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How to start an LLC in Alaska

How To Start an LLC in Alaska:

Starting a Business in Alaska: A Step-by-Step Guide to Forming an LLC

If you're considering forming an LLC (Limited Liability Company) in Alaska, you've come to the right source. Our comprehensive guide will provide you with step-by-step guidance, simplifying the process of LLC formation in Alaska. Explore the benefits of forming an LLC, which encompass liability protection, tax advantages, and various other advantages for small businesses.

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Follow these eleven clear-cut steps to form your Alaska LLC successfully:

  • Choose a Name for Your Alaska LLC
  • Choosing an appropriate name is the initial crucial step before forming your LLC in Alaska. Keep these essential naming guidelines in mind:

    • Your business name should incorporate a suffix like Limited Liability Company, LLC, or L.L.C.
    • Ensure that your selected name is unique within the state of Alaska by conducting a search on the Secretary of State's website.
    • Alaska has specific prohibitions on words that denote a municipality, like city, borough or village. However it is possible to use a proper city name in the business name. For example, Juno’s LLC would be acceptable but Juno City LLC would not be.
    • Alaska allows LLCs and Corporations to have the same name as long as the entity designator is different. For example, AB LLC is acceptable even though AB INC exists.
    • Refrain from using terms associated with government entities (e.g., State Department, CIA, FBI, Treasury).
    • Be aware that specific restricted words (e.g., bank, lawyer, attorney, credit union) might require additional documentation and licensing.
    • Also, remember to verify the availability of your chosen URL, as it is crucial to secure your domain name early in the process.
  • Appoint a Registered Agent
  • In Alaska, it's mandatory to appoint a registered agent for your LLC. The registered agent is responsible for receiving official legal documents and notices on behalf of your business. Make sure your chosen registered agent meets these requirements:

    • They should be available during regular business hours to accept documents.
    • The agent must have an address in Alaska.
    • If you are comfortable using your own address and can be available during business hours, you can designate yourself as the Registered Agent in the State of Alaska.

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    If you prefer not to take on this responsibility, BusinessRocket offers professional Registered Agent services in the State of Alaska. Our Registered Agent services are complimentary for the first year and cost only $149 annually for new clients. This service ensures that your company has a dependable and compliant Registered Agent, providing peace of mind and convenience while assisting your LLC in remaining compliant with state regulations.

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  • Prepare and File Articles of Organization
  • The Articles of Organization are the formal documents that grant legal status to your LLC in Alaska. You can submit these articles to the Alaska Division of Corporations, Business and Professional Licensing. If you find the process of dealing with the Division of Corporations of Alaska confusing or uncertain, remember that BusinessRocket can provide expert assistance and even handle the filing of these documents with the state on your behalf, all without any additional charges. After your application is submitted and subsequently approved by the Division of Corporations, your LLC will achieve its official legal entity status.

  • Create an Operating Agreement
  • In Alaska, an LLC is obliged to have an operating agreement, although there is no requirement to file it with the state. Nonetheless, it should be easily accessible. An operating agreement outlines how your LLC conducts its business affairs and can be invaluable in resolving disputes.

    At BusinessRocket, we recognize the significance of this document in effectively managing your business in alignment with Alaska's regulations. That's why we provide professionally crafted legal operating agreements customized for the state of Alaska. These agreements ensure that your company is not only accurately established but also aligns with all state requirements, offering clarity and legal protection for your business activities.

  • Obtain an Employer Identification Number (EIN)
  • The IRS assigns a crucial nine-digit EIN that serves as a vital tool for tax-related matters and establishing a business bank account. It essentially functions as the business’s Social Security number, enabling your company to engage in financial transactions with both vendors and government entities. If you wish to learn more about what an EIN entails, you can find additional information here.

    At BusinessRocket, we fully appreciate the significance of promptly and accurately acquiring your EIN. This is why we offer an expedited procedure for obtaining your EIN from the IRS, ensuring that the filing process is both precise and secure. This service not only saves you valuable time but also minimizes the effort involved in the process.

  • File an Initial/Biennial Report
  • Every Alaska LLC is required to submit their initial report no later than 6 months from their initial registration date. Subsequently, Alaska LLCs are required to file a biennial report by January 2nd every two years from their initial registration date. If you miss the filing deadline, Alaska’s Division of Corporations grants businesses a one-month grace period to file. If the report is not filed by February 1st, you will be obligated to pay a late fee of $37.50 (foreign LLCs incur a late fee of $47.50). Alaska's biennial report reveals specific business details like business location and ownership.

