How to Form an LLC in Alaska: Everything You Need to Know
Knowing how to form an LLC in Alaska is important for those business owners wanting to form a business in the state.3 min read
Knowing how to form an LLC in Alaska is important for those business owners wanting to form a business in the state. An LLC, or Limited Liability Company, is a hybrid between a corporation and partnership. Each state has different requirements for forming an LLC; however, all states have some identical requirements regarding formation, including filing the articles of organization with the Secretary of State.
Forming an Alaska LLC
Below are the steps required to form your Alaska LLC:
1.Choose a business name
2.File the Articles of Organization
3.Choose a registered agent
4.Draft the operating agreement
5.Follow ongoing reporting requirements
When choosing a business name, keep in mind the many requirements for choosing a name, the most important being the fact that the name must not already be in use by another Alaska entity. If the name is available for you, you have to ensure that you use the LLC business designator at the end of your name. Additionally, certain words are prohibited; therefore, you should visit the Alaska Secretary of State website for all the state’s requirements when choosing a business name.
Articles of Incorporation
Next, you’ll need to file the Articles of Incorporation, which is the basic business document used to register your business. You’ll need to include your company’s name and address, the purpose of the business, the registered agent’s name and address, how the LLC will be managed (member vs. manager-managed), how long the business will be in operation (if applicable), and the name and address of the person filling out the document.
When submitting this document, note that there is a $250 fee that must be made. The processing time is usually between 10-15 days if mailing the documentation. However, if you submit it online, the turnaround time is immediate. If mailing the documentation, however, you can request expedited services for an additional fee.
As previously noted, the articles of incorporation will need to include your registered agent’s name and address. This is a requirement of the state. The agent is responsible for accepting legal papers on your LLC’s behalf. The business cannot serve as its own registered agent in the state of Alaska.
The agent can either be an individual residing in the state or another business that is authorized to do business in the state. A P.O. box is not allowed.
Next, you will draft the LLC operating agreement. While not required in Alaska, it is highly recommended. This document will be kept on file for future reference. The document itself will include several items, including the following:
1.The percentage of ownership for all members
3.How the LLC can be dissolved
4.What happens if membership is to be transferred to someone else
5.The responsibilities of all members
6.How the company will be managed
The LLC can be either member-managed or manager-managed. If the LLC is member-managed, then the members themselves oversee the business. If, however, the members choose to operate a manager-managed LLC, then the members will hire a third-party manager to oversee the daily operations of the business.
While the operating agreement doesn’t have to be filed with the Secretary of State, the state still recognizes this document as a legally binding document. Therefore, if a legal battle ensues among members, the court will look to the operating agreement to determine what was previously agreed upon by the members for certain decision-making processes.
Ongoing Reporting Requirements
After you have successfully formed your LLC in Alaska, you will need to keep up with ongoing reporting requirements. Specifically, the state requires the filing of initial and biennial reports. There is no fee associated with filing the initial report. However, there is a $200 fee for the biennial report. This report must be filed every two years by or before January 2 of the filing year. Note that you can file the biennial report online or by mail. Both reports must include the following information:
1.Principal place of business
2.Registered agent information
3.Name, address, and ownership percentage of all members
If you fail to file in a timely manner, you will be required to pay a $50 penalty. Moreover, the state might even terminate your LLC for failing to file such reports.
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