How Much Does an LLC Cost in Alaska

Written by: Mary Gerardine

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How Much Does an LLC Cost in Alaska

The minimum Alaska LLC cost is $250, which covers the processing fee for filing your LLC formation documents, known as the Articles of Organization.

Having said that, the total cost of forming an Alaska LLC will depend on several factors, including your personal preferences and business needs.

In our How Much Does an LLC Cost in Alaska article, we’ve broken down everything you need to know about the different costs associated with launching and maintaining an LLC.

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Alaska LLC Cost

In the table below, you can find a summary of the main requirements of forming an Alaska limited liability company (LLC) and their associated fees.

                                                         
RequirementFee
Certificate of Organization$250
Registered Agent$0-$150+
LLC Name$0-$50
Operating Agreement$0+

Alaska LLC Filing Fee ($250+)

To form your LLC in Alaska, you will be required to submit the necessary formation documents to the Division of Corporation of the Department of Commerce, Community, and Economic Development.

The specific document you will need to file will depend on whether your registering a domestic LLC (formed in Alaska) or a foreign LLC (formed outside of Alaska):

Having said that, if you choose to use an LLC formation service, the cost will be a little higher as it will include a small service fee in addition to Alaska’s state filing fee.

The fees for an LLC formation service can range significantly, but can start from as low as $29, increasing if you decide to purchase any additional offerings.

Keep in mind that you will be required to file an initial report within six months of forming your LLC.

This report can be submitted online, by mail, or fax, and does not include a filing fee.

Note: For more details on the formation process, you can check out our Alaska LLC Formation guide.

Alaska Registered Agent ($0-$150+)

You will be required to appoint a registered agent in order to form your LLC in Alaska. This is a person or business entity that you must assign to receive tax, legal, and governmental correspondence on behalf of your LLC.

Your LLC’s registered agent must be a resident of Alaska or a corporation (excluding LLCs, LPs, and LLPs) that is registered and in good standing with the state.

Remember that although an individual associated with the LLC, such as yourself, can serve as the registered agent, the LLC as a business entity cannot fulfill this role for itself.

It’s often recommended to hire a professional service so you avoid any potential penalties or legal issues caused by non-compliance with state regulations.

Hiring a third-party service can also be a great way of ensuring that your personal information remains private.

Prices for professional registered agent services in Alaska range from as low as $39 to over $150, depending on the features offered.

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Alternatively, you can find some of the top recommendations for professional RA services in our Best Registered Agent Services of 2024 article.

Naming Your Alaska LLC ($0-$50)

When forming your Alaska LLC, you’ll be required to pick a suitable name that’s available to use.

There are two potential costs to be aware of when naming your LLC.

Reserving Name

You will have the option of reserving your preferred name prior to filing your LLC’s formation documents.

To do this, you will need to fill out this Name Reservation form and submit it to the Corporations Section of the Department of Commerce, Community, and Economic Development, along with a $25 processing fee.

This submission can happen online, by mail or in person.

Once your application is processed, your chosen name will be reserved for a period of 120 days, which under Corporation statutes AS 10.06 gives you exclusive rights to its use.

Having said that, a business name reservation may only be renewed twice and, upon renewal, must include a statement of intent to start a business.

Note: We recommend conducting a search on the Alaska Division of Corporations, Business, and Professional Licensing’s Entity Search Page in order to ensure that your preferred name is available before beginning your application.

When choosing a name for your LLC, it’s important to select one that corresponds to an available domain. This is because a matching domain ensures consistency between your LLC’s name and its online presence, which helps to strengthen its brand recognition and credibility.

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Doing Business As (DBA) Name

If you plan to operate your business under a name that differs from your LLCs official one, you’ll need to obtain a Doing Business As (DBA) name.

You have the option of submitting your DBA application either by mail or online through the Department of Commerce website.

This process incurs a $25 filing fee; a DBA registration remains valid for five years, after which it can be renewed for the same fee.

Keep in mind that you will need to have a business license before registering a DBA name in the state; if you wish to register multiple DBA names, you will need multiple business licenses.

More information on getting a license can be found below.

Alaska LLC Operating Agreement ($0+)

While not mandatory, it’s good practice for LLCs to have an operating agreement.

This document defines the roles and responsibilities of the members or managers in your LLC and will help prevent and solve any business disputes that may arise later on.

While you can opt to hire an online service or business attorney to draft this document for you (which typically costs at least a few hundred dollars), it’s actually quite straightforward to do it yourself at no extra cost.

It’s also important to note that this doesn’t actually need to be filed with the Alaska Secretary of State — it’s purely an internal document.

Additional Alaska LLC Formation Costs

On top of the more common fees outlined above, there are a number of additional formation costs that LLCs in Alaska may encounter depending on their circumstances.

