General Guide to Company Incorporation in Alaska
Updated on Wednesday 15th January 2020
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With a stable economy and a respectable business environment, Alaska is one of the destinations chosen for doing business by local and foreign entrepreneurs. The Alaska Division of Corporations is the entity in charge with registering the companies in the state. The incorporation process is not complicated and can be supervised by our team of specialists in company formation in USA. We have also prepared a general guide to company incorporation in Alaska which can help young or experienced entrepreneurs to open a business in USA, in Alaska.
Minimum share capital for an LLC in Alaska
One of the most appreciated and used business forms in Alaska is the limited liability company which can be set up without having to provide a minimum share capital. One should only consider the applicable fees for incorporation.
Main steps in opening a company in Alaska
An LLC in Alaska can be incorporated once a registered agent is appointed. The original signatures of the owners are not required, but the name and the address of the shareholders should be mentioned in the company’s documents. Furthermore, the company must be registered with the tax authorities in Alaska. Here are a few facts you should consider when deciding for opening a limited liability company in Alaska:
- the name of the company needs to comprise the phrase limited liability company or the abbreviation LLC;
- you can check the validity of the business name with the Alaska Department of Commerce, Community, and Economic Development;
- a registered agent with residency in Alaska needs to be appointed for your LLC in Alaska;
- the Articles of Association need to be submitted to the Alaska Department of Commerce, Community, and Economic Development;
- an operating agreement is recommended for an LLC in Alaska, a document that provides information about rights and liabilities in the company, the activities and the purposes of the firm;
- the EIN is the employer identification number issued by IRS (Internal Revenue Service) for companies that need to pay the taxes in Alaska.
Taxation for companies in Alaska
In Alaska, there is no VAT, no sales tax and no income tax which makes the state a favorable destination for businesses from this point of view. Please consider that municipalities in Alaska have their own tax system and even local sales taxes in some cases. As for the corporate tax, this is imposed in accordance with the amount of income. If you want to start a business in USA, you should take into consideration whether certain taxes apply or not in varied states.
Setting up a bank account in Alaska
Companies in Alaska must open bank accounts for financial transaction purposes. The chosen bank in Alaska can offer a wide range of services destined to aligns with the firms’ necessities, for example, internet banking and the possibility of adding multiple currencies. Branches in Alaska are not imposed to open bank accounts, as such entities may operate through the financial institutions and bank accounts in the home country.
Employees for a company in Alaska
If your company activates in the healthcare system, education, maritime, engineering, research, oil & gas or mining, you can rely on the skilled workforce in Alaska and benefit from a reliable labor market in the state. Your human resource department is in charge of searching for staff and potential candidates by using varied online platforms of recruitment companies. We remind that the USA company formation must regard all aspects, starting with the incorporation and ending with hiring employees.
Minimum wage in Alaska
In Alaska, the minimum wage per week is set at $392 as established this year in January. This represents earnings of about $20,384 per year considering that there are no income taxes in Alaska. Skilled employees in companies in Alaska are subject to different incomes which can be settled when a contract is signed.
Setting up a website for a business in Alaska
Making a suitable presence on the market in Alaska and on the American territory for your business can be done with the help of a website through which you can display your products and services. Additionally, you can also set up an Amazon shop and gain customers worldwide.
Virtual office for a company in Alaska
A business in Alaska can also activate in the chosen field without having to relocate to the state and set up a traditional office. You can choose the services of a virtual office which stands at your disposal with the help of our local company formation representatives in Alaska. A notable business address, mailing, and correspondence, a local phone number are among services offered by a virtual office in Alaska.
Licenses and permits for companies in Alaska
The federal, the state and the local authorities are in charge of issuing the licenses and permits for businesses in Alaska. If you would like to open a restaurant in Alaska, you need to register a limited liability company and apply for a building permit (if you want to build a structure), health permit and a business license that allow you to properly and legally operate in the market.
Do I need insurance for my business?
Yes, you should look for general liability insurance that protects your company in the case of lawsuits in Alaska. Also, professional liability insurance is recommended for accountants, doctors, and consultants in order to be protected against business errors and malpractice. The worker’s compensation insurance is necessary for businesses with more than just one employee in order to cover the cases of injuries at work or illnesses. Do not hesitate to get in touch with our team of consultants and find out more details about the necessary insurances for your business in Alaska.
Do I need a certificate of good standing for my company?
Yes, the certificate of good standing or the certificate of compliance is issued for businesses in Alaska and it shows that the limited liability company has been incorporated in respect with the applicable legislation in this state. The same document proves that the LLC is preserved in a suitable manner. The specific licenses and permits are necessary before obtaining the certificate of good standing.
Accounting services for your company in Alaska
The accounting department in the firm is in charge of the daily financial activities and requirements. Bookkeeping, payroll, and annual financial statements are accounting matters found in a firm in Alaska and companies can choose from opening an accounting department or externalizing such services. In this sense, we invite you to get in touch with our team of consultants and solicit accounting services for your company in Alaska. A team of professionals in the field can take care of the accounting requirements, in respect to the international laws and the local legislation in the state of Alaska. You can also ask for tax advice and tax minimization methods if you are interested in this matter and if you need to make some investments for which a specific business plan is needed.
The benefits of opening a company in Alaska
With varied tax advantages in Alaska, a strong economy and a stable and varied market, one can select Alaska for doing business. The incorporation process in Alaska is simple and can be done with complete assistance from our advisors. Moreover, the authorities in Alaska put the accent on the health of the financial sector and supports investments and entrepreneurs with varied and attractive incentives.
Conclusions about company formation in Alaska
Foreign entrepreneurs can easily set up companies in Alaska, as long as they comply with the federal, state and local legislation, plus the business requirements in this state. A business plan is necessary at the time of company formation and it must contain information about the investments which need to be made, about the members forming the business, about the product development, and about the targets of the company. In many cases, the limited liability company can be a suitable business structure for most of the foreign investors due to its simple incorporation and operation.
A name verification with the registration authorities is the next step when forming the business. The employer identification number represents the tax number which is necessary for all companies which need to pay the taxes in Alaska. No matter the business structure you want to form, it is important to have a bank account for future financial operations. Opening a bank account solicits the company’s documents plus specific forms provided by the chosen financial institution. The business licenses and permits are mandatory before opening the company in Alaska and placing the operations on the market. Foreign entrepreneurs should pay attention to business insurance, regardless of the type of company and activities.
If you want to set up a company in USA and particularly in Alaska, you may contact our team of company formation specialists in USA for complete assistance and support.