Why should you register a new company in Alaska? Alaska offers a variety of advantages to businesses that are planning to locate and operate from the state. Businesses can leverage a variety of economic factors including prime location, stable economy and low taxation.

Alaska is a state with a geography that creates constraints as well as opportunities for the economy of the state. Alaska has abundance of natural resources, strategically located, and more recently natural beauty has been one of the key factors driving their economy.

Advantages that Businesses can capitalize from

What benefits can a startup company in Alaska derive? The state offers a variety of loan programs, incentives, and tax credits to businesses that are willing to relocate here. Let’s take a quick look at some of the business beneficial programs.

Advantage#1: Tax Credits

When you register a new business in Alaska, you will be able to benefit from a variety of tax credits that the state offers. These tax credits are available depending on the type of industry, associations, and projects performed. Of course, businesses will need to qualify to benefit from this. Some of the commonly applicable tax credits include:

• Education: In accordance to Alaska Statutes 43.20.014, 43.55.019, 43.56.018, 43.65.018, 43.75.018, 43.77.045, you can benefit from tax credits if you make contributions to Alaska Universities as well as accredited Non-Profit Alaska Colleges. The tax credit will be 50% of the first $100,000 followed by 100% on contribution between $100,000 and $300,000. The total credit allowed per year can be a maximum of $5 million.
• New Area Development: In accordance to Alaska Statutes 43.55.024(a), if your startup company in Alaska is located or is operating from outside south of 68 degrees north latitude and the Cook Inlet then your business will be eligible for tax credit per year and can be a maximum of $6 million.
  Veteran Employment Tax Credit: If you register a new business in Alaska that employs veterans then you can benefit from a credit of $3,000 for disabled veterans or $2,000 for non-disabled veterans.

Some of the other tax credits, which are industry specific and you can benefit from include Qualified Oil and Gas Service Industry Expenditure Credit, Qualified Capital Expenditures, Gas Exploration and Development, Minerals Exploration Incentive, Film Production Credit, Frontier Basin Credits, and Exploration Incentive among others

Advantage#2: Loan Programs

The state of Alaska offers a variety of loan programs to those who register a new company in Alaska. Some of the most popular and successful loan programs include:

• Rural Development Initiative Fund: It is available to businesses situated in a community area with a population of 5,000 or less. The loan amount cannot exceed $150,000 for an individual or $300,000 for businesses run by two or more people. The loan term is a maximum of 25 years.
• Small Business Economic Development: This loan program has been created specifically to provide financial support to startup companies in Alaska or for expansion of such businesses. The loan amount cannot exceed $300,000.
• Microloan Loan Program for Women Entrepreneurs: This program provides financial support to women owned startup companies in Alaska. The loan amount cannot exceed $10,000.

Some of the other loan programs that businesses in Alaska can be eligible for include Microloan Loan Program, Alternative Energy Conservation Loan Fund, and Mariculture loan.

Are there any Disadvantages of Incorporating in Alaska?

If you register a new business in Alaska, are there any disadvantages? When it comes to tax or forming a business in Alaska, there are no disadvantages. The only problems that businesses might face in the state is its remoteness from some of the major markets across the nation and worldwide. Apart from this, the mountainous topography of the state creates a cold climate that ensures the state is covered in a snow blanket for a longer period of time.

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According to a report by Alaska Small Business Profile, 2016, 430 establishments started in 2014 and the start-up rate has jumped by 3.2% in 2015. Small and medium sized businesses were set up in a variety of Industries including Construction, Accommodation and Food Services, Professional, Scientific, and Technical Services, Transportation and Warehousing, Agriculture, Forestry, Fishing and Hunting, Educational Services, Finance and Insurance, and Wholesale Trade among others.

This is just the right time to form a Corporation in Alaska and this is one decision you will never regret!

Different types of business entities will require different types of documentations and the fee structure will also be different. In order to make it easier to form a Corporation in Alaska, we have a team of specialists, standing by to help you with information and provide you the necessary support and assistance towards ensuring your business entity is registered. We are one of the top Alaska Registered Agents and are familiar with all processes pertaining to Alaska State Division of Corporations, Business, & Professional Licensing.

Let’s take a look at how you can form an Alaska business Corporation or LLC.

Alaska LLC Registration and Formation

LLC company formation in Alaska is governed by Chapter 10.50. Alaska Revised Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:

Step#1: Hire a Registered Agent

According to universal citation AK Stat § 10.50.055 (through 27th Leg Sess 2012), if you form an Alaska business LLC, you will be required to maintain a Registered Agent in the state. The Registered Agent can be an individual resident of the state or a Domestic or Foreign Entity authorized to transact business in the state of Alaska. We would take this opportunity to share with you the fact that we are one of the top Registered Agents in the state and have been responsible for over 11,494 businesses set up in Alaska.

