Alaska LLC Costs
Recommended LLC Services
In Alaska, business owners benefit when they form a limited liability company. An LLC is a business structure that provides even small business owners and entrepreneurs with liability protection, unique tax benefits, state-specific incentives, and a flexible management structure. People often believe that LLC formation in Alaska is expensive and cumbersome. But, it is actually straightforward and easily affordable for most people.
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Costs to start an LLC in Alaska
1
LLC Articles of Organization ($250)
- You must file Articles of Organization with the Alaska Department of Commerce, Community, and Economic Development (DCCED).
- The LLC cost to file Alaska Articles of Organization is $250.
- Alaska does not offer expedited LLC services.
2
Alaska biennial report fee ($200)
- In Alaska, you must file a biennial report with the DCCED.
- You will file the biennial report online using the Alaska Department of Commerce, Community, and Economic Development website.
- The Alaska biennial report fee is $200 and is due every other year after February 1st.
- The penalty for not submitting your annual report is $37.50, and you could face possible involuntary dissolution.
3
Alaska registered agent fee (varies between $50 to $300)
- You must appoint a registered agent when you form an LLC in Alaska.
- Appointing a registered agent alerts the DCCED that someone is physically available during business hours to accept important notices and other correspondence.
- Registered agents must meet Alaska requirements. Unlike many states, an entity cannot act as its own agent.
- The total cost of appointing an Alaska registered agent will depend on the registered agent service, the needs of the LLC, and state filing fees.
4
Fees to form a foreign LLC in Alaska ($350)
- You will register a foreign LLC if you have an existing LLC in another state expanding into Alaska.
- You can register the foreign LLC online using the Corporations, Business, and Professional Licensing website.
- Or, you can complete the Certificate of Registration and submit it by mail.
- The LLC cost to register a foreign LLC in Alaska is $350.
5
LLC name reservation fee ($25)
- You do not have to reserve an LLC name in Alaska before formation.
- LLC names in Alaska do not have to be unique, but they must meet the state requirements.
- You can reserve a company name in Alaska for up to 120 days before formation.
- You can reserve an LLC online using the Alaska DCCED Corporations, Business, and Professional Licensing website.
- Or, you can complete the business name registration form and submit it to the Corporations Section.
- The LLC filing cost for an LLC name in Alaska is $25.
6
DBA filing fees in Alaska ($25)
- The business-related acronym DBA stands for ‘doing business as.’ A DBA, or assumed name, is any registered name that a person or company uses to do business that is not its legal name.
- An Alaska LLC must register a DBA when operating a business using a name that is not the legal name of the LLC.
- All DBA names in Alaska must be unique and meet state requirements.
- You can register your DBA online using the Alaska DCCED Corporations, Business, and Professional Licensing website.
- Or, you can complete the New Business Name Registration form and submit it by mail.
- The cost to register a DBA in Alaska is $25.
7
Cost of certified document copies ($10)
- You will complete the copy request form and submit it by mail to request copies of the LLC document copies.
- The cost for Alaska LLC certified document copies is $5.
8
Alaska Certificate of Good Standing ($10)
- Most banks in Alaska will require you to file a Certificate of Good Standing before you can open a business bank account.
- You can order your Certificate of Good Standing using the Department of Commerce, Community, and Economic Development website.
- Or, you can complete the copy request form and submit it by mail.
- The LLC filing fee for an Alaska Certificate of Good Standing is $10.
Steps to start an LLC in Alaska
1
Choose a business name
When deciding on an LLC name in Alaska, you will want to consider a few things.
- LLC names in Alaska do not have to be unique and meet the state guidelines.
- An LLC name must meet all Alaska LLC naming requirements.
- It is always a good idea to check web domain availability to keep branding and marketing easy.
You will search the Department of Corporation’s database to conduct a name search for LLC name availability.
LLC name reservation fee
In Alaska, you are not required to reserve an LLC name before the formation process.
You will reserve the Alaska LLC name online. You can reserve an LLC name for up to 120 days before formation.
The cost to reserve a company name in Alaska is $20. An Alaska LLC name is good for up to 120 days. Alaska does not require you to reserve an LLC name.
2
Appoint an Alaska registered agent
In Alaska, you must appoint a registered agent when you form an LLC in the state.
The price for an Alaska registered agent or service varies between $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Alaska is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be an Alaska resident or a registered agent service authorized to conduct business in the state.
ZenBusiness
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness has a stand-alone registered agent service for Alaska LLCs. The price is $99 per year.
Northwest
- Total Out The Door Alaska LLC Formation Service Package – $60 a month and includes:
- Alaska State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
LegalZoom
- Economy – $79 plus $153 AK filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
3
File Alaska Articles of Organization
You will file Articles of Organization with the State of Alaska Corporations Section.
