Alaska LLC Operating Agreement Template

In Alaska, your limited liability company (LLC) is not required to have an operating agreement in place. But it’s highly recommended, as an effective operating agreement can help avoid disputes and lawsuits that could threaten the stability of your LLC. 

What is an LLC Operating Agreement?

An Alaska LLC operating agreement is an important legal document that details who owns the business and provides essential information pertaining to member duties. An LLC operating agreement establishes the financial relationship between members and the basics of the working relationships between those members and the managers who oversee daily operations. 

Read more about the importance of an LLC operating agreement here.

The operating agreement is not filed with the state, but instead remains private. It’s advisable to hire an attorney to ensure your operating agreement is thorough and legally binding.

What Should Your Alaska LLC’s Operating Agreement Include?

Here is a detailed list of topics you should consider including in your operating agreement:

1. Business name: Clearly state the full legal name of your LLC as registered with the State of Alaska.
2. Purpose of the business: Define the purpose and nature of your LLC’s business activities.
3. Duration: Specify the duration of the LLC, whether it’s perpetual or for a specific term.
4. Registered agent: Identify the registered agent for the LLC, including their name, address, and contact information.
5. Principal office: Provide the address of the LLC’s principal office.
6. Member information: Include the names, addresses, and initial capital contributions of all members. Specify the percentage ownership interest for each member as well.
7. Management structure: Define whether the LLC will be managed by its members or by designated managers. Include their names, titles, and roles, as well as any restrictions on their authority.
8. If the LLC has a board of directors, the operating agreement will also include the role and responsibilities of the board members and how they are compensated. 
9. Voting rights and decision-making: Outline the voting rights of members and the process for making major business decisions, including any supermajority or unanimity requirements.
10. Allocation of profits and losses: Describe how profits and losses will be allocated among members, typically in proportion to their ownership interests.
11. Distributions: Establish the procedures for making distributions to members, including the timing and manner of distributions.
12. Capital contributions: Specify the process for members to make additional capital contributions, if necessary.
13. Member meetings: Detail the procedures for holding regular and special member meetings, including notice requirements, quorum, and voting rules.
14. Record keeping: Explain the record-keeping requirements for the LLC, including financial records, member information, and meeting minutes.
15. Buyout and transfer of membership interests: Define the terms and conditions for members to sell or transfer their membership interests, including any right of first refusal for the LLC or remaining members.
16. Dissolution and winding up: Explain the circumstances under which the LLC may be dissolved, and outline the process for winding up the business and distributing the remaining assets to members.
17. Amendments: Specify the procedure for amending the operating agreement, usually requiring a certain percentage or unanimity of member approval.
18. Dispute resolution: Include a provision for resolving disputes among members, such as mediation or arbitration.
19. Governing law: Indicate that the operating agreement will be governed by and construed in accordance with Alaska state law.
20. Miscellaneous provisions: Include any other provisions that are relevant to your specific LLC, such as confidentiality, indemnification, or non-compete clauses.

Finally, have all members review and sign the operating agreement to make it legally binding. It is advisable to consult with an attorney when drafting your operating agreement to ensure that it complies with Alaska state law and adequately addresses your business’s unique needs.

An LLC operating agreement provides legal and financial recourse for a number of situations. If conflicts arise between LLC owners pertaining to any of the above issues, the operating agreement will provide clarity. 

The specific language of the operating agreement lays out exactly how such conflicts will be resolved, how the business is structured, the dynamics of operations, and more. 

Though Alaska has default rules on the books that address some of the issues that might arise between LLC members, your LLC operating agreement would override these default laws and give you greater control.  

How Much Does an Operating Agreement Cost? 

Creating an operating agreement is free if you just draw it up yourself. Alternatively, you can pay for guidance from an online business advisory like ZenBusiness.

This is an extremely important document, so it’s recommended that you hire a professional service or law firm. If you choose to use an attorney to help you create this document, the price will be around $500 for a single-member LLC and $2,500 for a multi-member LLC. 

Who Needs my LLC Operating Agreement?

One of the key reasons to have an operating agreement in place is that it makes your LLC more appealing to financial backers. Banks are likely to request to see your operating agreement when you apply for a loan. If you seek funding from investors, they will also want to see your operating agreement. 

Conclusion 

Though not legally required in Alaska, an operating agreement is a crucial document for LLC operations, ensuring your company is able to access adequate financing and settle any disputes. Keep in mind, you do not need to file your operating agreement with any state body. You simply need to take certain steps to ensure it’s legally binding and keep it in your records.