Some important information about LLC’s, Corporations, and Partnerships.
It has been become more and more fashionable over the years to incorporate your Business into a more formal structure. Primarily we are seeing Limited Liability Companies and Corporations. The advantages and disadvantages of each of these is a personal choice, however, from the view of your lender we want to remind you that you are creating a separate “Entity” and there are some rules, requirements, and responsibilities that come along with these entities.
Your lender, in this case CFAB, will need to have the Organic documents that established the structure, these may include the Articles, Bylaws, Operating Agreements, Articles of Organization etc., The “Entity” must be properly registered with the State of Alaska and must be in Good Standing with them by filing all of its annual paperwork (along with various other requirements).
If you place the ownership of your business assets into the “Entity” or are looking to purchase an asset (boat, quota etc.,) from someone else who has placed that asset into a LLC, Corporation or Partnership you or they must provide the appropriate documentation of that entity to show who within the entity has the authority to act on behalf of the entity to sell or pledge that asset.
We encourage you to contact us EARLY in the process to discuss this in more detail before submitting your application, this will help save you a lot of time.