An Alaska LLC operating agreement is a document that outlines the ownership structure of a company and how daily operations are conducted. The agreement records each member’s ownership interest and is set up when a limited liability company is formed, allowing each member to keep a copy after they sign it. For it to become effective, all members must agree to its terms unanimously.
Is an LLC Operating Agreement Required in Alaska?
No, Alaska has no direct statute requiring an operating agreement. However, it is strongly advised that those wishing to operate their business as a limited liability company engage in creating one.
- LLCs are governed by the Alaska Revised Limited Liability Company Act.
- Operating agreements statutes: AS 10.50.095.
Alaska law also requires a business operating in this state to obtain a license before engaging in business activities (AS 43.70.020).
Costs and Fees
You need to cover the following fees for an Alaska LLC:
- Articles of organization filing fee – $250 for domestic LLCs ($350 for foreign LLCs).
- Name reservation fee – $25.
- Biennial report filing – $100.
How to Form an LLC in Alaska
To form an LLC in Alaska, these are the steps to follow, each one ensuring compliance with state laws:
Step 1 – Naming Your LLC
You can name your limited liability company in almost any manner you deem appropriate. However, there are a few rules regarding choosing your name:
- State laws require your LLC to include the phrase “limited liability company” in its official name. This may be abbreviated to LLC or L.L.C.; however, its inclusion is an essential requirement. The word “Limited” may be abbreviated to “Ltd.” and the term “Company” may also be shortened to “Co.”
- You can use the name of a city, borough, or village in naming a limited liability company name. Still, the name may not contain words like “city,” “borough,” “village,” or any others that would imply the company is a branch of a municipality or government organization.
- Words that imply that the company provides professional services (Bank, University, Law Office, etc.) may require a registered professional to be named in your partnership.
It would also be helpful to ensure that the name isn’t already in use, which can be determined with the Alaska Corporations Data Base Search. At this point, purchasing a domain name may also be helpful.
Step 2 – Naming a Registered Agent
A registered agent is a person or organization appointed by your company to receive communication from the government.
The agent can be someone within your organization, outside of it, or an agency specializing in providing this service for businesses. To qualify, they must reside/be registered for business in Alaska.
Step 3 – File the LLC Articles of Organization With the State of Alaska
You must submit your articles of organization to The Alaska Department of Commerce, Community, and Economic Development.
Suppose your limited liability company has been formed outside of the state, and you intend to do business in Alaska. In that case, you must register with the Alaska Division of Corporations as a foreign LLC.
Foreign LLCs must complete and submit a Certification of Registration of Foreign Limited Liability Company.
Step 4 – Request An IRS Employer Identification Number (EIN)
The IRS requires all LLCs in the United States to obtain an Employer Identification Number (except for single-member LLCs). This nine-digit number is necessary for many vital functions, including paying income tax, filing tax returns, and opening a business banking account. You can apply for your EIN online. There is no fee for this service.
Get started with the paperwork for your company by downloading our Alaska LLC operating agreement in PDF & Word format.