We are in compliance with all regulations in the State of Alaska.

Step#2: Name Registration

According to Sec. 10.50.020., Chapter 10.50., Alaska Revised Limited Liability Company Act, you will need to register your business entity name in order to conduct business in the state. There are certain regulations regarding name registration that needs to be followed like the Limited Liability Company name stated in the Articles of Organization (Domestic) or Registration of Foreign LLC (Foreign) and must contain words like “Limited Liability Company” or abbreviations like “LLC” or “L.L.C.,”.

LLC company formation in Alaska requires the name to be unique and you can ensure uniqueness through name search and availability.

Step#3: Articles of Organization or Registration of Foreign LLC

If you are planning to form an Alaska business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. You will require Articles of Organization for a Domestic LLC and Registration of Foreign LLC if your business entity is Foreign based. Depending on the nature of the business entity, the documentation can be submitted online or physically to the State of Alaska, Division of Corporations, Business, & Professional Licensing at 550 W 7th AVE, STE 1500, Anchorage, AK 99501-3567.

We can also file the form on your behalf as your Registered Agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form an Alaska business, feel free to call us on 702-871-8678.

Alaska Corporation Registration and Formation

If you are planning to form a Corporation in Alaska then the procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

According to universal citation AK Stat § 10.50.055 (through 27th Leg Sess 2012), if you form an Alaska business Corporation, you will be required to maintain a Registered Agent in the state. The Registered Agent can be an individual resident of the state or a Domestic or Foreign Entity authorized to transact business in the state of Alaska. We would take this opportunity to share with you the fact that we are one of the top Registered Agents in the state and have been responsible for over 11,494 businesses set up in Alaska.

We are in compliance with all regulations in the State of Alaska.

Step#2: Name Registration

If you are planning to form a Corporation in Alaska then it is important to ensure you have identified a name for the business. You need to also ensure the name is in accordance with the requirements mentioned in Chapter 10.06., Alaska Corporations Code, Section 10.06.105. The business entity name should contain the word “Corporation”, “Incorporated”, “Company”, or Limited”, or an abbreviation of any of these words like “Inc”. The Corporation statutes AS 10.06 also provide businesses with the alternative of opting for “Business Name Reservation” (valid for 120 days) or “Business Name Registration” (provides exclusive rights for a period of 5 years).

Company formation in Alaska requires the name to be unique and you can ensure uniqueness through name search and availability.

Step#3: Articles of Incorporation or Certificate of Authority

If you are planning to form a Corporation in Alaska then the type of registration form you will require is dependent on whether your business is based in Alaska or if it is a Foreign Company. You will require Articles of Incorporation for a Domestic Corporation and Certificate of Authority for Registration of a Foreign Business Entity. Depending on the nature of the business entity, the documentation can be submitted online or physically to the State of Alaska, Division of Corporations, Business, & Professional Licensing at 550 W 7th AVE, STE 1500, Anchorage, AK 99501-3567.

We can file the form on your behalf as your Registered Agent in the state and provide you with certified copies of the Incorporation.

If you have any questions regarding Alaska Incorporation or LLC formation, you can simply visit the Alaska Business formation page.

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Alaska boasts of a gross state product exceeding $44.9 billion and federal subsidies, an important aspect of the economy that is perhaps a primary reason for the state witnessing low taxes. In the last decade, the state has seen growth in the tourism sector. If you are wondering if Incorporation in Alaska is a smart idea or not then the list of top companies and employers by Alaska Department of Labor and Workforce Development will definitely be helpful to you. Some of the companies headquartered in the state include FedEx, Wells Fargo, Alaska Communications Systems (ACS), Lowe’s, Costco, Icicle Seafoods, McDonald’s Restaurants of Alaska, and Home Depot among others.

Why Choose Alaska for Incorporation?

Why is a company Incorporation in Alaska a good decision? This northernmost state is home to 69,115 small businesses with 72% of them being exporters. The state of Alaska offers several benefits in terms of advantages as well as incentives to prospective businesses. Let’s take a look at some of them.

Economic Development Opportunity Zones

If you set up a company in Alaska especially in the opportunity zones laid out by the Department of Commerce, Community, and Economic Development then your business will be able to enjoy tax benefits on investments. You can check the various opportunity zones by clicking here.

Loan Programs

One of the advantages of Incorporation in Alaska is the availability of a variety of loan programs, which will help your business to generate the capital required. Some of the popular loans available include:

• Small Business Economic Development (SBED): The maximum loan amount is $300,000 based on eligibility. Download Loan Application
• Rural Development Initiative Fund: The maximum loan amount varies from $150,000 for a single person to $300,000 for two or more people. Download Loan Application
• Micro loan program: The maximum loan amount varies from $35,000 for a single person to $70,000 for two or more people. Download Loan Application

How do you Incorporate in Alaska?

