What is a Limited Liability Company?
Frequently asked questions about starting and running an LLC, or limited liability company.
If you've started a business in Alaska, you might be interested in creating a limited liability company (LLC). An LLC is a popular choice among small business owners. It combines the limited liability of a corporation with the flexibility and lack of formalities provided by a partnership or sole proprietorship. Any business owner who wants to limit their personal liability for business debts and lawsuits should consider forming an LLC.
Here are the steps you need to take to start an LLC in Alaska. For more information on how to form an LLC in any state, check out our article on how to start an LLC. You can also use our online LLC formation service to register your LLC.
When choosing your business name, you must follow the state's laws for LLC names. Alaska's naming laws are similar to those of other states and specify what you can and can't name your LLC.
LLC name must be distinguishable. In Alaska, like most other states, an LLC name must be distinguishable (different) from the names of other businesses that have been organized, reserved, or registered in Alaska. You can see which names have been taken by searching the corporations database on the Alaska Department of Commerce, Community, and Economic Development (DCCED) website. (Alaska Stat. § 10.50.025 (2024).)
LLC name must include an entity designator. Under Alaska law, your LLC's name must include the words "limited liability company" or the abbreviations "LLC" or "L.L.C." You can abbreviate the words "limited" as "ltd." and "company" as "co." (Alaska Stat. § 10.50.020 (2024).)
Name reservation. You can reserve a name for 120 days by filing a New Business Name Reservation with the DCCED. You can reserve your business name online or by mail. As of 2024, the filing fee is $25. (Alaska Stat. § 10.50.035 (2024).)
Using a DBA. When doing business, you don't have to use your LLC's legal name registered on its Articles of Organization. Instead, you can register another name—sometimes called a "DBA," (short for doing business as), "trade name," "assumed name," or "fictitious business name." When you register a DBA with the DCCED, you can use that DBA to obtain a business license. You can register a business name by submitting a New Business Name Registration with the DCCED. Registration gives you the exclusive right to the name in Alaska for five years and registration can be renewed. (Alaska Stat. §§ 10.50.040 and following (2024).)
Every Alaska LLC must have an agent for service of process in the state (called a "registered agent"). A "registered agent" agrees to accept legal papers on the LLC's behalf—for example, if the LLC is sued. The agent should agree to this role before designation. They must also have a physical street address in Alaska.
The registered agent must be either:
(Alaska Stat. § 10.50.055 (2024).)
The DCCED maintains a list of private service companies that can act as registered agents. You can find this list and other helpful information on the DCCED's registered agent FAQ webpage.
An Alaska LLC is created by filing Articles of Organization with the DCCED.
The articles of organization must include the following information:
(Alaska Stat. § 10.50.075 (2024).)
You can file the articles online at the DCCED website. As of 2024, the filing fee for Alaska articles of organization is $250.
You're not required to have an operating agreement for your LLC in Alaska. But it's highly advisable to create one. An operating agreement is an internal document establishing the rules and procedures for how the members (or managers) will run the LLC. You don't need to file your agreement with the state.
The operating agreement should cover:
If your LLC doesn't have an operating agreement, Alaska's default LLC laws will govern how your LLC operates.
For help creating an LLC operating agreement, you can use our online LLC formation service.
After you organize your LLC, you must file an Initial Report with the DCCED within six months of your LLC's organization. (Alaska Stat. §§ 10.50.750 and following (2024).)
You must file your initial report online through the DCCED website. There's no fee for the initial report.
(You must also file biennial reports for your LLC every two years. See our FAQ section below for more details.)
Your LLC will likely need to comply with other tax and regulatory requirements, including applying for business licenses and permits and registering for other business taxes.
EIN. If your LLC has more than one member, it must obtain a federal employer identification number (EIN), even if it has no employees. If you form a single-member LLC, you must obtain an EIN for it only if it'll have employees or you elect to have it taxed as a corporation instead of a sole proprietorship (disregarded entity). You can obtain an EIN by completing an online EIN application on the IRS website. There's no filing fee.
Business licenses. Alaska requires all businesses (unless exempt) to obtain a business license and pay a licensing fee to engage in business in the state. An LLC needs only one license to cover multiple business activities and multiple establishments. (Alaska Stat. § 43.70.020 (2024).)
Depending on your business activities and location, your LLC could need to obtain other local and state business licenses. For example, you might need to apply for a professional license or license from your city. You can find more information on the DCCED's business license FAQ webpage. You should also check with your city about licensing requirements.
Tax registration and filings. Alaska doesn't have an income tax or sales tax. As a result, most LLCs won't need to register or file taxes with the Alaska Department of Revenue. However, if your LLC has employees, your LLC will probably need to pay state unemployment insurance taxes to the Alaska Department of Labor and Workforce Development (DLWD). You should still check with your local government regarding your LLC's tax obligations.
Here are some other questions you might have about your Alaska LLC.
If you're just starting your business or have already been operating as a sole proprietor, you should consider forming an LLC. LLCs limit an owner's personal liability for business debts and lawsuits and offer a lot of flexibility when it comes to ownership, management, and taxation of the business.
To learn more about LLCs and decide if it's the right business structure for you, see our article on LLC basics.