    To help you keep up with these reporting responsibilities and guarantee you never miss any state or federal deadlines, BusinessRocket provides a completely free platform designed to assist you in monitoring your annual reports. This service offers peace of mind and ensures your LLC maintains its good standing with regulatory authorities.

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  • Open a Bank Account
  • Establishing a separate business bank account is of paramount importance for several compelling reasons in Alaska. Firstly, it serves as a critical element in preserving a distinct financial divide between personal and business finances, a fundamental requirement for accurate record-keeping, financial reporting, and adherence to tax regulations. Secondly, it elevates the level of professionalism by enabling businesses to conduct transactions under their official name, thereby fostering trust among customers, vendors, and partners. Moreover, having a dedicated business bank account streamlines the management of business expenditures, cash flow, and the utilization of specialized financial services and tools provided by banks. Lastly, it provides essential legal protection by upholding the limited liability status of business entities and shielding personal assets in the event of legal matters or business debts. In essence, a dedicated business bank account in Alaska ensures financial organization, bolsters credibility, and safeguards a company's legal standing.

    To further simplify this process, BusinessRocket collaborates with some of the finest financial institutions to assist in the bank account opening procedure after the formation of your Alaska LLC. This collaboration guarantees a seamless commencement of your financial operations.

  • Obtain Specialty Licenses and Permits
  • Newly formed LLCs may find it imperative to secure additional licenses and permits from local municipalities, contingent upon the nature of their specific business activities and in accordance with the regulations established by local government authorities. These licenses and permits serve as vital prerequisites to ensure compliance with zoning laws, health and safety regulations, and various other local ordinances, the particulars of which can vary according to location. To provide an illustrative example, a restaurant LLC may necessitate food service permits, while a construction LLC might have to acquire building permits. Failing to obtain these essential licenses and permits carries the risk of incurring legal penalties, fines, and even the potential for business closures. Consequently, it is paramount for newly formed LLCs to undertake comprehensive research, acquaint themselves with local requirements, and procure the requisite licenses and permits. This proactive approach ensures lawful and seamless operations within their respective jurisdiction.

  • Start Building Business Credit
  • A recently formed LLC can kickstart the process of constructing its business credit by initially acquiring a business credit card and progressively broadening its credit profile. This is somewhat reminiscent of how individuals prudently manage their personal credit history as they grow older. Through responsible use of the business credit card, ensuring on-time payments, and keeping a low credit utilization ratio, the LLC can establish a favorable credit history. What distinguishes businesses in credit-building is the potential for quicker advancement, stemming from the higher revenue flowing through their corporate accounts. The revenue and financial transactions of a company can exert a significant impact on its credit rating, potentially unlocking opportunities for larger lines of credit, loans, and more favorable financing terms. This underscores the importance for businesses to foster their creditworthiness, ensuring future financial stability and capitalizing on growth prospects.

  • Keep Proper Bookkeeping and Financial Reports
  • Maintaining accurate records of business income and expenses is crucial for newly formed Alaska LLCs for various reasons:

    • Legal Compliance: Ensures adherence to state and federal tax laws, minimizing the risk of penalties and tax audits.
    • Financial Clarity: Offers a transparent view of the company's financial status and profitability.
    • Budgeting and Planning: Facilitates the development of realistic budgets and supports informed financial decision-making.
    • Tax Reporting: Simplifies the accurate filing of tax returns, optimizing deductions, and reducing tax liabilities.
    • Proof of Income: Provides verifiable income documentation for securing loans, leases, and business contracts, enhancing access to financing and business opportunities.
    • Audit Trail: Establishes a reliable audit trail for efficient resolution of discrepancies or irregularities.
    • Financial Accountability: Demonstrates responsible financial management to stakeholders, enhancing trust and credibility.

    In conclusion, maintaining robust record-keeping practices is essential for ensuring both legal compliance and the overall financial health and growth of newly formed Alaska LLCs.

    If you're uncertain about how to maintain proper financial records, BusinessRocket offers a comprehensive bookkeeping solution tailored to newly formed Alaska LLCs. This service provides an affordable and convenient method for keeping your records in order.

