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.
On this page, you’ll learn about the following:
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.
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.
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.
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.
- 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.
Depending on what type of LLC you create, you may need to obtain a business license or pay taxes. The good news is that most of these costs are one-time fees. But what about the cost of maintaining your LLC? You’ll want to make sure you stay on top of your local and state regulations, as failure to do so can mean trouble in the future.
As a business owner, you may have many questions about how much it costs to maintain your LLC in Alaska. Some of these costs are one-time fees, while others may apply to all LLCs in the state. If you are planning to create an LLC in Alaska, make sure to research the fee requirements before you go. However, don’t try to find loopholes to avoid fees. You may end up with a hefty bill.
The first cost you’ll need to pay is for your LLC’s business license. The state will need your name, address, and contact information. You may also need to pay a yearly maintenance fee. This is typically $50, though odd-numbered years may cost more. You may also need to register for use taxes if your business provides services.
You’ll also want to make sure you open a business bank account. This will allow you to track your expenses and keep your business expenses separate from your personal spending. This may also allow you to obtain an Employer Identification Number (EIN) – a nine-digit number that is used for tax filing, business credit cards, and employment taxes. You can obtain an EIN online or by mail.
The second cost you’ll have to pay is for your LLC’s tax filings. Alaska will require you to submit a tax form every two years. If you have employees, you’ll also have to file for unemployment insurance taxes. You’ll also need to keep records of all your financial transactions, including your employees’ tax payments, purchases, and contracts.
The third cost you’ll have to pay is for the Articles of Organization. This document is required to form your LLC. This document outlines your business’s operation, including the names of your members, your business address, and your business type. This document is required for all LLCs, not just LLCs in Alaska. Whether you’re setting up an LLC in Alaska, or converting a foreign LLC, make sure you check this out before you sign on the dotted line.
The costs of maintaining an LLC in Alaska may seem overwhelming, but you can easily find an affordable way to do it. One option is to hire an inexpensive business formation service to handle all your paperwork. Another option is to use an online LLC setup website that will walk you through the process. However, you’ll need to pay for a service fee each year, which can be a hassle.
You’ll also need to purchase a certificate of good standing, also known as a Certificate of Compliance. This is a document that proves your LLC is in compliance with state laws and regulations. You can find this document online, but you may also need to call the state office to inquire about its availability.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
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.