Price to Form an LLC in Alaska: TRUE Costs for Starting an Alaska LLC

Hire Professionals to Start an Alaska LLC For You (starting from $49)

$200 – Alaska Biennial Report Cost

LLCs in Alaska are required to file a biannual report with the Department of Commerce, Community, and Economic Development.

A biannual report can be sent or filed electronically. The fee is $200, and the report is due on January 2 every other year.

$350 – Cost in Alaska to Form a Foreign LLC Online

If you already have an LLC in another state and wish to expand into Alaska, you’ll need to register it as a foreign LLC.

In Alaska, creating a foreign LLC costs $350. In Alaska, you can incorporate a foreign LLC by completing and submitting a Certificate of Registration of a Foreign LLC online, by mail, by fax, or in person.

Business Permits and Licenses

Depending on your industry and geographic location, your business may need federal, state, and local permits/licenses to operate legally in Alaska. This holds true whether you form an LLC or another type of business entity.

Total Costs for Alaska LLC Breakdown & Best Options

Who forms the LLC?	Total fees
You form the LLC in Alaska yourself	$285+ ($250+ State Fee + $25 LLC Name + $10 Certificate of Compliance)
by using ZenBusiness	$49+ state fees
by using Northwest Registered Agent	$39/mo +state fees
see our other top-rated LLC service providers	varies

Other Fees for Establishing an Alaska LLC

There are a few additional charges associated with incorporating an LLC:

$25 – Reservation of Alaska LLC Name

File a Business Name Reservation Form (Form 08-559) and pay the $25 filing fee to reserve your name for up to 120 days prior to the formation of your LLC. This can be accomplished through email, regular mail, fax, or in person.

$25 – Doing Business As (DBA) Name

File a Business Name Registration Form (Form 08-557) and pay the $25 filing fee to design a name that is distinct from your official LLC business name. This can be accomplished through email, regular mail, fax, or in person.

$10 + $5/pg. – Certified Document Copies

Order certified copies of your Alaska company documentation for $10 per copy + $5 for certified copies from the Secretary of State.

$10 – Certificate of Compliance

Certificate of Compliance: Also known as an Alaska certificate of good standing, you may obtain one by contacting the Department of Commerce, Community, and Economic Development and paying the $10 fee. A certificate of conformity is typically required by banks and financial institutions.

How to Form an Alaska LLC on Your Own?

Here’s our full Alaska LLC formation guide

To form an Alaska LLC, you must pay the Alaska Division of Corporations, Business, and Professional Licensing $250 to file your Articles of Organization. You can submit your application either online or via mail. The Articles of Organization are the official legal documents that form the foundation of your Alaska LLC. In Alaska, there are five basic steps to forming an LLC:

Step 1: Choose a Name for Your Alaska LLC [Price: $25]

2. Is the name used in Alaska? Make sure the name you choose isn’t already in use by doing a name search on the Alaska Department of Commerce, Community, and Economic Development website.

3. Is the URL still active? We recommend checking online to see whether your company name is available as a web domain. Even if you have no plans to construct a corporate website right now, you may want to buy the URL to prevent others from doing so.

Step 2: Choose a Registered Agent [Price: $39 on its 1^st yr.]

What exactly is the role of a registered agent? A registered agent is an individual or business entity responsible of for receiving important legal documents on your behalf. Consider your company’s registered agent to be its point of contact with the government.

Who is qualified to act as a registered agent? A Registered Agent must be an Alaska resident or an Alaska-licensed firm, such as a registered agent service. You can vote for someone from your group, even yourself.

Is it legal for me to serve as my own registered agent in Alaska? Yes. You or anybody else in your company might be the registered agent for your Alaska LLC.

Is it necessary to hire a registered agent? Managing government files for your Alaska LLC with the help of competent registered agent business is a cost-effective alternative. For most businesses, the cost of using a professional service is outweighed by the advantages.

Step 3: File a Formation Certificate [Price: $250]

State Filing Cost: $250, payable to the State of Alaska (Nonrefundable)

Mailing Address:
State of Alaska Corporations Section
P.O. Box 110806
Juneau, AK 99811

Office Address:
333 Willoughby Ave., 9th Floor
State Office Building
Juneau, AK 99801-1770

Fax: (907) 465-2974

If you wish to expand your present LLC to Alaska, you’ll need to form a Foreign LLC.

Your firm can function as a single entity in many states by forming a foreign LLC. You must register as a foreign LLC if you already have an LLC and wish to do business in Alaska. This can be done via the internet, mail, fax, or in person.

FOREIGN LLC IN ALASKA REGISTRATION

SELECTION 1: File Online With the Alaska Department of Commerce, Community, and Economic Development

FILE ONLINE

– OR –

SELECTION 2: File by Mail, by Fax, or In Person

DOWNLOAD FORM

Fee: $350 (Nonrefundable)

Mail to:
State of Alaska, Corporations Section
P.O. Box 110806
Juneau, AK 99811

Submit In Person:
333 Willoughby Ave., 9th Floor
State Office Building
Juneau, AK 99801-1770

Fax: (907) 465-2974

Alaska’s NAICS Requirement

A corporation is assigned a 6-digit number by the North American Industry Classification System (NAICS) based on the type of business it does. You may get the NAICS code for your kind of business by conducting a keyword search.

