How to Create an Alaska LLC: A Step-by-Step Do It Yourself (DIY) Guide | Inc Authority

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How to Create an Alaska LLC: A Step-by-Step Do It Yourself (DIY) Guide

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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.

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·       Legal Compliance: Avoid fines, penalties, and possible dissolution

·       Convenience: Serves as your public & legal business address

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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.

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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.

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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:

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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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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