We’ve summarized some of these additional costs below:

Business Licenses

In the state of Alaska, under AS 43.70.020(a), obtaining a state business license is mandatory for the privilege of engaging in business activities within the state.

This license incurs a fee of $50 per calendar year, with the option to purchase up to two years in advance.

Licenses are active from the date they are issued and expire on December 31 of the year they cover.

For example, a one-year business license issued on September 15, 2022, would expire on December 31, 2022.

Having said that, licenses purchased after October 1 benefit from a grace period, which extends their validity until December 31 of the following year.

You can proceed with your application via mail or online through the Department of Commerce’s website.

Note: While the standard processing time for business licenses is typically 15 business days between March and September, you can expect significantly longer processing times during peak filing season (i.e., from October to February).

Certificate of Compliance

An Alaska Certificate of Compliance is a document often required to open a business bank account; it can also be requested by various lenders in order to check that your LLC is properly registered and legally authorized to conduct business in the state.

To obtain your Certificate of Compliance, you can either file online or submit a Copy Request Form by mail, accompanied by a $10 non-refundable filing fee.

It should be noted that online submissions can be printed immediately, whereas mailed requests will be processed within 10 to 15 business days.

Certified Copies of Business Documents

You may need certified copies of your business documents if you’re dealing with financial institutions, regulatory bodies, or are involved in legal proceedings.

These can be obtained using the same form you’d use to request your Certificate of Compliance (i.e., the Copy Request Form).

The fees for these documents are as follows:

  • Certified Document Fee: $5 per certification
  • Copy of Entire File: $30 per file
  • Copy of Documents (Articles, Amendments, Mergers, and Biennial Report): $10 per document

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Cost to Maintain an LLC in Alaska

In addition to the cost of forming an LLC in Alaska, there are also several ongoing costs you’ll be responsible for paying each year.

We’ve outlined these recurring costs associated with maintaining an Alaska LLC below.

Alaska LLC Biennial Report

Following the submission of your initial report, you will be required to file a Biennial Report for your LLC every two years in order to maintain compliance with the state.

The window for submitting these reports opens three months before their due date, which is January 2 (of every second year).

The standard filing fee is $100 for domestic LLCs and $200 for foreign LLCs. If filed on or after February 2nd, a late fee is applied, raising the total to $137.50 for domestic LLCs and $247.50 for foreign LLCs.

Note: Additional information, forms, resources, statutes, and regulations can be found on the Corporations Section’s website.

Registered Agent Maintenance

If you decide to take advantage of a professional registered agent in order to handle your legal documents, you’ll be required to pay an annual fee in return for their services. This fee commonly ranges between $45 and $300 depending on the provider and features you select.

While you’re not required to use a professional registered agent service, it’s highly recommended.

Taxes

In addition to the federal taxes your LLC is required to pay regardless of the state it’s based in, there are a variety of state-specific taxes in Alaska you need to be aware of, including:

  • Employment taxes
  • Business privilege taxes
  • Property taxes

Additionally, there are various local taxes your LLC may need to pay depending on the municipality or county it’s based in, such as:

  • Sales and use taxes
  • Property tax

Alaska vs Other States

Alaska has relatively high formation and maintenance fees for LLCs when compared to most other states, even before accounting for the additional costs of business licenses and other required permits.

Having said that, the state’s commitment to supporting businesses, coupled with its unique economic landscape, can provide significant advantages to LLCs, offsetting the higher financial requirements with a conducive environment for growth and development.

Ultimately, it’s important to understand that the best state to form your LLC will generally be the one in which you plan to primarily operate your business from.

This is because this makes it far easier to stay legally compliant on a number of levels, including taxation, licensing, and filing requirements, as you’ll only need to deal with one state’s set of rules.

LLC Cost in Alaska FAQ

How do I get an LLC license in Alaska?

To get an Alaska LLC business license, you will first need to file your Alaska LLC Articles of Organization. Following this, you will have six months to apply for a business license, which is required for legal operation within the state. For more information, see our How Much Does it Cost to Start an LLC article.

Is Alaska a good state to form an LLC?

Alaska is considered a favorable state for LLC owners due to its robust business environment. While the initial formation costs may be higher than most other states, Alaska’s support for businesses and lack of state sales tax provide valuable opportunities for growth.

Do LLC pay taxes in Alaska?

In Alaska, LLCs are exempt from state income taxes, reducing the tax burden on these entities. Nonetheless, they must fulfill federal tax obligations and may be liable for local taxes or specific industry-related fees, depending on their business activities and geographical location. For more information, you can have a look at our How to Start an LLC in Alaska guide.

How long does it take to form an LLC in Alaska?

If you choose to file online, the process for your Alaska Articles of Organization can be completed quite quickly — typically within a few business days. For submissions by mail, the processing of your application may take longer (usually around 10-15 business days).

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