Starting an LLC in Alaska comes with more costs than just filing the initial paperwork. But it doesn’t have to be as expensive as you think.
We explain all of the initial and ongoing Alaska LLC cost details below, as well as give you tips on how to save money.
How much does an Alaska LLC cost?
It costs $250 to form an LLC in Alaska. This is a fee paid for the Articles of Organization.
You’ll file this form with the Alaska Division of Corporations. And once approved, your LLC will go into existence.
In addition to this LLC filing fee, there are other costs to be aware of when forming an Alaska LLC (Limited Liability Company).
Costs to forming an Alaska LLC
There is a $250 one-time state filing fee to form an Alaska LLC.
There are also ongoing fees (like a $100 Biennial Report fee), which we discuss below.
LLC Costs in Alaska
|Registered Agent||$0 or $125 per year|
|Articles of Organization||$250|
|Operating Agreement||$0 (free on our site)|
|EIN Number||$0 (free through IRS)|
|Business License||$50 (and $50 renewals every year)|
|Biennial Report||$100 (every 2 years)|
|Taxes||varies (filed and/or paid every year)|
Alaska LLC Articles of Organization Filing Fee ($250)
Starting an LLC costs $250 in Alaska. This is the state filing fee for a document called the Alaska Articles of Organization.
The Articles of Organization are filed with the Alaska Division of Corporations. And once approved, this is what creates your LLC.
The $250 fee is a one-time fee. You don’t have to pay any monthly (or annual) fees to start your Alaska LLC.
Note: LLCs are the most common business structure used in Alaska. They are the most popular business entity because they offer liability protection for the LLC owners.
Depending on the state, the Articles of Organization form is sometimes called a Certificate of Organization or Certificate of Formation. Articles of Organization is the most common name – but they all mean the same thing: the form used to create your LLC.
Alaska business name cost ($0)
Naming your Limited Liability Company doesn’t cost anything. Your Alaska LLC Name is approved (at no extra cost) when your Articles of Organization filing is approved by the state.
You may have read online that LLC Name Reservations are required. However, this is not true in most states. Most states don’t require a Name Reservation to form an LLC.
How much does a DBA cost? ($DBA)
A DBA is filed with the state or the county. In Alaska, a DBA costs $25.
Note: A DBA is sometimes called a Trade Name, Fictitious Name, Assumed Name or Fictitious Business Name. They all mean the same thing.
Tip: You aren’t required to get a DBA for your LLC. It’s optional. For more information, read our article: Do I need a DBA?
Alaska Registered Agent Fee ($0 or $125/year)
Alaska law requires that you designate a Registered Agent when forming your LLC.
An Alaska Registered Agent is a person or company who receives legal documents and state notices for your LLC. A Registered Agent needs a street address in the state and should generally be available during normal business hours.
There is no additional cost if you will be your own Registered Agent, or have someone you know be your LLC’s Registered Agent.
However, you have the option of hiring a Registered Agent service. This will cost you between $100 to $300 per year. But Registered Agent service companies offer other helpful business services and can protect your privacy.
Hiring a Registered Agent service is a good idea if:
- You don’t have an address in the state (Alaska law requires Registered Agents to have a physical address in the state
- You want to keep your address off public record (depending on which company you hire, you may be able to use their address to keep your address private)
LLC Operating Agreement Fee ($0)
An Alaska LLC Operating Agreement is a written contract between the LLC Members. Operating Agreements include detailed information about LLC ownership, how the LLC is managed, and how profits are distributed.
Single-Member LLCs and Multi-Member LLCs should draft an Operating Agreement, keep it with their business records, and give a copy to each Member.
Most websites charge $50 to $200 for LLC Operating Agreements.
Here at LLC University®, we offer free LLC Operating Agreement templates for all types of LLCs.
LLC EIN Number Fee ($0)
An EIN Number is also known as an Employer Identification Number (EIN) or a Federal Employer Identification Number (FEIN).
This number is used to file income taxes, to open an LLC bank account, and to hire employees (if applicable).
Although many websites charge a service fee to get an EIN for your LLC, it can actually be done for free.
You can obtain an EIN for your LLC from the Internal Revenue Service (IRS) at no cost. The online filing can be completed in a few minutes.
Alaska LLC Biennial Report Fee ($100/every 2 years)
Alaska requires you to keep your LLC’s information up to date by filing a Biennial Report every 2 years.
This keeps your Alaska LLC in good standing and in compliance with state law so it can continue operating. You simply confirm the information on the Biennial Report, file it with the Alaska Division of Corporations, and pay the Biennial Report fee.
The Alaska LLC Biennial Report costs $100 per year. This fee is paid every other year for the life of your LLC.
Alaska Business License ($50 every year)
Every Alaska LLC must get a Business License from the Division of Business Licensing before starting to do business in Alaska. The initial filing fee is $50, and this is a required Alaska LLC cost.
And your Alaska LLC Business License must renewed every year. The renewal fee is also $50, paid each year for the life of your Alaska LLC.
Alaska Business License and Permit Fees (varies)
Depending on where your LLC does business in Alaska and the industry you’re in, you may need to obtain additional Business Licenses or Permits. For example, you may need to get a City Business Permit.
The costs for these other business licenses or permits will vary depending on location and industry, but usually the fees are not very high. Some licenses and permits are issued at the state level, and others are issued by a municipality (the town, city, or county).
