Fact Checked by Editorial Staff
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.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
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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,
| 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
F.A.Qs
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.
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.
One of the primary costs of maintaining an LLC in Alaska is the biennial report fee. Every two years, LLCs in the state are required to file a report with the Alaska Division of Corporations, Business, and Professional Licensing. This report includes information about the company’s ownership, location, and management structure. Business owners must pay a filing fee to submit this report, which helps the state keep accurate records of all active LLCs operating within its borders.
In addition to the biennial report fee, Alaska LLCs must also pay an annual business license fee. This fee is required to ensure that LLCs are operating legally and ethically within the state. It also helps fund various government programs and services that benefit the business community as a whole.
Another ongoing cost of maintaining an LLC in Alaska is the Registered Agent fee. Every LLC in the state is required to have a Registered Agent, who serves as the company’s official point of contact with the state. This individual or company is responsible for receiving legal documents on behalf of the LLC and ensuring that they are handled in a timely and professional manner. Business owners must pay a fee to retain the services of a Registered Agent, which can vary depending on the provider and level of service required.
In addition to these required fees, there are other costs associated with maintaining an LLC in Alaska. For example, business owners may need to hire professional services such as accountants or attorneys to help with tax filings, regulatory compliance, or other legal matters. These services can be expensive but are essential for keeping the LLC in good standing and avoiding potential legal issues down the line.
Overall, the cost of maintaining an LLC in Alaska can vary depending on various factors such as the size and nature of the business, the level of compliance required, and the services needed to keep the company running smoothly. While these costs may seem daunting at first, they are necessary for protecting the business and ensuring its long-term success in the state.
Business owners should carefully consider these expenses when deciding whether to form an LLC in Alaska. By understanding the costs involved and budgeting accordingly, entrepreneurs can avoid any surprises and ensure that their company remains in good standing with the state authorities. Ultimately, the benefits of operating as an LLC – such as limited liability protection and potential tax advantages – often outweigh the costs associated with maintaining the business entity.
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.