Alaska Foreign Qualification

Alaska is often thought of as one of the last frontiers in this country, and for businesses looking to branch out it is also somewhere that can hold a lot of potential. But if your business is based in another state and wants to start operating in Alaska, then an Alaska foreign qualification registration will be required in order to legally operate there.

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What is Foreign Qualification?

Foreign qualification is easier to understand than most realize. It is the process of registering a business to conduct operations in another state – in this case, Alaska. While your business is formed in your home state based on its own requirements, you’ll need to foreign qualify in order to do any kind of business in Alaska legally.

Doing so allows you to avoid creating an entirely separate business entity in Alaska. You’ll complete the initial filing and registration requirements, and then over the years maintain it by handling tax and biennial report requirements.

Why Does A Company Need Foreign Qualification?

Why You Need To Do It – Any business that is branching out into Alaska must foreign qualify. This includes opening a new location of any kind including a warehouse, an office, a storefront, or something else. And if you do regular business in the state without actually having a location, you may still need to register as a foreign corporation or foreign LLC.

When Should You Do It? – The sooner the better. Starting the process of registration early ensures that your business doesn’t face any delays when you try to operate your business there. The moment your business plans on starting operations in Alaska, you should start the process. Generally, you will need to foreign qualify if your company falls under any of the following criteria:

Has a physical presence in Alaska
Buying a property there
Have remote employees
Accepts orders in Alaska
Owns a bank account in Alaska

What Happens If Your Entity Does Not Foreign Qualify?

Failing to foreign qualify in Alaska can bring a lot of problems to a business. The biggest include fines and penalties associated with failing to register. A company may end up facing significant back taxes and major audits as well.

Plus, businesses won’t have many legal rights within Alaska until they qualify – they won’t be able to bring forth lawsuits and will have fewer options for defending the company. Simply put, any company won’t be able to legally operate in Alaska until they foreign qualify.

Steps To Obtain Foreign Qualification

In order to receive Alaska foreign qualification, there are several steps that a company will have to take. It is straightforward enough, but does involve some time and effort.

1. Obtain Certificates – You should secure a Certificate of Good Standing from your home state as this is among the requirements that the state of Alaska has set. Once you obtain the said certificate, you can proceed with the process. One of the major requirements for business registration in Alaska is the filing of a Certificate of Registration with the corporate section of Alaska’s Division of Corporations. They offer two options for filing. You may file online or by mail. You must also include the filing fee of $350. After filing, you must file a biennial report every two years to stay compliant.

2. Collect And Submit Information – You’ll need to provide several pieces of information to complete your registration. Some counties in the state may also require county filing or publication.

LLC

LLC name registered in your company’s home state
LLC name in Alaska or assumed name if the original name is in use
Name of your company’s home state
The original date of formation
Duration of your LLC
The purpose why you organized the company
Six-digit North American Industry Classification System (NAICS) Industry Grouping Code stating the initial activities that your LLC in Alaska
Registered agent name and address
The management structure that your LLC will practice in Alaska
The street address and mailing address of the principal office
Authorized signature

Corporation

The legal name of the Corporation
Assumed name, if applicable
State of domicile (home state), date of incorporation, and the duration or life expectancy
Purpose of the company
Registered agent name and address
Principal address location
Name of alien affiliates or people who directly or indirectly controls, controlled by, or are under common control with a corporation
List of number of authorized shares and classification, whether they are preferred or common
Number of issued shares
Six-digit NAICS Industry Grouping Code
Name and address of any shareholder owning more than 5% of any type of shares including the number of shares they own.
Name and address of officers and directors
Signature of president, vice president, and secretary or assistant secretary

3. Appoint Registered Agent – You will also have to submit the name and address of your registered agent. This person receives the legal documents from Alaska and ensures that the business receives them promptly. They also handle services and processes if the company is sued. To simplify things, most businesses turn to a third party provider such as DoMyLLC to serve as their registered agent.

4. File The Application – Once everything is gathered, you simply fill out and complete the application for Alaska foreign qualification and submit it online or by mail along with the filing fee.

5. Ongoing Maintenance – Alaska requires that the foreign corporation or LLC file a biennial report on January 2 every other year. The report will have to be filed on time along with a $200 fee in order to maintain compliance.

What is the Difference Between Foreign Qualification and Incorporating?

Incorporation involves creating an entirely new business entity that will operate within a different state. Alaska foreign qualification does not create a new business – it merely allows your existing business to begin operations within Alaska. The process essentially tells Alaska that your business exists and that it is starting business operations within the state.

How DoMyLLC Can Assist With Streamlining The Process

Handling the process of foreign qualification can take some time, and there is a lot of paperwork and red tape involved. Your business needs you to run it. We handle Alaska foreign qualification for you so you can focus on more important matters. With our team you stay fully compliant and have no worries as you register your company in Alaska.