Creating an LLC (Limited Liability Company) in Alaska provides the benefits of limited liability, potential tax advantages, and operational flexibility. Here’s a step-by-step guide to forming an LLC in Alaska:
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STEP 1: Choose a Name for Your Alaska LLC
Your LLC’s name must be distinguishable from other business entities already registered in Alaska. It must end with “Limited Liability Company,” “Ltd. Liability Co.,” “L.L.C.,” or “LLC.”
Use the Alaska Department of Commerce, Community, and Economic Development’s (DCCED) Corporations Database to check for name availability: Corporations Database
If desired, reserve your chosen name for 120 days by filing a Name Reservation application with the DCCED and paying a small fee.
Time it Takes to name a Alaska LLC
Researching and deciding on a name: 1-2 hours
If opting for a name reservation: The act of filing can take about 10-15 minutes.
If opting for a name reservation: Filing can take minutes, but approval might take a few days to a week.
STEP 2: Appoint a Registered Agent
Alaska law requires you to appoint a Registered Agent for your LLC. This can be an individual residing in Alaska or a business entity authorized to do business in Alaska.
The registered agent must have a physical street address in Alaska (not a P.O. box).
Time it Takes to be a Registered Agent
Registered Agents MUST BE at the Business Address everyday during business hours. This is why Home Addresses Are Not Accepted.
If you already have someone in mind (like an attorney or a service), this can be quick. If you need to find and appoint a registered agent: 1-3 hours.
Why use Inc Authority vs Being your own Registered Agent?
Benefits of having Inc Authority serve as your Registered Agent include:
· Privacy: Keep your home address private
· Efficiency: Easily receive and promptly process state and legal documents
· Hassle-free: Reduction of junk and solicitation mail
· Legal Compliance: Avoid fines, penalties, and possible dissolution
· Convenience: Serves as your public & legal business address
Inc Authority offer you a FREE year of Registered Agent Service with the purchase of your LLC.
STEP 3: File Articles of Organization
To register your LLC, you must file the Articles of Organization with the Alaska Division of Corporations, Business, and Professional Licensing. This can be done online or by mail.
Provide necessary information including the LLC’s name, its purpose, the name and address of the registered agent, whether it will be managed by members or managers, the duration (if not perpetual), and the organizer’s name and signature.
The filing fee is $250 (as of my last update; check the DCCED website for current fees).
Time it takes to write the Articles of Organization
Preparing the document: 1-2 hours
Filing online: 30 minutes to 1 hour.
Waiting for confirmation/approval: This can range widely, but typically, online filings can be processed in a few days to a couple of weeks.
Why Risk Making Mistakes and Wasting Hours figuring it out?
STEP 4: Create an Operating Agreement
Though not legally required in Alaska, it’s highly recommended to have an LLC Operating Agreement. This internal document outlines how the LLC will be run, the rights and responsibilities of members, the process for adding or removing members, and details on the distribution of profits and losses.
Keep this document on file as it may be needed for financial or legal proceedings, or for reference in internal disputes.
Time it takes to write an Operating Agreement
If using a template and making minimal changes: 1-3 hours
If drafting from scratch or having extensive negotiations among members: Several days to weeks.
Why Spend Hours or even Days trying to figure it out?
Don’t get stressed out with the paperwork… Let us create a Custom Operating Agreement for you. Save yourself the time and hassle, let the experts at Inc Authority set up your LLC up properly with an Official operating Agreement in only 5 minutes vs spending hours doing it yourself. Make Inc Authority’s lawyers and staff spend hours preparing your documents for you, while sit back, chill, and watch Netflix!
STEP 5: Obtain an Employer Identification Number (EIN)
Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes.
You can apply for an EIN online at no cost through the IRS website: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
The EIN will be used for tax filings, opening bank accounts, and hiring employees.
Time it takes to get an EIN / Tax ID
Filling out the online form and receiving the EIN: Approximately 0.5 to 1 hour (the online process is relatively quick if there are no complications).
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SO HOW MUCH TIME WILL IT TAKE TO FORM AN LLC MYSELF? DO IT MYSELF (DIY) an LLC?
Total Time Investment (Minimum): 5 hours (if you exclude the higher range estimates and name reservation)
Total Time Investment (Maximum): 11.5 hours (if you include the higher range estimates and name reservation)
This gives a ballpark range of 5 to 11.5 working hours for an individual, excluding all waiting times. It’s worth noting that these times can vary based on the person’s familiarity with the processes and any specific details or challenges related to the business being set up.
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