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


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing 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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$0 + State Fees

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$0 + State Fees

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

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

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.

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 fundamental costs associated with maintaining an LLC in Alaska is the biennial report fee. This report is required to be filed every two years with the Alaska Division of Corporations, Business, and Professional Licensing. The filing fee for this report is a necessary expense that LLC owners need to factor into their budget. Additionally, if LLC owners fail to submit this report or pay the required fee on time, they risk facing penalties and potential dissolution of the company.

Another ongoing cost for LLCs in Alaska is the biennial business license renewal fee. Similar to the biennial report, LLC owners are required to renew their business license every two years. Failure to do so can result in fines and other consequences, so it’s imperative for business owners to keep track of deadlines and ensure they have allocated funds to cover this expense.

LLCs in Alaska are also subject to annual business entity taxes. The amount of tax owed varies based on the total income generated by the company throughout the tax year. Business owners need to be prepared to calculate and pay this tax each year to remain in compliance with Alaska’s tax laws.

In addition to these standard costs, LLC owners may also incur other miscellaneous expenses related to ongoing maintenance. For example, hiring a registered agent to fulfill legal requirements, setting up a business bank account, and maintaining a physical business address can all add to the overall cost of running an LLC in Alaska.

While it’s essential for aspiring entrepreneurs to consider these costs when establishing an LLC in Alaska, it’s also crucial to recognize the benefits that come with operating this type of business structure. LLCs offer limited liability protection, which safeguards the personal assets of business owners from potential lawsuits or debts incurred by the company. This protection can provide peace of mind to entrepreneurs looking to minimize risk and protect their financial interests.

Ultimately, understanding the costs associated with maintaining an LLC in Alaska is a crucial part of the decision-making process for aspiring entrepreneurs. By factoring in these ongoing expenses and planning ahead, LLC owners can ensure they are able to comply with legal requirements and successfully run their business in the state.

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.

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