Alaska LLC
If you're an entrepreneur looking for a better way to own and manage a business, then you'll want to learn about Limited Liability Company in Alaska.
$250
Formation fees
$25
Name reservation fees
$100
Annual report fees
Page sponsor
Why we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time
What is an LLC?
Limited Liability Company
LLC is a business entity in the U.S that provides limited liability to its members. It has characteristics from both corporation and sole proprietorship. LLCs are permitted under State statutes of each US state.
Limited liability
Personal assets are protected for people with limited liability when they are sued.
Corporation
A business entity that can issue shares and give limited liability to shareholders.
Members
Owners of an LLC are referred to as members. They own membership interest in the LLC.
Sole proprietorship
Where an individual engages in business activity without formal organization.
Types of LLC
Depends on the number of members and whether it has elected to change its IRS classification.
Single-member LLC
Has only a single member. IRS considers it as a sole proprietorship for tax purposes.
LLC as C-corp
Owners of an LLC are referred to as members. They own membership interest in the LLC.
Multi-member LLC
Has two members. IRS considers it as a partnership for tax purposes.
LLC as S-corp
A special election for a maximum of 100 US shareholders.
Actions
Here are some possible actions to take in an Alaska LLC. Click below to read in detail:
How to form an LLC in Alaska?
Follow these 7 steps:
1. Name your LLC
Think about what kind of name would appeal to your customers. Then, show the list to some friends and some customers and get their feedback. If you already have a few names in mind, that's great!
To check if those names are available in the state of Alaska, go to the official entity search tool on the Secretary of State website. It’s free to search.
The state will reserve a name for you for a small fee. The reservation lasts a certain amount of time, after which the name becomes available again. If you file your Articles of Organization with the state, you do not need to reserve a separate name.
Reservation fees
$250
Reservation duration
10 - 15 days
Every Limited Liability Company (LLC) must have the words ‘Limited Liability Company’ or its abbreviation at the end of its name.
Make sure you follow LLC naming guidelines specified by Alaska state as per AS §10.50.020. This includes not using names similar to existing companies, etc.
2. Get a mailing address
If you have a business address in Alaska, you can use that as your official company address. Note that this address will be made public.
You could also choose to have a virtual office address. This means that you pay a business for a street address and they handle all your mailing. You can then give this address to the state.
3. Hire a registered agent
To be the registered agent for your Alaska LLC, you must be a resident of Alaska. However, your details will be made public and you must be available during all business hours to receive service of process.
You can also hire a service to act as your registered agent. This will give you the privacy and freedom that come with not having to worry about compliance.
4. File Articles of Organization
When you have a registered agent and an official office address, you can file Articles of Organization online on Alaska Department of Commerce, Community, and Economic Development website.
Filing fees
$250
Processing time
10 - 15 days
Address
State of Alaska Corporations Section
P.O. Box 110806
Juneau, AK 99811
5. Create an Operating Agreement
In Alaska, operating agreements aren't mandatory, but they're highly recommended. There are online websites to create one. Create one and get it signed by your LLC members.
6. Get Employer Identification Number (EIN)
The Internal Revenue Service uses the Employer Identification Number (EIN) to identify business entities. You can create an EIN for free at the IRS website or by phone.
7. Open a business bank account
It is important to separate your business and personal transactions. You can open a business checking account at a traditional bank like Chase or Wells Fargo, or you can look into modern banking solutions that offer plenty of benefits to entrepreneurs.
Entity name
Every LLC should have a unique name in Alaska. Alaska maintains a list of names of entities in the state. Go through it to check if your chosen name is available.
Search for names
Go to the official website of the Alaska corporations database tool to see if the name you want is available.
Searching fee
Free
Reservation
You can reserve a name for your LLC for a specific duration by paying reservation fees to the Alaska division of corporations, business & professional licensing. You will have to file your LLC formation documents within this period to keep the name. Alternatively, you can directly go ahead with the LLC formation without any reservation. That's fine too.
Reservation fee
$25
Reservation period
120 days
LLC naming guidelines
The name you choose for your LLC must the official naming guidelines.
AS §10.50.020
Visit
Here are some of the guidelines in simple language:
- 1
Must contain the words "limited liability company" or the abbreviation "L.L.C.," or "LLC". The word "limited" may be abbreviated as "Ltd.," and the word "company" may be abbreviated as "Co."
- 2
Don’t include terms that indicate that you are doing an activity that you are not authorised to do.
- 3
Your name should be ‘distinguishable’ in the Secretary of State records. Adding a punctuation or ‘the’ does not make it distinguishable.
- 4
Don’t use words that makes it seems like you are a governmental entity or has an affiliation.
Certificate of Formation
In Alaska, Articles of Organization is the form you file with the Secretary of State to form an LLC. It contains the articles of formation for the LLC.
Filing Articles of Organization
There are a couple of ways to file.
File it online on Alaska Department of Commerce, Community, and Economic Development website
Visit
Mail a form to the state department
PDF
Address
State of Alaska Corporations Section
P.O. Box 110806
Juneau, AK 99811
Online & mailing fee
$250
Online & mailing processing time
10 - 15 days
LLC Biennial Report
Every LLC has to file this report in Alaska to stay compliant with the state laws.
Filing Biennial Report
Alaska LLC is expected to file this report biennially by January 2
File it online on Alaska Department of CCED website
Visit
Online fee
$100
Online processing time
Failure to pay
If you file late as a domestic LLC, there is a penalty of $37.50
Initial report
Every domestic Alaska LLC has to file an initial report within 6 months of formation. It is free and can be done online.
Filing fee
Free
Registered agent
A registered agent is an agent of your LLC on whom any notice, process or demand may be served. Every LLC in Alaska needs to have a registered agent located in the state.
Requirements
According to Alaska Statutes § 10.50.055:
- 1
Registered agent can be an individual or an authorised organisation.
- 2
Registered agent must have a street address where they can personally receive service of process.
- 3
Office of Registered agent cannot be just a mailbox service of a telephone answering service.
EIN
An Employer Identification Number, also known as Federal Tax Identification Number, is used to identify a business entity.
Who must have an EIN?
Single member LLC elected to be taxed as C-corp or S-corp
Single member LLC with an employee
All multi-member LLC
Operating agreement
Operating agreement is an internal business document that outlines the general rules and policies of the LLC.
Importance
It is not a legally mandatory document. However, it is recommended to have one since many courts, banks and financial institutions use it for verification. It is also nice to clearly outline the duties and relations between multiple members of an LLC—so you avoid any confusion in the future.
Format
There is no ‘required’ format for an operating agreement. You can include anything reasonable in it. In general, it has the following sections:
Basic Business information
Contains name, address, names and details of members, purpose
Member relationship
Contains membership interest, decision making process, powers, duties.
Membership transfer
Contains details on how to add or remove members and managers.
Accounting and tax
Contains details on how company records and distributions are maintained.
Dissolution
How to dissolve, wind up and terminate, due process to follow and exceptions.
LLC in Alaska
Similar to LLCs, there are other business entities that are considered by businesses in Alaska.
Alaska Business search
Alaska LLC add member
Alaska LLC remove member
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time