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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.
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 |
#1 TOP PICK  | $0 + State Fees |
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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 significant cost associated with maintaining an LLC in Alaska is the annual report fee. Every year, business owners are required to file an annual report with the Alaska Division of Corporations, Business, and Professional Licensing. This report provides updated information about the company, such as its address, members, and business activities. Failing to file this report can result in penalties and even the forfeiture of the LLC’s status, so it is essential for business owners to budget for this mandatory expense.
Another cost to consider is the initial filing fee, which is the cost of registering the LLC with the state. This fee varies depending on the type of business structure and can range from a few hundred dollars to over a thousand dollars. While this may be a one-time expense, it is important for business owners to factor it into their startup costs and overall budgeting.
In addition to these mandatory fees, there are other costs associated with maintaining an LLC in Alaska that business owners should be prepared for. For example, some owners may need to hire a registered agent to represent the company in legal matters and receive important documents on behalf of the LLC. This service typically comes with an annual fee, which can add to the overall cost of doing business.
Moreover, some businesses may require additional licenses and permits to operate legally in Alaska. These can incur both application fees and ongoing renewal fees. Complying with state regulations and obtaining the necessary permits is crucial to avoid fines and penalties, so business owners should be aware of these costs and ensure they are properly licensed.
Furthermore, LLC owners should also consider the cost of professional services such as accounting and legal advice. While these services are not mandatory, they can be invaluable in helping business owners navigate complex tax laws, ensure compliance with regulations, and protect the company’s interests. These services come at a cost, so it is important for business owners to budget for them accordingly.
In conclusion, maintaining an LLC in Alaska involves various costs that business owners should be aware of and budget for. From annual report fees to initial filing costs, as well as ongoing expenses such as registered agent fees and professional services, there are many financial considerations to keep in mind. By understanding these costs and planning accordingly, LLC owners can ensure the financial health and compliance of their businesses.
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.