How to Start an LLC in Alaska Step-by-Step Guide
Starting an Alaska LLC, step-by-step
Here are the six steps to establishing an LLC in Alaska:
- Choose a Unique name for the LLC
- Appoint a Registered Agent
- File the Articles of organization
- Create an Operating Agreement
- Get an EIN (Employer Identification Number)
- Comply with State and Federal Regulations
- File Your Alaska Initial Report & Biennial Report
If you want to form your LLC yourself, follow our comprehensive guide below at no cost.
For further details on LLC expenses, Explore the specifics of LLC costs in Alaska.
See "How Long Does It Take to Form an LLC in Alaska" to find out how long it will take to get your LLC approved and to make sure there are no delays.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
Here are the steps to forming an LLC in Alaska
1. Search for your Limited Liability Company (LLC) Name
First, search your business name. Entity Search tool to ensure it's unique and not already in use.
This is necessary because two businesses in the state cannot share the same name.
Second, check domain availability for an online presence Select a name that is memorable to the customer and best suited for the brand.
We'll explore the specifics of naming an LLC in Alaska in greater detail.
How do I check if my desired LLC name is available?
You can check the availability of your desired LLC name by searching the Alaska Division of Corporations, Business and Professional Licensing's online database.
What are the naming requirements for an Alaska LLC?
The name must include "Limited Liability Company," "LLC," or "L.L.C." It must be distinguishable from other business names registered in Alaska and should not contain restricted words without approval.
Can I reserve a name for my LLC?
Yes, you can reserve a name for up to 120 days by filing a Name Reservation application with a $25 cost.
2. Choose an Alaska Registered Agent
The next step is to select the Alaska Registered Agent.
Your LLC's registered agent in Alaska may be a person or organization designated to receive official notices and legal communications on behalf of your LLC. They must reside in the state at their physical address in order to perform this duty effectively.
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Who is eligible to serve as an LLC Registered Agent?
Your LLC's registered agent can be you.
- A trusted friend or family member
- A professional Registered Agent Service
- You
They must have a physical address in Alaska, as PO Boxes are strictly unacceptable.
The Registered Agent's details are available to the public in state records.
If you prioritize privacy or lack a physical Alaska address, a Registered Agent Service could be beneficial.
What is a Registered Agent?
A Registered Agent is a person or entity designated to receive legal documents and official government communications on behalf of the LLC.
Who can be a Registered Agent in Alaska?
The Registered Agent can be an individual resident of Alaska or a business entity authorized to do business in Alaska. The agent must have a physical street address in Alaska (no P.O. boxes).
Can I act as my Registered Agent?
Yes, if you meet the residency and physical address requirements, you can act as your Registered Agent.
3. File Alaska LLC Articles of Organization
Prepare and submit the Articles of Organization to the Alaska Division of Corporations.
Guide for completing the articles. Including details like your name and registered agents.
Filing the Alaska LLC Articles of Organization costs $250 when submitted online. This is a one-time cost to create your LLC.
If you want to file this yourself, see our step-by-step guide: ?.
How do I file the Articles of Organization?
You can file the Articles of Organization online or by mail with the Alaska Division of Corporations, Business and Professional Licensing. The filing fee is $250.
What information is required in the Articles of Organization?
The Articles of Organization must include the LLC’s name, principal office address, registered agent information, and the names and addresses of the organizers.
How long does it take to process the Articles of Organization?
Processing times can vary. Online filings are typically processed within a few business days, while mail filings may take longer.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
4. Create an Alaska LLC Operating Agreement
An Alaska LLC Operating Agreement is like a companion document to the Articles of Organization. The Articles create your LLC, while the Operating Agreement explains who owns it.
Banks may require it to open your LLC business bank account, and it is important in court to prove your LLC is running correctly.
That's why we recommend that all LLCs, including Single-Member LLCs, have an Operating Agreement.
Operating Agreement is essential in legal proceedings because it serves as evidence that your LLC operates by proper governance practices, bolstering your defense in court.
An Operating Agreement is an internal document, so you don’t need to file it with the Alaska Division of Corporations or the IRS. Just keep a copy in your business records for your reference.
What is an Operating Agreement?
An Operating Agreement is a document that outlines the ownership, management structure, and operating procedures of the LLC.
Is an Operating Agreement required in Alaska?
