The Arctic Circle. Glaciers. Brooks Falls and largest state in the union. Cannon Beach and Nike. Alaska is known for many things including the beautiful Matanuska Valley and also as a place where businesses of all shapes and sizes set up shop.
Numerous budding entrepreneurs chose Alaska to launch their LLC and tap into the state’s abundant resources to grow their business. To find out more about the next steps, read on.
In addition to its many other advantages, a limited liability corporation (LLC) provides small companies with protection from legal claims and favorable tax treatment. If you’ve established that an LLC is the appropriate company form for your purposes, take these steps to establish your Alaska LLC.
It should be noted that you have the option of forming the LLC yourself or through a business creation service.
1. Giving your Alaska LLC a name
Be sure to abide by the naming guidelines:
- You are required to have the word “limited liability corporation” or one of its acronyms included in the name of your business (LLC or L.L.C.)
- You are not allowed to use any terms in your company’s name that might lead to confusion with a public entity (e.g., FBI, Treasury, State Department, etc.)
- Words that are considered restricted, such as “bank,” “attorney,” and “university,” may need extra documentation and the incorporation of a licensed professional as a member of your limited liability company (LLC).
Conducting a name search on the website of the Alaska Department of Commerce, Community, and Economic Development can allow you to determine whether or not the name you desire is already in use.
Through the submission of a Business or Corporation Name Reservation Application, a name that is still available may be held for a period of up to one hundred and twenty days.
You have the option of filing the form electronically via the Division of Corporations, Business and Professional Licensing office of the State of Alaska or by mailing it in. To reserve a name, a charge of $25 is required to be paid.
2. Find your Alaska Registered Agent
A registered agent in Alaska is required of every limited liability company (LLC) operating in the state. If the limited liability company (LLC) is taken to court, this refers to a person or company that has agreed to accept service of process on its behalf.
An Alaska person or a legal business organization that is permitted to conduct operations in Alaska may serve as the Registered Agent for a company. The Registered Agent is required to provide evidence of a physical address in Alaska.
What is a Registered Agent?
A Registered Agent is a person or corporate organization responsible for receiving tax forms, legal papers, notification of litigation, and formal government communication on behalf of your company. Consider the role of your registered agent as that of the point of contact for your company with the state.
Who can serve as a Registered Agent?
In the state of Alaska, a Registered Agent must either be a person who lives there permanently or a business that is legally permitted to operate inside the state’s borders, such as a company that offers Registered Agent services. You have the option of selecting anybody who works for the organization, including yourself.
3. Publish your company’s articles of incorporation.
Your limited liability company (LLC) will be formally recognized after you have a document called the Articles of Organization that lays forth fundamental information about your business. Because this form serves as the legal registration for your company with the state, it is essential that all of the details be accurate.
What should be included in a company’s Articles of Organization?
Articles of Organization must be submitted to the Alaska Division of Corporations in order to establish an Alaska limited liability company.
The following information has to be included in the Articles of Organization for your limited liability company:
- LLC name
- The name and address of the registered agent
- LLC purpose
- Clarification is needed as to who manages the limited liability company (LLC) and whether or not it is the members of the company.
- Signature(s) of the person(s) organizing the event (s)
Filing Your Organization’s Certificate of Good Standing
You may submit your paperwork online or via the mail, and the cost is $250. Credit cards are the only accepted form of payment.
LLCs that have been founded in a different state but want to do business in Alaska are required to register with the Alaska Division of Corporations.
In order to successfully finish the registration procedure, foreign LLCs need to follow following steps:
- Comply with the regulations governing the name of Alaska LLCs.
- Appoint a registered agent in the state of Alaska.
- Finish the Certification of Registration of Foreign Limited Liability Company form and submit it. This may be accomplished over the internet or via the use of regular mail. The filing fee required by the state is $350.
4. Obtain a Certificate of Completion From the State
After the formation paperwork of the LLC has been submitted and authorized, the state will send you a certificate that proves the LLC’s official existence in response to a written request for a copy together with the appropriate amount of postage.
With this certificate, the limited liability company will be able to get an Employer Identification Number (EIN), as well as business permits and a bank account for the firm.
5. Draw up a Business Operations contract
Even while establishing a detailed operating agreement for an LLC is not a legally required stage in the process of incorporating a limited liability company in Alaska, it is highly suggested for all new limited liability firms.
The following items should be included in the operating agreement:
- Describe the business structure of the limited liability company.
- Determine the specific duties and commitments that each member of the limited liability company (LLC) has, and lay out the operational structure of the LLC.
