How Much Does an LLC Cost in Alaska
It costs $250 to form an LLC in Alaska. But these additional expenses could increase the total to over $3,000.
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Here are the following fees to consider:
- Domestic LLC Formation Fee: $250
- Foreign LLC Formation Fee: $350
- Biennial Report Fee: $100 to $200
- Business License Fees: At least $50
- Business Taxes: 2% to 9% of taxable income
- Registered Agent Services: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional LLC Fees: Up to $3,000+
There's no getting around the fact that you have to spend money when forming a business. The question is, how much for an LLC in Alaska?
Whether you're forming an Alaskan tourism agency, capitalizing on the state's fishing industry, or something else, there are fees you need to pay. Read on to see how much you need to form an LLC in Alaska.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Alaska Domestic LLC Articles of Organization Fee
Cost: $250[1]
To form an LLC in Alaska, you must submit the Articles of Organization to the Alaska Division of Corporations, Business and Professional Licensing.
An Alaska LLC's Articles of Organization contains the following information, among other details:[1]
- Name of the Limited Liability Company
- Purpose of the LLC
- NAICS Code
- Registered agent's name and address
- Management structure
You can submit the Articles of Organization online or by mail. Alaska takes around 10 to 15 days to process hardcopy filings.[2]
No, hiring an attorney is not required to form an LLC in Alaska. However, the state advises seeking legal counsel.[1] This helps avoid costly mistakes.
Alaska Foreign LLC Certificate of Authorization Fee
Cost: $350[3]
If your LLC is already established in a different state and you want to expand your business to Alaska, you need to register it as a foreign LLC.
Foreign LLCs in Alaska must submit a Certificate of Registration and the filing fee to the Alaska Division of Corporations, Business and Professional Licensing.
If your foreign LLC's original name is unavailable in Alaska, you must register a trade name. This assumed name becomes your LLC's official business name only in Alaska.
Domesticating a foreign LLC in Alaska means you're changing its state of formation from another state to Alaska. By domesticating, your LLC becomes subject to Alaska's laws and regulations. This way, you won't have to follow multiple states' rules.
Alaska LLC Initial Report
Cost: Free[4]
Once your LLC is established, you need to file an initial report through the Alaska Division of Corporations' online portal. This must be done within six months of your LLC formation date.[5]
An initial report confirms your LLC's ownership details and management structure. There is no fee to file Alaska LLC Initial Reports filed online.
Alaska is a good state to file an LLC because it's one of the few states that has no personal income tax and no state sales tax. However, the best state to form an LLC depends on other factors, like where you live and where your target consumers are.
Alaska LLC Biennial Report Fee
Cost: $100 (domestic) | $200 (foreign)[5]
Once your LLC in Alaska is formed, you'll need to submit a Biennial Business Report. You're required to submit it, along with the filing fee, every other year.
A Biennial Business Report contains updated information about your LLC. It shows any changes to the LLC's address, registered agent, and other details. Once submitted, your LLC is considered in good standing–thus allowing you to continue operating.
The due date for biennial reports in Alaska is January 2nd every other year. Filings are accepted as early as three months before the due date. But reports submitted after February 1st get penalized.[5]
At a minimum, an LLC in Alaska costs $50 per year. This is payment for the state's annual business license. Then, you must pay the biennial report every other year. This costs $100 for domestic LLCs and $200 for foreign LLCs.
Alaska Business Permits and License Fees
Cost: At least $50 per year[6]
Businesses that sell goods, services, and other property in Alaska must have a state business license. It expires every year on December 31st, but renewing online immediately is easy.[6]
Sole proprietors who are either disabled veterans or senior citizens can get a business license for $25.[6]
Additionally, your LLC may need to get local business permits. If your LLC does business in two cities, you may need to get a separate license for each city. The local business permit fees vary per city and could be renewable yearly.
The NAICS code, short for North American Industry Classification System, classifies business types per industry. You need to choose a six-digit NAICS code before applying for a business license in Alaska.
Alaska Business Taxes
Cost: 2% to 9.4% of taxable income
Alaska is the only state with neither personal income tax nor state sales tax. However, you may still have to pay local sales tax up to 7.5% of the LLC's taxable income.[7]
But while Alaska doesn't tax personal income, LLCs taxed as a C-corp are subject to the corporate income tax rate:[7]
| Taxable Income | Tax Rate |
|---|---|
| >$25,000 | 2% |
| >$49,000 | 3% |
| >$74,000 | 4% |
| >$99,000 | 5% |
| >$124,000 | 6% |
| >$148,000 | 7% |
| >$173,000 | 8% |
| >$198,000 | 9% |
| >$222,000 | 9.4% |
Additionally, self-employed LLC members must pay the 15.3% federal self-employment tax. This tax covers Social Security and Medicare contributions.[8]
Alaska LLC Optional Fees
While the Alaska LLC fees below are optional, some are unavoidable depending on your business needs. For example, a Certificate of Compliance may be necessary when opening a business bank account.
| Alaska LLC Optional Fees | Cost |
|---|---|
| Registered Agent Services | $0 to $300+ |
| Change of Registered Agent | $25 |
| Operating Agreement | $0 to $500+ |
| Employer Identification Number | $0 to $99 |
| BOI Report | $0 to $149 |
| Name Reservation | $25 |
| Trade Name Registration | $25 |
| Certificate of Correction | $25 |
| Articles of Amendment | $25 |
| Certified Document Copy | $10 per document + $5 per certified copy |
| Certificate of Compliance | $10 |
| Website Domain | $20 to $30 |
| Business Insurance Premiums | Varies |
Alaska does not offer expedited services. Online filings are processed immediately, while paper filings are processed in 10 to 15 days.[2]
Alaska LLC Registered Agent Fee
Annual Cost: $0, or $100-$300/yr
In Alaska, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Alaska. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
Alaska's Division of Corporations has a list of registered agent businesses in the state, including Northwest Registered Agent.
