Last Updated on June 13, 2022 by Fair Punishment Team
Starting an LLC can be very daunting, especially if you have no experience in the area. It doesn’t have to be an experience that you dread or hate, though. In Alaska, starting an LLC is a pretty easy and straightforward process.
If you have been thinking about starting an LLC of your own in the state of Alaska but haven’t taken the plunge yet, what are you waiting for?
In this post, we’re going to go through everything you will need to know about starting an LLC in Alaska. We will also be covering some basics that everyone should know when it comes to LLCs.
By the time you get to the end, you should have a good idea of what the process of starting an LLC is, and feel equipped to finally do it yourself!
What Exactly Is An LLC?
An LLC is, or Limited Liability Company, is a type of business structure that is used in the United States. This business structure protects the owners from having any personal responsibility for things such as liabilities or debts.
An LLC may be a partnership, or a sole proprietorship. LLCs are excellent, as they protect an individual’s personal assets by keeping them separate from business-related issues.
As such, the personal assets of a business owner will be protected if lawsuits against the company arise, or if the business experiences debts.
How To Start An LLC In Alaska
Starting an LLC in Alaska is probably a lot easier than you thought. There are five basic steps, and anyone can do it when they take the time to do so. If you want to find out how to create an LLC in Alaska, just keep reading.
If you are busy enough, you can also get someone else to do all the hard work for you. The professional service Zen Business is known for their easy and affordable way of doing things.
If you don’t have the time to get everything done yourself, they’re a great option to make life a little easier.
What You Need to Know
In order to start an LLC in Alaska, you need to:
- Be at least 18 years old
- Be able to pay the fees needed to
- Have a physical street address in the state of Alaska
- Be able to register your LLC in person or via mail if you are in a partnership or corporation
- Ensure your business does not violate federal laws or regulations
Naming Your Alaska LLC
Picking a name for your new business is arguably the most important part of the whole process. Without a name, you can’t continue on with the next steps.
A name isn’t just a stepping stone, however, it’s incredibly important, and should convey what the business is all about. When it comes to naming an LLC, or any business, in Alaska, there are three primary rules to follow.
If you don’t follow these rules, which are outlined below, you will not be able to start your business.
There are three things to consider when naming your Alaska LLC. Let’s take a look at them below:
- In Alaska, there are three guidelines to follow when naming an LLC in the state. They are as follows:
- Name must include “Limited Liability Company, LLC, or L.L.C – if your company name does not include one of the three, it is not suitable.
- Company Name cannot sound similar to government agencies that could cause confusion – for example, you cannot name your LLC something like “FBI”, or “State Department”, as this is likely to cause confusion and would not be suitable.
- Name should not include restricted words – these words include “university”, “bank”, or “attorney”. If you want these words in your company name, you may be required to provide additional legal paperwork, and a licensed person (for example, a lawyer or doctor) may need to be a part of the LLC.
- The name you want must be available in the state of Alaska. Your chosen name might already be taken by another company. You can go to the Alaska Department of Commerce, Community, and Economic Development website to check if the name you want is available for use in your business.
- The URL for your LLC must be available. To do this, you can check its availability as a web domain. You can buy the domain or URL to ensure it remains yours, even if you are planning to create the website in the future.
Choose a Registered Agent
The next step is choosing an Alaska LLC Registered Agent. This is not optional, as it is required that you nominate an Alaska registered agent for your new business.
A registered agent is a person or business that is responsible for acquiring documents (such as legal documents from the state) on behalf of the LLC.
A registered agent has to be an Alaska resident or a corporation based in Alaska. An example of this would be a registered agent service. They must be authorized to conduct business in the state. This person can be elected in a company, and it can even be yourself.
File The Articles Of Incorporation
The next step in starting up your LLC is filing the articles of incorporation. To do this, you will need to fill out Form 08-484 – Articles of Organization with the Department of Commerce, Community, and Economic Development.
You can file it online here, or you can manually fill the form out as a physical copy. You can do this either by fax, mail, or you can do it in person. There is a $250 State Filing cost which is nonrefundable, and is payable payable to the State of Alaska.
You can send the documents to:
State of Alaska Corporations Section
P.O. Box 110806
Juneau, AK 99811
333 Willoughby Ave., 9th Floor
State Office Building
Juneau, AK 99801-1770
Fax: (907) 465-2974
In Alaska, a NAICS (North American Industry Classification System) is required. This is a 6-digit number or code that is given to a business. It is dependent on the type of trade the business engages in, however.
You can easily find the NAICS code for the type of business you will be running right here by doing a quick keyword search.
Create An Operating Agreement
Although it is not legally required for an Alaska Limited Liability Company to have an Operating Agreement, it is always recommended to have one. Having an Operating Agreement is considered to be good practice, so it would be beneficial to create one.
