How to Start an LLC in Alaska: If you’re interested in setting up an Alaska LLC, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. Alaska’s laws make it easy to establish your LLC in Alaska. On this page, You’ll find all the steps that must be taken to ensure that your Alaska LLC has been correctly established. We recommend you read the whole article very carefully word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Alaska
- After Starting Your Alaska LLC
- Alaska Foreign LLC
- Alaska LLC Formation Review
How to Start an LLC in Alaska
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection.
If you wish to start an LLC in Alaska, mainly you have to file your Certificate of Formation with the State and pay a filing fee of $250. There are some more steps to follow to get your LLC established in Alaska. The following steps explain everything you need to create your Alaska LLC in 2022. Let’s get started!
Step 1: Decide a Name for Your Alaska LLC
The very first step while forming an LLC in Alaska is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
Alaska LLC Naming Guidelines
There are a few specific requirements all the LLCs in Alaska have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Alaska can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Alaska State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|Alaska Business Entity Search – Online Name Search|
Name Reservation Form – PDF
Name Reservation Form – Online
Alaska LLC Name Search Guide – Instructions
Name Availability Standards – Guidelines
|State of Alaska|
Department of Commerce, Community, and
Division of Corporations, Business and
PO Box 110806
Juneau, AK 99811
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided then you can reserve your LLC name for 120 days. To keep the name, you have to file a name reservation application and pay $25 to reserve your name with the Alaska Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Alaska Secretary of State by submitting New Business Name Registration Form along with the filing fee of $25.
Recommended: You can do name search, get company logo, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Tailor Brands offer DIY website templates and incredible logo designs. If you plan to get a website then it is wise to have a “.com” domain for your business but these days you can also use other TLDs like “.company”, “.xyz” etc. With Tailor Brands, you can get everything you need at an affordable price.
It is not legally mandatory to use the word LLC in your domain name or email. If you want you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Alaska
The second step to forming an Alaska LLC is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Alaska. Hence, hiring a competent Alaska Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Alaska or has a physical street address. Their business address or the principal address should be in Alaska. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services, even if you buy their cheapest plan (normally $49/year) you also get registered agent service and other services at a reasonable price.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Alaska. Some LLC formation services offer standalone Alaska registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.
A person who is above 18 years of age and has a physical address in the state of Alaska can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of Alaska and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in Alaska.
Step 3: File Articles of Organization in Alaska
The third and most important step in forming an Alaska LLC is to file the Articles of Organization. This Alaska Articles of Organization is a legal document needed to officially register your business with the Secretary of State. It costs $250 (online and by mail filing) to file your formation certificate in Alaska. (Read more on LLC cost in Alaska).
The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (member-managed or manager-managed). Before hiring employees in Alaska LLC, one should know about the rules and regulations thoroughly. Also if you are expanding your existing business (an LLC) to Alaska then you need to register as an Alaska Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. To file your Articles of Organization you don’t need any login details. You can directly file your LLC online by clicking on the button below. Fill out the form completely and submit it. Read more about the Alaska Articles of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your Alaska LLC registration, then you can download the form. Read the form thoroughly, fill it out, and send it to the address mentioned below.
Mailing Address: State of Alaska Corporations Section
P.O. Box 110806
Juneau, AK 99811
333 Willoughby Ave., 9th Floor
State Office Building
Juneau, AK 99801-1770
Fax To: ((907) 465-2974
Processing Time: It takes 10-15 business days to form an LLC in Alaska whether filed by mail or online. Hiring a professional service may speed up the process.
Recommended: Online LLC Formation service can provide all these documents within 6-8 days with lifetime customer support and 100% accuracy. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Step 4: Create Your Alaska LLC Operating Agreement
Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing an Alaska LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation. Like Alaska, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve Alaska LLC later. Hence, having an operating agreement may not be necessary but it is definitely ideal.
Recommended: You can get operating agreement templates at only $29 with TailorBrands. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Step 5: Filing an Alaska LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Alaska LLC requires following specific rules and regulations. On the other side, EIN for Alaska foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your Alaska LLC. If you do it yourself it should take you a long time to properly understand and do all the steps.
