How to Start an LLC in Alaska (Step-by-Step Guide)

For many new companies, forming an LLC is the best option as it is an uncomplicated business structure that affords business owners legal protection by separating personal assets from business debts. Additionally, LLCs often enjoy a lower tax rate than corporations. However, forming an LLC can be a little complicated, and each U.S. state has its own checklist for starting an LLC with minor procedural variations.

In Alaska, forming an LLC is relatively painless and follows the standard procedure of filing Articles of Organization with the State of Alaska Division of Corporations, however, the $250 filing fee is higher than those of most states.

1. Select a name for your Alaska LLC

Follow naming requirements

There are two major guidelines to follow when naming your LLC in the state of Alaska:

1. The name must be unique compared to existing business entities on file with the State of Alaska Division of Corporations.
2. The name must contain one of the following words or abbreviations: “Limited Liability Company”, “LLC”, or “L.L.C.” LLCs may substitute the abbreviations “Ltd.” and “Co.” for the words “limited” and “company”, respectively.

Need help coming up with a business name? Check out our free business name generator.

Reserve your LLC name with the State of Alaska Division of Corporations

After selecting a name for your LLC, you can reserve it with the Alaska Division of Corporations, Business and Professional Licensing office. First check the name’s availability using the Alaska Corporations Database. If the name is available, you can reserve the name for up to 120 days by filing a Business or Corporation Name Reservation Application online or by mailing the application to the Alaska Division of Corporations. There is a $25 fee for reserving a name.

Doing business under a trade name

An LLC may opt to use a trade name when doing business rather than the officially registered name that is included in its Articles of Organization. Registering a trade name can be done online or by mailing a completed New Business Name Registration form to the Alaska Department of Commerce. The fee is $25.

2. Designate a registered agent

As in every U.S. state, forming an LLC in Alaska requires the appointment of a registered agent service to handle state and federal legal documents and service of process on the business’s behalf. The registered agent must either be a state resident with a street address in Alaska or, if the individual or professional service is based out-of-state, have a business office in Alaska.

Browse this list of Alaska registered agents provided by the Alaska Department of Commerce, Community, and Economic Development for help in choosing a registered agent service.

3. File Articles of Organization

Next, you can form your Alaska LLC by filing Articles of Organization with the Alaska Division of Corporations. The filing fee is $250, and it must be paid by credit card. You can do it online or through the mail.

Your LLC Articles of Organization must provide the following details:

• LLC name
• Registered agent name and address
• LLC purpose
• Clarification of whether the LLC is managed by its members or a specially designated manager
• Signature(s) of the organizer(s)

4. Create an operating agreement

Although not a legally mandated step for forming an LLC in Alaska, drafting a comprehensive LLC operating agreement is strongly recommended for all nascent limited liability companies. This document should describe the LLC’s business structure, establish the individual responsibilities and obligations of LLC members, and detail how the LLC will be run.

Without an operating agreement clarifying the specific duties of its members, an LLC may face significant legal and operational difficulties.

5. Obtain an IRS Employer Identification Number (EIN)

All newly formed LLCs in the United States must acquire an Employer Identification Number (EIN) from the Internal Revenue Service (with the exception of a single-member LLC). The nine-digit EIN is like a business’s social security number and is necessary to pay income tax, file tax returns, open business bank accounts, and perform a number of other important functions.

You can apply for an EIN online on the IRS website without paying a filing fee.

6. Fulfill your legal obligations

Once an LLC is registered, it is important that its members devote attention to fulfilling legal requirements that apply for the duration of the company’s existence.

File an Initial Report

An Alaska LLC must file an Initial Report with the Alaska Division of Corporations within six months of its creation. The filing can be done online or through the mail; just click “Print Form,“ and LLCs are not required to pay a fee.

File Biennial Reports

Alaska LLCs and foreign LLCs doing business in Alaska are required to file a Biennial Report every two years. The filing can be done online or via postal mail. Alaska LLCs must pay a $100 filing fee, while foreign LLCs must pay a $200 filing fee.

Review possible business Licenses

All Alaska businesses must obtain a business license issued by the Alaska Department of Commerce, Community, and Economic Development in order to operate in the state legally. An Alaska business license must be renewed every two years upon expiration. There are a handful of exemptions, which you can find here. Once you apply for and obtain a business license, it is a matter of public record.

