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The objective of the annual report is threefold. The annual report keeps the Government informed about all the updates, communicates about all the modifications or changes, & keeps the LLC members informed about the necessary taxes and costs. This article has all the information about the Alaska LLC annual report filing in Alaska.
An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This annual report is a comprehensive record of the company’s activities for the entire year. It is also referred to as the Annual Franchise Tax Report, as it facilitates the filing of the franchise tax.
Contents of the Annual Report
Typically, the annual report filed by an Alaska LLC (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report or the annual franchise tax report are
- Office Address of the LLC
- Names & Addresses of the Members & managers.
- Identification Documents
- Social Security numbers of the key members of the LLC
- The objective of the business of the LLC
- List of all the signatories of the LLC
- Information of the registered agent, if any
LLC Tax Update: Before you file your LLC annual report in Alaska, make sure to pay all the tax dues for the year.
Alaska LLC Biennial Report
In the state of Alaska, instead of an annual report, an LLC has to file a biennial report (a report to be filed every two years). Such a report must include updated information about the company’s addresses, the addresses of its registered agent, and other relevant details. Note that the LLC Annual Report is not the same as the Certificate of Compliance in Alaska.
Does the State of Alaska Require an Annual Report Filing?
The State of Alaska requires an LLC to file an initial report within the first 6 months of its formation. A Biennial report is to be filed every two years with the office of the Alaska Department of Commerce, Community, and Economic Development.
How to File an Alaska LLC Biennial Report
In Alaska, the Biennial report can be filed online or by mail. The Biennial Report is due on January 2 every two years. If an LLC fails to file the Biennial Report within the prescribed time, the Alaska Department of Commerce, Community, and Economic Development charges a late penalty of $37.50.
In Alaska, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit the Alaska Department of Commerce, Community, and Economic Development site.
- Step 2: Upon clicking the website link, you will see a box to enter the Alaska Entity Number. Enter the entity number in the box & click the ‘File Online’ button.
- Step 3: If you do not know your Alaska entity number, you can search by Entity Name & click Enter to retrieve the entity number. When you search with your entity name, you can see that the entity number shall be displayed before the name of your entity in the chart. Once you get the Alaska Entity Number of your Business, you can go to the first step, followed by the third step in this guide.
- Step 4: After clicking the online file button, please fill out the form with accurate information.
- Step 5: Review the form to correct any errors & submit it along with the required fees.
Filing Alaska LLC Biennial Report By Mail
To file the Biennial Report in Alaska by mail, you can follow the steps below:
- Go to the Alaska Department of Commerce, Community, and Economic Development site.
- Click on the Print Form button.
- Fill up the form with the correct information and save it on your computer.
- Print the form and attach the required documents.
- Write a check properly to make the payment.
- Send the printed copies of the forms and documents to the Alaska Department of Commerce, Community, and Economic Development address, P.O. Box 110806, Juneau, AK 99811-0806.
Alaska LLC Biennial Report (Domestic & Foreign)
| State Office: | If the Biennial Report is filed after February 1 (in the second year), then an LLC will be charged a $37.50 late fee. If an LLC doesn’t file the biennial report at all, it may lead to the dissolution of the LLC. |
| Due Date: | Every two years on January 2 |
| Filing Fee: | The Biennial report filing fees in Alaska are $100 in the second year when the biennial report is submitted. In the first year, there is no fee. |
| Penalty: | If the Biennial Report is filed post-February 1(in the second year), then an LLC will be charged with a $37.50 late fee. If an LLC doesn’t file the biennial report at all, it may lead to the dissolution of the LLC. |
| Filing Method: | An LLC can file the Alaska Biennial report Online Or by Mail. |
| Forms: | The form to file the Alaska Annual Report can be found here. |
| Important Information: | It is a mandatory thing to file a biennial report in Alaska, & non-filing can have serious effects on the functioning of an LLC. |
Biennial Report Deadline
The Alaska Biennial Report is due every two years by January 2nd. That means, if your LLC is formed/approved by the SOS in July 2024, the first Biennial Report should be filed with the SOS by January 2, 2026.
Penalties for Non-filing or late filing
If an LLC fails to file the Biennial Report within the prescribed time, the Alaska Department of Commerce, Community, and Economic Development charges a late penalty of $37.50
Tax Structure in Alaska LLC
For an LLC in Alaska, the tax structure is very simple and flexible. First of all, every LLC has the advantage of a pass-through taxation. On the other hand, an LLC can choose the desired tax structure at the time of formation. There are two ways an LLC can be taxed,
Default Status:
When filing your LLC in Alaska, entrepreneurs have the opportunity to select a desirable tax structure. If they do not choose a specific structure, the LLC will be taxed under the ‘Default Status’. That means the tax will be levied based on the number of LLC members.
