This is the first and most important step in starting your LLC. Do some research to make sure the name you choose is suited to your business venture and is easily searchable by potential clients.
- Follow the naming guidelines: Your entity name must contain the words Limited Liability Company or the abbreviation L.L.C. or LLC. Restricted words require additional paperwork (e.g. Banc, Bank, Banque, etc) and/or licensed individuals (e.g. Doctor, Engineer, etc). to be part of the LLC. Prohibited words are those that would confuse the name of your LLC with a federal or state agency (e.g. FBI, Secret Service, Treasury etc.)
- Is the name available? Make sure the name isn't already taken by doing a name search on the Alaska website.
- Is the URL available? Check to see if the name of your LLC is available so that you can reserve your domain name. Even if you don't plan to make a website today, you may want to buy the domain name in order to prevent others from acquiring it.
An email address is also something to consider when choosing a name. Get a professional email (@yourcompany.com) with Google apps. Also get access to the top business tools, cloud storage, and business-grade security. - Try it for free
You are required to nominate a Registered Agent for your Alaska LLC.
What is a Registered Agent? A registered agent is a person or business nominated by your company to officially receive and send papers on your behalf including annual state filings.
Who can be a Registered Agent? The registered agent must be a resident of Alaska or a corporation authorized to transact business in Alaska. You may elect an individual within the company including yourself.
Click here to find out why you may want to use a registered agent service.
Recommended: INCFILE.COM provides free registered agent service for the first year as part of their LLC Packages.
To register your LLC, you will need to file the Articles of Organization with the State of Alaska.
NAICS Code Required when filing in Alaska
The North American Industry Classification System (NAICS) code is a 6 digit code that is given of business depending on the type of trade it engages in. You can look up the NAICS code for your type of business here, NAICS, by keyword search.
Important: If you're expanding your existing LLC to the State of Alaska you are forming a Foreign LLC.Learn how.
What is an Operating Agreement? An operating agreement is a legal document outlining the ownership and operating procedures of your LLC. This agreement allows you to form financial/working relationships with co-owners into an established system suitable to your business. It is not required to form an LLC in Alaska, but is good practice to have one.
Recommended: We provide a free sample operating agreement however we recommend getting one professional drafted by a lawyer, especially if you are starting a multi-member LLC.
What is an EIN? The Employer Identification Number (EIN), or Federal Tax Identification Number, is used to identify a business entity. It is essentially a social security number for the company.
Why do I need an EIN? An EIN is required for the following:
- To open a business bank account for the company
- For Federal and State tax purposes
- To hire employees for the company
Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done by one of two ways:
* Important: An EIN is obtained after the LLC is formed. Obtaining an EIN registers the company for federaltaxes.
Opening a business bank account is an important first step, as it:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Getting a business credit card allows you to:
- Separate personal and business expenses.
- Build your company's credit history, which can be useful to raise money for your company later.
* Recommended: Compare business credit card offers at CreditCards.com.
Do I need to register for State taxes?
- If you have Employees, you will have to register for Unemployment Insurance Tax on behalf of your Employees.
- Unlike all other states, Alaska does not collect individual income tax, therefore employers do not have to collect withholdings.
- Register for Unemployment Insurance Tax through Alaska’s Online Employer Services. You will need to register for a myAlaska account.
- If you are selling taxable goods or services there is no sales tax, however, there are several municipal governments that may require your business to pay local taxes. Read more about State Tax and how to contact local municipal government here.
*Recommended: Learn more about sales tax by reading our informative guide: Sales Tax for Small Businesses.
Even if you haven’t officially opened for business – it’s critical to get your books in order. A well managed accounting system will help you:
- Track your business finances, including bills, expenses and income.
- Simplify your annual tax filings.
The right software makes accounting easy. Look for software that:
- Syncs with your bank automatically.
- Matches transactions to invoices, bills and purchase orders.
- Can be accessed from your phone.
*Recommended: Xero has the features that all small businesses need.
Try Xero FREE for 30 days and get 30% off your first 6-months.
