorporated," "Limited," or an abbreviation of one of these words.
• Your name cannot be deceptive. If you're selling fish bait, don't name your company "Sal's Alaskan Dry Goods."
• Ensure that your name is distinguishable from all existing business names.

Need help coming up with a business name for your corporation? Try the Rocket Copilot™ AI Business Name Generator, a free tool to help you brainstorm business names and get started registering your corporation.

2. Decide between an Alaska S-Corp and C-Corp tax designation

There are similarities between an Alaska S-Corp and a C-Corp regarding personal liability, management, structure, and compliance. The differences, however, come down to the following:

• Ownership Rules: a C-Corp can have an unlimited number of shareholders and stock classes, but it will be doubly taxed if dividends are distributed to shareholders. As an owner, you would need to file tax returns for the profits you receive. An S-Corp is taxed like a partnership with a "pass-through" tax structure. It's not doubly taxed because the corporation can pass income, losses, deductions, and credits to shareholders for federal tax purposes. Corporate owners do pay taxes individually. An S-Corp can have no more than 100 shareholders and one class of stock, and it can include only individuals, certain trusts and estates.
• Documents: if you want to form an S-Corp, file IRS Form 2553 to elect this status.

3. Appoint directors and shareholders for your Alaska corporation

Each state has its own personnel requirements for incorporating. In Alaska, you must have at least one director. There are no age requirements for directors, and there is no requirement that directors must live in Alaska.

State the number of your corporation's directors in either your Bylaws or your business's Articles of Incorporation. 

4. Choose a Registered Agent

A Registered Agent is the person or business responsible for receiving tax, legal, and government documents during regular business hours. It's important that every business has one. You can either serve as your own registered agent (if you have an Alaska address) or choose one to do that service for you (if you are not located in Alaska or would like an extra layer of privacy).

5. File your Articles of Incorporation with the state of Alaska

Once you have a business name and registered agent, you can register your business as an Alaska corporation with the state by filing your Articles of Incorporation. This document may be referred to in other states as "Certificate of Organization," "Certificate of Filing," or "Articles of Organization."

Alaska also requires that you file additional paperwork with your Articles of Incorporation, including biennial reports. The first report is due within 6 months of incorporating. If you incorporated in an odd-numbered year, your next report would be due by Jan. 2 of the next odd year, and in every odd year thereafter. The same is true if you filed in an even-numbered year. The report would be due by Jan. 2 of each even year. Failure to file your reports can jeopardize your corporate status.

6. Get an Employer Identification Number (EIN)

Before opening your doors for business, apply to the IRS for an employer identification number, or EIN. All corporations with employees in Alaska must have an EIN. An EIN is similar to your Social Security number, but it's for businesses. You'll also need an EIN to open your corporate bank account.

Congratulations! After you have completed all these steps, you have formed your Alaska corporation.

What to do after incorporating in Alaska

Alaska requires that corporations create records to maintain their corporate status, such as bylaws and corporate minutes. Bylaws set forth your company's operating rules and define your corporation's structure. You don't have to file your bylaws with the state, but you'll need them to demonstrate to banks, lending institutions, creditors, the IRS, and the courts that your corporation is valid and legitimate. Bylaws also help to establish rules so you can keep your corporate assets and debts separate from your personal ones.

Keeping Corporate Minutes of your director and shareholder meetings is also mandated by Alaska. Your minutes should be maintained at your corporate office, along with your other company records. The minutes keep track of all votes on important business decisions and they help secure your limited liability status.

We help you compare Corporate Meeting Minutes requirements and Bylaws requirements from state to state.

Still have questions? Learn more about how to start your own business with Rocket Lawyer and get started today!
 

Key takeaways Starting a corporation in Alaska means following state rules, like choosing a unique name, filling out paperwork, and paying fees to make it official. One important choice is deciding how your corporation will be taxed in Alaska, either as an S-Corp or a C-Corp. This affects how the business and owners pay taxes, and the differences between the two change from state to state. After forming the corporation, it’s recommended to keep records – like Bylaws and Meeting Notes – to stay in good standing with the state and prove your business is real and operating correctly.

Additional resources

Learning how to enforce a contract is just one step. Explore these additional topics to learn more and take the next steps.

• What is a corporation?
• What is an S-corporation?
• How are corporations taxed?
• How to start a corporation
• How to register a corporation by state