Alaska LLC

Alaska LLC

Form an Alaska LLC

At LawInc we are Alaska LLC formation experts who can help you form a Alaska LLC, the right way. We file the Alaska LLC Articles of Organization with the Alaska Secretary of State Corporations Division and prepare a customized operating agreement. We can also obtain the Alaska LLC’s EIN, in an quickly as 24 hours. Let LawInc guide you through the process of forming your Alaska LLC.

Let LawInc walk you through the Alaska Limited Liability Company formation process. Our clear, concise and easy to use website, helps keep things simple.

Alaska LLC Name

The first step in forming an Alaska Limited Liability Company (LLC) is selecting the business name. Alaska LLC names:

  • Must end with “Limited Liability Company,” “LLC” or “L.L.C.”
  • Cannot contain a words or phrase that indicates or implies that the corporation is organized for a purpose other than the purpose contained in its articles of incorporation.
  • Cannot contain the word “city”, “borough”, or “village” or otherwise imply that the corporation is a municipality. The name of a city, borough, or village may be used in the corporate name.
  • Cannot include any title or designation likely to be confused with “certified public accountant” or “public accountant” unless the corporation holds a current license or permit to practice public accounting.
  • Must be unique from any other registered Alaska corporation or other business entity and any names reserved on record.
  • Cannot contain language indicating or implying that it’s organized for a non-legal business purpose.

An Alaska corporate name found to be available may be reserved for 120 days upon application and payment of $25 fee. permits you to choose up to three names and will conduct a name search for your Alaska LLC, prior to filing.

Alaska LLC Formation

Alaska LLC Filing Procedure: Submit duplicate executed copies of the Alaska Articles of Organization, Alaska Business License Application form, and Designation of Agent form, if necessary, to the Alaska Commissioner Commerce and Economic Development. Initial Report must be submitted to Department of Commerce, Community, and Economic Development within six (6) months of organization (may be filed online).

Alaska LLC Fees: Alaska LLC filing fee is $250. Alaska Business License Application fee is $50. Business licenses may be purchased for 1 or 2 years and expire on December 31st regardless of the date of purchase.

Alaska LLC Purpose Clause: The purpose or purposes for which the Alaska LLC is organized may include a statement that the corporation is organized under the Alaska Corporation Code for any lawful purpose.

Alaska LLC Registered Agent: An Alaska corporation must maintain a registered agent and office to receive service of process in Alaska. The Alaska registered agent should be available, at an Alaska physical address, during normal business hours to accept important legal and tax documents on behalf of the Alaska corporation.

Alaska LLC Publication Requirement: There is no publication requirement for Alaska LLCs.

Alaska LLC Securities Laws: When forming an Alaska LLC, it is important to comply with both federal and Alaska securities laws. Failure to comply with securities laws may subject the LLC to lawsuits from investors or SEC/state criminal prosecution. For further securities law information, contact the Alaska administrator of securities at the state Division of Corporations, Business and Professional Licensing, Corporations Section.

Alaska LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but a Washington LLC operating agreement should reference how the LLC is managed, allocation of profits and losses and member capital contributions. The operating agreement does not need to be filed.

Alaska LLC Post-Formation Requirements

Alaska LLC Initial Report: Alaska LLCs are required to file an initial report with the state within 6 months of formation.

Alaska LLC Biennial Report: Alaska LLCs and qualified foreign LLCs must file a biennial report by Jan. 2, every other year.

License: All businesses in Alaska must obtain a business license. The biennial fee for a license is $100 and must be submitted with a completed Alaska Business License Application, Form 08-4181. A separate license is required for each separate line of business you operate. However, only 1 license is required for each line of business, even if that line of business has multiple locations in Alaska. Annual licenses expire on December 31 of the year purchased and biennial licenses expire on December 31 of the year following the year purchased. Certain businesses also require a separate occupational license, ranging from professions such as accountants or naturopaths to occupations like waste water system operators.

Alaska LLC Taxes

Alaska LLCs are classified for Alaska tax purposes based on their federal income tax classification.

Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:

  • Sole proprietorship
  • Partnership, or
  • Corporation.

Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on LLC net income must be paid just as you would with any self-employment business.

Most multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, LLC profits are reported and allocated to each of the owners according to the LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.

If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.

Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the LLC has more than one owner, or any employees.

Alaska LLC Cancellation

In order to cancel/dissolve an Alaska LLC you must file a completed Articles of Dissolution Limited Liability Company form with the Division of Corporations, Business, and Professional Licensing. The filing fee is $25.