Alaska LLC Guide | A Comprehensive Write-up For Beginners
When it comes to business it’s better to have a clear knowledge of the one you really would like to venture into. Every business is a step by step process, it not something that you will just sit down at your home and decide what to do and it will come to pass without hard work and stress.
Every successful business you see today started somewhere and truly, some of the business owners now can really boast that their business has gone far and wide. So, you too can be like them, if you really want to make a positive change in your business.
Do you know that forming an LLC is the simplest way of structuring your business to protect your personal assets in case your business is sued?
Now, you have an idea of why you should start an LLC in Alaska.
A limited liability company (LLC) is a business entity that offers certain legal protections and rights to its owners. An LLC is either a corporation or a sole proprietorship/partnership.
Alaska LLC Information
Forming LLCs in Alaska is affordable and easy. Unlike other states, the State of Alaska has some unique LLC requirements.
Interested parties must register with the Alaska Division of Corporations, Business, and Professional Licensing by filing the necessary forms, paying the necessary fees, and meeting all naming and formation requirements.
The specifications required of an Alaska LLC are:
1. Name Your Alaska LLC
Choosing a company name is the first and most important step in forming an Alaska LLC. Be sure to choose a name that complies with Alaska naming requirements and is easily searchable by potential clients.
Follow The Naming Guidelines:
- Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
- Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
2. Choose A Registered Agent In Alaska
You are required to nominate an Alaska registered agent for your LLC.
What Is A Registered Agent?
A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent as your business’s point of contact with the state.
Who Can Be A Registered Agent?
A registered agent must be a resident of Alaska or a corporation, such as a registered agent service, authorized to transact business in Alaska. You may elect an individual within the company including yourself.
FAQ: Nominating A Registered Agent
Can I Be My Own Registered Agent?
Yes. You or anyone else in your company can serve as the registered agent for your LLC.
Is A Registered Agent Service Worth It?
Using a professional registered agent service is an affordable way to manage government filings for your Alaska LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.
3. File The Alaska LLC Articles Of Organization
To register your Alaska LLC, you will need to file the Articles of Organization with the Department of Commerce, Community, and Economic Development. You can apply online, in-person, or by mail. Some states refer to the Articles of Organization as the Certificate of Formation or Certificate of Organization.
The Articles of Organization for an LLC (limited liability company) in Alaska is a legal document to officially form your business. You’ll be expected to provide the name of your LLC, choose a registered agent, list the services your LLC will offer, and pay the state filing fee. After you file the Articles of Organization, we recommend you obtain an Employer Identification Number (EIN) if you plan to hire employees and open a business bank account.
Alaska NAICS Requirement
The North American Industry Classification System (NAICS) consists of 6-digit codes given to a business depending on the type of trade it engages in. You can look up the NAICS code for your type of business with a keyword search.
FAQ: Filing Alaska LLC Documents
What Is The Processing Time To Form My Alaska LLC?
10 to 15 business days online or by mail.
What’s The Difference Between A Domestic Alaska LLC And Foreign LLC?
An LLC is referred to as a “domestic LLC” when it conducts business in the state where it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.
4. Create An Alaska LLC Operating Agreement
An operating agreement is not required in Alaska, but it’s a good practice to have one.
What Is An Operating Agreement?
An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.
Why Are Operating Agreements Important?
A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
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FAQ: Creating An Alaska LLC Operating Agreement
Do I Need To File My Operating Agreement With The State?
No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.
5. Get An EIN
What Is An EIN?
The Employer Identification Number (EIN), or Federal Tax Identification Number, is used to identify a business entity. It is essentially a social security number for the company.
Why Do I Need An EIN?
An EIN is required for the following:
- To open a business bank account for the company
- For Federal and State tax purposes
- To hire employees for the company
Where Do I Get An EIN?
An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.
NOTE
FOR INTERNATIONAL APPLICANTS: You do not need an SSN to obtain an EIN.
FAQ: Getting An EIN
How Do I Get An EIN If I Don’t Have A Social Security Number?
An SSN is not required to get an EIN. You can simply fill out IRS Form SS-4 and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application.
What Tax Structure Should I Choose For My LLC?
When you get an EIN, you will be informed of the different tax classification options that are available. Most LLCs elect the default tax status.
However, some LLCs can reduce their federal tax obligation by choosing S corporation status. We recommend consulting with a local accountant to find out which option is best for you.
6. Cost To Form An LLC In Alaska
To form an LLC in Alaska you will need to file your Articles of Organization with the Alaska Division of Corporations, Business, and Professional Licensing, which costs $250. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your Alaska Limited Liability Company.
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