Start an Alaska LLC

Step 1: Name your Alaska LLC

Choose a name for your LLC in Alaska. This is a major step since naming your LLC gives it its identity. Your name can be anything you’d like as long as it falls in line with the rules the state has established. Come up with a list and make sure each has marketability value while being catchy. If you need some help, we have an article on coming up with a business name.

Alaska Business Name Requirements

Here are a few of the naming rules that Alaska has established for businesses, specifically LLCs:

• The name must be distinguishable from other names the state has on record. The Division of Corporations has a webpage, “How to Determine a ‘Distinguishable’ Name,” that has a much more detailed look at this important step. Be sure to also conduct an Alaska LLC search to see if another business has already claimed the name you’re thinking of. Our Alaska business name search page shows you how.
• The name must contain “Limited Liability Company,” “L.L.C.,” or “LLC.” You can abbreviate the words “limited” and “company” as “Ltd.” and “Co.”
• The name can include the name of a city, village, or borough. However, it can’t contain “city,” “borough,” “village,” or any other word that implies the business is a municipality.
• The name can’t use the designator of a different business model. For example, an LLC can’t use the designator “Corporation” or “Inc.”

For a much more detailed description, look up the state’s Statutes and Regulations – Corporations rulebook.

Reserving an LLC Business Name

You have the option of reserving your LLC’s name when you’ve chosen one that meets the Alaska LLC requirements. It’s not required, but you can consider this so your name isn’t taken by another business as you’re getting your LLC set up. You can submit a Business Name Reservation application with the Division of Corporations for a small filing fee.

The reservation is good for 120 days. You can renew it twice, but when doing this, you must include a letter of intent to start the business.

Getting a Domain Name

If you plan to set up an online business, then you’ll definitely need a domain name. Even if your business will have a physical location, a domain name (and, by extension, a business website) can help you in a number of ways that we’ll discuss in the next section. Make sure that your domain name matches your business’s name or is at least as close as possible to it. That way, people will find it easier to look you up online.

Is your Alaska LLC’s name available as a web domain?

Check to see if your business’s name has a matching domain name. In the digital age, when people are looking up information about a business, they’ll take to the internet. Here, they can find your business address, phone number, hours of operation, social media profiles, and more.

On top of all this, you can conduct business online through an eCommerce website. And a business website allows you to digitally market your brand. As we said, having matching business and domain names helps people easily find you online.

When you create a list of business names, search to see if any have matching domain names. If your first choice doesn’t have a good domain name match, you may want to move on to the next name on your list until you find that both are available. When you’re ready to register a domain name, we can help. We can also add privacy to it, help you create your business website, and get you a business email address.

Trademarks

After coming up with a business name, make sure it doesn’t have a trademark before registering the business. Infringing on a trademark can result in legal issues. If it happens after you’ve started the business, it can harm your brand and be very costly.

You’ll need to check to see if your business name has a trademark because the state won’t. You have a few options:

• You can reach out to an attorney specializing in trademarks to check for you, though this can be expensive.
• Head over to the U.S. Patent and Trademark Office’s website and use its search engine to check nationally if your name has a trademark.
• Check with the Division of Corporations. The agency doesn’t have a trademark search engine, but on its “Trademark Registration” page, you’ll find a PDF of Alaska’s registered marks. You can also directly reach out to the Division for help.
• You can do internet searches for your desired name. This includes checking social media platforms, domain names, and online phone directories.

LLC Alaska: Getting an Assumed Name

Some businesses adopt an “assumed name” if they wish to operate under a name that differs from their legal name. This name is also known as a “doing business as” (DBA) name. You’ll need to request one with the Division of Corporations. In order to do this, you’ll need to first obtain a corresponding Alaska Business License. Once you’ve done that, you’ll fill out and submit a Name Change Form form for a small filing fee.

Check out our article about Alaska DBA names.

Step 2: Appoint a registered agent in Alaska

Name an Alaska LLC registered agent. Early in our guide, we mentioned having to get a registered agent for your business. In Alaska, all LLCs must have this agent (Alaska Statute 10.50.055). In other states, this person or entity is sometimes referred to as a resident agent, statutory agent, or agent for service of process. 

What is an Alaska registered agent?

A registered agent can be either a resident of Alaska or a domestic or foreign corporation authorized to do business in the state. Their responsibilities include receiving legal notices (such as notices of lawsuits) and certain government correspondence on behalf of the business. In order to remain in good standing with the state, you must always have a registered agent for the business.

