Starting an LLC in Alaska requires essential steps to keep your business running.
As an LLC is a way to legally structure a business, understanding how to start an LLC in Alaska should be one of your top priorities.
LLC incorporates the limited liability of a corporation with the flexibility and lack of formalities given by a partnership or sole proprietorship.
If you seek to limit your business liability for debts and lawsuits, you should consider forming an LLC.
This guide will show you in simple steps how to form an LLC in Alaska.
How to Start An LLC in Alaska
Forming an LLC in Alaska requires filing a Certificate of Formation with the Alaska Secretary of State.
This Certificate of Formation is the legal document that officially establishes your Alaska limited liability company.
You also have reserved your name for up to 120 days by filing a Business or Corporation Name Reservation Application.
Steps on How To Start An LLC in Alaska
To start an LLC in Alaska, you have to:
- Choose Your LLC Business Name
- Appoint a registered agent
- File a Certificate of Formation
- Prepare an Operating Agreement
- File a state tax return / annual report
- Acknowledge other requirements
Choose Your LLC Business Name
To choose a name for your business, it must be reserved with the Secretary of State before filing your LLC formation documents.
The name must be automatically checked for availability.
This can also be done online with a fee of $25 when you mail a name reservation request form for a domestic entity firm to the Alaska Secretary of State’s office.
Your business name must vary from other business names; you must search for proposed name availability at the Alaska Secretary of State.
However, when choosing a business LLC’s name, it must contain the word line: Limited Liability Company, LLC; or L.L.C.
In addition, you must consider the following:
- Follow the LLC Business naming guidelines:
- Your business name must include ability company” or its abbreviations (LLC or L.L.C.).
- Ensure that your name is distinguishable from any other Alaska limited liability company, corporation, limited partnership, or registered limited liability partnership business name. Ensure the name you desire isn’t already taken by doing a Business Entity Search on the Alaska Secretary of State’s website.
- Ensure to Reserve the name once you find the availability: You must complete the Name Reservation Request for Domestic Entities form at least two weeks before registration or reserve your business name when completing the online LLC registration.
- Consider if the URL is available: Check online to see if your business name is known as a web domain. If it is, you may want to buy the URL to prevent others from acquiring it.
Appoint a Registered Agent
All LLC businesses in Alaska must have a registered agent for service of process in the state.
A registered agent is an individual or corporation that concedes to accept legal papers on the LLC’s behalf if someone sues the company.
The agent agrees to accept the service of process on behalf of the limited liability company before designation.
The registered agent can be anyone as long as they are:
- Individuals residing in Alaska
- Alaska business entity,
- An out-of-state business entity with an office in Alaska.
- Have a physical street address in Alaska.
Also, the Alaska Department of Commerce, Community, and Economic Development maintains a list of private service companies that can act as agents for the service process.
File Certificate of Formation with Your County Probate Court
Filing a Certificate of Formation with the Office of the Judge of Probate in the county where the LLC’s initial registered office is located is required to create your LLC.
The Probate Court must file the form and gives you a stamped copy.
The court then sends the certificate of formation to the secretary of state and your fee.
You can find the list of the names and addresses of the probate judges for every Alaska county on the Alaska Secretary of State.
The following information must be included in the certificate of formation:
Your LLC’s name
- The registered agent’s name and address
- Indication if the LLC is a series LLC, professional LLC, or non-profit LLC
- The active date the LLC will begin
- Signature of the organizer or attorney-in-fact.
- A copy of the Name Reservation certificate from the Secretary of State must be attached.
Note: The filing fee is $250 to the Secretary of State plus a separate Probate Court filing fee of at least $50.
Prepare an Operating Agreement
It is highly recommended to get an LLC operating agreement in Alaska.
The operating agreement is an internal document that ascertains how you will run your LLC.
It also sets out the treaties and duties of the members and managers, including how the LLC will be managed.
Also, it can help protect your limited liability by showing that your LLC is a separate business entity.
However, the state law will govern your LLC’s operations without the operating agreement.
File Initial And Biennial Reports
After organizing your LLCs in Alaska, you must file an Initial Report with the State of Alaska Division of Corporations within six months of your LLC’s organization.
Every LLC registered in Alaska must file a Biennial Report form every two years, due before January 2 of the filing year.
The filing fee is $100 for Alaska LLCs and $200 for foreign LLCs registered in Alaska.
You need to register with the Alaska Department of Revenue if you will be selling goods and collecting sales tax or if you have a plan to have employees.
See the Alaska Department of Commerce, Community, and Economic Development website for details.
The Initial Report and Biennial Report must include the following:
The LLC”s name and the state or country where it is registered.
The address of the registered office of the LLC in Alaska.
The name of the registered agent at that address.
The address of its principal office in the state or country where it is organized for a foreign LLC.
The names and addresses of the LLC’s managers; or names and addresses of the LLC’s members.
The name and address of people owning at least a 5% interest in the LLC and the percentage of interest held by the people in the company.
Obtain Your Employer’s Identification Number (EIN)
An employer’s Identification Number is required if your LLC has more than one member.
As such, it must obtain its own IRS Employer Identification Number (EIN).
If your LLC is required to file a separate tax return, you must obtain an EIN.
You can do this by completing an online EIN application on the IRS website.
Acknowledge Other Requirements
You must get an EIN & comply with other tax and regulatory requirements to form your LLC in Alaska.
Listed below are other requirements for LLC.
Business Licenses: The business licenses depend on the type of business and its location. You may also need to obtain other local and state business licenses.
However, you can check with the county probate office or county licensing commission for the county where your LLC is located.
LLC Records: LLC in Alaska must keep some records in its principal office and make them handy for inspection by LLC members.
The records include:
- Current list of the full name and address of each member and manager of the LLC.
- A copy of the articles of organization and all amendments.
- Copies of any powers of attorney
- Copies of the LLC’s federal, state, and local income tax returns for the recent three years.
- Copies of the operating agreements and any amendments.
- Copies of financial statements of the LLC for the recent three years.
This guide on starting an LLC in Alaska reveals all you need to know and put in place to form your LLC.
You need to choose and reserve your business name following the tips above.
You also need to file some documents like an operating agreement, file an initial and biennial report, a registered agent, and other requirements.
We wish you success as you form your LLC.