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.
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.
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.
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.
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.
- 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
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.
Limited Liability Companies, or LLCs, offer many benefits to businesses such as flexibility in management and liability protection for owners. However, one important factor that entrepreneurs must consider when forming their LLC is the cost of maintaining it.
The cost of maintaining an LLC can vary depending on several factors such as the state where it was formed, the type of business or industry it operates in, and additional services required by the business. In the state of Alaska, the costs associated with maintaining an LLC are relatively low compared to other states.
One of the primary costs associated with maintaining an LLC in Alaska is the annual report fee that must be submitted to the state. This fee is a flat rate of $100 and must be paid by January 2nd of each year. Failure to submit this report on time can result in late fees and potential loss of good standing for the LLC.
Another cost associated with maintaining an LLC in Alaska is the business license fee. This fee varies depending on the local municipality the business resides in, but can range anywhere from $50 to $250 annually.
In addition to the fees mentioned above, LLC owners in Alaska may also incur costs associated with hiring a registered agent to receive legal and tax documents on behalf of the business, as well as the cost of drafting and filing articles of organization with the state.
However, it is important to note that while the costs associated with maintaining an LLC may seem daunting, it is a necessary expense that can ultimately save a business from significant financial and legal repercussions in the long run.
By maintaining an LLC, business owners are able to separate their personal liabilities from those of the business, which can protect their personal assets in the event of a lawsuit or other legal action. LLCs also offer more flexibility in management compared to other business structures, which allows for more customization in terms of decision-making and ownership.
Additionally, LLCs offer tax benefits as they are often taxed as pass-through entities, meaning that profits and losses flow directly through to the individual owners rather than being taxed at the entity level.
In conclusion, while the costs associated with maintaining an LLC in Alaska may vary depending on the business’s unique circumstances, they are generally manageable and outweighed by the benefits offered by this business structure. By ensuring that their LLC is maintained properly, business owners can protect their personal assets, gain flexibility in management, and potentially see tax benefits.
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.
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.