LLCs are a popular choice for small business owners because they offer personal liability protection and tax benefits. If you’re thinking about starting an LLC in Alaska, here’s what you need to know.
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Choose a Name for Your LLC
Your LLC’s name must end with “Limited Liability Company” or “L.L.C.” It can’t say “Corp.,” “Inc.” or anything similar. You can name your LLC whatever you want as long as it isn’t already in use by another business and as long as it complies with the rules above.
To reserve your LLC’s name, you can file a Name Reservation Request with the Alaska Division of Corporations, Business and Professional Licensing. The reservation is good for 120 days and costs $25.
File a Certificate of Formation
To form an LLC in Alaska, you must file a Certificate of Formation with the state. The certificate must include the LLC’s name, address, and contact information; the names and addresses of the LLC’s organizers; the LLC’s purpose; and the names and addresses of its designated members. You must also include a statement that the LLC will be managed by its members or managers. Once you have filed your certificate, you will need to pay a filing fee.
Appoint a Registered Agent
You must appoint a registered agent for your LLC. A registered agent is a person or business that agrees to accept legal papers on behalf of your LLC. This person must have a physical address in Alaska. You can name yourself as the LLC’s registered agent, but we recommend you name someone else so you don’t have to be available all day to accept service of process and other legal notices.
Create an Operating Agreement
An LLC operating agreement is a legally binding document that outlines the rules and regulations for your Limited Liability Company. This agreement is between the members of your LLC and lays out each member’s responsibilities, ownership percentage, and voting rights.
Creating an operating agreement is not required in Alaska, but it is highly recommended. If you do not have an operating agreement in place and you experience a dispute among the members of your LLC, state law will dictate how the matter is resolved. Having an operating agreement in place can help prevent disagreements from arising and provides a clear course of action should a dispute occur.
To create an operating agreement, you will need to first decide on the following:
-The name of your LLC
-The names of the members of your LLC
-The registered agent for your LLC
-The purpose of your LLC
-How profits and losses will be distributed among members
-How decisions will be made within the company
-What happens if a member leaves the company
Once you have this information, you can begin drafting your operating agreement. There are many resources available online that can help you with this process. Once you have drafted your agreement, have each member sign and date it. Keep a copy of the signed agreement on file with your business records.
Get an EIN
The first step in starting an LLC in Alaska is to obtain an EIN from the IRS. An EIN is a nine-digit number that is used to identify your business for tax purposes. You can apply for an EIN online, by fax, or by mail.
After you have obtained your EIN, you will need to file Articles of Incorporation with the state of Alaska. The Articles of Incorporation must include the following information:
-The name of your LLC
-The address of your LLC
-The names and addresses of the LLC’s members
-The name and address of the LLC’s registered agent
-The duration of your LLC (if not perpetual)
-The purpose of your LLC
-Whether your LLC will be managed by members or managers
Open a Business Bank Account
Opening a business bank account is an important step in starting your LLC. This account will be used to handle all of your business transactions, so it’s important to choose an account that meets your needs. Here are a few things to consider when opening a business bank account:
-The type of account you need (checking, savings, or both)
-The fees associated with the account
-The location of the bank
-The bank’s hours of operation
-The services offered by the bank (online banking, mobile banking, etc.)
Once you’ve chosen a bank, you’ll need to open an account. To do this, you’ll need to provide the following information:
-Your LLC’s Articles of Incorporation
-Your LLC’s Operating Agreement
-Your personal identification (driver’s license or passport)
-Your Social Security number or Employer Identification Number (EIN)
File Annual Reports
To keep your Alaska LLC in good standing, you must file an Annual Report each year. The Report is due by June 30th and must be filed with the Alaska Division of Corporations.
The filing fee for the Annual Report is $50. You can file online, by mail, or in person.
To file online, log in to the Online Filing System and select “New Entity Filing” from the menu. If you’re filing by mail or in person, download the Annual Report form from the Alaska Division of Corporations website and submit it along with a check for the filing fee.
When yourReport is received and processed, you will receive a Confirmation Notice with your LLC’s new Certificate of Good Standing.
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