LLCs in Alaska are affordable and easy to form. As with other states, the State of Alaska has some unique LLC requirements.
Interested parties must register with the State of Alaska Division of Corporations, Business and Professional Licensing (or Corporations Section, for short) by filing the necessary forms, paying the necessary fees and meeting all naming and formation requirements.
Required Specifications of an Alaska LLC:
Registration. LLCs are required to file Articles of Organization with the State of Alaska Corporations Section. The articles must include the following information:
- LLC’s name
- Purpose of LLC
- Disclosure of company activities, including the NAICS code
- Registered agent’s name and address
- The type of management, i.e., member-managed or manager-managed
- Duration, if not perpetual
- Name, address, contact number and signature of organizer
All forms must be submitted with the necessary filing fee.
Forms and fees. LLC registrants are required to complete and submit Articles of Organization with the Corporations Section along with the filing free. The forms may be submitted online or by mail.
Timeline. Processing time is between 10 to 15 working days. Expedited services are available for an additional fee. Expedited service only gives priority to your documents over other submitted documents. It is does not guarantee a time frame in which the processing will be completed.
Naming requirements. LLC naming requirements can be confusing. However, the easiest way to make sure that your LLC name will be approved is to make sure that it is distinguishable from other LLCs and includes specific words required of LLCs. You may opt to have a preferred name checked for availability before filing your LLC formation documents.
Formation requirements. To form an LLC, a registrant must first file their Articles of Organization with the Corporations Section. All forms must be submitted with the required filing fee.
Next, an LLC with more than one member is strongly advised to have a limited liability company operating agreement among its members. This operating agreement contains the terms entered into by the members of the LLC and governs such critical items as the roles of each member, voting rights, who manages the LLC, how members are admitted or removed, dissolution of the LLC and procedures for amending the LLC operating agreement itself.
Please take note that LLCs offering a specific professional service are obligated to contact the necessary licensing boards as mandated by state law.
Starting an LLC in Alaska
Before deciding to form an LLC in Alaska, you must understand what an LLC is and if it is a viable business structure for your company. You may want to read up on the definition and benefits of an LLC.
Here are some tips to help you put together what you need to begin the registration process with the Alaska Division of Corporations:
1. Decide on a name for your business. You can choose any name as long as it ends with “Limited Liability Company” or any variant of its abbreviations—e.g., L.L.C. or LLC.
Names may be reserved for up to 120 days. You must submit a completed application to the Corporations Section, along with the required filing fee. Be sure to include in the application the name to be reserved and the applicant’s name, title, address and dated signature. Prior to filing a name reservation application, you may have the preferred name checked for availability, either by searching the Corporations Section’s online database or by contacting the Corporations Section directly.
2. Assign an agent for service of process. This is also referred to as the resident agent.
3. Get an Employer Identification Number (EIN) from the IRS. If there are two or more members in your LLC, your company will need to obtain an EIN from the IRS, for tax purposes.
4. Obtain an Alaska business license. This is required in order for the LLC to do business in Alaska. The license can be obtained from the Division of Corporations, Business and Professional Licensing, Occupational Licensing Section. There is an annual fee that must be paid upon renewal of the license. The license expires every year on December 31.
5. Create an operating agreement. Although LLCs in Alaska are not required to have a limited liability company operating agreement, it is wise to have one in place with other members should your LLC have more than one member. The State of Alaska recognizes limited liability company operating agreements as governing documents.
6. Familiarize yourself with the LLC’s continuing legal obligations, specifically biennial reports. These reports are submitted January 2 of every other year following the year in which the LLC was formed. An initial report is due within six months of organization and may be done online or by mail. Failure to submit a report may result in involuntary dissolution or revocation of entity. The LLC’s registered agent will be notified by mail as to when the reports are due. All reports not submitted by February 1 are considered delinquent.
Filing an LLC and Taxes
Following are the forms and fees that are required when starting an LLC in Alaska:
1. Forms. Those looking to form an LLC in Alaska will have to file their Articles of Organization, along with the required filing fee, with the State of Alaska Corporations Section.
2.Limited liability company operating agreement. Although the LLC operating agreement is not filed with the State of Alaska Corporations Section, it is a good idea to have one in place for LLCs with more than one member. This should be kept on file by the registered agent.
3. Taxes. LLCs in Alaska are treated as corporations, limited liability partnerships or single-member LLCs and are subject to federal income tax classifications. Depending on the type of taxation you opt to have for your LLC, you will have different federal tax responsibilities.
You should always make sure to acquaint yourself with the state laws regarding taxation. Your LLC may be subject to other taxes depending on the kind of services your LLC may offer.