Starting an LLC in Alaska for $0 + State Fees

Choose a name for your LLC

The first step in forming an LLC is choosing a name. Your business name is your brand. It tells people who you are. Pick a unique and easy-to-remember name.

In Alaska, your name must include “Limited Liability Company” or an abbreviation at the end to show your business is an LLC.

Before settling on your business’s name, check that no other company uses it. You can search Alaska’s business name database for matching entity names.

Choose a registered agent

Next, you need to pick a registered agent for your LLC who accepts and informs you of essential documents like lawsuits or official notices from the state.

Agents in Alaska must have a physical address and be available during regular business hours to receive documents. Although it is possible for you to be your own registered agent, many people choose to hire a professional service.

File your Articles of Organization

One of the most essential steps in incorporating your LLC in Alaska is completing your Articles of Organization. Individuals who want to form a new business send these forms to the Alaska Division of Corporations to begin the process.

The Articles of Organization include basic information about your LLC, including the business name, address, purpose, LLC members’ names, and information about your registered agent. As of 2024, you will also need to pay a filing fee of $250 for creating an LLC. Once the document has been completed and accepted, the state officially recognizes your LLC.

To incorporate a business in Alaska as a foreigner, you must pay a fee of $350 and fill out a Certificate of Authority instead.

Obtain business licenses and permits

With your LLC now official, you must get your business’s required licenses and permits. The licenses you need will depend on what type of business you are running. For example, if you plan to sell food, you might need a health permit to prove you sell safe-to-consume food. If your business involves fishing, you may need a fishing license.

Ensure you acquire all necessary licenses before starting your business to avoid fines or legal penalties. Alaska requires companies to get their NAICS code to classify and report business activities. Visit the Alaska Department of Commerce, Community, and Economic Development’s website for more information on obtaining your licenses and permits.

Annual reporting requirements

Alaska does not require businesses to file reports every year.

You must file a biennial report every two years to keep your LLC active. This report documents any updates about your LLC’s basic information, like your members’ names and the business’s address. 

Failure to file this report can result in the dissolution of the LLC and the loss of any legal recognition by the state. 

You can file biennial reports online through Alaska’s Division of Corporations, Business, and Professional Licensing.

Understanding Alaska state and federal taxes

A significant benefit of incorporating your LLC in Alaska is not paying any state income tax.

All business owners are required to obtain their Employer Identification Number (EIN) from the IRS. Even though Alaska does not have a state income tax, you may still need to pay other taxes, such as sales or federal income taxes.

Complying with employment regulations

Business owners must register their business with the Alaska Department of Labor and Workforce Development if they plan to hire employees anytime. This registration ensures you know the minimum wage, overtime pay, and workplace safety laws. 

You will likely require workers’ compensation insurance as part of your business policy. This insurance protects your employees if they are injured while working for you. Keeping good records of your employees’ work hours and wages is essential to complying with the law.

Maintaining your LLC’s good standing

Finally, keeping your LLC in good standing with the state is essential. Having a good standing means following all business laws, completing payments on time, maintaining up-to-date licenses and permits, and meeting all the requirements for your LLC.

Another way to maintain good standing is by keeping accurate records of your LLC’s finances, meetings, and decisions. If any changes are made to the information about your LLC,  you must update the state.