How to Form an LLC in Alaska in 7 Steps
Forming a limited liability company (LLC) in Alaska involves naming the LLC, choosing a registered agent, filing articles of organization, applying for an EIN, as well as filing biennial reports and obtaining necessary business licenses and permits.
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A limited liability company (LLC) is a popular business structure for small businesses. The main advantages of LLCs include liability protection and potential tax upsides. With personal liability protection, your personal assets receive protection from your business liabilities.
It’s easy to form an LLC for your new business in Alaska. To learn how to start one yourself, simply follow along with the steps below.
7 Steps to Form an LLC in Alaska
Name Your LLC
Under Alaska Stat. §10-50.025 your Alaska LLC name must be unique and distinguishable from any other company’s name to comply with Alaska law. A unique name will also help customers remember your business.
To find out whether your name is already taken, you should start by searching the Alaska Department of Commerce’s corporations database. If there are no matches there, it’s wise to continue your search by doing a simple internet screening. Just type your desired LLC name into your favorite search engine to find out if your name is taken. Finally, you should run a name search on the U.S. Patent and Trademark Office’s (USPTO) trademark database.
Once you are satisfied your name is not already taken by another business, you should make sure it complies with Alaska’s other naming rules. According to Alaska Stat. §10-50.020, your LLC’s name must contain language that indicates that it is an LLC. You can accomplish this by putting either “Limited Liability Company”, “LLC”, or “L.L.C.” in your name. If you like, you can replace the words “company” and “limited” with the abbreviations “co.” and “Ltd.”
Further, your name must not contain any suggestion that your company represents a municipality. You cannot use the words “borough,” “village,” or “city” in your name.
If you plan to create an LLC but are not quite ready, you can do a name reservation per Alaska Stat §10.50.035. Visit the Division of Corporations website and file by mail or online. There will be a $25 filing fee to reserve your name. Your business name will then be reserved for 120 days.
Get a Registered Agent
After you have chosen a legal and unique name for your LLC, the next step in the process is to choose a registered office and registered agent. Most LLCs choose their business’s main office as their registered office.
A registered agent is a person or entity that you appoint to accept legal documents on behalf of your LLC. They will receive legal notices and service of process for your LLC in case of a lawsuit.
Under Alaska Stat. §10-50.055, your registered agent must be either an Alaska resident or a corporation that’s registered to do business in Alaska. Your registered agent cannot be a P.O. Box. They must have a physical street address in the state of Alaska.
You and your fellow LLC members may not be able or willing to be your company’s registered agent. Instead, you could consider using an Alaska registered agent service. With a registered agent service, you pay a fee to another business to accept legal papers on your behalf. You can easily find Alaska registered agents by searching online.
File Your Articles of Organization
The articles of organization form the legal charter that establishes your LLC as a legal entity. By filing this document with the state of Alaska, you will formally create your LLC as a legal entity.
To file Alaska articles of organization, you will need to give identifying information about your LLC. These details should be easy to gather. Specifically, under Alaska Stat. §10-50.075, you will need to provide:
- The name of the LLC
- The purpose for which the LLC is organized
- Contact information for your LLC’s registered office and registered agent
- A statement on whether the LLC will be member-managed or manager-managed
You can file articles of organization by filling out an online form at the Alaska Department of Commerce’s Division of Corporations, Business and Professional Licensing website. Once there, you need to click on the tab for limited liability companies to proceed. You will also need to submit a $250 state filing fee. If you prefer, you can file by mail.
You should receive approval immediately by filing online with the government agency. However, you may have to wait up to 10-15 business days for your approval if you file by mail.
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Draft an Operating Agreement
Although Alaska law does not require LLCs to have an operating agreement, it does allow members of an LLC to adopt an operating agreement and appeal or amend it later. Having an Alaska LLC operating agreement from business formation can help aspiring entrepreneurs avoid potential issues by laying out the rules and responsibilities of each member.
You can use your operating agreement to put several key issues into writing, such as:
- Voting rights among members
- Profit and loss sharing plans
- Members’ rights and responsibilities
- The procedure for adding or removing members
- Management structure
- Buyout agreements and procedure for dissolving the business
- Any additional provisions that are important to your LLC
Unlike articles of organization, your operating agreement is not a required document, and you do not have to file it with the state. However, the SBA recommends that all LLCs form operating agreements. If possible, you should draft your operating agreement when you form your LLC.
Without an operating agreement in place, you may find it difficult to secure professional services for your business. Financial institutions may ask to see an operating agreement before opening a business bank account for your LLC. Accountants, lawyers, and other professionals may also require an LLC operating agreement before working with your business.
