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There are many reasons to form an LLC in Alaska. Here are the main ones:
Legal protection in case of bankruptcy or lawsuits
Separation of personal and business assets
Tax benefits: flexibility & pass-through taxation
Increasing credibility and trust for your business
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If you plan to start a business in Alaska and want to protect your personal assets from your business debts and liabilities, you can register an LLC. Other benefits of doing so include making it easier to manage your business and stay in compliance with state and federal regulations.
LLCs have some characteristics of corporations, sole proprietorships, and partnerships. One advantage is that an LLC is generally taxed at a lower rate than a corporation.
You must comply with all federal and State of Alaska regulations for establishing an LLC. Although Alaska follows standard procedures, the filing fee is higher than most states and will cost you $250 to file your Articles of Organization with the State of Alaska Division of Corporations.
There are five steps you must take to create your LLC in Alaska:
Each step is discussed in more detail below.
Although Alaska has specific guidelines for choosing a name for your LLC, those guidelines are not as stringent as in other states. The guidelines do say you need to do an Alaska name search to confirm there is no other business in the state that is already using the exact name you choose.
This will keep you from legal issues that may arise from infringing on the rights of an already established business. Alaska makes it clear that its approval of a name that is requested is not a determination of an entity’s legal right to that name.
If the LLC is composed of professionals who are required to have a license to practice the profession, the LLC can only have the name of the profession in the name of the LLC if all members of the LLC have the appropriate license. For example, it cannot contain the name “engineers” unless all members are licensed engineers.
You can obtain exclusive rights to a name that is available by filing for a Business Name Reservation which costs $25 and will protect the name for 120 days. You can also file for a Business Name Registration which gives you exclusive rights to using the name for 5 years and also costs $25. You can renew the name registration when the 5 years expired.
When you file your Articles of Organization and your LLC is officially recognized by the State of Alaska, this automatically registers your business name.
The name of your business must not be one that can be confused with a government agency with a similar name. Avoid any words that might lead someone to believe your business is in any way affiliated with the government.
The name you choose must also include the term Limited Liability Company or abbreviation LLC. You can abbreviate “Limited” to “Ltd” and abbreviate “Company” to “Co.”
You can reserve or register the name by using the online provisions of the State of Alaska Division of Corporations.
You’re required to appoint an Alaska registered agent who can accept service of process when necessary and other notices. If an individual, the agent must be a resident of Alaska, and only Alaska, with a street address in Alaska. The agent cannot arrange for his or her mail to be forwarded or held. If the agent will be out of the state, notice must be given to the State of Alaska of a new registered agent. There is a fee of $25 for naming a new registered agent.
Your registered agent may be a corporation authorized to transact business in Alaska. An LLC cannot be a registered agent and an entity cannot be its own registered agent.
Attorneys and incorporated law firms can be registered agents.
Alaska requires you to file articles of organization with a filing fee of $250 and the following information included:
Name: The name you have selected for your LLC. The word “limited” may be abbreviated as “Ltd” and the word “Company” abbreviated as “Co.”
Purpose: This describes the activities of the company at the time of the filing. The North American Industry Classification System (NAICS) code should be included where indicated. A list of codes can be found on the State of Alaska Department of Corporations website.
Registered Agent: This must include the name, physical address and mailing address, and other contact information of the agent of the LLC who must be a resident of Alaska and of only Alaska. The registered agent may be a corporation that is in good standing in Alaska, but an LLC may not be a registered agent.
Management: You must include how the LLC will be managed. Managers have sole decision-making power within the LLC.
Optional provisions: Any optional provisions you determine are required.
Signatures: The signature of the organizer or signatures of the organizers must be included.
The filing fees for all required documents for an LLC in Alaska include:
Reservation of Business Name: $25
Filing Articles of Organization: $250
Business License: $50 per year (As of November 2020, renewal of the license is $0)
Trademark Registration: $50
All required documents may be filed online with fees being paid by Visa, Master Card, Discover Card, or American Express. If you prefer not to file online, mail the appropriate forms to:
The State of Alaska, Department of Corporations
P.O. Box 110806
Juneau, AK 99811-0806
The forms must be mailed to the P.O. address and not to the Juneau Street address.
Alaska does not want you to send it an operating agreement for your LLC. In fact, if you send an operating agreement to the State of Alaska, it will be sent back to you.
While Alaska doesn’t require an operating agreement to run your LLC, the Small Business Administration (SBA) of the federal government strongly urges LLCs to have an operating agreement that should include:
An EIN is your Employer Identification Number which is required and issued by the Internal Revenue Service (IRS) for business entities. It is a 9-digit number similar to your Social Security Number (SSN) but is used only for business purposes.
Some benefits to having an EIN and ways you will use it are:
Applying for your EIN is and easy. Fill out form SS-4 at the IRS site. You will need the physical address for your LLC, which may be that of the principal or the registered agent. You will need the SSNs of all the principals.
You can do this yourself, or we can do it for you here at Tailor Brands.
This step-by-step guide details the steps you need to name your Alaska LLC properly by searching if it is unique.
There are different costs to form an LLC in Alaska and maintain it. We’ve listed all of them in this post.
Appointing registered agent is a mandatory step in your LLC formation process in Alaska – learn more about it.
This post details which licenses and permits your Alaska LLC may require and how to obtain them.
We love helping people start their business. We take care of the LLC filing and offer additional services so you can focus on launching and growing your business, while remaining compliant with state regulations.
Here’s why people choose to form their LLC with us:
Our products are user friendly, all you need to do is answer a few questions about your business and let us take care of all the rest.
Our platform is easy to use and is optimally designed to guide you through your LLC formation process and business journey.
We offer more products to help you set and manage your business like registered agent, business licenses, and annual report.
For more reviews from our customers, visit our reviews page.
Form an LLC in Alaska, Hassle-Free
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.
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