However, if you use Tailor Brands it should take fewer hours and you always have live chat with expert support for any help you need.
After Starting Your Alaska LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Alaska business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees
- File an Alaska LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Cost of Alaska LLC
Forming an LLC in Alaska is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form an Alaska LLC. LLCs have pass-through taxation. Hence, your Alaska LLC won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in Alaska,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee||$25|
|Articles of Organization Fee||$250|
|LLC Annual (Biennial) Report Fee||$100 for 2 years|
In Alaska, LLC name reservation is mandatory. If you wish to hold the name for some time without registering your LLC, then a Name Reservation would be a wiser choice. It can be held by paying $25. Your LLC name will be reserved for additional 120 days.
Alaska is one of those states where there is no Sales Tax levied on the LLC. It does not matter what type of business you have, if you own an LLC, you are free from the Sales Tax. On the other, a single-member LLC is considered as a Sole Proprietor, hence the LLCs have to pay 9.4% of corporate tax. Read our guide on LLC costs in Alaska for more information.
Alaska Foreign LLC
If you are interested in forming a Foreign LLC in Alaska then you need to file the Certificate of Foreign LLC to the Alaska Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Alaska SOS to form your foreign LLC in Alaska. To know more in detail, check out our guide on Alaska Foreign LLC.
Reasons to Start an LLC in Alaska
There are several reasons why one should form an LLC in Alaska. Apart from the prime location and rich natural resources, the state is the most business-friendly place in Northern America. Located on the northwest side of the United States, Alaska has tourism, fishing, natural gas, and oil industries to dominate its economy. In the past few years, significant economic development takes place that encourages people to form Alaska LLC. A business-friendly, with low taxes, Alaska is an appropriate state for forming an LLC.
- Microloan Program for Women – If you are a woman and in Alaska, it would be easier to start your business. Under this facility, women entrepreneurs can get up to $10,000 for their start-ups.
- Small Businesses Economic Development – Under this facility, an LLC can get a loan amount of up to $300,000 to form or expand their LLC.
- Rural Development Fund – LLCs that are placed in community areas can get this financial support. To qualify for the loan, one has to choose an area with not more than a population of 5000—up to $150,000 for an individual and $300,000 for businesses owned by more than two people. The tenure of such loan repayment is up to 25 years.
If you want to set up your start-up in the state of Alaska, you will certainly enjoy various tax benefits. Read more here on Alaska’s classification of LLC tax. The state offers tax credits to the businesses that enhance the education sector, area development, and of course, economic development.
- New Area Development – Businesses located on the northern side or operating in that area may receive a tax credit of up to $6 million. A specific location such as places located south of 68 degrees North Latitude is qualified for this credit facility.
- Contribution to Education – You may enjoy a tax benefit of $5 million in a year if your company contributes to the Universities and non-profit colleges. 50% tax benefits will be given to the company for a contribution of $100,000. For contributing amounts between $100,000 and $300,000, a 100% tax credit will be provided.
- Tax benefits for Veteran Employment – If your LLC employs veterans (disabled or non-disabled), then you can enjoy a tax credit of up to $2000 for non-disabled veterans and $3000 for disabled veterans in Alaska.
Lowest Tax Burden in the United States
Along with the other six states, such as Florida, Washington, Texas, Nevada, South Dakota, and Wyoming, Alaska has the lowest tax burden in the entire United States. In 2009, it earned 4th Rank in State Business Tax Climate Index.
No Residency Requirement
To operate or form an LLC in Alaska, you do not need to reside in the state. You can take LLC services to get your documentation done. All you have to do is find a good LLC service, appoint a registered agent who has a permanent address in the state, pay filing fees, fill up the forms, and the work will be done.
Top Businesses to Start in Alaska
If you have successfully decided to form an LLC in Alaska, then the next decision is regarding businesses that one can choose. So, here are the best businesses that are most successfully running in Alaska state. Here is a list of top businesses that you can choose from.