Get an EIN
Unless you have a single-member LLC with no employees, much like a sole proprietorship, you will need an employer identification number (EIN). An EIN is sometimes called a tax identification number. It is a unique number that the Internal Revenue Service (IRS) uses to distinguish your business from all others for federal tax purposes. In this sense, it is very much like a Social Security Number for individuals.
You will use your EIN to file taxes, pay employees, open a business bank account, get a business credit card, and more.
You can apply for an EIN at the IRS website. Or, if you prefer, you can file by mail.
Set Up Business and Tax Accounts
According to the Alaska Business Licenses Act, you will need to apply for a license to do business in the state of Alaska. You can apply for your Alaska state business license online with the Department of Commerce.
Your LLC may need other licenses, too, depending on your location and the type of business you operate. You should check with your county to find out if you will need to apply for any local licenses.
Finally, you should check whether you are subject to any federal licensing rules. The Small Business Administration (SBA) provides helpful information on federal licensing. On the SBA’s website, you will find a comprehensive list of the business activities that federal agencies regulate. This includes agriculture, commercial fisheries, the sale of firearms, and others. If your business falls into one of the listed categories, you will need to apply for a federal license.
Check for Additional Federal or State Requirements
Check state and federal websites to determine if there are any specific rules for your business. For example, some LLCs may have to file a Beneficial Ownership Information Report (BOIR) with FinCEN. Under current law, LLCs created in the United States are “domestic reporting companies” and are exempt from the BOIR requirement.
However, laws may change, so stay up to date with state and federal requirements.
Biennial Filing Requirements in Alaska
One important step in maintaining your LLC is to file an initial report with the Alaska Division of Corporations. You can file this report online or by mail. You should do so as soon as possible after filing your articles of organization. There is no fee to file an initial report.
Although Alaska does not require annual reports, you will need to file a biennial report for your LLC every two years. The state fee is $100. You can file this report by mail or online with the Alaska Division of Corporations.
To complete your initial report and biennial report, you will need to provide the following information:
- Your LLC’s name and the state or country where you organized it
- The names and addresses of your LLC’s managers (if manager-managed)
- The names and addresses of your LLC’s members (if member-managed)
- Your registered office’s address
- Your registered agent’s name and address
- The names, addresses, and percentage ownership of each person who owns at least 5% of the company
- For foreign LLCs, the out-of-state or international address of your LLC’s principal office
Business and Tax Requirements in Alaska
There are state taxes in Alaska that may apply to your business. You should confirm the taxes your LLC is required to report and pay.
State Employer Tax
If your Alaska LLC has employees, then you need to obtain an (EIN) and pay federal employment taxes. You also must file and pay unemployment insurance tax to the state of Alaska.
Sales and Use Taxes
LLCs are not required to pay sales and use taxes if they are located in Alaska. However, some local jurisdictions may charge local sales tax on businesses.
Business Licenses and Permits
The business licenses and permits depend on your business’s activity and location and should be renewed annually. Check the Alaska Department of Commerce, Community, and Economic Development for regulatory boards or agencies to learn more about your LLC’s licensing requirements.
FAQs About Alaska LLC Formation
Pricing for your LLC in Alaska can vary depending on who is forming the LLC and the type of business, and whether you’re required to obtain local permits or business licenses. The Department of Commerce provides a list of common fees and forms for LLCs.
To register your LLC, you must pay a $250 fee to file your articles of organization.
After filing your articles of organization, you must then file an initial report, but there is no additional fee. Then every two years that your LLC is registered to do business in Alaska, you are required to file a biennial report and pay the $100 filing fee.
You should also apply for a business license and pay the $50 initial business license fee. You should also renew your business license every year. Alaska charges a business license renewal fee of $50. You may be required to pay additional fees for local business licenses and permits.
- Single-member LLC: A single-member LLC is owned by one individual who is solely responsible for managing the company. The LLC’s profits and losses are typically reflected on the individual’s personal tax return and are subject to the tax on net earnings from self-employment in the same manner as a sole proprietorship.
- Multi-member LLC: A multi-member LLC is owned by two or more individuals. This business structure has been compared to a partnership with a shield that protects the members and their personal assets from the liability of the business.
- Professional LLC: A professional LLC (PLLC) can be formed in Alaska for businesses that provide a professional service. The business may offer only one specific type of professional service, and all the owners are required to be licensed to perform that service. Some examples of professional services for which PLLCs are formed in Alaska are architects, acupuncturists, barbers, hairdressers, construction contractors, and midwives. The Alaska Department of Commerce provides a complete list of professional services on its website.
In Alaska, you are required to file articles of organization to apply for a certificate of organization needed to form an LLC in the state. The filing fee is $250.
