How to Start an LLC in Alaska for $0 (AK LLC 2023)

How to Start an LLC in Alaska: If you’re looking to start an Alaska LLC for $0, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC for free in Alaska. However, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost $0.

On this page, You’ll find all the steps that must be taken to ensure that your Alaska LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂

How to Start an LLC in Alaska

An LLC (aka 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. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.

If you wish to start an LLC, you must file your Articles of Organization with the State and pay a filing fee of $250. While it’s the most important step, it’s not the only one. There are 4 other crucial steps to follow to get your LLC formed in Alaska. Below mentioned all 5 steps that explain everything you need to do to start an Alaska LLC in 2023. Let’s get started! You can always hire a professional LLC formation service in Alaska to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.

Step 1: Decide a Name for Your Alaska LLC

The first step while forming a limited liability company in Alaska is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.

LLC Naming Guidelines in Alaska

There are a few specific requirements all the LLCs in Alaska have to follow while naming their Company. Some of the most important requirements are as follows:

• Your business name should be available and no other existing business in Alaska can have the same name. ZenBusiness offers unlimited business name searches at $0.
• “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
• You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
• Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Alaska State Government are fulfilled.
• (Optional) It’s better to name your business something for which your desired domain is available.

Important Links –	Submit Offline Form to –
Alaska Business Entity Search – Online Name Search Name Reservation Form – PDF Name Reservation Form – Online Alaska LLC Name Search Guide – Instructions Name Availability Standards – Guidelines	State of Alaska Department of Commerce, Community, and Economic Development Division of Corporations, Business and Professional Licensing PO Box 110806 Juneau, AK 99811

Reserve Business Name for Future

If you do not wish to file your LLC right now but want to hold the name you have decided on, then you can reserve your LLC name for 120 days. To keep the name, you must file a name reservation application and pay $25 to reserve your name with the Alaska Secretary of State.

Doing Business As (DBA) or Trade Name

Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Alaska Secretary of State by submitting New Business Name Registration Form along with the filing fee of $25.

Apart from LLC formation, ZenBusiness offers customized website templates and business emails at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc. Here you can get everything you need for your business in one dashboard.

Step 2: Assign a Registered Agent in Alaska

The second step to forming an LLC in Alaska is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Alaska. Hence, hiring a competent Alaska Registered Agent for your LLC is necessary. 

Make sure your registered agent is a resident of Alaska or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0/year), you also get registered agent service and other services at a very reasonable price.

These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Alaska. Some LLC formation services also offer standalone Alaska registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.

You can change your existing registered agent if they want to leave the job or they leave for any other reason. To change the registered agent, you must fill out the change of registered agent form and mail them by paying $25. For more information, read how to change a registered agent in Alaska.

Step 3: File Articles of Organization in Alaska

The third and most important step in forming an LLC is to file the Articles of Organization. This Alaska Articles of Organization is a legal document that is required to register your business with the Alaska Secretary of State. It costs $250 (online and by mail filing) to file your formation certificate in Alaska.

The Certificate of Formation includes details like the name of the LLC, the registered agent’s name, address, employees’ details, and the company’s structure (member-managed or manager-managed). Before hiring employees in Alaska LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) in other states to Alaska, you must register as an Alaska Foreign LLC.

Processing Time: Normally, it takes around 10-15 business days (approx) to get your LLC formed in Alaska. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well. However, the document processing time can be changed due to various factors.

Every LLC owner has to pay the filing fees to register their business in Alaska. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Alaska.

Step 4: Create Your LLC Operating Agreement in Alaska

Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal 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.

When it comes to filing an Alaska LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Alaska LLC later. Hence, having an operating agreement may not be necessary but it is surely ideal.

The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂

Step 5: Filing an LLC EIN in Alaska

The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter. 

EIN is needed when the LLC hires employees. Hiring employees in Alaska LLC requires following specific rules and regulations. On the other side, EIN for Alaska foreign LLC should be obtained if your LLC is based in other states.

To obtain EIN (aka FEIN), one must fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.

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.

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Congratulation, you are now done with all the necessary steps to form your Limited Liability Company in Alaska. If you do it yourself, it should take you a long time to understand and do all the steps properly.

