How much does an LLC cost in Alaska? (details)

Forming an Alaska LLC entails more than just paying the first filing fee; it doesn't have to be extremely expensive.

We outline all up-front and continuing costs for an Alaska LLC and advise how to cut these out of the budget successfully.

How Much Does It Cost to Start an LLC in Alaska?

There is a $250 filing fee for the Article of Organization with the Division of Corporations when forming an LLC in Alaska.

This is an important step in creating your LLC's legal standing, which will allow it to function under Alaska's regulations if approved.

Apart from the LLC filing fee mentioned above, additional expenses are associated with establishing an Alaska LLC (Limited Liability Company).

Costs of Forming an Alaska LLC

Forming an Alaska LLC includes a one-time state filing fee of $250.

Ongoing fees such as a minimum $50 Business Privilege Tax and a $100 Biennial Report fee every two years are also part of the process, as detailed below.

LLC Costs in Alaska

The filing fee for an Alaska LLC Article of Organization is $250

In Alaska, forming an LLC requires paying the Division of Corporations a $250 filing fee for the Alaska Article of Organization. This paper creates your LLC legally if it is accepted.

After formation, you only need to pay the $250 one-time charge; after that, you won't need to pay any more monthly or yearly fees to keep your Alaska LLC active.

The form used to establish an LLC can vary by state; it may be referred to as the Articles of Organization.

In Alaska, it is specifically known as the Articles of Organization. Despite these variations in naming, they all serve the same purpose: to legally create your LLC.

Reserving a business name in Alaska entails a fee of $0

Naming your Limited Liability Company in Alaska is free of charge. Your Alaska LLC name is approved without additional fees when your Articles of Organization filing is accepted by the state.

Contrary to online information, most states, including Alaska, do not mandate LLC Name Reservations for formation. In Alaska, you can simply specify your desired LLC name directly in the Articles of Organization form without needing a separate reservation.

How much does a DBA cost? ($25)

In Alaska, filing a DBA with the State online costs $25.

Alaska Registered Agent Fee ($0 to $125/ annually)

Under Alaska law, every LLC formation requires the appointment of a Registered Agent.

Your Alaska Registered Agent acts as the liaison for legal documents and state notifications on behalf of your LLC, necessitating a physical address within the state and availability during regular business hours.

You can appoint yourself, a trusted associate, or a family member as your Registered Agent without incurring additional expenses.

Alternatively, hiring a Registered Agent service costs between $100 and $300 per year. These services offer additional business support and safeguard your privacy.

Hiring a Registered Agent service is a good idea if:

• You lack a physical address in the state (Alaska law mandates Registered Agents to have an address within the state).
• You prefer to keep your address private (some companies allow you to use their address for confidentiality).

LLC Operating Agreement Fee ($0)

An Alaska LLC Operating Agreement functions as a written contract among the LLC's members. It outlines specific details regarding ownership, how the LLC is managed, and the distribution of profits.

Both Single-Member and Multi-Member LLCs should create an Operating Agreement, maintain it within their business records, and provide each member with a copy.

Online services generally charge between $50 and $200 for crafting an LLC Operating Agreement.

LLC EIN Number Fee ($0)

An EIN, also referred to as an Employer Identification Number or FEIN (Federal Employer Identification Number), is essential for handling tax filings, setting up an LLC bank account, and potentially facilitating employee hiring.

While some platforms may charge a fee, you can obtain an EIN for your LLC free of charge directly from the IRS. The process to apply online is simple and typically takes only a few minutes to complete.

Alaska LLC Biennial Report Fee ($75 per year)

Alaska mandates that LLCs keep their information current by filing a Biennial Report every two years.

To maintain compliance with state regulations and ensure continuous operation, Alaska requires LLCs to file a Biennial Report every two years. Simply verify the details on the report, submit it to the Alaska Division of Corporations, and pay the associated fee.

The fee for filing an Alaska LLC Biennial Report is $100 per two-year period, payable biennially for the duration of your LLC's existence.

Alaska Business License ($50 every year)

Before launching operations in Alaska, every LLC must obtain a Business License from the Division of Business Licensing. This process involves paying an initial filing fee of $50, which is an essential cost for Alaska LLCs.

Your Alaska LLC Business License must be renewed annually, with a renewal fee of $50 payable each year throughout the life of your LLC.

Alaska Business License and Permit Fees

The locations and industry sectors in which your LLC operates in Alaska may require you to apply for additional business licenses or permits. For your LLC's specific operating area, for example, it may be necessary to obtain a city business permit.

Location and industry specifics can affect the cost of these licenses or permits. These costs are usually fair. Local governments such as towns, cities, or counties are responsible for administering some licenses and permits, while the state issues others.

LLC Taxes

Alaska LLC owners face a range of tax obligations, leading to varying annual costs.

Some of the taxes LLC owners pay include:

• Federal taxes
• State income tax
• Local income tax
• Business taxes
• Self-employment taxes
• Sales and use tax
• Payroll tax (if you have employees)
• Property tax (if the LLC owns property)

The Taxes of Your Alaska LLC taxes are affected by your industry and business activities, making it difficult to predict. Every business is different, and the taxes your LLC owes depend on your specific situation.

Hiring an Accountant

Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings.
The best person to help you determine your small business tax liability in Alaska is a certified accountant.

While accounting costs can vary, you should generally budget $300 for simple tax returns and up to $900 for more complicated filings annually.

Alaska Department of Corporations

If you have questions about the costs involved in starting an Alaska LLC, feel free to contact the Alaska Department of Corporations.

Alaska LLC Costs FAQs