Alaska Registered Agent Rules

The state has some rules for who can serve as a registered agent for an Alaska LLC. They include the following:

• If an individual, this person must be a resident of Alaska and at least 18 years old.
• If an entity, it must be a domestic or foreign corporation authorized to do business in Alaska.
• The agent must have a physical street address in the state (known as a registered office). You can’t use a P.O. box or something similar.
• The registered agent can’t be a non-corporation business structure (LLC, limited liability partnership, limited partnership, etc.)
• The LLC can’t be its own registered agent.

Additionally, this agent must be at their registered address during regular business hours to receive any documents on behalf of the business.

Can I be my own registered agent?

Yes, you can be your LLC’s registered agent as long as you fit the bill when it comes to the state’s rules. You may be thinking that being your own agent is great since you won’t have to worry about ever losing them. However, consider the possible downsides that come with being your own registered agent:

• You must be at your registered office at all times during regular business hours.
• Since you must be at this address during these hours, you won’t be able to leave the office to meet with customers or business partners, go on vacation, take a sick day, take a business trip, etc.
• Being served with a lawsuit in person at the business can be very embarrassing if it happens in front of clients. It’s also bad for business.

If you want to avoid dealing with these issues, consider hiring a registered agent service.

Using a Registered Agent Service

You can name your own registered agent in your Articles of Organization (yourself included), but due to the rules the state has set for these agents, you may want to reconsider and use a registered agent service instead. These services can be easy to find with a simple Google search. But figuring out which is best for you will take some time and research.

Look into what they specifically offer, what rates they charge, and any other important details. You can make it easier on yourself by having us appoint one for you.

What if a process server can’t find my Alaska registered agent?

If your business is ever sued, then a process server will deliver the notice in person. However, if this server can’t find your registered agent, it can result in some problems for the business. The LLC can lose its good standing status, you may pay fines, you can lose your personal liability protection and/or ability to do business in the state, or the state could dissolve your business. A lawsuit could also move forward without your knowledge since the process server was unable to deliver the notice.

If you lose your registered agent, the state gives you 30 days to appoint a new one.

ZenBusiness can appoint your Alaska registered agent

We offer an Alaska registered agent service that appoints an agent to your LLC. This way, you won’t ever have to worry about losing this agent and falling out of compliance, losing your personal liability protection, having the business dissolved, etc. When this agent receives notices addressed to your LLC, you’ll find them on your online customer dashboard. Here, you can view, download, and print them whenever you want without worrying about misplacing them.

Step 3: File Alaska Articles of Organization

Fill out and file your Articles of Organization with the Alaska Division of Corporations. When this formation document is approved, your LLC becomes official. This is a crucial document, so make sure that all of the information on it is truthful and correct. If filing legal forms like this makes you angsty, then look into our business formation plans to make sure that everything on your formation documents is correct.

Although we can file the Articles for you, if you prefer to do it yourself, then continue on.

Information Needed for Your Articles of Organization

The Articles of Organization requires specific information in order to be approved. Here are a few details you’ll need to include in your State of Alaska LLC application:

• The LLC’s name. It must fit the rules we went over in Step 1.
• The purpose for which the company is being formed and the North American Industry Classification System (NAICS) code. You can find your appropriate code on the Division of Corporations “Line of Business/Alaska NAICS Code” webpage.
• The registered agent’s name, physical address, and mailing address.
• If the LLC will be member-managed or manager-managed.
• The signature of the LLC’s organizer.

Bear in mind that this information will become public record once your LLC is approved.

How to File Your Articles of Organization in Alaska

When you’re ready to file your Alaska Articles of Organization, you can do so in two ways. To file online, you’ll go to the Division of Corporations “Filing by Entity Type” webpage and choose the LLC structure. Choose the Articles of Organization online option and follow the instructions. The good news is that you won’t need to create an account to do so.

For a mail filing, you’ll go to that same webpage and choose the Articles of Organization (PDF) option. You can print the document, fill it out, and mail it to the Division of Corporations. Both methods have a filing fee of $250. The processing time is around 10-15 business days.

After filing the Articles, you must submit an Initial Report within six months. You don’t need to pay a fee with the Initial Report. For more information on this, see our Alaska Initial Report guide.

Member-Managed or Manager-Managed?

In your Articles of Organization, you’ll be asked if you want a member-managed LLC or a manager-managed LLC. The former sees the business managed by the members and the latter sees it managed by managers.

If you decide to have a manager-managed LLC, then you and any other members must name a person (either one of the members or an outside party) to be a manager. An LLC can also have multiple managers.

Whichever management structure you choose, you’ll make this designation in the Articles of Organization and can also list it in your operating agreement.

Keep the newly formed Alaska LLC documents in one digital dashboard

If you have us handle filing your Articles of Organization, once the state approves your LLC, your paperwork will be available from your ZenBusiness dashboard, where you can keep it and other important paperwork digitally organized.

