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


Steve Bennett
Steve Bennett
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LLC Costs in Alaska

Forming a Limited Liability Company (LLC) in Alaska is a popular choice for entrepreneurs and small business owners who want to protect their personal assets and enjoy flexibility in their business operations. LLC formation costs vary from state to state, and it is essential to understand the costs involved in forming and maintaining an LLC in Alaska.

If you would like to know more about the Alaska LLC Cost, read the whole article until the end. Webinarcare Editorial Team will help you gain knowledge on how much an LLC Costs in Alaska. You must be guided by all the factors gathered in this article.

How to Start an LLC?

Before we dive into the LLC Cost in Alaska, you should know the step-by-step process of starting an LLC, including selecting a unique business name, appointing a Registered Agent, filing the necessary documents, and fulfilling any additional requirements, such as obtaining licenses or permits that are specific to your industry or location.

Here are the steps in starting an LLC in Alaska:

  • Step 1: Choose a Unique Business Name
    The first step in starting an LLC in Alaska is to select a unique business name for your company. The name should be distinguishable from any other registered businesses in the state. You can check the availability of your desired business name by searching the state’s business name database. Once you’ve found an available name, you may need to include “LLC” or “Limited Liability Company” at the end of the name to comply with state requirements.
  • Step 2: Appoint a Registered Agent
    A Registered Agent is someone who will receive official legal and tax documents on behalf of your LLC. The Registered Agent must have a physical address in Alaska and be available during normal business hours. You have the option to appoint yourself as the registered agent or hire a professional registered agent service.
  • Step 3: File the Articles of Organization
    To officially form your LLC, you need to file the Articles of Organization with the Alaska Secretary of State or the appropriate state agency. The Articles of Organization typically requires basic information about your LLC, such as its name, address, Registered Agent details, and the name and address of the LLC’s members or managers.
  • Step 4: Create an Operating Agreement
    Once your LLC is formed, it’s highly recommended to create an operating agreement in Alaska. Although not required by Alaska law, an operating agreement is a crucial internal document that outlines the ownership, management, and operating procedures of your LLC. It helps establish clear guidelines and expectations among members, and it can be especially useful in the event of disputes or disagreements in the future. The operating agreement can be customized to fit the specific needs and goals of your LLC.
  • Step 5: Obtain Required Licenses and Permits
    Depending on the nature of your business, you may need to obtain specific licenses or permits at the federal, state, or local level. Research the licensing requirements in Alaska and apply for business licenses in Alaska related to your industry or activities. Common examples include professional licenses, health or safety permits, and sales tax permits.
  • Step 6: File for an Employer Identification Number (EIN)
    An Employer Identification Number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) that is used to identify your LLC for tax purposes. Even if you don’t have employees, obtaining an EIN is typically required if you plan to open a business bank account, hire contractors, or file certain tax forms. You can easily apply for an EIN in Alaska through the IRS website.
  • Step 7: Comply with Ongoing Requirements
    Once your LLC is established in Alaska, it’s important to stay in compliance with any ongoing requirements. This may include filing periodic reports, paying Biennial Report fees, and renewing licenses or permits. Familiarize yourself with the specific obligations for maintaining your LLC’s good standing in Alaska.

Remember, starting an LLC in Alaska involves some specific steps and requirements that may differ from other states. It’s advisable to hire an LLC Services in Alaska that specializes in business formation to ensure that you follow all the necessary procedures accurately and efficiently. We reviewed the Best LLC Services for you to check out.

LLC Cost in Alaska

It is crucial to consider the costs associated with the formation and maintenance of your business. The costs of establishing and operating an LLC in Alaska can vary based on several factors, including the initial formation fees, ongoing compliance requirements, and optional expenses.

Initial LLC Costs

When starting a limited liability company (LLC), knowing the initial costs associated with forming and registering your new business entity is essential. Understanding and preparing for these expenses can help you budget effectively and set your Alaska business on a path to success. Some common initial costs associated with forming an LLC include Articles of Organization filing fees, Registered Agent fees, and additional services, such as business name reservation fees.

Articles of Organization Filing Fee

The first step in forming an LLC in Alaska is to file the Alaska Articles of Organization with the Alaska Secretary of State. This document officially creates the LLC and includes essential information about the business, such as its name, address, and Registered Agent.