Do I need business licenses and permits?
To operate your LLC you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.
Find out how to obtain necessary licenses and permits for your business:
- Federal: Use the U.S. Small Business Administration (SBA) guide to federal business licenses and permits.
- State: Use the State of Alaska's Search and Database - an online resource for finding the right permits you need for your LLC.
- Local: Contact your local Chamber of Commerce and ask about local licenses and permits.
- Alternatively, you can use a professional service to research all of your business licensing needs.
The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.
Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.
What is Workers Compensation Insurance? This form of insurance is required for most businesses with employees, but varies by state. Click here to learn more.
What is General Liability Insurance? This is an important service, but is not required in most states. Click here to learn why.
How much will the right insurance cost you? Click here to find out.
Once a business decides to hire employees, certain legal obligations are required, such as:
- Ensuring that potential employees are eligible to work in the US
- Reporting employees as "new hires" to the State
- Providing workers compensation insurance for employees
- Withholding income taxes
- Printing compliance posters and place in a conspicuous location
- Ensuring payment of employees in specific increments as required by the state
Discover more resources and information at Alaska Department of Labor and Workforce Development.
A great resource for posting jobs and finding qualified employees is Indeed.com
How to Start a Business
5 easy steps to starting a business in Alaska.
We have a far more detailed guide - How to Start a Business which will go over the points in more details.
- Identify a suitable business idea that works for you - Check out our Business Ideas Tool.
- Critically analyze your idea with our Lean Business Model Canvas Tool . You can then go on to create a full business plan with our Free Online Business Plan Tool.
- Formally organize your Business into a company. An LLC is the most popular way to structure your business. Learn how to Form your LLC in Alaska.
- Complete important key steps after formation such as acquiring business licences & permits, registering for state taxes, and opening a business bank account.
- Build your website and develop your brand. Learn more about marketing and brand establishment.
To maintain an Alaska LLC, it is necessary to make periodic filings with the State of Alaska including a biennial report. Learn how to keep your LLC in good standing and avoid penalties.
Biennial Report and License Fee
Alaska requires LLCs file a biennial report with the Department of Commerce, Community and Economic Development. A Biennial report typically includes basic information about your business and involves a filing fee.
File a Biennial Report in the State of AlaskaFile Online
Due Date: An initial report is due within 6 months of formation. Thereafter, a biennial report must be filed by January 2nd of every second year. LLCs formed in an even numbered year file a Biennial in January of every even numbered year. LLCs formed in an odd numbered year file a Biennial Report in January of every odd numbered year.
Fee: No fee is required upon filing of the initial report. A $200 fee must be paid with each biennial report filing.More Information
Alaska charges a $50 penalty for late filings. In addition, Alaska can administratively dissolve LLCs for failure to file an annual report.
Each year, thousands of LLCs are unknowingly dissolved or suspended for failing to file an annual report. When this happens, LLC owners risk loss of limited liability protection. A registered agent service can help prevent this outcome by notifying youof upcoming filing deadlines and by submitting reports on your behalf.
Recommended: INCFILE.COM offers a reliable registered agent service.
A Certificate of Good Standing verifies that your LLC was legally formed and has been properly maintained In Alaska, a Certificate of Good standing is known as a Certificate of Compliance. Several instances where you might need to get one include:
- Seeking funding from banks or other lenders
- Forming your business as a foreign LLC in another state
- Obtaining or renewing specific business licenses or permits
How to dissolve an Alaska LLC
If you no longer wish to conduct business with your LLC, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble. To dissolve your LLC, there are two broad steps:
- Close your business tax accounts
- File the Articles of Dissolution
If you have an existing LLC and want to register to do business in Alaska, you will need to form a foreign LLC.
Benefits of Forming a Foreign LLC
The major benefit of becoming a foreign corporation is that it allows your company to operate as one entity in many jurisdictions. For example, if you originally incorporate your LLC in the State of Delaware, you can file your existing domestic LLC as a foreign corporation in other states.