A fundamental decision that you will be required to make in order to set up a company in Alaska is the type or form of business organization to register. In the state of Alaska, the different forms of businesses you can choose from include General Partnership, Sole Proprietorship, Business Corporation, Limited Liability Company (LLC), and Limited Partnership (LP).

If you are thinking that a company Incorporation in Alaska might be a tough process then the best way to understand the process is through the following:

• Business Type: It is important to choose the type of business you want to incorporate as each type of corporation has its own advantages and disadvantages and the forms and fees are also different. Business Corporations can be classified under Domestic and Foreign Corporations. The other types of businesses that are allowed Incorporation in Alaska include Cooperative Corporations, Non-Profit Corporations, Professional Corporations (only domestic), and Religious Corporations. Know more
• Business Entity Name: If you are planning to set up a company in Alaska then after identifying the type of business to form, you need to identify, search, reserve, and then register the business entity name. Business names can be reserved for a period of 120 days while business name registration will provide exclusive rights to use the chosen name for 5 years.
  In order to reserve or register a business name, you will need to follow certain rules like the name should be “distinguishable” and name restrictions should be avoided. You can register business name online or by sending mail to the Department of Commerce, Community and Economic Development Division of Corporations, Business and Professional Licensing along with the prescribed fee.
• Choose a Registered Agent: According to Alaska Statutes-AK Stat § 10.06.150 (through 27th Leg Sess 2012), in order to initiate company Incorporation in Alaska, you will be required to continuously maintain a Registered Agent. We are one of the respected Registered Agents in Alaska and will be responsible for initiating the processing of your “Articles of Incorporation” for Domestic Corporations and “Certificate of Authority” for Foreign Corporations.
• Articles of Incorporation or Certificate of Authority: “Articles of Incorporation” if your business is a Domestic Corporation and if it is a Foreign business entity then a “Certificate of Authority” will have to be filed. We can always file on your behalf through the standard process, online or through expedited process.
• Date Stamped Copies: As a part of the process of company Incorporation in Alaska, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your Corporation.

Costs and Fees associated with Alaska Incorporation

What would it cost to set up a company in Alaska?

Check Fees here!

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Business Information & Rankings

• Alaska ranks 1st for the Most Tax-Friendly State for Residents.(Tax Foundation, 2005)
• Alaska ranks 3rd in Tax Foundation’s State Business Tax Climate Index. (2004)
• Anchorage ranked 15th in “Best Workforce Education Levels – Top 25” category. (Business Facilities, 2005)
• Alaska has the lowest overall per capita tax rate of any State due to the oil royalties generated over the last 20 years. These royalties fund much of the State government operations.

Cost of Living Index

Alaska’s Permanent Fund helps offset the cost of living. In 2004, each man, woman and child living in Alaska for at least one year received a dividend check from the state government for $919.84.

Crime Rate

Alaska is ranked 31st in the nation in terms of crime. (FBI, 2003)

Fees & Taxes

Business Inventory Tax
Alaska has a business inventory tax; however, some municipalities may exempt business inventories.

Business Licenses Fee
Unless specifically exempted by statute, every business must obtain a business license at a biannual fee of $50.

Corporate Income Tax
Alaska uses a graduated percentage of taxable income ranging from 1% for net income below $10,000 to 9.4% for net income over $90,000. Alternative minimum tax rate on capital gains is 4.5%.

Personal Income Tax
None

Personal Property Tax
Taxable

Alaska is the only state where a large part of its land mass is not subject to a property tax. While property tax is the primary method of raising revenues for many of the larger municipalities in the state, smaller municipalities favor a sales tax.

State Sales and Use Tax
Base Rate: None
Machinery Rate: None

There is no statewide sales tax levied. The typical sales tax rates for some municipalities are from 3%-5%.

Unemployment Insurance
Alaska charges new employers the average industry tax rate for 1 year.

Once your company is set up, you will need:

1. Tax ID (EIN) – free over the Internet or phone.
2. Yearly Requirements and Fees for Idaho companies – There is an annual list of officers/managers due each year in the anniversary month of the corporation/LLC. There is no fee.
3. Company Minutes & Stock Certificates – are included in incorporation. You will have access to documents generated on your client account.

Idaho additional services

• Registered Agent
• Annual Report
• EIN (Tax ID)
• More Additional Services

• Why Idaho?
• Idaho Registered Agent
• Idaho Annual Requirements
• Idaho Corporation Statutes: Idaho Statutes – Title 30: Corporations