This document includes essential information about your LLC, such as:

  • The name of your LLC
  • The address of your LLC’s principal office
  • The name and address of your Registered Agent
  • The purpose of your LLC (optional in some states)

You can typically file the Articles of Organization online, by mail, or in person. A filing fee is associated with this process, which costs around $250. You can also file by mailing it to Alaska Secretary of State, which is located at State of Alaska Corporations Section, P.O. Box 110806, Juneau, AK 99811.

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Registered Agent Fee

An LLC in Alaska must designate a Registered Agent who will be responsible for receiving legal and government documents on behalf of the business. You can act as your own Registered Agent or appoint someone you know. Professional Registered Agent in Alaska typically charge an annual fee ranging from $50 – $200.

In Alaska, your Registered Agent must:

  • Be a resident of Alaska or a business entity authorized to do business in the state.
  • Have a physical address in Alaska (P.O. boxes are not acceptable)

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business.

We reviewed some of the Best Registered Agent Services in Alaska and provided features as an add-on with their packages for you to check out.

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Business Name Reservation Fee

If you have a specific business name in mind and want to ensure it is available when you are ready to file your Articles of Organization, you can reserve the business name with the Alaska Secretary of State.

In Alaska, your LLC name must:

  • Include the words “Limited Liability Company,” “LLC,” or “L.L.C.
  • Not contain any words or phrases that are prohibited by state law
  • Be distinguishable from the names of other businesses registered in the state

However, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application in the Alaska Secretary of State to keep the name.

The online name reservation fee is $25, while the mail name reservation fee is $25. You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for a DBA (doing business as). If you have decided to file for a DBA, you can file it in two methods, online and by mail. However, before filing Alaska DBA, you should know that you need to renew your DBA for up to five years, which cost $25.

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Ongoing LLC Costs

After you know the initial costs of forming an LLC in Alaska, you should also know the ongoing costs once you have filed for an LLC. Here are the involved costs that you need to know.

Biennial Report Filing Fee

To keep your LLC in good standing, you must file Biennial Report with the Alaska Secretary of State. The Biennial Report provides updated information about your LLC, such as changes in address, members, or Registered Agent.

In Alaska, the Biennial Report fee costs $50, $100 for 2 years which can be paid every 2 years.

Franchise Tax or Annual LLC Tax

Some states require LLCs to pay an annual franchise or LLC tax, separate from the Biennial Report filing fee. Franchise tax, or annual tax, is a fee imposed by Alaska on businesses, including LLCs and Alaska Corporations, for the privilege of operating within their jurisdiction. This tax is separate from income taxes and is usually based on factors such as the company’s net worth, assets, capital, or a fixed dollar amount, depending on the Alaska’s specific tax regulations.

Alaska LLC Taxes To Be Paid

The State of Alaska is one of those rarest states in the United States that does not levy any personal income tax on businesses. However, the business LLCs must file other taxes with the State authorities.

  • Sales Tax: A sales tax is a government-imposed tax on the sale of goods and services. It is generally added to the price of a product or service at the point of sale and paid by the consumer. The tax is collected by the retailer or service provider, who then remits the collected tax amount to the relevant government authority. In Alaska, the sales tax rate is 0%; Alaska has no sales tax.
  • State Income Tax: Considering other taxes in Alaska, you should pay for the state income tax, with a rate of 0-9.4%.
  • LLC Federal Self-Employment Tax: Federal self-employment tax rates are the same across all states. Self-employment taxes are imposed on self-employed individuals or members of a Limited Liability Company (LLC) taxed as a sole proprietorship or partnership.
  • Property Tax: The property tax is fixed at 1.18% of industrial, commercial, residential, agricultural, and all other properties.

Business Licenses and Permits

Depending on the nature of your Alaska business and the location of your operations, you may need to obtain permits and business licenses in Alaska. The costs of these licenses and permits will vary based on your specific business and location. In Alaska, the business license ranges from $50 – $300. However, research the requirements for your LLC in Alaska and budget for these expenses accordingly.

Optional LLC Costs

Here are the optional costs you must consider if you will form an operating agreement or hire a professional service.