Below are the fees (as of 2024) you might need to pay to form your LLC in Alaska:
Filing on your own is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but it will often cost you hundreds, if not thousands, of dollars in the process. If you'd like help completing all the filings, try our online LLC formation service.
To learn more about the costs associated with forming and running an LLC, see our article on how much it costs to form an LLC.
Yes. You must file a Biennial Report for your LLC before January 2 every two years. If you filed your report in an odd-numbered year, then your biennial report will be due every odd-numbered year thereafter. If you filed your report in an even-numbered year, then your report will be due every even-numbered year. (Alaska Stat. §§ 10.50.750 and following (2024).)
You can file your biennial report online or by mail. As of 2024, the filing fee is $100 to file a biennial report.
For more details, see the biennial report FAQ webpage on the DCCED website and our article on LLC biennial reports and tax filing requirements in Alaska.
Apart from biennial reports, your LLC will need to file and pay applicable taxes to the local, state, and federal governments. In addition, your LLC might need to obtain and periodically renew any required general or special business licenses or permits. You'll be responsible for keeping track of these maintenance requirements to keep your LLC in good standing and legally compliant.
Starting in 2024, all LLCs were previously required to submit a beneficial ownership information (BOI) report to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. However, in March 2025, after some constitutional challenges, FinCEN revised the BOI reporting rule so that the requirement only applies to companies created outside the U.S. So, if you form your LLC within the U.S., then you no longer need to worry about the BOI reporting requirement.
You're not required to have an operating agreement for your LLC in Alaska. Though, it's highly advisable to have one. An operating agreement can help protect your limited liability status, prevent financial and managerial misunderstandings among members, and ensure that you choose the rules that govern your business instead of your state's default rules.
An Alaska Business License is required to do business in the state. You can apply for the Alaska Business License online or by mail. As of 2024, the license fee is $50. The license must be renewed every two years.
Depending on what type of business your LLC is engaged in and where it's located, you could need to obtain other local and state business licenses as well. For professional license information and forms, see the professional licensing section of the DCCED website. Check with your city or county for details on local licenses.
LLCs are considered "pass-through entities" (PTEs) by default, meaning the responsibility for paying taxes on the LLC's income passes through to the members. So, ordinarily, an LLC member will report and pay taxes on their share of the LLC's income on their personal tax return. But Alaska doesn't have a personal income tax. So if your LLC is taxed as a partnership, then you owe no income tax and don't need to file a partnership return.
But if your LLC has a member who's not a natural person, then you'll need to file a return. Alternatively, if you elect to have your LLC taxed as a corporation rather than as a partnership, then you'll need to pay Alaska's corporate tax.
Alaska also doesn't have sales tax. So you won't need to register to collect or pay sales tax. However, your local government might still impose a sales tax. In addition, due to Alaska's lack of income tax, you won't need to withhold wages from employees at the state level. However, you'll probably need to pay unemployment insurance tax to the DLWD.
While your state taxes are limited thanks to Alaska's friendly taxing policies, you should still keep track of your federal and local taxing obligations.
See our article on Alaska tax filing requirements for more details.
Yes. To do business in Alaska, all LLCs organized outside of the state (called "foreign LLCs") must register with the DCCED. Your foreign LLC must appoint a registered agent for service of process that's physically located in Alaska.
To register, file a Certificate of Registration. You can submit this filing online. As of 2024, the filing fee is $350.
Like domestic LLCs, foreign LLCs must also obtain an Alaska Business License and file a biennial report every two years.
(Alaska Stat. §§ 10.50.605 and following (2024).)
See our article on qualifying to do business outside your state for more guidance.
Yes. For most formation purposes, an Alaska single-member LLC is considered the same as a multi-member LLC. The steps to form a single-member LLC in Alaska are generally the same as those listed above.
Single-member LLCs do have additional flexibility when it comes to filing a tax return. To learn more, see our article on how single-member LLCs pay federal income tax.
Alaska doesn't recognize professional LLCs. Instead, if you provide a licensed professional service in Alaska, you can form a professional corporation or a regular LLC.
A professional corporation can provide only one type of professional service. In addition, only licensed professionals can perform the professional services for which the professional corporation is organized. (Alaska Stat. §§ 10.45.010 and following (2024).)
If you reach the point where it's time to close your business and cease all operations, then you'll want to properly dissolve your LLC to limit your liability for lawsuits and government fees. To dissolve an LLC in Alaska, you should:
(Alaska Stat. §§ 10.50.400 and following (2024).)
You'll also need to close your tax accounts and take any other steps necessary to close out your business. See our article on what you need to do when closing your business for more in-depth information and guidance.
Ready to start your LLC?
Frequently asked questions about starting and running an LLC, or limited liability company.
LLC owners report business income and losses on their personal tax returns. Learn how to make the most of your LLCs tax flexibility.
Take our business formation quiz to find out what the best form of business ownership is for you.
Read about why you need an operating agreement and what to include in one.
LLCs offer their owners liability protection, but if you aren't careful an LLC's owners, members, or shareholders may be on the hook personally for business debt.
Appointing a registered agent is a simple - but essential - step for every business. Learn more about what a registered agent does.
Get all of the information you need to start and run a small business.