For a single-member LLC, it is considered a ‘disregarded entity’. This means that a single-member LLC does not have to file a federal income tax return, but the individual (or the LLC member) must file it personally. In the case of a single-member LLC, it is treated as a sole proprietorship.
In the case of a multi-member LLC, it is considered a partnership for tax purposes. Hence, the default status for a multi-member LLC is a partnership firm. LLCs are required to file a separate ‘partnership form’ with the IRS.
LLCs with Spouses: There are specific states (like California) where starting an LLC with a spouse is considered a single-member LLC instead of a partnership or multi-member LLC. In such cases, both husband and wife will be liable to pay taxes
Elective Status:
For an elective status, the LLC can choose the tax structure while filing the formation documents. LLCs in Alaska should file a separate tax form if they do not wish to be taxed by default. Many LLCs choose to be taxed as a corporation to enjoy corporate benefits, especially if the LLC is large.
LLCs can choose between S-Corp and C-Corp tax status when filing the formation document in Alaska. In that case, the concerned LLC needs to submit a separate form for each type it chooses. For the S-Corp type, Form 2553 must be submitted; for the C-Corp type, Form 8832 must be submitted.
In Alaska, there may be local taxes (inquire with the local government body for details) that LLCs must pay to be updated. Make sure to pay and update your tax dues before you file your annual report in Alaska.
Annual Report vs Certificate of Compliance in Alaska
The Certificate of Compliance is a legal document that certifies that an LLC in Alaska is in good standing and compliant with all applicable laws. That includes an updated annual report as well. While Annual Reports show if your company is up to date.
They are both similar documents (although not identical) and serve as proof of the company’s good standing. The Annual Report is a domestic document, whereas the Certificate of Compliance in Alaska is a mandatory document if the LLC is going beyond the home state to a foreign state. There are several ways to obtain a Certificate of Compliance in Alaska.
The form is available on the state SOS website. You can fill it out online and submit it along with the fees. A filing fee of $10 must be paid to the SOS to obtain the Certificate of Compliance. The amount might be more depending on the number of copies you request. If you request additional copies of documents, you may incur an additional fee.
Request Certificate of Compliance:
- Online application: Request for the Certificate of Compliance
- Offline application: Not available
- Fees: $10
Why Do LLCs Have to File the Annual Report?
Some states are not required to file this yearly report, commonly referred to as the Annual Report. However, there are several reasons why states require an LLC Annual Report. Here are some reasons,
To Maintain the Accuracy of the Information
An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information allows the State authorities to track down any LLC when communicating.
To Provide the Correct Correspondence
Many times, any creditor or other entity willing to transact with the LLC requires the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated every year, such entities will not be able to communicate with them.
To Notify the Government About All the Significant Changes
If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information to the Government.
To Provide an Activity Log of an LLC
The Annual report is like an activity log of the LLC. It brings on record all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.
To Help You With the One-time Filing of Taxes
The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government.
To Enable the State to Track the Payments
The government authorities use all the information filed through the annual report for tracking the payment of State Taxes.
Seek the Help of a Registered Agent
Every State will have a different rule for filing the Annual Report. Usually, it is submitted annually, but in some states, it is submitted every other year. Some states require the filing of the report only once in ten years.
Not only the timing, but also the mode of filing, proper addresses, exemptions, legality, and annual report compliance, among other factors, must be taken into account when paying taxes or filing reports with state authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you about important dates of filing or payment of taxes.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- Maintaining Privacy (as it keeps your personal records off the public record)
You can read more about an Alaska Registered Agent here.
FAQs
Yes, an annual report is essential for every business entity in most states. Some states also require biennial or decennial reports to be filed.
A Yearly Business Report or the annual report typically incorporates the address of the business, names & addresses of the members, a list of all the signatories, SSN of the members, & details of the registered agent.
A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allow the smooth filing of reports & other fees.
The most important thing for filing an Annual Report is record-keeping. Make sure that you document every other transaction well.
Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.
In Conclusion
In conclusion, we can see that the annual report, also known as the Franchise Tax Public Information Report, is significantly easier to file. However, it is mandatory to file the report on time to avoid any penalties. If you are running an LLC in the state of Alaska, you have to comply with the filing of certain important documents, including the annual report or the Franchise Tax Public Information Report, as it is named in the state of Alaska.
It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the Secretary of State. Additionally, please note that an annual report is not the same as a Certificate of Compliance in Alaska. They might look similar, as many parts of the certificate are the same as those in the annual report; however, it is a completely different document and should be compliant with the filing requirements for the annual report in Alaska.