Operating Agreement

Although not required by law, it is highly recommended that LLCs create an operating agreement in Alaska. This document outlines the LLC’s ownership structure, management, and operating procedures. Hiring a business attorney to draft an operating agreement can cost anywhere from $500 to $2,000, or you can use online resources and templates to create one yourself.

Professional Services

You may hire professionals such as attorneys, accountants, or business consultants to help you establish and run your Alaska LLC. These services can provide valuable expertise and guidance but come at an additional cost. Consider the potential benefits and weigh them against the costs when hiring professional assistance.

You may check out the Best Business Attorney Services in Alaska that offer their professional services to form your business.

Can I Set Up an LLC For Free?

It’s impossible to set up an LLC entirely for free, as state filing fees and other costs are associated with establishing an LLC. However, you can save money by handling the formation process instead of hiring a professional service. Here are some steps to help you minimize the cost of setting up an LLC:

  • Choose your LLC’s name and check for availability in your state. This can generally be done through the Secretary of State’s website.
  • Prepare and file the Articles of Organization yourself. Alaska offer an online filing option or downloadable forms on their websites. By completing this process independently, you can avoid paying additional fees for a professional service.
  • Act as your own Registered Agent if permitted within Alaska. It allows the business owner to serve as the Registered Agent, saving you the cost of hiring a professional registered agent service.
  • Create your own Operating Agreement using online resources and templates. Although not required in every state, an Operating Agreement is highly recommended to outline your LLC’s ownership structure and management. By drafting this document yourself, you can save on legal fees.
  • Research and apply for any required licenses and permits on your own. Depending on your business type and location, you may need specific permits or licenses. These costs can vary, but handling the application process yourself can save you the expense of hiring a professional service.

While you can’t set up an LLC for free, taking a do-it-yourself approach and minimizing the use of professional services can help you save money during the formation process. However, handling these tasks requires time and effort, and there may be additional legal or financial risks if mistakes occur.