An operating agreement is a legal document that outlines the operating procedures and ownership of the LLC. These Operating Agreements are important because it helps ensure that everyone in the business is on the same page.
When everyone knows what is going on and what is expected, the risk of conflict arising in the future greatly decreases. This means that the LLC is likely to run smoothly and encounter minimal issues among its owners.
Get An EIN Number
An EIN, or Employer Identification Number, is a nine-digit number that is assigned to businesses. This number is used to help the business be identified for taxes, among other things.
The number is assigned to a business by the IRS (Internal Revenue Service). It is needed in order to hire employees, open a business bank account, and file and manage the LLC’s federal and State Taxes.
You can think of an EIN as a Social Security Number, but for a business. You might hear this number referred to as a FEIN, or Federal Employer Identification Number. Alternatively, it might be called a Federal Tax Identification Number, or FTIN.
If you already have an EIN for a sole proprietorship you have, you will be required to get a new one when it is converted to a limited liability company. You can get your EIN number for free from the IRS. It is a very easy process, and you can decide to do it either via mail or online.
To request an EIN online from the IRS, click here.
If you wish to request your EIN by fax or mail, you will need to apply for it by mailing to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Or fax it to:
Do You Need A BIN?
As your LLC is in Alaska, no BIN (Business Identification Number) to hire employees. Instead, your EIN number is required for this purpose.
What To Do After Your LLC Has Been Formed
Once your limited liability company has been formed, there are a few things that you should consider doing. We will briefly go through these below:
1. Separate Your Business Assets From Your Personal Assets
If you fail to separate your business and personal assets, you run the risk of your own belongings (such as your car or valuables) being taken from you if your company is sued or goes into debt.
When this happens, it is known as “piercing the corporate veil”. Prevent this from happening by opening a business account, getting a business credit card, and hiring a business accountant.
2. Ensure You Have Business Insurance For Your Alaska Limited Liability Company
This will help you manage potential risks and aid you in growing your new business. There are three common types of business insurance, which are as follows: General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance.
3. Create A Website For Your New Business
This is an important thing to do if you want to legitimize your business. In today’s world, all businesses need to have a website, no matter how small or new they are.
Websites are a huge source of customers, whether the business does any online work or not. You do not need to have any experience in building websites in order to do this, as there are many websites to use to make website building far more simple than it used to be.
4. Send Out Our Press Release
this is one of the easiest and most cost effective ways of marketing and promoting your business. Doing a press release for your LLC will have long lasting benefits, and will let people know about the business while providing publicity.
Not only that, but a press release will improve the SEO of your website, which is an incredibly important part of your LLC being successful.
Frequently Asked Questions
Do I Need A Business License?
Yes, you will need a business license to open an LLC in Alaska. You can get one from the Division of Corporations, Business and Professional Licensing, Occupational Licensing Section. This license needs to be renewed every year, as it expires on the 31st of December every year.
What Are The Tax Requirements To Start An LLC In Alaska?
LLCs in Alaska do not pay income taxes, but their members do.
Can You Be Your Own Registered Agent?
Yes you can. In fact, anyone in the company can be the Registered Agent.
How Long Does It Take For An Alaska LLC To Be Processed?
You can expect the process to take 10-15 days whether you apply in person or by mail.
Is Starting An Alaskan LLC Expensive?
It costs $250 to start an LLC in Alaska, which is more than a number of other states.
Must My Operating Agreement Be Filed With The State?
No, your operating agreement is only for you and your company, and should be filed safely, so you can access it in the future. In other states, it is required that your operating agreement is in place, but it is not a legal requirement for Alaska.
Is An EIN Required Of My LLC?
Yes. If your LLC has, or will have employees, then an EIN number is required. If you are the only one at the company, an EIN number is not necessary.
How to get an EIN if you don’t have a social security number
You don’t need a social security number to get an EIN number. You will need to fill out the IRS Form SS-4, but leave the 7b section out. After it has been filled out, you will need to call the IRS at (267) 941-1099 to get the process completed.
Is A Business Website Important For An LLC?
Yes, having a business website is very important for a business, including an LLC. Having a website will allow your company to be seen by many potential customers. Since the world is so digital now, choosing not to have a business website would harm your business.
Are Press Releases Important?
Yes, having a press release can be extremely important and beneficial to your business. It improves SEO (search engine optimization), and provides the business with a lot of publicity at a low cost.
Starting an LLC in Alaska is a lot easier than it might initially seem. While there are some important factors to take into consideration, like being able to pay for the process, it is very doable.
As long as you play by the rules and take your time to follow every step, you will have an LLC in Alaska set up in no time.
Hopefully this post has helped, and you now feel like you can go ahead and start your Alaskan LLC. If you do, let us know how it goes!