  • Hire an Accountant
  • For recently formed LLCs, initiating early collaboration with an accountant holds significant importance as it lays a robust groundwork for the business. Accountants play a crucial role in aiding in the selection of the most tax-efficient organizational structure, navigating intricate tax regulations, and establishing effective financial systems. Their expertise ensures that the company commences operations on the right footing, capitalizes on tax advantages, steers clear of costly errors, and maintains compliance with financial reporting obligations. Early engagement with an accountant translates to time and cost savings in the long term, allowing the LLC to concentrate on expansion and profitability while mitigating financial risks and uncertainties.

    If you're currently without an accountant, BusinessRocket offers a comprehensive tax solution for newly formed Alaska LLCs starting at an accessible price point of just $29.99 per month. This service provides an affordable and convenient avenue to access professional financial guidance.

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What our clients say.

Top notch service. Quick response to any questions and Business Rocket provided all my documents needed to start operating my business within a few days! My new go to formation partner!

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DAVE CRAWFORD
Customer Since 2017
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Super easy process to get all legal documents that we need to start our company. They were quick to response to any of our questions.

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RUBEN E.
Customer Since 2017
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My experience with BR has been fantastic! They are knowledgeable, they offer a great variety services to tailor to your needs, and they are quick to respond and easy to work with.

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Customer Since 2017
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3 years ago I found myself desperate about how to register a new business and I asked BusinessRocket to help me. I know the team for years and trust them. It was a piece of cake. They are very attentive and have outstanding customer service. I opened holistic business and real estate business and recommend this team to everyone who needs their help. They are the team to trust.

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Customer Since 2017
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Since I’ve started using businessrocket.net services it became much easier to manage my business. It is most important at the beginning stage, when the business starts growing and the idea to use this help at that point has only strengthened my hopes for success.  If I have any problems or questions they are always happy to answer any of them in a short time. Great service for a reasonable price which I'm recommending to my friends.

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Askar Tarzimanov
Customer Since 2018
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Business Rocket is the best service out there. The staff is friendly and knowledgeable. The pricing is great compared to competitors. I will use them again in the future. They made the whole process easy and took the time to explain what I needed.

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Jared Schwartz
Customer Since 2016
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Excellent services.

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Gilles Tateossian
Customer Since 2015
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Greatest company ever. I worked with them about 4 years. Always fast responding, communicating. Handle my company issues with professionalism. I'm recommending he's to all my friends.

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Konstantin Fedorov
Customer Since 2015
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With Business Rockets Exceptional knowledge of many industries, we go to them for everything. The most annoying thing for me that was simple for them was getting my TCP. Business Rocket is my go-to one stop shop. 4 years running.

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Lamont Smith
Customer Since 2015
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Professional in their field! Great attitude!

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Efim Gurianov
Customer Since 2017
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The best business service company I've work with, bar none! Alex and his team are professional, punctual, highly verse in their field, and great to work with! wishing them more success down the road!

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Shad Mishu
Customer Since 2018
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Best business services company in Southern California helping local business, as well as nationwide company formation and wide network of registered agents and solutions for your business ventures.

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Michael Mann
Customer Since 2012
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BusinessRocket has been assisting me with my various businesses over the past several years. They spend the time going through the options to ensure that I make informed decisions.

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Loren Charles
Customer Since 2016
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So glad I found Business Rocket! They are professional and have a personal approach to their clients. They genuinely care and hold your hand through the process. If anyone ever wants to open a new business or needs help managing the existing one - they are the best ones in the industry!

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Maria Simovski
Customer Since 2019
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Our office has been working with BusinessRocket for close to four years and in this time they have been an immense help to our practice. We consider them a partner in our business due to their great knowledge along with their willingness to always help. We consider them a great asset to our company and will always recommend them.

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Hedy Golshani
Customer Since 2017
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Very informative and responsive. They answered all my questions and concerns with corporate formation and taxes.