FAQs

What is the cost to form an LLC in Alaska?
The fee to form an LLC in Alaska is $250.
Is the filing fee for an LLC in Alaska refundable?
No, the fee to form an LLC in Alaska is non-refundable.
Do I need a registered agent in Alaska to form an LLC?
Yes, every Alaska LLC must have a registered agent with a physical address in Alaska.
Can I be my own registered agent for my Alaska LLC?
Yes, as long as you have a physical address in Alaska where service of process can be delivered.
How much does it cost to hire a registered agent in Alaska?
The fee varies, but it can range from $50 to $300 per year.
Can anyone be a registered agent for my Alaska LLC?
No, the registered agent must be a resident of Alaska, a business entity registered to do business in Alaska, or a foreign corporation authorized to do business in Alaska.
What is the cost of filing an annual report for an LLC in Alaska?
The fee to file an annual report in Alaska is $100.
How often do I need to file an annual report for my Alaska LLC?
Alaska LLCs must file an annual report every year by January 2nd.
What happens if I don’t file an annual report for my Alaska LLC?
Your Alaska LLC will be administratively dissolved.
Can I file the annual report online for my Alaska LLC?
Yes, the Alaska Division of Corporations, Business, and Professional Licensing offers online filing for annual reports.
Is there a fee to amend the articles of organization for my Alaska LLC?
Yes, the fee to amend the articles of organization in Alaska is $200.
What is the cost to reserve a name for my Alaska LLC?
The fee to reserve a name in Alaska is $25.
How long does a name reservation last in Alaska?
A name reservation in Alaska lasts for 120 days.
Can I change the name of my Alaska LLC after it has been formed?
Yes, you can change the name of your Alaska LLC by filing Articles of Amendment.
What is the fee for changing the name of my Alaska LLC?
The fee to amend the articles of organization in Alaska is $200.
Is there a fee to dissolve an LLC in Alaska?
The fee to dissolve an LLC in Alaska is $100.
How do I dissolve an LLC in Alaska?
You must file Articles of Dissolution with the Alaska Division of Corporations, Business, and Professional Licensing.
What happens to the assets of the LLC when it is dissolved in Alaska?
Any remaining assets of the Alaska LLC will be distributed in accordance with the LLC’s operating agreement.
Can I reinstate my Alaska LLC if it has been dissolved?
Yes, but you must file Articles of Reinstatement and pay the required fee.
How much does it cost to reinstate an Alaska LLC?
The fee to reinstate an Alaska LLC is $250.
What forms do I need to file to form an LLC in Alaska?
You need to file Articles of Organization with the Alaska Division of Corporations, Business, and Professional Licensing.
Can I file the Articles of Organization online for my Alaska LLC?
Yes, the Alaska Division of Corporations, Business, and Professional Licensing offers online filing for Articles of Organization.
How long does it take to form an LLC in Alaska?
It usually takes 10-15 business days to form an LLC in Alaska.
Do I need an operating agreement for my Alaska LLC?
No, but it is recommended that you have an operating agreement to govern the internal operations of your Alaska LLC.
Is it required to publish the Articles of Organization for my Alaska LLC?
No, Alaska does not require LLCs to publish Articles of Organization.
Can I transfer my Alaska LLC to another state?
Yes, but you will need to follow the specific guidelines and requirements of the new state.
What is the fee to obtain a certified copy of my Alaska LLC’s Articles of Organization?
the fee to obtain a certified copy of the Articles of organization in Alaska is $25.
Can I get expedited processing for my Alaska LLC documents?
Yes, the Alaska Division of Corporations, Business, and Professional Licensing offers expedited processing for an additional fee.
Do I need an attorney to form an LLC in Alaska?
No, you do not need an attorney to form an LLC in Alaska, but it is recommended that you consult with an attorney to ensure compliance with relevant laws.
What are the filing fees for an LLC in Alaska?
The filing fee for an LLC in Alaska is $250.
Is it possible to file for an Alaska LLC online?
Yes, you can file for an LLC in Alaska online through the state’s website.
How much does it cost to file annual reports for an Alaska LLC?
The annual reporting fee for an LLC in Alaska is $100.
Does Alaska have a state-level tax for LLCs?
No, Alaska does not have a state-level tax for LLCs.
Can an LLC be formed without an operating agreement in Alaska?
Yes, technically, you can form an LLC in Alaska without an operating agreement. However, it is generally not recommended, as an operating agreement serves as a guide for how your LLC will operate.
What is the initial fee to reserve the name for an Alaska LLC?
The fee to reserve the name for an LLC in Alaska is $25.
Do Alaska LLCs have to pay state taxes?
No, Alaska does not have a state income tax on LLCs.
Are there any other filing requirements for Alaska LLCs besides Articles of Organization?
Yes, after filing articles of organization, an LLC in Alaska has to register for the Alaska Business License.
What is the initial cost of filing Articles of Organization for an LLC in Alaska?
The filing fee for Articles of Organization of an Alaska LLC is $250.
Can Alaska LLCs file under a fictitious business name?
Yes, Alaska LLCs are allowed to file under a fictitious business name.
What is the Alaska limited liability company annual reporting fee?
The annual reporting fee for an LLC in Alaska is $100.
Is an Alaska LLC taxed as a corporation or as a partnership?
By default, an Alaska LLC is considered a partnership for federal tax purposes.
Is the filing process any different if the LLC is foreign to the state of Alaska?
Yes, if you are filing for a foreign LLC in Alaska, the filing fee is $350.
How long does a resident agent for an LLC last in Alaska?
Ideally, a resident agent for an LLC should be certified to four years in Alaska.
How often does an LLC in Alaska pay taxes?
Alaska LLCs must pay federal taxes on a quarterly basis if they meet certain financial criteria.
What type of taxes does Alaska levy on LLCs?
As mentioned, Alaska does not levy its own state income tax on LLCs but it imposes other taxes and licenses that might replace income taxes like the annual reporting fee for an LLC of $100.
How are Alaska LLCs defined as local LLC and foreign LLC?
If your LLC wants to conduct business within Alaska then your business will be categorized as a Local LLC. If your LLC wants to conduct business outside of Alaska then it will be classified as an Alaska Foreign LLC.
Are there specific naming requirements for an LLC in Alaska?
There are some naming requirements like the use of the words “Limited Liability Company”, “LLC”, or terms like those in your LCC name in Alaska.
What is the official Alaska LLC postal address?
The official postal address for Alaska LLC formations is Department of Commerce Community and Economic Development PO Box 110808 Juneau, Ak 99811.
Can an LLC in Alaska add members after formation?
Yes, an LLC in Alaska can add members even if it mistakenly forgets to register the past existing member in the formation process.
What is a Commercial Registered Agent (CRA)?
A Commercial Registered Agent is an individual or entity inside the state of Alaska that accepts legal notices and processes service of process on behalf of business stakeholders (LLCs in this case) in Alaska.
Is there an expedited LLC formation process in Alaska?
Alaska state is not popular for an expedited LLC formation process.
Can an LLC in Alaska switch from partnership tax status to corporation tax status?
An Alaska LLC can switch from being taxed as a partnership entity to a Limited Liability Entity in form with the Internal Revenue Service (IRS).
What are the types of Alaska LLC that businesses create?
An Alaska LLC can fall into five general groups
Is it required to renew an LLC registration in Alaska every year?
Yes, the LLCs are required to renew their registration with Alaska Division of businesses annually.
What is a Resident agent or a registered agent in Alaska?
An individual or entity which serves as a delivery point for legal notifications and entity collection on behalf of business formers.
Can an LLC add another LLC owner on a later date in Alaska?
Yes, additional LLC owners may be added to the business after formation per the sole decisions and procedures of the current member or entirely by the organization provisions detailing LLC member admission.
Can Alaskan LLCs have both corporation tax status and partnership tax status?
An Alaska LLC can be taxed as a cooperative will but can only either taxed as a corporation by the IRS or waive corporate formalities by organizing as simply a “regular” LLC-pass type.

