Starting a new organization involves a lot of paperwork and the completion of certain legal records. To start a limited liability company (LLC) in Alaska, you should consider completing the Alaska LLC operating agreement, which is crucial for your business.
The LLC operating agreement can be signed for companies with multiple owners and those with a single owner. The document proves that the entity exists and describes key details about it. Whether you create the operating agreement template in Alaska or in any other American state, the structure and the items included are more or less the same. However, the formation process and fees vary from state to state.
Each LLC operating agreement sets the peculiarities of business and terms within which the members interact and work. If you are forming a company and acting solo, the document should describe the company’s basic principles and the invested capital.
Usually having a dozen of pages, this detailed form provides an opportunity to reflect all the needed business provisions. Among the included items are:
Of course, other details can be included in the agreement, at will.
There are two agreement types: multi-member and single-member. A multi-member agreement is signed if the company has more than one shareholder, while a single-member agreement is signed if you are the only person forming a company.
It is not mandatory to submit an LLC operating agreement in Alaska. However, the agreement helps all company owners to be on the same page and ensures that everyone knows the entity’s conditions.
Every company member should obtain a copy of the agreement. Normally, such papers are notarized in the United States.
If you act singly, the agreement will clearly state what you have invested in the company, so you are liable only in frames of your investments.
If you need to complete the Alaska LLC agreement template, we recommend using our form-building easily to easily create the required document.
So, why is the company’s liability limited? Basically, this term means that the company’s members have a limited risk of losing enormous sums of money. Each owner who contributes the capital will have a limit to which they are liable. The company’s losses will not affect owners because their liability lies in a certain scope.
Limited liability companies are endowed with characteristics of large corporations and moderate enterprises (like sole proprietorships). The liability is limited like in huge corporations, and the taxation can be reduced as in smaller companies. Many people in business choose LLC as the form for their entity because there are many positive sides like perks in taxation and the ability to include individual and corporate owners.
Chapter 50 (Title 10) of the Alaska Statutes focuses on the LLC topic and provides all the details you need to know. Anyone willing to create such a company in Alaska has to conform to this Chapter, as stated in Section 10.50.010.
Section 10.50.095 allows company members to create operating agreements, change, and cancel them. If some members have fewer rights than others, their functions regarding the operating agreement can be limited by changing provisions in the company’s articles.
For your convenience, we have prepared guidelines that describe the LLC establishing process in Alaska. Although the process might seem confusing, do not worry. After reading the steps below, the process will become much clearer. Be ready to fill out several papers and pay a significant amount of money if you want to create an organization in Alaska.
1. Specify a Name for Your Company
You should come up with a name that fits the requirements of the Alaska Statutes, Section 10.50.020. The name has to incorporate certain words or acronyms (as usually happens when choosing a company’s name in all American States).
In Alaska, you should include either the words “limited liability company” or the acronym LLC, L.L.C. It is also possible to use common and shortened versions of words (“Ltd.” and “Co.”).
The mentioned Section of the Statutes prohibits using the words “city,” “village,” and “borough” in the entity name.
Your company name has to be unique. You cannot use the name which has already been booked following Section 10.50.025 of the Alaska Statutes.
Each year, you have to renew the name registration for your company by submitting documents and paying the required fees, as written in Section 10.50.053 of the Statutes.
2. Define the Company Type
You can establish the company either inside Alaska (domestic) or outside of the state (foreign). The fees vary, with the registration of a foreign entity being more expensive. For domestic companies, you will pay 250 US dollars, while for foreign companies, the price increases to 350 US dollars. For both types, you can submit your documents via regular mail or website.
You should also define the North American Industry Classification System (NAICS) Code for your company. These codes in Alaska help to understand the field in which your company specializes.
3. Designate Your Registered Agent
You have to choose who will be the registered agent for your entity. This person (or organization) will communicate with public authorities, receive mail from government bodies, handle lawsuits (if the company faces them), and carry out other functions.
If you are the only member of your company, you can become such an agent. Otherwise, a certain member can be the agent, or you can hire a responsible agency.
4. Submit the Articles of Organization
The Articles of Organization is a legal document in Alaska (officially called Form 08-484). It is a six-page record where you insert all the key details about your company: name, location, specialization, and other info.
Once you have completed this form, you should submit it either online or via regular mail. Do not forget to pay the fee of 250 US dollars.
5. Form the Operating Agreement
We have explained in detail why it is important to create such a record. So, after working on the Articles of Organization, proceed to create your entity’s operating agreement.
6. Obtain a Unique Tax Number
To operate smoothly, companies must have a unique tax number. Contact the Internal Revenue Service (IRS) to get one. The acronyms for “tax number” are EIN, FTIN, or FEIN; however, they are one and the same thing.
It is crucial to obtain the tax number. Otherwise, your company cannot have a bank account, conduct banking operations, hire workers, deal with taxes, and undertake many other business operations.
7. Submit Your Company’s First Report
The company’s activity is usually associated with several reports that managers have to submit. In Alaska, LLCs managers should send the Biennial Report (that closes after two years). Each time you send this report, you have to cover a fee of 100 US dollars.
Another mandatory report is the Initial Report. As you can see from the name, this record should be sent once at the beginning of your business activity (no later than half a year since the company’s formation). If you miss the submission deadline, you will be fined.
Remember that every company with limited liability in Alaska has to send the reports mentioned above regardless of its size, revenue, number of workers, specialization, or any other factor.