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
- A Fully-Formed Business
- Registered Agent Service
- Business Address
- Mail Forwarding
- Privacy by Default
Hiring a registered agent service is not required for LLCs in Alaska, but doing so provides privacy and convenience. You get to keep your address off public records while letting a professional handle your LLC's legal documents.
Many registered agents also offer compliance services, so you won't miss state and federal requirements. For an additional fee, they could file your BOI report, a new requirement by the Financial Crimes Enforcement Network.
Alaska LLC Change Registered Agent Fee
Cost: $25[9]
An LLC can change its registered agent's details anytime. If this happens, you must submit a statement of change to the Alaska Department of Corporations as soon as possible. Changes include the registered agent's name and address.
There's a different form for registered agents who want to resign from the role. It also costs $25.[9]
In Alaska, the articles of amendment is used to change the business name, business purpose, and other details. The statement of change is focused solely on changes regarding the statutory agent.
Alaska LLC Operating Agreement Fee
Cost: $0, or up to $500+
LLCs in Alaska are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Alaska. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Alaska don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
BOI Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.
[10]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Alaska LLC Name Reservation Fee
Cost: $25[11]
Naming your LLC in Alaska is free. It's included when you pay the Articles of Organization filing fee. But if you're not ready to submit your Articles of Organization, you can pay to reserve your LLC's name instead.
You can reserve a business name for 120 days in Alaska.[11] You can renew it for another 120 days for the same price. Don't forget to review Alaska's detailed list of naming regulations to prevent your reservation from getting rejected.
A business name reservation reserves the name you want to use for business in Alaska for 120 days. Meanwhile, a business name registration ($25) gives the business owner exclusive rights to use that name in Alaska for five years.[12]
Alaska LLC Trade Name Registration Fee
Cost: $25[12]
A trade name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state.
Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name that doesn't have an "LLC" at the end. Ensure the DBA you want is available because the registration fee is non-refundable.
A trade name registration allows a business to operate under a name different from its legal name. Meanwhile, a trademark is an intellectual property protection that legally protects your brand name, logo, or slogan at the national level.
Alaska LLC Certificate of Correction Fee
Cost: $25[13]
After your Alaska LLC application is approved, get a copy of your Certificate of Organization and review all the details carefully.
If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing a Certificate of Correction.
The Alaska Division of Corporations accepts cash, checks, and all major credit cards as payment methods. However, cash and checks are only accepted for hardcopy filings.
Alaska LLC Articles of Amendment Fee
Cost: $25[13]
Your Alaska LLC's Articles of Organization contains specific details about your business. Should these details change, you must submit the Articles of Amendment to the Division of Corporations.
File a Certificate of Amendment if you:
- Change the name of your LLC
- Update LLC's business purpose
- Modify the management structure
You don't need to file the Articles of Amendment if a Biennial Report is due.
A Certificate of Correction is for fixing mistakes in initial filings. Meanwhile, the Articles of Amendment update key details as the LLC evolves.
Alaska LLC Certified Document Copy Fee
Cost: $10 per document + $5 per certified copy[13]
Certified copies of documents verify that your LLC is legitimate and that its details are accurate.
You might need these for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and Articles of Amendment (if any) for recordkeeping purposes.
Alaska LLC Certificate of Compliance Fee
Cost: $10[13]
A Certificate of Compliance, also known as a Certificate of Good Standing, is an official document provided by the Alaska Division of Corporations. It verifies that your LLC is up to date with all state filings and has paid all its state fees and taxes.
You might need a Certificate of Compliance to:
- Open a bank account
- Apply for business loans
- Conduct business as a foreign LLC
- Qualify for business insurance
Business Website Domain Fee
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Business Insurance Premiums
Cost: Varies
Businesses with one or more employees in Alaska must have workers' compensation insurance.[14] Alaska does not have a state fund for workers' compensation, so you must self-insure or get it from a private company.
You might also be required to get other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
Bottom Line
In summary, the Articles of Organization fee costs $250 in Alaska. Biennial reports and the $100 to $200 filing fee are filed every other year. You must also renew the LLC's state business license each year for $50.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
- A Fully-Formed Business
- Registered Agent Service
- Business Address
- Mail Forwarding
- Privacy by Default
Economy Package at $149 + State Filing Fees
- Name check service
- Business consultation
- Digital welcome packet
- Customizable WIX website
Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
The total cost will increase depending on the additional services, documents, and licenses your LLC needs. Ultimately, setting aside an extra budget for unexpected fees is never a bad idea.
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References
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. Articles of Organization, Retrieved 06/04/2024
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. Domestic Limited Liability Company Creation, Retrieved 06/04/2024
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. Certificate of Registration, Retrieved 06/04/2024
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. Initial Report, Retrieved 06/04/2024
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. Biennial Report FAQs, Retrieved 06/04/2024
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. Business Licensing FAQs, Retrieved 06/04/2024
- ^ Tax Foundation. Taxes in Alaska, Retrieved 06/04/2024
- ^ IRS. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 06/04/2024
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. Registered Agents FAQs, Retrieved 06/04/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. Business Name Reservation, Retrieved 06/04/2024
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. New Business Name Registration, Retrieved 06/04/2024
- ^ State of Alaska Division of Corporations, Business and Professional Licensing. Forms by Entity Type, Retrieved 06/04/2024
- ^ State of Alaska Department of Labor and Workforce Development. Workers' Compensation Requirements for Employer, Retrieved 08/09/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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