Understand taxes in Alaska

Alaska is the only state with no state taxes and no sales tax. LLC owners will pay federal taxes on their business income. You can expect to pay a 15.3% federal self-employment tax rate (12.4% for Social Security and 2.9% for Medicare).

• How you’ll file as an LLC: LLCs don’t file business taxes. Instead, the income and expenses incurred by your company are passed to your personal taxes and filed on your personal tax returns. (It’s why LLCs are referred to as pass-through entities). You’ll pay taxes on the income you make to the federal government, but since there are no state income taxes, you won’t cut a check to the state. While the state does not impose a sales tax, some cities do. Check with local authorities to see if you need to collect sales tax on your goods.

File a BOI Report

Congress passed a new law in 2024 that helps authorities crack down on money laundering and the creation of shell companies. As a result, all businesses are now required to file a Beneficial Ownership Information Report, or BOI report, to the Financial Crimes Enforcement Network. The report asks each business to provide the names and contact information of owners or anyone with a controlling interest in the company.

Learn more about BOI reporting.

Post LLC tasks

Set up a business bank account

When you first start out, your sales might not seem large enough to warrant your own bank account. However, experts advise all businesses to keep personal and business finances separate, no matter their sales.

• Why it’s important: Separating finances helps you build a financial history should you ever need a bank loan in the future. It also helps streamline taxes and identify cash flow problems quickly.
• Consider more than a checking account: To start, open a business bank account. You can also open a business savings account for things like larger pieces of equipment or taxes. A business credit card may help you manage expenses early on. Talk with a banking specialist to see which options are best for your budding company. Remember, you’ll need an EIN, which is issued by the IRS, to set up accounts and apply for a credit card.
• Banks to consider: If you aren’t sure where to start, consider researching these pro-business banks: Found, Relay, or Mercury.

Obtain a Certificate of Compliance

At some point, you may be asked to supply a Certificate of Compliance, also known as a Certificate of Good Standing.

• When you need it: You may need one if, for example, you apply for a business loan or are negotiating a partnership with a new vendor. The certificate provides proof that your business is legally established in the state and has the authority to operate.
• How to get it: If you’d like to obtain a Certificate of Good Standing, contact the Division of Corporations, Business, and Professional Licensing. In Alaska, you can request the certificate online and receive a hard copy in the mail in a week or so. The certificate costs $10.

Build a website

Entrepreneurs must market their business, which means a website is necessary in today’s digital age. A website lends credibility to your business, educates customers, and offers contact information.

Steps to get started

1. Search for and purchase a domain name.
2. Sign up for web hosting.
3. Pick a web builder like Domain.com or GoDaddy to create a site with no coding experience necessary.
4. Tailor your site to your customers, adding appropriate pages, content, and images.
5. If you’re selling goods, add an e-commerce section to your site.
6. Review, test, and publish your site.

Pages your site should have

• Homepage
• About page
• Contact page
• Product or service page
• Privacy policy and terms of service page

Consider the cost of an LLC

As a small business owner, you’ve likely thought about the expenses you’ll manage. When you set up your LLC in Alaska, you’ll pay to register it with the state and incur several other fees, including:

• Incorporation fee: Government officials charge a flat fee to incorporate or register your business with the state. In Alaska, the cost to file your formation documents is $250.
• Filing fees: You’ll file an Initial Report within six months of creating your business, and then you’ll be responsible for filing a Biennial Report every two years. There’s no fee for the Initial Report, but you’ll pay $100 to file the Biennial Report.
• Registered agent services fee: You can choose to hire a registered agent service to collect official documents on your company’s behalf. If you choose to do so, it will cost between $50 to $200 per year.

Foreign LLCs

LLCs formed outside of Alaska that intend to do business in the state must register with the Alaska Division of Corporations.

Foreign LLCs should follow these steps to complete the registration process:

1. Comply with Alaska LLC naming guidelines.
2. Appoint an Alaska registered agent.
3. Complete and file a Certification of Registration of Foreign Limited Liability Company. You can do this online or by postal mail. The state filing fee is $350.

Once a foreign LLC is registered with the Alaska Division of Corporations, it must file a biennial report once every two years. Both domestic and foreign LLCs must include their NAICS code. Businesses receive a 6-digit code from the North American Industry Classification System, depending on the type of business.