Also Read

How to Save Money While Starting Your Business LLC in Alaska

First and foremost, it is important to do thorough research before you begin the process of forming your LLC. This includes familiarizing yourself with the state’s legal requirements and regulations for LLCs. By understanding the necessary steps and potential fees involved, you can avoid costly mistakes and expedite the process of establishing your business.

One effective way to save money while starting your business LLC in Alaska is to take advantage of online resources and platforms. Many websites offer services to help streamline the process of forming an LLC, often at a fraction of the cost of hiring a lawyer or professional service. Additionally, by utilizing online tools, you can save time and money spent on paperwork and reduce the risk of errors in the formation process.

Another strategy for saving money is to handle as much of the formation process as possible on your own. While working with a lawyer or professional service may be beneficial in certain situations, completing the necessary paperwork and filings yourself can save you hundreds, if not thousands, of dollars in legal fees. By educating yourself on the required documents and procedures, you can confidently navigate the process without overspending.

Additionally, consider leveraging technology to cut costs while starting your business LLC. Utilizing digital tools and software can help streamline operations and reduce overhead expenses. Investing in accounting software, for example, can enable you to manage your finances more efficiently and accurately, ultimately saving you money on hiring a bookkeeper or accountant.

When it comes to establishing your LLC in Alaska, another cost-saving measure is to carefully consider your business structure and operating agreements. By selecting the appropriate entity type and drafting clear, concise operating agreements, you can avoid legal disputes and potentially costly legal battles down the road. Consulting with a lawyer at the onset to ensure your business structure is well-defined and legally sound can save you money and headaches in the future.

Lastly, consider exploring alternative financing options to help fund the formation of your business LLC. Crowdfunding platforms, business grants, and small business loans are all viable sources of capital that can alleviate the financial burden of starting your business. By exploring these avenues, you can access the funds needed to establish your LLC without depleting your personal savings or taking on unnecessary debt.

In conclusion, starting a business LLC in Alaska doesn’t have to be a costly endeavor. By conducting thorough research, leveraging online resources, handling tasks independently, utilizing technology, establishing sound business structures, and exploring alternative financing options, you can save money while setting your business up for success. With careful planning and strategic decision-making, you can achieve your entrepreneurial goals without breaking the bank.

Conclusion

Forming and maintaining an LLC in Alaska involves various costs, including initial filing fees, ongoing annual report fees, and taxes. Understanding and planning for these costs is essential when establishing your LLC. Additionally, consider any optional expenses, such as hiring professional services or drafting an operating agreement, to ensure the success and longevity of your LLC in Alaska.

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