In Alaska, you can request a certificate of compliance to show your LLC is in good standing or is in compliance with the State of Alaska Corporations Section. You can request the certificate online through the Forms & Fees page and pay the $10 filing fee to access your certificate of compliance for immediate printing. Or you can send the copy request form by mail with the $10 fee to the State of Alaska Division of Corporations, Business and Professional Licensing Corporations Section.
You may need to get a certificate of compliance for your LLC if you want to open a business bank account or register your LLC in another state.
To form an LLC in Alaska, you need to first come up with a name that contains the words “limited liability company" or the abbreviation “L.L.C.", or “LLC" and file your articles of organization. You are required to include your LLC’s purpose, registered agent, and management structure. You must also pay the $250 filing fee. You are not required to include an operating agreement. After you file the articles of organization, you must file your LLC’s initial report. You should also apply for a business license.
To maintain your LLC in Alaska, you must file biennial reports by mail or online with the Alaska Division of Corporations every two years and pay the $100 fee. You should apply for and keep your business license in good standing and make sure to apply for any appropriate local licenses or permits. You also need to file and pay any applicable federal and state taxes.
If you don’t file your biennial report, your LLC is at risk of being terminated against your will. Under Alaska law, the commissioner of the division of corporations can dissolve your LLC if you are six months late with filing your biennial report. If you created your LLC in an even-numbered year, you would file your biennial report before January 2 every even-numbered year thereafter. If you created your LLC in an odd-numbered year, your biennial reports would be due every odd-numbered year.
To avoid late fees and legal complications, you should mark your calendar to file your report before January 2 every two years.
No. The certificate of organization shows your LLC was properly formed in Alaska and is recognized as a legal business entity. It is required before you can legally operate your LLC. An operating agreement is not required under Alaska law. It’s an optional contract among your LLC members and helps to form rules about certain important LLC issues.
Yes. In Alaska, you can apply for a DBA (“doing business as") by submitting a new business name registration form to the Alaska Department of Commerce online or by mail. The fee is $25. Before submitting your form, make sure the name you want is available by searching the state’s database. You also need to confirm your LLC has a valid Alaska business license.
Alaska requires all businesses, including LLCs, to have a valid business license before engaging in business in the state of Alaska.
Yes. To file your articles of organization for an LLC in Alaska, visit the online filing service offered by the Alaska Department of Commerce. You should gather all the information you’ll need before starting the process. You can also use a business formation service company to handle LLC formation in Alaska on your behalf.
The State of Alaska Division of Corporations, Business and Professional Licensing Corporations Section oversees LLCs in the state. The mailing address is:
State of Alaska Division of Corporations Business and Professional Licensing
CORPORATIONS SECTION
P.O. Box 110806
Juneau, AK 99811-0806
Yes. The LLC’s registered agent must be an individual who is a resident of Alaska, or a corporation (excluding LLC, LP and LLP) that is registered and in good standing. The registered agent must have a physical address in Alaska. The registered agent is responsible for receiving and forwarding processes, notices, or demands to the LLC. You can use a registered agent service to protect your privacy, keep your LLC compliant, and ensure you receive all important documents and notices.
A domestic LLC in Alaska is formed in Alaska, where it is doing business.
To register your LLC in a state or jurisdiction outside of Alaska, you will likely need to file an application to operate as a foreign LLC. You should request a certificate of compliance for your LLC from Alaska to show you are in compliance with Alaska law before attempting to register your foreign LLC in a different state.
To register a foreign LLC in Alaska, you must file the State of Alaska’s certificate of registration online or by mail. The LLC must establish it is in good standing with its state of domicile before Alaska will issue a certificate of authority. The fee to register as a foreign LLC in Alaska is $350.
To dissolve an LLC in Alaska, you should file articles of dissolution to apply for voluntarily dissolved status. To dissolve your LLC, your biennial reports must be current and the official signing the articles of dissolution on behalf of the LLC must be on record with the state of Alaska. The LLC’s affairs should be wound up when the first of the following occurs:
- At the time or on the happening of events specified for dissolution in an operating agreement of the company
- All of the members of the company consent in writing
- The superior court enters a decree for judicial dissolution of the company
An anonymous LLC is formed by owners or members who do not want their identities to be disclosed. The benefits of forming an anonymous LLC include:
- Preventing harassment or stalking
- Conducting business without any negative aspects of the business
- Maintaining privacy
Unfortunately, Alaska does not allow for anonymous LLCs. But if you want to protect your privacy while managing your business, consider using a registered agent service for your registered agent office address.
Disclaimer: The information presented here does not constitute legal advice or representation. It is general and educational in nature, may not reflect all recent legal developments, and may not apply to your unique facts and circumstances. Consider consulting with a qualified business attorney if you have legal questions.
How to Start an LLC in Other U.S. States
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