If you are a business owner/operator in Alaska and are looking to form an LLC, we’ve detailed everything you need to know to start the process.
This post will prepare you to navigate the various laws and legal regulations that are required to create an LLC in Alaska. A number of costs are associated with this process, and they will be outlined here.
Beginning the creation of an LLC in Alaska can be an arduous process, but by following the steps listed below you will be well on your way to forming your own limited liability company.
Is an LLC Operating Agreement Required in Alaska?
There is no direct statute in Alaskan law requiring a company to have an LLC operating agreement. In spite of this, it is strongly advised that those wishing to operate their business as an LLC engage in creating an operating agreement. The law also requires a business operating in this state to obtain a business license before engaging in business activity (as per AS 43.70.020).
Alaska Operating Agreement Laws
The Alaska State Legislature mandated the laws regarding an LLC operating agreement under State Statute AS 10.50.095, most recently updated in 2020, which states:
The members of a limited liability company may adopt an operating agreement for the company and may amend and repeal the agreement. The articles of organization may restrict or eliminate the power of the members to adopt, amend, or repeal an operating agreement.
There are also a number of additional statutes that dictate further regulations regarding the regulations for what this document can entail.
How to Form an LLC in Alaska?
In order to form an LLC in Alaska, there are a number of steps to follow. Each one is essential in ensuring that your LLC is in compliance with state laws. We’ve listed the steps required and any associated costs below.
Step 1 – Naming Your LLC
Having a name for your LLC is an essential step in ensuring your business is recognizable and helps to differentiate your company from others. You can name your LLC in almost any manner you deem appropriate, however, there are a few rules in regards to 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 word “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, but, the name may not contain words like “city,” “borough,” or “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 you wish to use isn’t already in use, which can be determined with the Alaska Business Name Search. At this point, it may also be useful to purchase a domain name.
You may decide to use an alternative name to conduct business as opposed to your official registered name as listed on your articles of incorporation. You can register that name online or by mail. The fee is $25.
Step 2 – Naming a Registered Agent
In order to register your LLC in Alaska, you will have to name a registered agent. A registered agent is a person or organization appointed by your company to receive communication from the government.
The registered agent can be a person within your organization, someone outside of it, or an agency that specializes in providing this service for businesses. The person or organization must reside/be registered for business in the state of Alaska to qualify.
Step 3 – File The LLC Articles Of Incorporation With The State Of Alaska
Now that you have the information you will need to fill out the application, you will have to submit your articles of organization to The Alaska Department of Commerce, Community, and Economic Development.
The articles of incorporation for your LLC must include:
- The name of your LLC
- The name and address of your registered agent
- The purpose of this LLC
- A declaration of whether your LLC is member-managed or the name of a designated manager
- Organizers signatures
This can be submitted by mail, fax, online, or in person. The cost for submitting this application is $250. Registered LLCs must file a biennial report every two years. The fee for this is $100.
If your LLC has been formed outside of the state and you intend on doing business in Alaska, 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. This can be submitted online or by mail. The fee for this is $350.
A foreign LLC is also required to file a biennial report every two years. The fee for this is $200.
Step 4 – Request An IRS Employer Identification Number (EIN)
The IRS requires all LLCs in the United States to obtain an Employer Identification Number (EIN) (except for single-member LLCs). This nine-digit number is necessary for many important 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.
Alaska LLC Operating Agreement Template
If you’re ready to begin the paperwork for starting your own LLC, fill out the template below to get started.
LLC Operating Agreeement