How to start an LLC in Alaska in 2024

According to the U.S. Small Business Administration (SBA), there were 75,587 small businesses in Alaska, making up 99.1% of all businesses in the state. To join the ranks of those who have their own limited liability company (LLC) in Alaska, there are several steps you need to take. They include: 

• Choosing a business name.
• Designating a registered agent. 
• Obtaining a North American industry classification system (NAICS) code.
• Filing articles of incorporation.
• Obtaining an employer identification number (EIN).
• Filing an initial report.
• Obtaining relevant professional licenses.
• Obtaining a business license.
• Creating an operating agreement.

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9 steps to start an LLC in Alaska

1. Determine your LLC business name

You must choose a “distinguishable” name that differs from other LLC business names in Alaska. According to Alaska regulations, a business name is considered distinguishable it if meets the following criteria in relation to other Alaska business names:

• It contains a different sequence of words or letters.
• One of the key words (such as a noun or adjective) is different. 
• Key words are differentiated by their meaning. 
• A number is used differently. 
• Its words have unusual or creative spelling.

Aside from the above criteria, regulations also require you to avoid the following:

• A business name implying it’s a government organization or unit.
• Vulgar words or names.
• Names that mislead the purpose of the business (i.e., including “bank” when the LLC is not a bank). 
• Words that identify an internet domain name or URL.
• The words “corporated” or “incorporated.” 
• Trademarked names, phrases or slogans.

To determine if your chosen name is available, search Alaska’s corporation database. You can search by entity name and whether it’s currently in use. You should also search online to see if the name is trademarked. Trademarks are protected from infringement nationwide. You can search for trademarked names using the U.S. Patent and Trademark Office’s trademark database.

If you don’t intend to file your LLC formation paperwork immediately, you can reserve your business name for 120 days. Reservations can be made online for a $25 filing fee. After approval, the name will be filed and posted immediately and you can see the record by looking it up on Alaska’s corporations database. 

2. Name a registered agent

Alaska law requires businesses to have a registered agent. A registered is an individual or an entity that your LLC designates to receive official notices on behalf of the business. Registered agents must have a physical Alaskan address. You can act as your own registered agent or hire a registered agent service to act in this capacity on your LLC’s behalf. 

To serve as your own registered agent, you must meet the following requirements: 

• Be at least 18 years of age. 
• Be available at the address listed as the registered agent during all regular business hours throughout the year without leaving for business-related matters, sick leave or any other reason. 
• Be able to receive business mail and alert a responsible party who can address it in a timely manner. 
• Be willing to list your business or office address in a public database. 

If you act as your own registered agent, remember that all mail, including embarrassing mail (like notices that your LLC is being sued), may be delivered to the address you specify as your registered agent address, potentially in front of employees or customers. To avoid this embarrassment and keep your contact information private from public databases, consider hiring a registered agent service.

3. Obtain a North American industry classification system (NAICS) code 

When filing for your articles of organization and biennial reports, the form will ask you to disclose the nature of your business. While it’s not necessary, you can provide your LLC’s NAICS code — a standard code used by federal agencies — to describe the purpose of your business. You may also be required to provide this code when applying for certain professional or business licenses. Alaska’s division of corporations keeps a current list of NAICS codes. 

4. Prepare and file your articles of organization 

Once you’ve gathered all of the above information, you can file your articles of organization, a step that legally establishes your LLC’s existence. To do so, you will need the following information:

• Your LLC name. 
• The purpose of your LLC. 
• Your registered agent’s name and address. 
• The names of your LLC’s managers. 
• The contact details of the person filing the form.

You can file your articles of organization online or by mail; either option will incur a $250 filing fee. Visit the Alaska division of corporations to file online. If filing online, your application will be processed immediately. If you choose to mail the form in, it will be processed within 10 to 15 business days, assuming all information is filled out correctly. 

Once the division of corporations approves your application, your business is an official legal entity. You can search, view and print your certificate of organization on the Alaska corporations database. 

