Alaska Secretary of State

The Secretary of State is a US state government official. This position is available in almost 47 out of 50 US States. What refers to Alaska, the main part of the duties of the Secretary of State is completed by the lieutenant governor. One of these duties refers to following LLC formation. The latter requires interaction with the office of the AK Secretary of State.

In this article, we are going to reveal the primary roles of the Alaska Secretary of State, as well as many aspects of how to open an LLC in this state.

Alaska Secretary of State Contact Information

Currently, Alaska's Lieutenant Governor is Nancy Dahlstrom. Being a member of the Republican party in the AK House of Representatives, she became the 15th lieutenant governor of the state.

In case of any questions or issues, you may contact her by using the following details:

• Juneau office - phone number: (907) 465-3520
• Anchorage office - phone number: (907) 269- 7460

The mailing address is Office of the Lt. Governor, P.O. Box 110015, Juneau, AK 99811-0001.

LLC Registration in Alaska

Opening and registering an LLC here is easy. It is also very affordable. There are certain steps to follow while registering your business. These include:

• LLC naming
• Hiring an agent who is registered
• Filling out the required formation documents
• Making the agreement for operating
• Getting your business EIN

The cost to start an LLC is $250. This is the fee you pay for Articles of Organization that must be filed as a part of this process.

Deciding on Your LLC Name

One of the most essential steps is finding a corresponding name for your business. There are certain requirements you should take into account before choosing a name.

• Your business name must be unique. This means that there should not be any other corporation with the same name.
• It should carry a suffix "LLC" or "L.L.C" (Limited Liability Company).
• The misleading items should not be included in the name of your business.
• If you want to use such terms as "Doctor", "University", "Bank", etc. you should be ready to fulfill other requirements, as well.
• It is also important to consider a free domain with your business name.

Hiring a Registered Agent

The second point to fulfill is hiring a registered agent who must be a resident of Alaska or have a physical address there.

Working in the name of your LLC, the registered agent can be an individual or a business entity. Both obtain the required legal documents, tax forms, lawsuit notices, etc.

Filing Alaska’s Articles of Organization

So, your next step to form an LLC is filing Articles of Organization in AK. This is a legal document enabling you to register your business with the interaction of the Alaska Secretary of the State. Its cost is $250 both for online application and mail filing.

Usually, it takes 10-15 business days to register your LLC.

Creating an Operating Agreement

Moving forward, it is important to file an operating agreement. This is an internal document ensuring that all the business owners are aware of the way of operating within the LLC. This is to reduce the risk of future conflicts.

Obtaining an EIN for Your LLC

The EIN (Employer Identification Number) contains 9 digits. The IRS (Internal Revenue Service) gives it to identify the business type, which is important for defining the taxes. Any active business owner needs an EIN while hiring employees.

You may submit for EIN by filling in the form online or via mail. After that, you should send it to the IRS via this mailing address: (Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999). Or you can send it via Fax: (855) 641-6935. You should also consider that this operation is free of charge.

If your application is approved, you receive a confirmation letter from the IRS. You should also contact them to check your form status.

Steps to Fulfill After Forming Your LLC

Although the needed steps to form an LLC are already described above, there are some other procedures to complete for the final operation.

LLC Bank Account

The first thing is opening an LLC bank account. Even though you may operate with your personal bank account, it is not advisable.

It is more sensible to track your LLC income or expenses via a corporate bank account. Besides, the separate business bank account protects both you and your LLC members from personal liability. It also builds your brand identity.

Other activities include filing AK business licenses, general and professional liability insurance, and annual or biennial reports.

Alaska LLC Business License

Obtaining a business license is mandatory for any LLC opened here. You may receive it either online or via mail. It is easier and quicker to do it online. The cost in this case is $50 for immediate approval. You should pay the same fee in the case of filing your license via mail. Yet, you will receive the approval within 10-15 days.

Those who issue the business license before the 1st of October will expire in the same year, on the 31st of December. Otherwise, for those who obtain it after the 1st of October, the license will expire in the following year, on the 31st of December.

You are required to renew your permission every 1 (the renewal fee is $50) or 2 years (the renewal fee is $100). This depends on your application.

Getting an Alaska Business License Online

To receive a Business License for LLC, you should complete the online application by filling in this information:

• Your LLC name including the abbreviation, as well
• Selecting the Primary line of Business from the drop-down list.
• Primary NAICS code
• Your making and physical address
• The ownership type
• Entity number
• Your full name and title
• Purchase duration (1($50) or 2 years ($100))
• Billing information
• Email address

Also, you should note that besides this primary license, you also need state or local government permissions.

Getting an Alaska Business License via Mail

If you want to receive your license by mail, then you should send a New Business License Application, attaching also your money order.

Obtaining Business License Copy Online or by Mail

You may submit your business license in two ways. If you want to receive the copy online, then you have to search for it by your LLC name or certificate detail. Then, you should click the certificate number and enter the “Print Business License” URL.

To do so by mail, you should pay $5 and request your business license copy.

Alaska Business License Exemptions

If your LLC refers to insurance, fisheries, investment club, mining, and liquor sales, then you do not have to get a business license.

In case of any issues connected to the licensing process, you can contact the Division of Business Licensing at (907) 465-2550. Also, you can send your inquiries via Email: [email protected].

Biennial Report for LLCs

A Biennial Report is important to keep your business contact information in accordance with the state. Each LLC has to file a biennial report every two years by January 2nd.

If you do not complete the process by February 1st, then the state takes a penalty of $37.50. In case you do not pay the fees, the state can shut down your Limited Liability Company.

Before starting the process, you need an Entity number, which can be found by searching it in the Search Corporations Database.

You may send the report online or via mail. The fee for filing the biennial report is $100.

Taxes

There is no personal income tax in Alaska. Yet, if your company is taxed as a C-corp, you have to pay the corporate income tax. Depending on your taxable income, it ranges between 2%-9.4%.

Even though the state has no fixed taxes for state sales and use, some towns or counties may demand a local sales tax ranging between 1%-7%.

The amount of the local taxes depends on the city or county your LLC is opened in. It is important to note that some cities charge for services and goods such as tobacco, alcohol, gaming, etc.

There could also be the employer and industry taxes. They are listed on the Alaska Tax Division's official website.