Having an Alaska LLC is a better and cheaper option than having other business structures. A limited liability company (LLC) reduces the owners’ personal liability and protects their personal assets. One can start an LLC in two ways, domestic LLCs or foreign LLCs (LLCs in more than one state). By following some basic steps, you can easily form an LLC in Alaska.
On this page, you’ll learn about the following:
- How to Form an LLC in Alaska
- After Starting Your Alaska LLC
- Alaska Foreign LLC
- Why an LLC in Alaska
- Top Businesses to Start in Alaska
- Alaska LLC Formation Review
How to Form 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. 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
Deciding on a business name is the first step to start an LLC. In Alaska, before you name your LLC, it is important to note a few things. Firstly, make sure the name is available to use. If the name is available, then check if the name complies with all the Alaska business naming requirements. Once you pass through them, you can successfully name your business.
Why do you need a proper business name?
If you want your LLC to have special identification, your Alaska LLC’s name is essential. However, many people face many issues by avoiding focus on choosing a 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
Requirements when deciding a name for your LLC
LLC Name Search: A business name search is required to check if the desired name is available or not. If the name is available then the business owner has to fill up a name reservation form and send it to the Secretary of State, Alaska. To do the name search, one has to visit the Business Entity Search page on the official Secretary of State website. Send the name reservation form to the below address by mail to reserve your LLC name in Alaska. The cost of a name reservation is $25.
Important Quick Links:
State of Alaska
Department of Commerce, Community, and Economic Development
Division of Corporations, Business and Professional Licensing
PO Box 110806
Juneau, AK 99811
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Step 2: Assign a Registered Agent in Alaska
A registered agent service is a person or business entity that will act or work on your behalf. This person or business, or professional service providers will receive significant tax forms, legal forms, documents, a notice of lawsuits, and other official government fillings and correspondence in Alaska. Choosing an Alaska registered agent 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:
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Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
These LLC formation services are recommended registered agent 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 in the business for years.
Step 3: File Articles of Organization in Alaska
A Certificate of Name Reservation is needed to file your Alaska formation certificate or what is also called Articles of Organization. You need to make reports of this certificate with the Alaska Secretary of State. You may file them online or by mail. It costs about $250, which makes up the majority of the LLC cost in Alaska. That is topped with other expenses, of course.
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. To know more about online filing, visit the Alaska Articles of Organization.
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.
Mail To: State of Alaska Corporations Section
P.O. Box 110806
Juneau, AK 99811
Main Office: 333 Willoughby Ave., 9th Floor
State Office Building
Juneau, AK 99801-1770
Fax: (907) 465-2974
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.
You are not required to have a comprehensive LLC operating agreement in Alaska when starting an LLC, but it is ideal to have one that contains all the details of your business operation. This document would be useful if you decide to dissolve Alaska LLC later.
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 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.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Before sending the form, ask for EIN Assistant. Enter details of your LLC, and finally complete the form and send it to the address given.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
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.
And that’s all! Congratulation, you are now done with all the necessary steps to form your Alaska LLC. If you still haven’t used a professional service from here, I strongly recommend having one to handle the remaining tasks.
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 liability for business and professional liability insurance with coverage for employees
- File a Alaska LLC annual report or biennial report
- Already existing LLCs that wish to operate in Alaska must register as Alaska foreign 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 late filings to make sure your LLC is up-to-date.
Alaska Foreign LLC
To register an Alaska foreign LLC, one has to file the foreign LLC formation certificate with the Secretary of State, Alaska. Forming a foreign LLC allows you to operate your business in more than one state in the USA as a single business entity. Check Alaska Foreign LLC to know more about having a foreign LLC.
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: 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. 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.
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 $200 for Biennial Reports every 2 years.
It takes 10 to 14 business days to get an Alaska LLC if you file it online or via mail.
Every year all the LLC have to submit an Annual Report and pay $200 every 2 years to the Alaska Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens.
Having an LLC is easier than other forms of business. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. On the other side, the formation of LLCs requires less paperwork and fewer legal complexities. If you have any questions, leave a comment below.