LLC Taxes (varies)
There are many different types of Alaska LLC taxes that owners must pay, so this annual cost varies widely.
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)
Your Alaska LLC taxes depend on your industry and amount of business activity, so we’re not able to provide an estimate. Every business is different, and your specific circumstances determine what taxes apply to your LLC.
Hiring an Accountant
How much your small business pays in taxes is best determined by working with a qualified accountant in Alaska.
The amount you’ll pay your accountant will vary. However, most accountants will charge $300 per year for a simple tax return, or up to $900 for more detailed filings.
Note: We recommend speaking with a few accountants in Alaska to make sure they can help you meet all of your federal, state, and local tax obligations. We offer detailed tips on How to Find an Accountant.
Alaska Department of Corporations
If you have any questions about the cost of opening an Alaska LLC, you can contact the Alaska Division of Corporations.
Alaska LLC Costs FAQs
How much does it cost to open an LLC in Alaska?
It costs $250 to start an Alaska LLC. This is a one-time filing fee for the LLC Articles of Organization.
How much does an LLC in Alaska cost per year?
If you hired a Registered Agent service, you’ll have an annual subscription fee to pay each year. This is usually about $125 per year.
All Alaska LLCs need a business license in Alaska. The annual renewal fee for the Alaska business license is $50. And your Alaska LLC may also need a municipal business permit. This depends on your industry and where your LLC is located. You’ll need to check with your municipality to see if there are any annual renewal fees for the business permit.
Every other year, all Alaska LLCs need to pay $100 for the Biennial Report. These state fees are paid to the Division of Corporations. You have to pay this to keep your LLC in good standing. But this fee is paid every 2 years, not every year.
Should I hire an LLC formation service?
You aren’t required to hire a professional service company to form your Alaska LLC. You’re allowed to form your LLC yourself if you’d like.
However, if you want to save time and make sure your LLC is filed correctly, we recommend hiring Northwest Registered Agent.
Northwest Registered Agent has excellent customer service and they include Registered Agent services free for the 1st year. They also offer other services, like an Operating Agreement and filing your Biennial Report.
Check out Best LLC Services for more suggestions.
Do I need to hire an attorney to form an LLC?
No, you aren’t required to hire an attorney to form your LLC in Alaska. You’re allowed to form your LLC yourself if you’d like.
However, some people may want to hire an attorney if their LLC has a complex ownership or management structure, has investors, or requires industry-specific documentation.
A business attorney usually charges between $800 and $2,500 to form an LLC.
How do I start an LLC in Alaska?
Here are the steps to starting an LLC in Alaska:
- Choose an LLC business name and make sure it’s available
- Choose who will be your Alaska Registered Agent
- File the Alaska Articles of Organization
- File the Alaska LLC Initial Report
- Complete and sign an LLC Operating Agreement
- Get a Tax ID Number (EIN) from the IRS
- Obtain an Alaska Business License
- Open an LLC bank account
- Check whether you need any other business or sales tax licenses in Alaska
What’s the cheapest way to start an LLC?
You can get an LLC cheaply by filing your formation documents yourself. You’ll also save money by being your own Registered Agent, and using our free LLC Operating Agreement template.
By forming your LLC yourself, being your own Registered Agent, and using our Operating Agreement template you can save over $400.
How long does it take to get an LLC in Alaska?
How long it takes to get an LLC in Alaska depends on how you file your Articles of Organization.
You can get an LLC in Alaska approved immediately if you file online. On the other hand, filing by mail takes about 10-15 business days (plus mail time).
How much does an Alaska business bank account cost?
It varies. Some banks charge monthly fees ($10 to $20 per month), but these can sometimes be avoided by meeting certain requirements. For example, if you make a certain number of direct deposits or maintain a specified minimum balance, then they’ll waive the monthly fees.
And you might be able to find a bank that doesn’t charge any monthly fees.
Before you open your LLC business bank account, we recommend calling and asking if there are ways to avoid the monthly maintenance fees.
How much is a Foreign LLC in Alaska?
A Foreign LLC is an LLC formed in another state that must register (aka Foreign Qualify) in Alaska. This is because the LLC is doing business in both states.
The Alaska Foreign LLC cost is $350.
If you form an LLC in Alaska, it is called a “Domestic LLC”. If you formed your LLC in another state, it would be a Foreign LLC once you register it in Alaska.
Is Alaska a good state for an LLC?
Yes, Alaska is a great state to start a business. Alaska doesn’t charge a state business license fee, has quick approval times and helpful representatives at the Alaska Department of Commerce Division of Corporations if you have questions.
However, the most important factors in deciding where to start a business are where you live and where you’re doing business.
Meaning, if you live in or do business in Alaska, then you should start your business in Alaska. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business. And just because a certain state has cheaper LLC fees doesn’t mean it’s a good idea to form your LLC there.
For example, if you form an LLC in Delaware, but live in and conduct business in Alaska, you’ll also need to register your Delaware LLC in Alaska (and pay fees). And you’ll end up paying Alaska taxes anyway. This ends up leading to more costs and more headaches with no advantages.
In summary, if you are an Alaska resident, then yes, Alaska is the best state to form an LLC. If you don’t live in and do business in Alaska, then no, Alaska probably isn’t a good state to start an LLC.