Learn the steps to create an S Corp in Alaska or get started with us below.
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Forming an S Corporation can seem like a complicated endeavor, but we’re here to help.
Because an S Corp itself isn’t a formal entity structure, such as a corporation or limited liability company (LLC), you will need to first establish a legal business entity structure before you can proceed with making an S Corp election. Fortunately, we can help with that, too.
Want to know more about how to file an S Corporation in Alaska? Use our guide below to learn more about Alaska S Corporation filing requirements, the benefits of forming one, and the products and services we offer so that you can get started.
If you haven’t yet decided what type of business structure to set up for your business, that’s okay. Creating a detailed business plan ahead of time can help you determine what might work best for your company.
However, regardless of whether you decide to set your business up as an LLC or a corporation, one of your first steps toward creating your Alaska S Corp will be to select a name for the entity.
While this step may sound simple, it’s also crucial that you start your business off on the right foot. Thus, before setting anything in stone, be sure to check the state business records to confirm that no other entity is already using your desired name.
Have something in mind? We can help you reserve your business name so you can focus on other important steps in the business formation process.
Next, it’s time to choose an Alaska registered agent for your business. Your statutory registered agent will serve as the official recipient for any service of process and other legal notices for the business entity.
Now, you’re ready to choose the individuals who will run and manage the business. For an LLC, these individuals will be referred to as either members or managers, depending on how you decide to structure the LLC. For a corporation, these people are called directors.
Now you can formally register your business with the state.
To do so, you will need to file Articles of Incorporation for a corporation or Articles of Organization for an LLC. Regardless of which document is required for your selected business entity, you will file and submit your Articles along with the appropriate fee to the State of Alaska Division of Corporations.
Finally, you’re ready to turn your business into an S Corporation. You will do so by making what’s called an S Corp election.
To make the election, you file Form 2553 with the IRS. This form is what officially changes the entity’s classification to an S Corp. For LLCs, however, you must first change your entity classification to Corporation status by filing IRS Form 8832 before filing your Form 2553.
Additionally, don’t forget to get an Entity Identification Number (EIN) for your business. Not sure how to get started? We can help you obtain one from the IRS today with our EIN Service.
Only certain businesses can choose an S Corp election. To be eligible for S Corporation classification, an entity must:
If your business entity doesn’t meet these filing requirements, it will not qualify for an S Corp classification.
If your business does meet these minimum filing requirements, you can then file for election as an S Corp by completing and filing Form 2553 with the IRS. Importantly, this has to be done:
Visit the IRS website for more detailed instructions on how to properly and timely file Form 2553 for your Alaska business.
In addition to pass-through taxation, some of the most common advantages of creating an S Corporation include:
However, as with most things, there are certain cons to take note of as well. For example, common disadvantages associated with forming an S Corporation include:
Thus, before setting your entity up as an S Corp, carefully consider these pros and cons. This will help you determine whether an S Corporation classification meets the needs and goals of your business. If you’re still not sure if an S Corp classification is right for your Alaska business, be sure to consult an experienced business lawyer to discuss your options in more detail.
At the time of formation, the default for a business entity is classification as a C Corporation. Thus, if you want your business to be set up as an S Corp, you’ll have to actively change its status.
Of course, forming an S Corp may not be the right move for all businesses. Thus, before deciding whether to make this election, there are a few important things you should know.
In order to determine whether an S Corporation is the right classification for your business, it’s important to understand the basics and implications of forming one.
An S Corp is a particular type of corporation that has elected to pass its corporate income, losses, deductions, and credits on to its shareholders for federal tax purposes. Thus, the entity is taxed only once at the shareholder level, rather than at the corporate level.
Because S Corp classification allows the entity to avoid double taxation, this has come to be known as “pass-through taxation.”
Again, the default classification for a corporation at the time of formation is as a C Corp. Notably, C Corps must file and pay taxes on their corporate income at the entity level in addition to the shareholder level on each individual’s income taxes. Thus, while S Corps benefit from pass-through taxation, C Corps do not.
However, although C Corps can’t avoid double taxation, they do benefit from greater flexibility and less stringent requirements in the formation process.
To create an S Corporation, you must first form a business that falls within the limitations identified above. Then, you have to file Form 2553 with the IRS within one of the timeframes listed above.
Yes, LLCs can choose an S Corporation election. While not appropriate for all businesses set up as an LLC, there are a number of advantages, particularly when it comes to self-employment taxes, that can make this a great option for many LLCs.
Ready to get started? Form your S Corp today with our help. We can also support your business venture from start to finish with a wide variety of formation, compliance, and maintenance products and services. Start your company and file as an S Corp with us today.
If an S Corp isn’t the right fit for your business, our Alaska LLC Formation Services and our Alaska Corporation Formation Services can help make the business formation process a breeze. And even after formation, you can use our Worry-Free Compliance Service to better ensure that you stay legally compliant with the state. In short, we have all the tools and resources necessary to help you start, manage, and grow your business.
Disclaimer: The content on this page is for information purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Creating an S Corporation for your Alaska business can result in a number of benefits, including pass-through taxation and increased asset protection.
You can choose nearly any name you want for your Alaska S Corporation, so long as you meet certain naming formalities required by the state. Additionally, it’s also generally recommended that you check the Alaska business entity records first to avoid selecting a name that is already being used by another entity.
If you choose to run your business as an S Corp, there is no need to include that information in its name. Rather, you identify your LLC as an S Corp by filing the appropriate paperwork with the Internal Revenue Service.
It’s imperative that you timely and properly calculate taxes for your Alaska S Corporation. Nevertheless, this is easier said than done. Use our S Corp tax guide for more information. If you still have questions, contact a certified tax professional to learn more.
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