Once you get your physical paperwork back from the state approving your new LLC, you’ll want to keep it in a safe location along with your other important documents, such as your operating agreement, member certificates, contracts, compliance checklists, transfer ledger, etc. We offer a customized business kit to help you keep these important documents organized and looking professional.

Making Changes to Your Articles of Organization

You only need to file your Articles of Organization once. However, if changes to any of the information within the document occur, you’ll need to inform the Division of Corporations. You’ll do this by filing Alaska Articles of Amendment for a small fee. According to the document, you’ll need to ensure that all current biennial reports are filed and that the members/managers are up to date on the state’s records before filing the Articles of Amendment.

Check out our amendment filing service to handle this for you. You can also consider our Worry-Free Compliance service, which includes two amendment filings per year.

Step 4: Create an operating agreement

Draft an Alaska LLC operating agreement. This document sets the internal rules and policies of the business. You can establish these regulations however you’d like as long as you don’t violate any laws. An Alaska operating agreement isn’t legally required for Alaska LLC registration. However, drafting one can serve your business’s best interests.

There’s no official comprehensive operating agreement guide to follow, so you’ll have some freedom in creating yours. 

Alaska Operating Agreement Benefits

We mentioned above that LLCs aren’t legally required to have an operating agreement. The benefits of having one may convince you to do so. They include:

• Establishing how the LLC will run. In the absence of this agreement, the business will be subject to the state’s default LLC laws.
• Preventing and settling any disputes between members by establishing in writing each’s responsibilities, powers, and privileges.
• Establishing whether the business will be member-managed or manager-managed. You’ll first choose a structure in your Articles of Organization, but you can also include it in your agreement.
• Further establishing the LLC’s liability protection. The LLC business model already does this by default, but with an operating agreement, you can reinforce that point in the eyes of the courts should anyone ever question it.
• Detailing how members will be added or removed from the business. You can detail the reasons for removal and what will happen to that member’s ownership portion. You can also establish requirements for people to join the business.
• Creating a succession plan if a member dies, leaves, retires, or is removed. Going off the previous point, explain what will happen to this person’s ownership portion. Will it be sold to another party or absorbed by the current members? A succession plan can really be useful if you’re the only owner of the LLC.

What should I include in my Alaska LLC’s operating agreement?

You’re free to create the operating agreement however you want and include whatever you feel is important to help your business run smoothly. If you’ve never put one together before and aren’t sure what to add, here are some options:

• Establish ownership portions: You can split the LLC into ownership percentages among the members. For example, if there are three members, one can own 50% while the other two own 25% each. It’s entirely up to you and the other members.
• Assign member responsibilities: Which member is responsible for making business deals? Who will oversee the LLC’s finances? You can list each member’s responsibilities in the operating agreement. You can also establish the voting powers of each to settle business decisions.

• Create rules for member removal and additions: For removals, be sure to detail why a member would be removed and what will happen to their ownership portion. For additions, set requirements for joining the LLC.
• Steps to dissolve the LLC: Establish reasons for why the LLC would close down. You should detail what will happen to its assets. You’ll also need to file Articles of Dissolution with the Division of Corporations.

If you’re feeling unsure about how to draft an operating agreement, then check out our customizable template to help get you started. 

Do I need an operating agreement if I’m the only owner?

A solid operating agreement helps the members of an LLC lay out the business’s rules and policies. If you plan to be the business’s only owner, then you might think that this document isn’t needed. After all, no one else will need to know the LLC’s rules but you, right? Consider drafting one anyway, though, since this agreement can benefit you in other ways.

One includes creating a plan of succession, as we mentioned above. As the only owner, if something happens to you, what will become of the business? Do you want it handed over to someone else, or would you prefer it be dissolved? An operating agreement can clarify your wishes.

Another reason to create an operating agreement is that it can come in handy if you ever need to convince investors or lenders to help your business. The operating agreement can show that you’ve planned your business well and have things covered. It also provides further evidence that you and the business are separate entities if someone ever tries to prove otherwise in court.

Step 5: Apply for an EIN

Apply for an Employer Identification Number (EIN) with the Internal Revenue Service (IRS). An EIN, also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number, is like a Social Security number for your company. It identifies your business when the time comes to file taxes. An EIN is required if you have multiple owners, hire employees, or meet any of the IRS’s other conditions. Most banks also require an EIN to open a business bank account. We offer an EIN service to handle the process for you.

State of Alaska LLC Taxes

Head over to the Alaska Department of Revenue – Tax Division website. Here, you’ll find the “Tax Types” webpage that has a list of taxes that may apply to your business. Depending on your industry, you may need to file certain taxes, like an Alcoholic Beverage Tax.

You should know that Alaska does not impose a statewide sales and use tax, but local jurisdictions may have sales taxes. Learn more by exploring the Tax Division website. You can also head over to the Tax Division’s Revenue Online webpage. Here, you can sign up to pay your business taxes online.

