Forming an LLC (Limited Liability Company) in Alaska is easy and affordable. The following are few easy steps on how to start an LLC in Alaska. LLCs form in two ways, domestic or foreign. Suppose you plan to set up an LLC in states other than Delaware; visit How to Start an LLC for a quick list of the states.
On this page, you’ll learn about the following:
- How to Form an Alaska LLC
- After Starting Your Alaska LLC
- Why an LLC in Alaska
- Top Businesses to Start in Alaska
- Alaska LLC Formation Review
How to Form an Alaska LLC
Suppose you’re planning to invest in some profitable business where you won’t have to put your personal assets at risk. Maybe you have a prospective business or corporation that you want to set up in Delaware. In that case, forming an LLC in Alaska is the simplest option for you.
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. This section gives you a step-by-step guide on How to Start an LLC in Alaska.
Step 1: Decide a Name for Your LLC
If you are to start an LLC in Alaska, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Take note, however, that any successful business started with coming up with a name. Thus, you have the option to choose a name that complies with the Alaska business naming requirements. It must also be easily searchable for potential clients.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face many issues by avoiding focus on choosing a business name for their LLC business formation filings.
Here are some of the major benefits of choosing the best LLC names.
- Helps establish a company’s presence in the market;
- Creates a new identity that will resemble your LLC;
- Allows ease in finishing your LLC registration process;
- You can get the EIN once you have your name registration certificate
What are the requirements when deciding a name for your LLC?
A name search is vital to make sure your business’ name is unique. Check the availability of your name with the Search Corporation Database on the State of Alaska Department of Commerce, Community, and Economic Development website. If it is available, reserve the name. Check out Alaska’s guide on name reservation.
- Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
- You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
- As for a business website and your URL name, check if your name is still available for domain use with NameCheap.
Reserve a business domain
Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.
If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.
Step 2: Assign a Registered Agent in Alaska
A registered agent is a person or business entity that will act or work on your behalf. This person or business will receive significant tax forms, legal documents, a notice of lawsuits, and other official government correspondence in Alaska. Choosing Alaska-registered agents for your LLC is required.
Make sure your registered agents are residents of Alaska. It could also be a business. Here are the recommended agents and employees for you:
Our Rating & Pricing
#1 TOP PICK
$49 + State Fees
$299 + State Fees
$399 + State Fees
These LLC formation services are recommended registered agents’ services as they are authorized to conduct business in Alaska. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been operating their business for years.
Step 3: File Articles of Organization in Alaska
A Certificate of Name Reservation is needed to file Articles of Organization, as other states call it. You need to make reports of this certificate with the Alaska Secretary of State. You may file them online or by mail, which costs $250.
This Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Alaska, like if it is a member-managed or managers-managed.
Before you start filing your forms, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Alaska LLC will offer.
How to File Online
Go to the Department of Commerce, Community, and Economic Development Articles of Organization Online Form. Fill out the form completely and submit.
How to File by Mail
If you prefer filing real-life forms for your Alaska LLC registration, then you can download the Alaska Limited Company Certificate of Formation. Read the form thoroughly and fill it out. It will have to fill, among others, your name, city, state, zip code, and signature.
Step 4: Create Your Alaska LLC 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.
Starting an LLC in Alaska does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve our Alaska LLC later.
Step 5: Filing a 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 types of business for tax purposes and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter.
It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine income taxes classification options. This would be necessary for community and economic development.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
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 account
- File Alaska business permits and licenses
- Get liability for business insurance with coverage for employees
- File an Alaska LLC annual report or biennial report
- Already existing LLCs that wish to operate in Alaska must register as foreign Alaska LLC.
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 filing extensions, to make sure your LLC is up-to-date. It is also necessary to know federal tax filing schedules like federal income taxes, employee income taxes, and self-employment taxes apart from your annual or biennial report and business licenses.
Why 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 tax, 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. 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 (disable or non-disable), then you can enjoy 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: 30 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 include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
- Choose a registered agent
In Alaska, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
A company operating agreement is not a strict requirement but something encouraged when you start an Alaska LLC.
- 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.
A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.
For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.
The cost to form an LLC varies per state.
Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here.
This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.”
>Do not include words that could create confusion between your LLC and any government business.
>Words like ‘bank, attorney, university’ are restricted as well.
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.
Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.
As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website.
No. Never mail these documents or payments to the Secretary of State directly.
The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents
You are not required 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.
International EIN applicants do not need an SSN to get an EIN.