However, if you use ZenBusiness, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.

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After Starting Your Alaska LLC

After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.

Apart from that, there are a few things you need to take note of,

• Get a company business bank account
• File Alaska business permits & licenses
• Get general liability insurance and professional liability insurance with coverage for employees.
• File an Alaska LLC annual report or biennial report

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.

Cost of Starting an LLC in the State of Alaska

LLCs can be formed for $0. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Alaska must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Alaska,

Fees/Tax	Amount to be Paid
Name Reservation Fee	$25
Articles of Organization Fee	$250
LLC Annual (Biennial) Report Fee	$100 for 2 years
Corporate Tax	9.4%
Sales Tax	0%

In Alaska, LLC name reservation is mandatory. If you wish to hold the name for some time without registering your LLC, then a Name Reservation would be a wiser choice. It can be held by paying $25. Your LLC name will be reserved for additional 120 days.

Alaska is one of those states where there is no Sales Tax levied on the LLC. It does not matter what type of business you have, if you own an LLC, you are free from the Sales Tax. On the other, a single-member LLC is considered as a Sole Proprietor. Hence the LLCs have to pay 9.4% of corporate tax. Read our guide on LLC costs in Alaska for more information.

Alaska Foreign LLC

If you are interested in forming a Foreign LLC in the state of Alaska, then you need to file the Certificate of Foreign LLC to the Alaska Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Alaska SOS to form your foreign LLC in the state of Alaska. To know more in detail, check out our guide on Alaska Foreign LLC.

Reasons to Start an LLC in Alaska

There are several reasons why one should form an LLC in the state of Alaska. Apart from its 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 has taken place that encourages people to form an LLC. A business-friendly with low taxes, Alaska is an appropriate state for forming an LLC. 

Loan Facility

1. 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. 
2. 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. 
3. 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.

Tax Benefits

If you want to set up your start-up in the state of Alaska, you will certainly enjoy various tax benefits. Read more here on Alaska’s classification of LLC tax. 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 (disabled or non-disabled), then you can enjoy a 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 the state of 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 4^th 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

How Fast Can I Form an LLC in Alaska

Establishing your LLC in Alaska typically takes around 10-15 business days. For speeding up the process, you can take help from the business formation services available online.

Forming an LLC in Alaska is a great way to protect yourself and your assets while doing business. An LLC, or Limited Liability Company, provides the owners with limited liability protection, meaning they are not personally responsible for any debts or liabilities incurred by the LLC. It also provides tax advantages, as the income of the LLC is taxed separately from the owners’ personal income, and can be structured to minimize the amount of taxes owed.

When it comes to forming an LLC in Alaska, the process is pretty straightforward. The Alaska Department of Commerce, Community and Economic Development (DCCED) oversees the formation of LLCs in the state, and has specific guidelines that must be followed for the formation process.

The first step in forming an LLC in Alaska is to choose a name for your business. The name must include the words “limited liability company” or the abbreviation “LLC”, and it must be distinguishable from any other business names in the state. Once the name is chosen, it must be registered with the DCCED. This can be done online, and the application fee is $50.

The second step is to prepare and file the Articles of Organization. The Articles of Organization are the legal documents that set out the purpose and structure of the LLC, and must be filed with the DCCED. The application fee for filing the Articles of Organization is $250.

Once the Articles of Organization are filed, the LLC must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is a nine-digit number that is used to identify the LLC for tax purposes, and it is free to obtain.

Finally, the LLC must complete and submit an Alaska LLC Operating Agreement. The Operating Agreement is a document that outlines the rules and regulations for how the LLC will be run, and it is a crucial document for ensuring the success of the LLC. It should be signed by all members of the LLC, and it is important to keep it up to date as the business grows and changes.

In total, forming an LLC in Alaska can take as little as one day if all of the necessary documents are in order. Once the LLC is formed, the owners can begin to take advantage of its many benefits, including limited liability protection and tax advantages.

Forming an LLC in Alaska is a great way to protect yourself and your assets while doing business. With the right documents and a little bit of time, you can have an LLC in Alaska in no time.

F.A.Qs

In Conclusion

LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in the state of Alaska at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.