LLC Cost in Alaska – How Much to Pay for an LLC

Perhaps you are hoping to form an Alaska LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Alaska.

Alaska LLC Cost of Filing

Here are the costs involved in forming an LLC in Alaska.

Cost of Filing Formation Certificates

The Alaska Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Alaska Secretary of State. 

Alaska Domestic LLC

• Online Filing costs $250.
• Business License Renewal Fee $50
• Biennial Report Fee $100
• By Mail: Fill out the application form, and send it to the State of Alaska Corporations Section, P.O. Box 110806, Juneau, AK 99811. Costs $250

Alaska Foreign LLC

• Online Filing costs $350
• By Mail: Fill out the application form, and send it to State of Alaska Corporations Section, P.O. Box 110806, Juneau, AK 99811 Costs $350

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Alaska LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Alaska, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Alaska Department of Commerce, Community, and Economic Development for regulatory boards or agencies requiring licensing. 

Alaska LLC Taxes to Be Paid

Alaska is one of those rarest states in the United States that do not have any personal taxes for LLC members on their LLC earnings. Since LLC has the advantage of pass-through taxation, no LLC is liable to file income tax returns. However, the members can be liable for paying some state taxes. 

Sales Tax

Alaska is one of the 5 states that do not have any sales tax. So, no LLCs will have to pay sales tax if they are located in Alaska. 

Corporate Tax

In Alaska, a single-member LLC, by default, considers as a sole proprietorship. On the other hand, a multi-member LLC is considered a partnership firm. They are being taxed following the sole proprietorship and partnership rules. 

Currently, the tax rate in Alaska is up to 9.4% for corporations. Depending on other factors, the tax rate is decided.

Employment Tax

If your Alaska LLC has employees then you need to obtain an Employer Identification Number (EIN). The employment tax needs to be paid to the federal government. Along with that, one has to file Unemployment Insurance Tax which is paid to the state government. 

Cost Comparison Among States

Alaska is a coastal state surrounded by the state of Hawaii and mostly Candania Province. Alaska is a huge state compared to other neighboring states. Here is a comparison among the other popular states, 

State	Filing Fee	Annual Fee/Biennial Fee
Alaska LLC	$250	$100 (every 2 years)
Hawaii LLC	$50	$15 (Annual)
Oregon LLC	$100	$100 (Annual)
California LLC	$70	$800 (annual)+$20(every 2 years)
Washington LLC	$200	$60 (Annual)

Alaska is one of the states that have less tax burden. Though the filing cost is more than in Hawaii, the tax burden is much lesser in Alaska. 

Other Costs

• Alaska Name Reservation: $25 for online filing and by mail
• Doing Business As (DBA):  $25 for online filing and by mail
• Certified Document Copies: $5 per request
• Certified of Good Standing: $10
• Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta. 
• Online workspace: at least $4.20/mo for GSuite. 
• Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage. 
• Dissolution of Alaska LLC: $25

How Much Does It Cost to Maintain an LLC in Alaska

To maintain an LLC in Alaska you will need to pay a biennial fee of $100 along with corporate tax of 9.4% and federal taxes.

When you’re looking to start a business in Alaska, you’ll probably wonder: How much does it cost to maintain an LLC? Although there are no statutory fees for establishing an LLC, you’ll still have to pay legal mail and other correspondence. Fortunately, you can hire a registered agent who will receive correspondence quickly and efficiently. After you have your registered agent, you’ll need to file the Articles of Organization with the Division of Corporations. These documents are public record and should be carefully reviewed because any information on them will be publicly available.

In addition to paying the license fee, you’ll have to pay biennial reports to the state. Alaska’s Department of Commerce website has a form online for filing these reports. You will also need to pay a fee to maintain an LLC. In Alaska, LLCs must file their biennial reports on January 2 of every other year. For both types of annual reports, you must pay $100. The fees vary according to the type of LLC.

Choosing a business name is an important part of starting an LLC in Alaska. An Alaska registered agent acts as a middleman between the state and the business. In case you get sued, this person will accept service of process on your behalf. Although you can self-serve as a registered agent, it’s still worth hiring a registered agent. Once you’ve chosen a name for your company, you can then use it in the Articles of Organization.

As mentioned before, it is important to remember that an EIN is required for the business to open a business bank account. You can get an EIN by directly applying to the IRS, or you can use an LLC filing service like Incfile to obtain an EIN for your business. You’ll also need to complete the LLC Operating Agreement, which details the major aspects of your business. Among these is how your business will be divided. It also states what happens if one member leaves the company.

In order to maintain your business, you’ll also need to hire a registered agent. A registered agent is responsible for receiving important documents from the state and for forwarding them to your LLC. Some formation services include a full year of registered agent service. The cost varies from company to company, but on average, registered agent services charge $150 a year. This price is not guaranteed and will depend on the services offered.

When starting a business, you’ll also need a name for your LLC. The name should contain the word “Limited Liability Company” or “L.L.C.” If you are incorporating in Alaska, your name must contain the word “Limited Liability Company.” Make sure to check for this naming rule and submit it with the Division of Corporations. Your name should be as unique as possible.

F.A.Qs

In Conclusion

The cost of Alaska is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.