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Omar Awadallah
Customer Since 2013
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I have been a BusinessRocket client for many years. The staff is friendly and helpful, which makes it super easy to communicate my needs. And each year that I have been their client, they surprise me by their effort. But this year, BusinessRocket forever earned my loyalty. Earlier this year purchased a domain that I wanted for my new business. But, I instantly ran into a problem when it was time to form the corporation. The name that I wanted was very close to an existing one. I told Angela at BusinessRocket, that I wanted that name, for my corporation. After multiple rejections by the Secretary of State, and conversions on how I can still use the name of the domain for my business. I started to accept the fact that I'm not going to get what I hoped. While I went back to brainstorming the new name, I received a call from Angela, wishing me a belated birthday, and congratulating me that the original name was accepted and that the Secretary of State is processing it. I am very grateful to BusinessRocket for their effort and support.

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Boris Sterlin
Customer Since 2014
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The best part about their service is how their system updates you as components of your company are completed. Documents filed? Boom, got an email notification. State docs received? Boom, email notification. Their staff is also extremely helpful both through the chat feature on their website and through email.

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Daniel Tjahadi
Customer Since 2019
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We worked with Alex at Business Rocket and are thrilled that we found him. Alex asked great questions about our project, helped us prioritize the work and got the job done. On time, on budget. When there were project scope discussions, Alex was very informative and supportive of our decisions. You should have no reservations whatsoever about how Business Rocket will provide services to you and your firm. They are great.

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Betsy Ehrenberg
Customer Since 2017
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Thank you to the Business Rocket Team ! Very professional and knowledgeable, they led me step by step through the entire process while making the most efficient use of my resources.

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Nader Jandaghi
Customer Since 2018
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Most professional, reliable and trustworthy company on the market.

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Max Malmygin
Customer Since 2014
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I am amazed with their customer service and quality of work. Spoke to them on multiple occasions and every time had a great experience on the phone. Staff was knowledgeable, pleasant and honest. They definitely earned my referrals.

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Zack Baklan
Customer Since 2018
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These people at Business Rocket are deeply passionate about helping small business. Legal, accounting, compliance - highly recommend!

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John Kim
Customer Since 2019
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Great company. Excellent Service. The stuff is always ready to help.

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Victoria Dennis
Customer Since 2019
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Business Rocket makes everything super easy from start to finish. I could not imagine starting a business myself when there is such an easy affordable solution to cut time and effort.

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Jamie Mahtaban
Customer Since 2011
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Excellent service, extremely responsive.

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Konstantin Chernomorskiy
Customer Since 2010
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We used to use LegalZoom and now only use BusinessRocket. The customer service, ease of use, and just overall experience is so much better. Couldn't recommend them more!

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Claude Zdanow
Customer Since 2019
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Very grateful for Business Rocket’s expertise and guidance. Starting my LLC has led to more questions than answers, so I appreciate them taking the time to walk me through the process, which was actually quicker than I thought it would be. Customer service is friendly and patient.

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Brendan Gill
Customer Since 2019
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Essentials

Comprehensive package containing EIN number and internal documents required for a business bank account and vendor contracts.

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Starter

For professionals able to obtain and create an EIN and Operating Agreement on their own, which are necessary to open a bank account and start transacting business.

$58

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Register LLC with the State
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MOST POPULAR

Essentials

Comprehensive package containing EIN number and internal documents required for a business bank account and vendor contracts.

$195

Saved 25%

$ 147

+ State Fee

One-Time Fee

Includes EIN number
Essential internal documents

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Ideal for companies with multiple business partners or those seeking external capital investment.

$349

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$ 254

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What do I need to Open a Bank Account?

The Essentials package is specifically designed for clients that need to open a Bank Account as quickly as possible. Most Banks will require the following documents to open an account: Articles of Organization, Federal Tax Identification Number (EIN), Operating Agreement, Original Company Meeting Minutes, and a Bank Resolution.

How do I start an LLC?

Forming an LLC for your business requires several steps, including naming your LLC, appointing a registered agent, preparing an operating agreement, and filing articles of organization with the Secretary of State in the state in which you are forming your business.

What is a limited liability company (LLC)?

A limited liability company (LLC) is a popular business structure that allows for the simplicity of pass-through taxation like a sole-proprietorship while providing liability protection for owners similar to a corporation.

What is a Registered Agent?

S-Corporation status is a good option for many small businesses. For qualified owners of a domestic small business, the S-Corporation status provides liability protection to each owner similar to the C-Corporation. However, with the S-Corporation owners can also take advantage of "pass-through taxation". Because the S-Corporation is considered a "pass-through entity" by the IRS, the business itself isn't taxed at the corporate level.