How to Form an LLC in Alaska

Co-authored by Clinton M. Sandvick, JD, PhD

Last Updated: January 31, 2023 References

A limited liability company, or LLC, is a legal structure that combines the aspect of a corporation and a partnership. As with a corporation, your personal liability is limited but operating your business is more flexible, as it would be in a partnership.^{[1]
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U.S. Small Business Administration
U.S. government agency focused on supporting small businesses

Go to source} Each state has different requirements for forming an LLC. In Alaska specifically, there are a number of administrative steps that need to be completed. These steps range from choosing a name, to filing paperwork, to completing an initial report.

Method 1

Method 1 of 3:

Making Preliminary Decisions

1
Choose a name for your company. The first thing you should do when forming an LLC is choose a solid business name. You'll need a name as you begin to file paperwork regarding your company.
- There are three requirements to keep in mind when choosing a name for an LLC in Alaska. The name must be different from an existing LLC in Alaska, it must indicate that it is an LLC (add LLC or Limited Company at the end), and it must not include restricted words. Restricted words are words such as 'bank' or 'insurance," words that indicate a specific profession (like doctor or lawyer) and words that could result in your LLC being confused for a government agency (like the abbreviation FBI or CIA).^{[2]
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  U.S. Small Business Administration
  U.S. government agency focused on supporting small businesses
  
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- Choose a descriptive name that will stand out and reflect what you intend on doing with your business. Spend some time brainstorming ideas before selecting your name. Do some research as to the kinds of names typically associated with similar businesses.^{[3]
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- Check if your chosen name is available. You can do this at the Corporations Database on the Alaska Department of Commerce, Community, and Economic Development website. Again, you cannot have the same name as an existing LLC in Alaska, so be sure to double check the name you settled on is not in use.^{[4]
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- Once you have chosen a name, it can be reserved for up to 120 days for a $25 fee.^{[5]
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2
Decide on a registered agent. The registered agent is essentially the person whom you designate to receive official papers for your business. These papers may include lawsuits, renewal notices, and other important notices from the state. You can appoint yourself as the registered agent but may also choose an outside party or one of your business partners.
- The registered agent must live in Alaska. He or she must also be legally allowed to transact business in the state of Alaska.^{[6]
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- If your business is small and you have experience with legal and business related paperwork, it might make sense to simply appoint yourself as registered agent. However, if you have a larger business and limited experience it's best to look for an outside agent.^{[7]
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- You'll work closely with your registered agent as you establish your business. Select someone you trust as your agent. Preferably, look for someone with experience in business law and with whom you've worked with previously. You want to make sure you and your registered agent mesh well as business partners.^{[8]
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3
Consider an operating agreement. Alaska does not require LLCs to create operating agreements. However, it is highly recommended. Your operating agreement is a document that outlines your business's essential structure and makes the obligations and rights of partners completely transparent.^{[9]
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- An operating agreement should include the basics of your company. What are member rights and responsibilities? How is voting power determined in your company? How are profits and losses allocated? In the event of emergencies, such as buyouts or bankruptcy, what are the expectations and obligations of company members?^{[10]
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- You may need to consult with a business lawyer in order to write an operating agreement. There are some templates online that allow you to fill out information regarding your company. However, you may have to tweak some of these templates to suit your company's specific needs.^{[11]
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Method 2

Method 2 of 3:

Filing the Necessary Paperwork

The Articles of Organization is a simple document that is available for download at the Alaska Department of Commerce, Community, and Economic Development website.^{[12]
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Research source} The form asks for basic information such as your company's name, the purpose of the company, and the name of your registered agent. You must also provide all relevant signatures of members of your LLC.^{[13]
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U.S. Small Business Administration
U.S. government agency focused on supporting small businesses

Go to source}
You will need to send your completed Alaska Articles of Organization along with a $250.00 fee to the following address: State of Alaska Corporations Section, PO Box 110806, Juneau, AK 99811-0806. Alternatively, you can file the paperwork online at the state commerce website. Processing times for mailed application should be between 10 and 15 days while processing times for an online application is immediate.
. An Employment Identification Number (EIN) is what the IRS uses to identify a business entity. Once the state of Alaska has approved your paperwork, you can apply for an EIN for free online. You will receive your number instantly.^{[14]
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Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source} You will need to enter information such as business name, address, the type of entity, and the number of employees.^{[15]
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Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

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Your initial report can be filed online or by mail and is free of charge. This is a report you need to file regarding basic operations of your business within the first sixth months your LLC is operating. You will then be given the option of filing the initial report immediately online, or of printing the application out to send in by mail later.^{[16]
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Method 3

Method 3 of 3:

Starting Off

1
Hire employees. Once you've established your business, the first step to beginning operations is to hire employees. You might have some people in mind already whom you would like to hire. There are some legal obligations to keep in mind while hiring employees.
- Make sure any potential employees are legally able to work in the US.
- Report new employees to the state of Alaska as new hires.
- As an LLC, you'll have to make sure you withhold income taxes from employee paychecks.
- Make sure your method of paying employees is in accordance with the state of Alaska's policies.^{[17]
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Once you're up an operating, you'll need insurance. As an LLC, you'll need worker's compensation insurance as well as general liability insurance. Talk to a business lawyer or insurance representative for a better assessment of what kind of policy you should buy based on your company's specific needs.^{[18]
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3
Keep up with all necessary forms. As your LLC continues to operate, you'll need to keep up with a variety of forms. Make sure you are aware of all the forms required by the state of Alaska.
- Make sure you get all your tax forms squared away within the first year of operation. As an LLC, both you and your employees will have to be registered for state taxes. You will need to have your employees fill out W2 forms prior to employment. You will also have to file for income taxes as a business entity with the state.^{[19]
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- Make sure you fill out a biennial report every two years. This is a report that overviews your company's operations. You will have to include basic information such as your LLC's name, its address, the name of your registered agent, and an overview of members and managers of your business. There are filing fees for a biennial report that vary by county.^{[20]
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Lawyers advise that all LLC's formed have a written LLC operating agreement.

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If you do not understand any of the application process, it is highly recommended that you seek the help from a licensed professional.

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