Formation of Limited Liability Company with the state of Alaska (USA)
An Alaska LLC offers a flexible form of corporate organization with limited liability protection, variety of forms of profit distribution, minimal operational requirements and flow-through taxation to the individual members.
FACTS & INFO
Alaska limited liability company, or LLC, is a legal structure that combines the aspect of a corporation and a partnership. As with a corporation, your personal liability is limited but operating your business is more flexible, as it would be in a partnership. Each state has different requirements for forming an LLC. In Alaska specifically, there are a number of administrative steps that need to be completed. These steps range from choosing a name, to filing paperwork, to completing an initial report.
The LLC name must end with 'Limited Liability Company,' 'LLC' or 'L.L.C.' Names cannot contain words pertaining to a city. The name may not contain language stating or implying that the corporation is organized for a business purpose other than the one permitted by the Articles of Organization. The name cannot be the same as or deceptively similar to that of another company incorporated or registered to transact business in the state.
ARTICLES OF ORGANIZATION AND OPERATING AGREEMENT
Articles of Organization, sometimes also called a Certificate of Organization, must be prepared and filed with the Secretary state of Alaska. Filing fees along with any applicable initial franchise taxes or other initial fees must also be paid. An LLC operating agreement is not required in Alaska, but is highly advisable. Member/Manager names and addresses are not required to be listed in the Articles of Organization.
An LLC does not issue shares and therefore does not have shareholders. The owners of an LLC are referred to as members. An Alaska LLC may have a minimum of one Member (owner) or more. Each member of an Alaska LLC is liable only to the extent of his or her percentage of ownership in the LLC. Members may be individuals or corporate bodies. There is no limit on the number of members allowed in an Alaska LLC. Alaska does not have a provision specifying where members/managers must reside.
An Alaska Limited Liability Company can be member-managed or manager-managed and must have one or more members/managers, who can be a physical person or legal entity of any nationality.
A member-managed LLC will function similarly to a partnership. All members have the same opportunity to provide thoughts and ideas on LLC decisions.
For a manager-managed LLC, the members appoint a manager or managers to act in a similar role to the board of directors of a corporation. The main responsibility of the manger/managers is to be in charge of LLC affairs. According to the state law, if mangers are not chosen in the Articles of Organization forms, the affairs of the LLC will automatically be directed to the members.
REGISTERED OFFICE AND LOCAL AGENT/SECRETARY
According to the Alaska Limited Liability Company Act, all LLCs require to have a registered agent when the Alaska LLC is first formed and throughout the life of Alaska company. The registered agent’s name and address are included on the formation documents. This information is a matter of public record. The registered agent is responsible for receiving important legal and tax documents including: notice of litigation (service of process), franchise tax forms and annual report forms.
There are no statutory requirements concerning meetings of members or record keeping. It is recommended that with two or more members, Members’ Agreement be entered into. If meetings are held by members, this may be done anywhere in the world and in any way convenient to the members.
Usually it takes 1 business week. We need up to 10 working days for legalization of the documents and delivery by courier.
RECURRING AND MAINTENANCE FEE AS FROM 2ND YEAR
- Provision of registered agent
- Payment of annual government fee
Alaska requires LLCs to file a biennial report. The first report must be filed by January 2 of the year following incorporation and every two years thereafter. The report is considered delinquent if not filed before February 1 and fees and penalties may apply. The report is submitted to the Department of Commerce, Community, and Economic Development.
Like S corporations, standard LLCs are pass-through entities and are not required to pay income tax to either the federal government or the State of Alaska. Instead, income from the business is distributed to individual LLC members, who then pay federal taxes on the amount distributed to them. However, because Alaska has no personal income tax, LLC members are not required to pay tax to the state on their income from the LLC.
Note, however, that while by default LLCs are classified for tax purposes as partnerships (or, for single-member LLCs, 'disregarded entities'), it is possible to elect to have your LLC classified as a corporation. In that case, the LLC would also be subject to Alaska’s corporation net income tax.
Our Services & Requirements
OUR SERVICES FOR THE COMPANY FORMATION IN ALASKA(USA) INCLUDE:
- Name check and approval
- Filling the incorporation documents with the Alaska’s’ Secretary State
- Payment of the government fees
- Provision of registered agent for one year
- Provision of a standard set of corporate documents:
- Operating Agreement - Articles of Incorporation under Apostille - Action of Organizer
- Rubber stamp
DOCUMENTS REQUIRED FOR THE COMPANY FORMATION
Please provide the following documents for all Directors, Shareholders, Beneficial Owners, Authorized Signatories:
- Notarized copy of valid passport.
- Original or Certified copy of utility bill / bank statement (as verification of residential address, dated within 3 months).
- Original or certified copy of Banker’s reference letter (dated within 3 months).
- In cases where shareholders and/or directors are corporate bodies, full apostilled set of corporate documents and Certificate of Good Standing (for companies registered more than 1 year).
IMPORTANT NOTE: LICENSABLE BUSINESS ACTIVITIES
If you conduct any activity without a required license or authorization granted by a relevant authority in any jurisdiction, STARTING BUSINESS will not be able to assist you with the company formation or bank account opening related to such unlicensed activity.
Licensable activities include, but not limited to: provision of financial services involving trading/brokerage in foreign exchange, financial and commodity-based derivative instruments and other securities; offering investment advice to public; insurance and banking business; operation and administration of collective investment schemes and mutual funds; payment processing services; money exchange, money transmission or money brokering; asset management; safe custody services; gaming, gambling and lotteries.
Please contact us if you need our assistance in licensing of your financial, Forex brokerage or gambling company.
Shipping of corporate documents or banking kits to your destination requires an extra charge and will be automatically added to the invoice during checkout. Shipping costs for international courier services are set automatically and will be USD 130. Please be advised that there will be some exceptions where the fee might be higher.