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.

How much does it cost to maintain an LLC in Alaska? The Alaska Department of Commerce does not provide an exhaustive list of fees and costs, but it does provide a filing form. There are two basic fees: a $50 biennial report fee and a $100 annual license fee. These two fees are due on January 2 of alternate years. The Alaska Department of Commerce also provides an online filing form, but this is not a comprehensive list.

When forming an LLC in Alaska, you must find a registered agent. This person is the main point of contact with the state and will accept service of process. If you’ve already chosen a name, it’s important to check availability. The registered agent will receive and process legal documents and other documents on your behalf. The cost to maintain an LLC in Alaska varies depending on the location and type of business you have.

Another fee to pay is unemployment insurance. Alaska’s Department of Revenue provides additional tax information. You can also find reputable companies that will file an annual report for you. These companies will typically charge you a service fee of about $100 per year. While maintaining an LLC in Alaska is not difficult, you will want to file for it in time. In addition to taxes, you will need to pay your employees’ salaries.

When it comes to licenses and taxes, Alaska LLCs are required to pay a fee for their state business license. Almost all businesses are required to obtain a general business license. This license is renewable every two years. Businesses can register for sales and use taxes. It’s important to note that the fee may vary depending on the type of business. In general, however, the fees are minimal.

In order to become an LLC in Alaska, you must first file articles of organization with the Department of Commerce. Once you get approval, the state will issue a certificate of existence, which makes your LLC a legal business entity. Once you receive the certificate of existence, you’ll need to select a registered agent to act as your business’s representative in the state. It takes between ten and fifteen business days to obtain a certificate of existence.

In addition to the initial report, LLCs in Alaska are required to file two biennial reports. Even-numbered LLCs must file them on January 2nd of every two years. The initial report is free; the biennial reports cost around $100 and $200, respectively. To file a report in Alaska, you can fill it online or download a hard copy. Unless you are operating a foreign business, the fee is $200.

In addition to taxes, maintaining an LLC in Alaska involves maintaining a business bank account. The bank account will separate your personal funds from the funds of your business. As a business, you should maintain accurate records of your financial transactions and keep detailed information about the members, especially if you hire contractors or employees. These records will be needed to file your taxes and keep your business running smoothly. It’s also important to hire a tax accountant for advice.

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.