While not legally required, it is highly recommended to have an Operating Agreement to establish clear rules and prevent disputes.
What should be included in an Operating Agreement?
The Operating Agreement should include details on member roles and responsibilities, voting rights, profit distribution, management structure, and procedures for adding or removing members.
5. Get an EIN
An Alaska EIN is also called a federal tax ID number or federal employer identification number.
An EIN (Employer Identification Number) is needed for:
- Identifying tax purposes
- Apply for licenses and permits
- To open the business bank accounts
How do I apply for an EIN?
You can apply for an EIN online through the IRS, by mail, or by fax.
How much does an EIN cost?
Obtaining an EIN from the IRS comes at no cost. The application process is free.
How much time does it take to receive an EIN?
When applying online, it takes around 15 minutes.
If you choose to apply by mail or fax, it can take between 1 to 3 months.
Why do I need an EIN for my LLC?
An EIN is required for federal tax purposes, hiring employees, opening a business bank account, and fulfilling other business-related requirements.
How can I obtain an EIN?
For US Citizens or Residents: If you possess an SSN or ITIN, you are eligible to apply for an EIN online. Simply follow these steps: Apply for an EIN online.
For Non-US Residents: You are unable to obtain an EIN online, but you can still acquire one through fax or mail. Follow these steps to get an EIN without an SSN or ITIN.
6. Comply with State and Federal Regulations
To keep your LLC running smoothly and legally, follow all state and federal rules.
Keep your records accurate, meet all regulatory requirements, file reports on time, and avoid any penalties to maintain good standing.
What happens if my Alaska LLC doesn't file its initial and biennial reports?
Failure to file the Initial Report within six months of forming your Alaska LLC, or the Biennial Report every two years after that, can result in late fees, penalties, and potentially the administrative dissolution of your LLC by the state.
How can I make sure my Alaska LLC abides by federal laws?
To ensure compliance with federal regulations, regularly monitor and fulfill IRS tax obligations, adhere to employment laws, maintain accurate financial records, and seek professional advice when navigating industry-specific regulations.
7. Submit Your Alaska Initial Report & Biennial Report
All Alaska LLCs are required to file an Initial Report within six months of formation, even if there has been no business activity.
After that, you must file a Biennial Report every two years to stay compliant and keep your LLC active.
How often must I file the Alaska Biennial Report?
The Alaska Biennial Report must be filed every two years to keep your LLC in good standing and update the state with current business information.
How much does an Alaska Initial Report cost?
Filing your Alaska Initial Report is free of cost.
There is no cost associated with submitting the Alaska initial report.
When is the Alaska Initial Report due?
The Alaska Initial Report must be filed within 6 months of establishing your Alaska LLC. This is a one-time requirement.
How much does an Alaska LLC Biennial Report cost?
The filing cost for the Alaska LLC Biennial Report is $100, payable every 2 years.
When is the Biennial Report due?
The Biennial Report must be submitted every 2 years.
- If your Initial Report was submitted in a year ending in an even number, your Biennial Report will be due every two years during subsequent even-numbered years.
- Conversely, if your Initial Report was filed in a year ending in an odd number, your Biennial Report will be due every two years during subsequent odd-numbered years.
The deadline for filing the Biennial Report is January 2nd.
How to Start an LLC in Alaska FAQs
Is it possible to form an LLC online in Alaska?
Yes, you can initiate the formation of an LLC online in Alaska by electronically submitting the Articles of Organization through the Alaska Division of Corporations, Business and Professional Licensing's website.
What are the advantages of establishing an LLC?
Establishing an LLC offers benefits such as limited liability protection for owners, flexibility in management structure, potential tax advantages, and enhanced credibility with clients and partners.
What distinguishes the Initial Report from the Biennial Report for an Alaska LLC specifically?
The Initial Report must be submitted within six months of LLC formation and provides basic details about the company. In contrast, the Biennial Report is due every two years thereafter and updates the state on current LLC information.
How can I ensure my Alaska LLC complies with federal regulations?
Yes, Alaska can be an attractive choice for starting an LLC due to its absence of state income tax, lack of sales tax, robust privacy protections for business owners, and a regulatory environment that supports small business growth.
To ensure compliance with federal regulations, regularly monitor and fulfill IRS tax obligations, adhere to employment laws, maintain accurate financial records, and seek professional advice when navigating industry-specific regulations.