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

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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.

LLC Service

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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, 

StateFiling FeeAnnual 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

How Much Does It Cost to Maintain an LLC in Alaska

If you’re starting a business in Alaska, you might be wondering: how much does it cost to maintain an LLC in Alaska? In this article, we’ll take a look at the costs involved in maintaining an LLC in Alaska. The first step is filing an annual report. You’ll need to pay $100 to file the report, and you can do this online or by mail. In addition, you’ll need to notify the state of any changes to the LLC, such as an address change. You can file this form with the registered agent, or you can do it yourself with the help of an online portal.

When you start an LLC in Alaska, you’ll have to pay a $50 annual fee. You’ll also need to pay $100 per year to obtain an Employer Identification Number (EIN). You’ll also need to pay employment taxes to both the state and federal government. Fortunately, Alaska is one of the few states that have lower tax burdens than Hawaii, which is why the costs to maintain an LLC in Alaska are lower than those of Hawaii.

There are other costs related to maintaining an LLC in Alaska. If you run an Alaska LLC, you’ll have to pay a $50 business license fee every year, as well as an annual report fee. You’ll also have to pay fees for the registered agent. An annual report is a necessity for an LLC in Alaska, and it’s important to file it on time to keep your status current.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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