New LLC reporting requirement alert 

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024. 

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete. 

Here’s what you need to know:

• LLCs formed before January 1, 2024 have until January 1, 2025 to file.
• LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.
• New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website. 

5. Obtain an employer identification number (EIN)

Much like a social security number for a person, an EIN is an identification number for a business that allows you to perform key business tasks, such as filing and paying federal taxes, applying for business licenses and opening a bank account. 

Obtaining an EIN is free and simple. You need basic information about your LLC, including: 

• Your LLC’s name and contact information. 
• The name of the responsible party within your LLC who manages its funds and assets. 
• Your business type (in this case, an LLC). 
• Your reason for applying (in this case, “started a new business”). 
• Your number of employees and the date of their first wage distribution. 
• The principal activity of your business (i.e., real estate or construction).
• Your LLC’s start date. 

You can apply for your EIN at the IRS website. The application takes about 15 minutes to complete, and once you submit your form, you will receive an EIN immediately. Print your EIN confirmation and keep it in your business records for future use. 

6. File an initial report

After filing your articles of organization, you need to file an initial biennial report, which names your LLC’s owners and officers, within six months. You can file this initial report online by fax or by mail. 

Your first biennial report will cost $100 plus taxes, but is free to file every two years afterwards. As you fill out the form, double check all provided information is correct. You will be charged a correction fee if you have to correct your form later.

7. Apply for relevant professional licenses

Depending on the nature of your business, you may also be required to obtain a professional license. If a license is required in your LLC’s line of work, you must obtain it before obtaining your Alaska business license (see next step). 

To learn whether you need a professional license, visit the Alaska division of corporations professional licensing page. Examples of the types of businesses that require professional licenses include: 

• Construction contractors.
• Home inspectors.
• Architects.
• Engineers.
• Nurses or nursing facilities.
• Pharmacies.
• Veterinary examiners.
• Social worker examiners.
• Midwives.
• Massage therapists. 

8. Apply for a business license

The state of Alaska requires all new entities registered in the state to have a business license. You will also need to renew your business license each year, which costs $50 annually. To maintain your business license, you must also renew any required professional licenses. 

To complete the Alaska business license application form online, you will need to provide your business name and address, ownership information, your LLC’s NAICs code and line of business and your method of payment.

9. Create an operating agreement

An operating agreement is an internal but legally binding document delineating how your LLC will operate. It is an essential part of starting a business because its contents override your state’s default rules regarding how your LLC should operate — rules that may contradict your business needs. It also serves as a foundation for dispute prevention and resolution among members, and protects members’ limited liability status by clarifying their percentage of ownership. 

To create an operating agreement, you need the following information:

• The names and contact information of your members. 
• Instructions on how new members can be inducted. 
• Instructions on how the LLC can be dissolved. 
• The powers, voting rights and responsibilities of its members.
• Members’ contributions and ownership percentages.
• The LLC’s management structure.
• A description of how profits and losses will be distributed.
• How and when meetings will be held. 

Creating an operating agreement is free. You can obtain a free operating agreement template from some LLC formation service providers, such as Bizee, LegalZoom and Rocket Lawyer. Many of these services also offer legal counsel to ensure your operating agreement is catered to your LLC’s unique needs and requirements. As a legally binding document, it is advisable to have legal counsel review and consult on your operating agreement before your members sign it.

Once all members have signed your document, keep it in your business files for future reference. 

Featured LLC service offers

ZenBusiness

Learn More

Via ZenBusiness’ website

Free version available

Yes

Lowest published package price

$199

Live chat

Yes: Human

LegalZoom

Learn More

Via LegalZoom’s website

Free version available

Yes

Lowest published package price

$249

Live chat

Yes

Northwest Registered Agent

Learn More

Via Northwest’s website

Free version available

No

Lowest published package price

$39

Live chat

Yes

Find the best LLC services for Alaska: Best LLC formation services of 2024.

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