Forming LLC – What You Need to Know
Forming an LLC in Alaska is the same as for any other state. An LLC is a company limited by limited liability that has filed its Articles of Organization with the state in which it wants to conduct business. Unlike a sole proprietorship or corporation, a limited liability company has limited liability. This means that business owners are only liable for their company’s debts and not for their own personal debts.
The other difference between a sole proprietorship and a corporation is that owners have control over the business. However, they are still required to pay taxes on the income they make. In some cases this may not be an issue because the owner can set up an office if his or her business makes money and then transfer the funds directly to paying taxes. However, many entrepreneurs find it easier to use the services of an LLC rather than hire their own payroll departments. When an LLC files its annual tax returns with the state, the owners report only the income they make and do not include their share of profits. This allows business owners to effectively control their taxes without personally paying them.
Forming an LLC in Alaska requires getting an Operating Agreement. This is a legal document that details the relationship of the business and the owner. It is designed to protect the business from lawsuits. Most state laws require that the LLC is incorporated in the state. The Operating Agreement should be filed along with the Articles of Organization.
Once all of the necessary paperwork is filed with the state, business owners will have to decide where they want to register their business. If the LLC has already been established, it is not necessary to file a different paperwork. However, if an individual is just starting a business there are some considerations to make. Some individuals want to open a limited liability company and do not want to register it as an LLC. Others want to incorporate their business as an LLC but want to retain the power of personal decision making.
There are several requirements for naming the LLC. When naming the LLC, business owners must use the name of the business as the name of the LLC. The name can also be any other word or combination of words. The only exception to this requirement is when names are specific to a business.