Can filing as an S corp lower my taxes?

LLCs are known for being flexible in their management, but did you know that they’re also quite flexible with their tax obligations? By default, a single-member LLC is taxed as a sole proprietorship while multi-member LLCs are taxed as partnerships. This avoids “double taxation,” in which profits are taxed at both the business level and the individual owner level. But an LLC can also elect to be taxed as a C corporation or S corporation.

A C corp designation comes with double taxation. Although this can be a drawback, some LLCs may find the benefits of a C corp election worth the double taxation. For example, C corps come with the most tax deductions.

An LLC with an S corp designation retains pass-through taxation, but it also has the potential to save money on self-employment taxes. This happens when the members become “employee-owners,” allowing you to split your income between your salary and the company’s profits. That way, you only pay the taxes earmarked for Social Security and Medicare on your salary, not on your other profits. You may have other tax liabilities regarding your profits, however.

An S corp election does have a couple of drawbacks. The IRS tends to keep a closer eye on LLCs with this election, meaning the likelihood of an audit is higher. An S corp designation is also harder to qualify for. Speak with a tax professional about your LLC’s tax liabilities. If you want to apply for S corp status in Alaska, we may be able to help you with our S corp service.

Important Steps to Take After Forming Your LLC

After you’ve completed the five steps in our guide, consider the following additional steps. Most are more considerations, but the Alaska LLC biennial report submission is required. Read on to learn more.

Opening a Business Bank Account

Commingling your personal and business activities into one bank account can be problematic when tax season arrives. Another problem can come up if you’re taken to court and someone claims that you and the business are the same entity since you share the same bank account.

Our discounted business bank account can help you avoid these problems. You’ll get unlimited transactions, a debit card, online banking features, and more. If you plan to allow others to access this account, then check out our banking resolution template.

Looking for a way to establish a line of credit for your business? You might want to consider getting a business credit card. 

ZenBusiness Money

You may need some help handling your business’s finances. You can take charge of this responsibility with our help by using ZenBusiness Money. This service allows you to create invoices, track your LLC’s expenses, transfer payments, manage clients, and much more.

Business Insurance

LLCs come with limited personal liability for their owners, but getting extra coverage may be worthwhile depending on your needs and industry. Workplace accidents and professional mishaps can happen, and when they do, you may find yourself paying heavy costs.

Discuss with the other LLC members (if any) whether additional protections are needed. Look into the many insurance companies out there that offer business coverage and see which policies have the most attractive benefits and affordability.

If you’d like more information about business insurance, visit our business insurance guide.

File your Alaska LLC biennial report

In Alaska, LLCs are required to file an Alaska biennial report with the Division of Corporations for a fee of $100 (as of this writing). According to the Division of Corporations, if your LLC was formed in an even-numbered year, then your biennial report is due January 2 of every even-numbered year after. The same goes for odd-numbered years. In other words, the biennial report is due on January 2 every two years. You can file online on the Division of Corporations “Biennial Report” webpage.

We can handle this filing for you every time it’s due with our annual report service.

Additional Considerations

The following items may also apply to your business. 

Hiring Employees in Alaska

Only you can run your LLC, so we can’t tell you who to hire. However, we can offer some information that can help you find employees. First, if there are other members in the LLC, discuss who you want to join the team. Which skills, education, experience, and qualifications will this person need to help the business run smoothly and grow?

If you aren’t sure where to start, head over to the Alaska Department of Labor and Workforce Development website. In the “Employers” tab on the homepage, you’ll find plenty of resources and informative articles that can help you find the employees you need. You can even post a job there.

Getting a Certificate of Compliance

A Certificate of Compliance, also known as a Certificate of Good Standing in many states, is a form that verifies your LLC is in good standing with the state. This means that it’s been legally formed and is following the state’s rules for operation. You aren’t required to have this form to conduct business, but it can make it easier to:

• Get business insurance
• Renew your permits and licenses
• Get funding
• Expand your business to other states

If your business is out of compliance, perhaps due to being late in filing your biennial report, for example, then the state will reject your request. To get your Certificate, go to the Division of Corporations “Certificate of Compliance” webpage. Check out our article on how to get an Alaska Certificate of Compliance. If you’re ready to request one, then we can help you.

We can help

Filing business and legal documents can be nerve-racking. With our Alaska LLC formation service (starting at $0), you can rest assured knowing that your business formation process will be done right the first time. We offer plenty of other professional services, to help you start, run, and grow your business.

We’ll be with you all the way, whether you’re starting a king crab restaurant in Anchorage or an auto shop in Fairbanks. Reach out to us to learn more about what we can do for you.