Today, a limited liability company is one of the most popular business structures. Many business owners choose to form an LLC in Alaska after evaluating the economic and tax advantages of the state.
To effectively form an LLC in Alaska, it is important to follow the procedure and comply with the law. If you don’t know yet how to apply for an LLC, there’s no problem!
In this article, we’ll take a brief look at the basic steps to help you start an LLC in Alaska easily, including the necessary forms and fees. In addition, we’ll talk about the benefits of hiring a registered agent LLC for your company.
Navigation
A successful Alaska business name should be memorable and concise, reinforcing the identity of the company. But creativity is only half the battle. To start an LLC, you have to make sure your name complies with state law.
According to Alaska’s LLC name rules and requirements, an appropriate name should meet the following basic criteria:
Lack of uniqueness is the most common reason for a company registration application to be rejected. Therefore, before filing formation documents, be sure to select a Distinguishable Name.
To check if the name you have chosen as an LLC in Alaska is available, perform a free Corporations Database Search.
If the check shows that the desired name is available, you may confidently add it to the Articles of Organization. However, if the name is already taken, you should improve its uniqueness by choosing a new name.
There are several ways to improve the uniqueness of the name:
On the other hand, the following edits will not be considered to be major changes:
Have you already chosen the perfect name but don’t plan to register your company yet? To protect the name from third parties, you can reserve an LLC in Alaska name for 120 days for $25.
You can apply for a reservation in 2 ways:
If you do not want to wait, filing online is the best option. Just fill in all the required information and pay the required fee with your credit or debit card.
If you prefer to work with paper documents, the printed Business Name Reservation form can be mailed to:
Department of Commerce, Community, and Economic Development
Division of Corporations, Business and Professional Licensing
PO Box 110806
Juneau, AK 99811
Reservation is not a required step. You can skip this and start conducting an LLC in Alaska right away by filing Articles of Organization, which will automatically secure all rights to the company name.
After registering an LLC, you should take care of an Operating Agreement. It is an internal document of the company, setting forth the rights and responsibilities of the participants, as well as the basic operating procedures.
While Alaska law does not require LLCs to have an operating agreement, it is recommended by experts and experienced business owners.
Here are a few reasons why you might want to get it:
As a rule, the Operating Agreement contains the following points:
Since it is a non-binding document, you can write an Operating Agreement in two ways:
To do business in Alaska, the LLC owner should select and appoint a registered agent to ensure a smooth interaction between the state and the business. This is an essential step in LLC registration since the registered agent ensures that the company receives all official mail addressed to it on time.
According to the law, the role of a registered agent in Alaska is suitable for both individuals and legal entities authorized to do business in the state.
Any person who has a physical address in Alaska and is at least 18 y.o. may become a Registered Agent. However, he or she should be available during regular business hours to receive official correspondence in person.
If you want to learn more about this, visit the Registered Agents FAQ on the state’s official website.
Most professional online companies provide a registered agent service, offering excellent quality at an affordable price.
Also, if you haven’t started an LLC yet, you can get a 1-year free registered agent service by hiring a company like ZenBusiness or Northwest Registered Agent.
Does your company hire employees, pay taxes, or plan to open a separate bank account? Then you need to get an EIN, which is a unique 9-digit code. It is a required step in Alaska LLC formation for most LLCs.
As it is in other states, getting an EIN in Alaska is completely free. You can apply to the Internal Revenue Service (IRS) in one of 3 ways:
To get an EIN in 4 business days, download Form SS-4 to your computer, fill it out, print it, and send it to:
(855) 641-6935
The fastest method to get an EIN in just a few minutes is to apply online. However, applications are only accepted between 7 a.m. and 10 p.m. EST, Monday through Friday. You will also need a valid Social Security number for a business to complete it.
If you don’t mind waiting about 4 weeks, you can file Form SS-4
by mail. The form should be mailed to:
Internal Revenue Service Operation
Attn: EIN Operation
Cincinnati, OH 45999
Once your company is officially incorporated, it’s a good time to open an LLC business checking account, providing features such as:
You will probably need the following documents when submitting your Bank application:
The process of creating an LLC in Alaska begins with filing LLC formation documents, called Articles of Organization. This is the main company document of incorporation. It contains the most important information. You will probably need the following basic information to fill it out:
The cost of processing LLC Articles of Organization is $250. There are 2 ways to apply:
Visit the Department of Commerce, Community, and Economic Development’s website and open the forms page. Select “Articles of Organization” in the Limited Liability Company section, go to the online filing page, and follow the instructions.
Download the PDF file to your computer, fill it out, and print it. Be sure to include a check or credit card payment form for the mandatory fee. Mail to:
State of Alaska
Division of Corporations, Business and Professional Licensing
Corporation Section
P.O. Box 110806
If mailed, your application will be processed within 10-15 business days. Once it is approved, you can officially begin your business in Alaska and conduct your first transactions.
After forming an LLC in Alaska, paying business taxes becomes one of the main responsibilities of the company. However, the good news is that the state’s Tax Filing Requirements are fairly simple. LLCs do not file separate returns, nor do they pay taxes for the right to do business.
Most LLCs choose “pass-through” tax treatment, which helps to avoid double taxation. The company’s tax liability shifts to the owner who reports income and expenses on his/her personal 1040 tax returns and/or Schedule C.
Nevertheless, participants have the right to apply to the IRS to switch to the corporate tax regime.
In addition to the federal and state taxes listed, a company has to pay taxes in Alaska if it meets certain conditions. For example, if you have salaried employees, you have to file Unemployment Security Tax.
In addition, although Alaska LLC taxes do not include Sales or Use Taxes, it may be a requirement at the city or county level. Visit your local government website for more information or consult with the clerk.
Most companies need to obtain some business licenses and permits to do business in Alaska.
A general business license costs $50. It is valid for one year and should be renewed. To get a license, you can submit a paper application or fill out an online application.
There are also several licenses that vary depending on the business sphere. Check out the List of professional/occupational licenses.
Additional Licensing in Alaska may be provided by some cities and counties. Generally, information about this is available on your local website.
To keep your business in good standing, it’s important to file an LLC biennial report in Alaska every 2 years by January 2. For example, if your LLC was incorporated in an even-numbered year, you have to file an LLC report in each subsequent even-numbered year. The same is with odd-numbered years.
If you don’t remember the year of incorporation, you can check the Articles of Organization for this information.
Alaska charges a $100 state fee for processing the annual report, regardless of the method of filing.
Online
Filing online is a great way to save time and effort. Simply fill out the digital form and pay the required fee by card.
If you prefer the paper form, an annual report and a check for the state fee can be mailed to:
State of Alaska
Division of Corporations, Business and Professional Licensing
Corporation Section
P.O. Box 110806
If you live in Anchorage, all materials may be delivered in person to:
550 W 7th Ave, Ste 1500
Anchorage, AK 99501-3567
333 Willoughby AVE, 9th FL
State Office Building
Juneau, AK 99801-1770
If you miss the annual report deadline, the state may impose penalties. The company will receive a penalty for filing after February 1. If the violation is not corrected after that, the LLC may be administratively closed.
More and more entrepreneurs are choosing to hire an online service for opening an LLC in Alaska and setting it up. This is a great solution if you don’t want to be distracted or don’t like doing paperwork.
A professional LLC service will take care of all the necessary formalities, making the launch of your business in Alaska quick and smooth. The prices of most of these websites are quite affordable. You can even form an LLC online for free by hiring an online company like IncFile. For $0, they will set up your business in full compliance with state requirements and also provide a 1-year free registered agent service.
