The Alaska limited liability company (LLC) operating agreement is a legal document that outlines the rules regarding the management of the business and records the ownership of each partner within the LLC.
The LLC operating agreement, or business operating agreement, also includes provisions about the capital contribution of each member and their percentage of ownership interest in the company.
The operating agreement enables members to have total freedom to regulate their mutual relationships within the framework of federal and state laws.
Is an Operating Agreement Required in Alaska?
No, the operating agreement is not required in Alaska. However, the parties still choose to draft such a document since it regulates how the parties will conduct their day-to-day activities within the company.
4 Main Types of Operating Agreements
In Alaska, there are four main types of operating agreements used for LLCs:
Types of Operating Agreements
Single-member LLC operating agreement: Used for organizing the operations of an LLC with only one member. This type of operating agreement only regulates the operation of the LLC without providing clauses about the relationship between the members.
Multi-member LLC operating agreement: This type of operating agreement is usually more complex compared to the single-member LLC operating agreement since it includes provisions about the mutual rights and duties of all members within the LLC.
Member-managed LLC operating agreement: In certain businesses, depending on their industry and company size, the members choose to directly manage the day-to-day activities of the company. This type of operating agreement outlines the authority and duties of each member in terms of their managerial responsibilities within the company.
Manager-managed LLC operating agreement: Here, the members authorize one or more managers to operate the LLC on a daily basis. This document outlines the managerial duties of each manager in the company.
Laws and Legal Requirements for LLC Operating Agreements in Alaska
Title 10, Chapter 50 of the Alaska Revised Limited Liability Act regulates the status of LLCs within the state.
Moreover, the operating agreements in Alaska are regulated by § 10.50.095.
State law also provides a definition of an operating agreement as follows: “Operating agreement means a written agreement among all of the members of a limited liability company about conducting the affairs of the company.” (§ 10.50.990(17))
How to Form a Limited Liability Company (LLC) in Alaska
Here, you can see the step-by-step process for establishing an LLC in Alaska.
How to Form a LLC in Alaska
#1. Reserve a Name For Your LLC
Although there are no restrictions in terms of how many business licenses may have the same name, if you wish to have a unique business name, you can obtain exclusive rights to a business name by applying for a business name registration.
The name registration is valid for 5 years.
You should check if your business name is distinguishable according to state regulations and submit an online application.
#2. Choose the Type of LLC
In Alaska, you can choose between two types of LLCs:
#3. Nominate an Agent
Here, you must nominate a natural or legal person who is going to represent you before the third parties. The agent must have a registered address in Alaska. This can be a person from your company or a professional agency that provides such services.
#4. Pay the Required Fee
The application fee depends on the type of LLC you have opted for. The filing fee for a domestic LLC is $250, and it is $350 for a foreign LLC.
#5. File the Articles of Organization
Draft the Articles of Organization and submit the document to the Alaska Department of Commerce, Community, and Economic Development.
If you want to register a foreign LLC, you should only submit a Certification of Registration of Foreign Limited Liability Company either online or by submitting Form 08-497.
#6. Create your LLC Operating Agreement
Although not officially required in Alaska, this document should also be created as it includes important information about the company.