Vermont Corporation FAQs

• Does running a corporation in Vermont involve more paperwork than running other types of businesses?In general, corporations face more complex reporting requirements than other business models. For example, since limited liability companies (LLCs) can’t issue shares, no shareholder agreement is needed.
• What is the difference between an LLC and a corporation in Vermont?Both an LLC and a corporation are legally recognized business entities. However, a corporation may issue shares, while an LLC may not. There are also differences in terms of reporting and taxation requirements.
• How do I change my corporation’s name in Vermont?You can change the name of your corporation in Vermont by filing an amendment with the Secretary of State.
• How many people are needed to form a corporation in Vermont?A single person can form a corporation in Vermont.
• Can I form my Vermont corporation online?Yes. Using the Secretary of State’s online filing system, you can take care of all of your business filings, including initial registration.
• How do I dissolve my Vermont corporation?To dissolve your corporation, you will need to file the Articles of Dissolution.

Alaska Corporation FAQs

How much does it cost to start a corporation in Alaska?The administrative cost to form a corporation in Alaska can vary depending on how you file, whether you’re working with a business partner or consultant to process all paperwork, and how quickly you need your paperwork filed.Here’s a quick look at the typical costs to create a corporation in Alaska (note that fees are subject to change, so check the Alaska Department of Commerce, Community, and Economic Development website for updates):

• • Reserve a name (optional): $25

• • Register a trademark (optional): $50

• • File your Articles of Incorporation: $250

• • Apply for a business license: $50

This means you should expect to pay a minimum of $300 when forming your corporation, just to establish your company. This does not include the $100 biennial report filing fee you’ll need to pay two years after establishing your corporation or business license renewal fees, which vary by industry.By partnering with us, you can receive help processing the above paperwork, avoiding headaches and frustrating, costly errors. With our affordable plans, we can file your paperwork with the state, serve as your registered agent, and provide a customizable template for creating your corporate bylaws.

How is an Alaska corporation taxed?The way your corporation is taxed in Alaska varies based on your corporation type. There are three main types of corporations: C corporations, S corporations, and nonprofit corporations. By default, you’ll be registered as a C corporation and can switch to an S corporation.A C corporation is taxed as a separate entity, meaning the company is required to fill out a corporate tax return. Typically, this would mean all incorporators and shareholders are also required to file individual tax returns for their corporate profits, essentially being taxed twice.An S corporation (please see our What is an S Corp? page) is also called a “pass-through entity,” which means no corporate taxes are due — profits pass through to incorporators and shareholders, who claim them on their individual tax returns.Lastly, if your corporation is a nonprofit and you adhere to nonprofit regulations, you will be exempt from paying corporate taxes. Any individuals who earn a salary from the corporation will report their earnings on their individual taxes.Although Alaska has no statewide sales tax, some municipal governments do. You’ll need to check with your local government to see what, if any sales tax exists in your area.

What are the benefits of a corporation in Alaska?Alaska corporations enjoy a lot of benefits, including personal asset protection and the potential to raise a lot of startup capital easily. Personal asset protection means that the corporation’s owners usually won’t be held personally accountable for the business’s debts and obligations. Some other business entities, like partnerships or sole proprietorships, don’t offer that benefit. Standard corporations can also raise capital by selling shares of stock to the public or private investors. It’s also important to note that private investors and venture capitalists are more likely to invest in corporations than other business structures, so a corporation is worth considering if you need a fair amount of money to get up and running.This benefit is a little more limited for professional corporations since their shareholders can only be individuals who are licensed in the profession. There’s an additional stipulation that PC shareholders can only hold stock for one professional corporation, so professional corporations won’t have as many options for who can buy their stock.

Does Alaska have a professional limited liability company (PLLC) entity?Forming a PLLC in Alaska is not an option for licensed professionals. If you are licensed in Alaska, you can form a conventional LLC.

Can Alaskan professionals from different fields form a professional corporation together?Professional corporations include vocations such as architects, engineers, accountants, and veterinarians. These fields are distinct in their offerings and thus require all directors or shareholders to share the same profession.