Oil and Gas Servicing Business
Those who don’t know the ranking of Alaska should note that it is 4th in the country. A notable amount share of the state’s GDP is due to the large production of crude oil. Now there are big bulls in production, but still, there is a scarcity of servicing businesses. Now machinery that works 24*7 will go through wear and tear and require timely servicing, which increases the scope of this business growth.
Frozen Fishing Foods Business
If you see Alaska’s coastline, it is the longest in the USA, which makes it a perfect place to do frozen fish-related food business. From one state to another, the supply is mainly done in frozen form to keep the product safe for eating purposes. Moreover, Alaska has also become one of the most significant hubs for the fish export business due to w. One of starting this frozen fish and seafood business in Alaska.
Petroleum Product Marketing
With the vast amount of crude oil production, Alaska State is entering the businesses related to the marketing of petrol-related products like jellies. The main reason for joining this business is that the production of these products is more, but the marketing techniques are not applied efficiently. That is why people are now coming up with new ideas for marketing petroleum products. Also, if you should have a better idea, the funds don’t matter much.
Some small business opportunities that one can also consider are:-
- Restaurant Business
- Tutoring Services
- Digital Printing Services
- Cake Shop Business
Alaska LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Alaska. Click on the steps in this list to read the full detail.
- Name your Alaska LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Alaska, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services like North West Registered Agent to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming an LLC in Alaska. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Alaska but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
How Fast Can I Form an LLC in Alaska
Establishing your LLC in Alaska typically takes around 10-15 business days. For speeding up the process, you can take help from the business formation services available online.
How Fast Can I Form an LLC in Alaska? In Alaska, it can take less than two weeks for an LLC to be formed. In most states, LLCs must have a registered agent, which is a person or entity that accepts legal documents on behalf of an LLC. You can designate a person or corporation to act as your registered agent, but your agent must be an Alaska resident or be incorporated in Alaska. It cannot be a PO Box, so make sure to choose an Alaska street address!
The first step to forming an LLC in Alaska is to file your initial report with the Alaska Division of Corporations. You can file this report online or by mail. Once you’ve formed your LLC, you’ll have to file your biennial report with the same state. If you don’t do this, you may end up losing money in the process, which is why you should file your initial report right away.
Next, choose a name for your company. The name of your company should be easy to remember, yet comply with company naming regulations. It must not sound like a government entity or contain any words that can be misconstrued as being a government entity. If you’re not sure, you can try a name search on the Internet to determine whether any similar names exist. If you’re not sure about the availability of a name, you can opt for an LLC name search online. Also, you must include the phrase “Limited Liability Company” or its abbreviation, if you want to avoid any confusion.
The formation process in Alaska takes about two to three days. This includes the filing of the LLC’s operating agreement and annual report. Once all of these steps have been completed, you should file your LLC’s annual report with the state. Additionally, you should prepare an operating agreement, which will help minimize conflicts. Finally, you should sign and file an annual report as required by Alaska law. When Is it Time to Form an LLC in Alaska?
First, you need to search for existing business names in Alaska. You can do this by doing an online search for “business names” on Google or the state’s website. Your business name must be unique and not already registered by another business. You don’t need to trademark a name to form an LLC in Alaska, but you should make sure that it doesn’t already belong to another business. You can also check whether or not the name you choose is available by searching the state’s business names database.
You’ll also need to file your Alaska business license with the state. This requires an annual fee of $50 and must be renewed every year. Afterward, you’ll need to choose a business name for your LLC. You may want to consider registering your LLC under the same name as your home state, or even a local business. There are many advantages to forming an LLC in Alaska. You’ll be glad you did.
If you are a resident of Alaska, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $250 (domestic LLC) and $350 (foreign LLC), LLC costs in Alaska include $100 for Biennial Reports every 2 years.
Every year all the LLCs have to submit an Annual Report and pay $100 every 2 years to the Alaska Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start an LLC in Alaska at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.