How to Start an Alaska LLC
Alaska LLC Formation – Basics & Helpful Information
This article is meant to be a general overview of the Alaska LLC formation process; including information about how to start an Alaska LLC and other basic issues related to Alaska LLCs.
Alaska LLC Filing Fees
To start an Alaska LLC, you must file Articles of Organization with the Alaska Department of Commerce. The filing fee for this document is $250 and you can now file Alaska Articles of Organization online.
Alaska LLC Filing Time
The Alaska Commerce Department will process your LLC’s Articles of Organization in approximately 10-15 days from the day it is received. Online filings are immediate unless flagged for examiner review.
Alaska Annual Compliance Requirements
Your initial report for your LLC is due within 6 months of creation, and there is no fee. Failure to file will cause non-compliance and may lead to administrative dissolution. Then every 2 years the LLC must file the biennial report. The fee is $100. If you initially filed in an even-numbered year, the biennial report due date will be January 2nd of every even-numbered year. If you initially filed in an odd-numbered year, the biennial report due date will be January 2nd of every odd-numbered year. Keep in mind, before engaging in any business activity, you must obtain a business license. To obtain your business license you must have an NAICS code (North American Industry Classification System) that describes the activities within your line of business in the state of Alaska.
See more on Alaska Business Licenses →Form an LLC in Alaska
You can use this checklist to help guide you through the process of forming an Alaska LLC:
Step 1: Decide on a Business Name
One of the first things a business owner does is select a name. If you are going to create an LLC in Texas, you will need to make sure your desired name is available. We recommend a free search via the Alaska Department of Commerce database.
It is also highly recommended that you check the US Patent and Trademark Office to see if someone has a federal trademark of the business name you want (the Alaska DoC will not check other state’s databases or the federal trademark database). You can click here to have a comprehensive name availability search performed for you.
The name of the LLC 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.” The name of a city, borough, or village may be used in a limited liability company name; however, the LLC name may not contain the word “city,” “borough,” or “village” or otherwise imply that the company is a municipality.
Step 2: Register your LLC with the State
Alaska Articles of Organization
The Articles of Organization is the document that actually creates an LLC in Alaska once filed with the Alaska Department of Commerce (DoC). The Alaska DoC offers a paper version of the Articles of Organization and an online version that you can use if you want to prepare/file the Articles of Organization yourself. You’ll pay the $250 LLC filing fee when you submit the Articles.
The Alaska Articles of Organization must include (at a minimum):
- Name of LLC
- Purpose of LLC (“any lawful purposes” is typical)
- NAICS code (may not conflict with the purpose listed)
- Name & address of Registered Agent
- Whether the LLC is to be governed by members or managers
- Name & address of initial members or managers
- Name, address and signature of organizer
Alaska Registered Agent Information
Alaska LLCs must have a registered agent in the state of Alaska. A registered agent for an Alaska LLC may be an individual with an Alaskan physical and mailing address, or a business entity (such as a corporation-excluding an LLC, LP, or LLP) in good standing with the state of Alaska and registered to conduct business in Alaska.
What is a Registered Agent? →Step 3: Create and Sign the LLC’s Governing Document
The governing document for an LLC is called the “company agreement” or sometimes the “operating agreement”. The company agreement is to an LLC like a partnership agreement is to a partnership (or bylaws to a corporation). The company agreement governs the internal operation of the LLC and is typically a private document that is kept in the company book and the principal place of business (it is NOT filed with the state). The company agreement can address many issues, some of the more common concepts found within a company agreement are:
- Limitations on the members liabilities
- The level of consent needed to take various actions (i.e. simple majority required to add new members)
- The percentage of the LLC that each member owns
- How profits and losses are allocated between the members (typically based on ownership percentages)
- Limitations on transferability
- What each member is contributing to the LLC and what happens is such contributions are not made.
- The authority of the members, officers, managers, committees, etc.
- How meetings are conducted
One of the reasons we recommend using an LLC formation company like IncFile is that they can provide you with a company agreement in connection with their LLC formation services.
Step 4: Get an EIN
After you form an LLC in Alaska, you can get the EIN. There are a few different ways to get an EIN:
- Apply Online Yourself: The IRS has an online EIN Application you can use to get an EIN. The turn around time on the EIN using this method is only a few minutes.
- Use Form SS-4: You can get an EIN the old fashion way by completing Form SS-4 and mailing or faxing into the IRS. How long does it take to get the EIN this way? According to the IRS: if you mail in Form SS-4, it will take 4-5 weeks to get your EIN. If you fax in Form SS-4 you should have the EIN back in a week if you provide a fax number or 2 weeks if you don’t have a fax number.
- Have a Third-Party Obtain: All of the LLC formation companies have the ability to get the EIN for you. The EIN obtainment charge varies by company, but it is generally between $50 and $100. If you get one of the higher priced packages, they will sometimes throw in the EIN for free.
Step 5: Get Licenses and Permits
After you create your new Alaska LLC, you’ll need to determine if your business/profession requires any license or permits to conduct business.
See more on Alaska Professional Licensing → See more on Alaska Business Licenses →Registering a Foreign LLC in Alaska
If you have a non-Alaska LLC (aka Foreign LLC) and you are doing business in Alaska, you may need to register the Foreign LLC in Alaska. Each state has a different definition of “doing business”. In Alaska, the kinds of activities that would not constitute “doing business” are outlined in the Alaska Statutes Sec. 10.50.720.
The filing fee for the Certificate of Registration – Foreign LLC in Alaska is $350.
Online Registration of a foreign LLC in Alaska →Helpful Info
Use an LLC formation service like IncFile to help you form an LLC in Alaska. They have FREE LLC formation packages (you only pay the state filing fee).
Links
Alaska Department of Commerce
Alaska Business License Info
Articles of Organization (Paper Version)
Articles of Organization (Online Version)
Business Name Search
Online EIN Application (for the LLC’s Federal Tax ID)
USPTO (Federal) Trademark Search