- Significant legal and logistical challenges might await a limited liability company (LLC) in the absence of an operating agreement that defines the precise responsibilities of its members.
6. Create your tax ID with the IRS
A government employer identification number, commonly known as a tax ID number, will be required of many limited liability companies (LLCs). An Employer Identification Number (EIN) is a nine-digit number that identifies your company to the Internal Revenue Service. You need an EIN in order to pay government employment taxes, establish a bank account (in most situations), or recruit staff.
On the website of the Internal Revenue Service (IRS), which is accessible without charge, you may check to see whether you require an EIN and submit an application for one online.
Single-member limited liability companies, which are an exemption to the rule that most firms are required to acquire an EIN, may instead use the owner’s Social Security number.
In order to lawfully do business inside the state of Alaska, each and every company is required to apply for and get a license for doing so from the Alaska Department of Commerce, Community, and Economic Development.
Contact a city or county clerk in the municipality or county where your LLC is situated for information on local licensing requirements.
7. Prepare Biennial Reports
The filing of a Biennial Report, also known as a Biannual Report, is mandatory for Alaska limited liability companies and international limited liability companies that do business in Alaska once every two years.
You have the option of submitting the paperwork either online or in the mail. Filing fees for Alaska limited liability companies are $100, while filing fees for overseas limited liability companies are $200.
Initial and biannual reports serve the aim of updating the state with the most recent information about your limited liability company (LLC), including member names and the address of your registered agent.
Fees and next steps?
Creating a limited liability company (LLC) in Alaska, more particularly registering your articles of organization, will cost you $250. The Alaska Division of Corporations charges $25 for the reservation of a limited liability company. The first registration charge for a foreign limited liability company is 350 dollars.
Consider the following additional fees that may be incurred by an LLC:
- DBA (Doing Business As) name reservation: $25 LLC name reservation: $25
- Certified document copies
- Receive Your Certificate of Existence
When you register a limited liability company (LLC), you establish a legal basis upon which to operate your firm. Companies should make it a priority to maintain their limited liability company in compliance with state regulations and in an active position on the state’s website.
In addition, having a registered limited liability company enables you to perform the following:
- Obtain any permissions or licenses required to run your company, such as those issued by the health department, the zoning department, the department of home occupations, the department of professional licensing, and others. Some states need a seller’s permission to conduct sales
- Register your company with the department of revenue in your state.
- Create a bank account for your company (such as Kabbage or Bluevine)
- Create a credit card account for your company.
- Invest in insurance coverage for your company.
- Create a trademark to protect both your company’s name and its logo.
Setup an LLC myself or use a pro service?
To establish a limited liability company (LLC), you are not required by law to consult a lawyer. The majority of states enable the establishment of LLCs via the process of registering the business entity on the website of the secretary of state and with the Internal Revenue Service (IRS).
If you are not acquainted with the process of forming an LLC, your best bet may be to hire a professional LLC provider so that you can be certain that the creation will go smoothly and quickly.
When entrepreneurs start a new firm, they may save startup costs and save valuable time by using a professional formations agency that specializes in company forms.
They can take care of the things that you may not have time to think about for a price ranging from $50 to over $500, and some examples of such things are as follows:
- Developing an operating agreement for an LLC that details your company’s key information and putting it into writing (required in some states).
- Putting together articles of incorporation that identify the management of the LLC, the registration agent, and the date the company was formed.
- Taking up the role of registered agent for your firm.
- Keeping careful records in the event that there are investigations or litigation.
- Payment of filing fees and registration with the appropriate parties.
- Registering the name of your firm and ensuring that the name you choose for your limited liability company is accessible.
- Finishing up and turning in all of the necessary legal and formation documentation.
How much does it cost to set up an LLC in Alaska?
Creating a limited liability company (LLC) in Alaska, more particularly registering your articles of organization, will cost you $250. The Alaska Division of Corporations charges $25 for the reservation of a limited liability company.
How can I establish an LLC in Alaska?
You will need a registration fee, a name for your limited liability company (LLC), a Registered Agent, Articles of Organization, an Operating Agreement, and an EIN number from the Internal Revenue Service in order to create an LLC in the state of Alaska.
How long does it take to establish an LLC in Alaska?
When submitting a physical copy, Alaska’s Articles of Organization might take 10 – 15 business days to process. When paperwork is submitted online, it is often handled instantly.
Tom is the founder of Gottagrow.io. He reads the offers, deciphers the details including features, pricing, included services and more to find you the best products and services.