You can file the Articles online using the Alaska SOS Corporations Division.
Or, you can complete the Articles of Organization form (Form 08-84) and submit it by mail, fax, or in person.
The LLC cost to file A.K. Articles of Organization is $250.
Alaska does not offer any expected LLC services.
Mailing address:
State of Alaska Corporations Section
P.O. Box 110806
Juneau, AK 99811
Physical address:
333 Willoughby Ave., 9th Floor
State Office Building
Juneau, AK 99801-1770
Fax number: 907-465-2974
The Articles of Organization form will ask various questions about your LLC.
- LLC name
- LLC purposes
- Registered Agent
The fee in Alaska for filing the LLC Articles of Organization is $250.
4
Get an Alaska LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
The IRS issues a 9-digit EIN to LLCs for income tax purposes. It acts as a Social Security Number for companies. The Internal Revenue services issue an EIN for no additional costs.
You must apply for an EIN if converting a sole proprietorship to an LLC.
Applying for an EIN is a simple process online through the IRS website.
Business banking for an Alaska LLC
In Alaska, financial experts recommend that an LLC owner open a business account separate from personal bank accounts. It protects personal assets and credit scores.
Banks will require an LLC owner to submit a copy of the LLC’s Articles of Organization, operating agreement, and EIN to conduct business banking.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Alaska
When you choose to retain a business attorney in Alaska, you are ensuring a straightforward LLC formation process. It also means someone is available to handle any business-related issues that could arise later.
In Alaska, business attorneys typically offer free consultations for first-time clients.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in Alaska will cost $300 per hour.
LLC taxes in Alaska
- In Alaska, LLCs are considered pass-through entities. You will file personal taxes instead of the LLC’s tax returns.
- Alaska is one of five states that do not impose a sales tax if you sell physical goods and services.
- If you hire employees in Alaska, you must enroll in Unemployment Insurance Tax.
- Alaska does not require you to enroll in Employee Withholding tax.
- While Alaska’s state taxes are straightforward, federal taxes can get overly complicated. Appointing a tax expert can help ensure you do not miss important deadlines, pay penalty fees, or face possible dissolution.
Business licenses and permits in Alaska
Alaska makes business licenses and permits simple.
A business license in Alaska is $50 a year. As of February 2021, the annual fee for a renewal is suspended.
You will use the A.K. Corporations Division website to apply for your business license.
If you sell alcohol or tobacco products, there is an additional $100 endorsement fee.
A business licence in Alaska is $50. The total cost of permits and licences will depend on where your LLC is, and the type of LLC.
Local government agencies in Alaska will have different license processes and rules. You will want to contact the office to inquire about the process, price, and office hours.
Notary public
You may find that some Alaska LLC formation documents will require a notarization from a notary public.
Most government agencies have one in the office if you cannot locate a notary.
According to Alaska law, a notary public can only charge a max of $5 per signature.
Employer obligations in Alaska
- You have employer obligations when you hire in the state of Alaska.
- You must verify that all employees are eligible to work in the U.S. by completing Form I-9 from the USCIS Website.
- You will register for worker’s compensation insurance.
- You will report all new hires by completing the new hire form and submitting it to the Alaska Child Support Services Division.
- You will find a complete list of employer obligations in Alaska.
Benefits of an Alaska LLC
- Business banking is easier when you form an LLC in Alaska. Starting a limited liability company helps to protect future liability. And banks will require that you open separate personal and business banking accounts.
- LLCs and corporations have different compliance requirements. Incorporations must answer to shareholders and stock owners when they make business decisions.
- All LLCs in Alaska are considered pass-through entities. Owners file personal tax returns rather than the LLC’s tax returns.
- You reduce the chances of double-taxation when you form an LLC. C-corporations are double-taxed, while LLCs are not.
- Alaska has state-specific incentives that are available to LLCs. The New Area Development and Small Business Economic Development are available to LLCs in the state.
FAQs
How long does it take to register an LLC in Alaska?
When you register an LLC online, the processing time is immediate. The Secretary of State will process registrations filed by mail, fax, or in person in 10 to 15 days.
Alaska does not have any expedited LLC services.
How do I dissolve my Alaska LLC?
You will have to dissolve your inactive Alaska LLC to avoid ongoing costs and accruing state fees. You must file articles of dissolution with the SOS by mail, fax, or in person.
The filing cost for LLC cancellation in Alaska is $25.
Does Alaska have an annual franchise tax?
One of the benefits of forming an LLC in Alaska is that they do not impose an annual franchise tax or privilege tax.
Do I need a business operating agreement for my LLC in Alaska?
The Alaska Secretary of State Corporations Division does not require you to submit a business operating agreement when registering your LLC. Having an operating agreement on file will make business banking easier. And it will help to reduce the chances of future misunderstandings.
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