How long will it take for my Alaska LLC to be formed? If you purchase online or by mail, it will take 10–15 working days.

What is the distinction between a domestic Alaska LLC and a foreign Alaska LLC? A “domestic LLC” is one that does business in the state where it was formed. When we talk about an LLC, we usually mean a domestic one. When an existing LLC wishes to expand into another state, it must form a foreign LLC.

For more information about NAICS codes – click here.

Step 4: Create an Operating Agreement [Price: FREE]

Whether you’re forming a single-member or multi-member LLC, your operating agreement should include all of the topics listed below. Some of these rules will have minimal effect on the day-to-day operations of a single-member LLC, but they must be included for legal reasons.

1. Organization: Consider when the LLC was officially formed, who its members are, and how ownership is allocated. Multi-member LLCs may have equal ownership or may assign various “units” of ownership to different members.
2. Voting and Management: Determine whether the LLC will be controlled by its members or by appointed management, and how members will vote on business issues. Each member typically has one vote, although you may want to delegate more authority to specific members than others.
3. Principal Roles: The amount of money each member invests in the company. This is also the time to consider how you will raise additional funds in the future.
4. Allocations: Profits and losses will be paid among members based on the distributions. The most common strategy is to split profits evenly. If you want them distributed differently, you should state how in your operating agreement.
5. Membership Structure Modifications: If a member leaves the organization, how will roles and ownership be transferred? It is vital to clearly out the method for buying out and/or replacing a member in the LLC’s governing document.
6. Termination: If all of the members of your LLC decide that you no longer wish to do business, you should properly dissolve it. A critical component of your operating agreement is the mechanism for possibly terminating your firm.

Why Should I have an Alaska LLC Operating Agreement?

Regardless matter the type of Alaska LLC you create, you’ll need an operating agreement. Here’s why:

• It has been recommended by the state. According to Alaska Statutes Section 10.50.095, any Alaska LLC may adopt an operating agreement to oversee the company’s operational operations.
• It will prevent your business partners from fighting. If you’re starting a multi-member LLC, an operating agreement will help you prevent misunderstandings by outlining each partner’s role and responsibilities.
• It contributes to the retention of your limited liability status. If you are the only owner of a single-member LLC in Alaska, an operating agreement will help ensure that your limited liability status is upheld by court authorities while also contributing to your company’s general credibility.

After Completing the Alaska LLC Operating Agreement

Once you’ve concluded your operating agreement, you don’t need to submit it to your state. Keep a copy for your records and give copies to the members of your LLC.

After any major business event, such as the addition or removal of a member, it’s a good idea to review and consider amending the operating agreement. An amendment to the contract may require the permission of some or all of the members, depending on how your operating agreement is phrased.

Is an operating agreement genuinely important for me? Yes. Even if you don’t file it with the state, having an operating agreement in place is the best way to maintain control of your Alaska LLC in the case of change or interruption.

When should I write my operating agreement? While it is a good idea to prepare an operating agreement before submitting your Articles of Organization, the law does not forbid LLCs from waiting until the procedure is completed. It’s worth noting that some banks need you to submit an operating agreement in order to open a business bank account.

Is it required that I register my operating agreement with the state? No. The LLC members must adhere to their operating agreements. If you attempt to submit your operating agreement with the state, it will be returned unfiled.

Step 5: Obtain an Employer Identification Number [Price: FREE]

Why do I need an EIN number?

What if my sole proprietorship already has a tax identification number? The IRS requires a new EIN when converting a sole proprietorship to an LLC.

What is the best way to get an EIN? You can get an EIN for free from the IRS. Obtaining an EIN is a straightforward procedure that may be performed either online or by mail.

Applicants for an EIN from Outside the Us: An EIN can be obtained without the need of a Social Security number.

SELECTION 1: Request an EIN from the IRS

APPLY ONLINE

– OR –

SELECTION 2: Apply for an EIN by Mail or Fax

DOWNLOAD FORM

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

How can I get an EIN if I don’t have a Social Security number? A Social Security number is not required for an EIN. Simply fill out section 7b of IRS Form SS-4 and leave it blank. Then call the IRS at (267) 941-1099 to conclude your application.

What kind of tax structure should my Alaska LLC have? When you apply for an EIN, you will be informed of the many tax classification options available to you. The majority of LLCs choose the default tax status. Some LLCs, on the other hand, can reduce their federal tax liabilities by adopting the S corporation (S corp) classification.

Is my LLC necessary to get an EIN? Any LLC with employees or more than one member must have an EIN. The IRS requires you to do so.

Steps to Take After Creating an Alaska LLC

Keep your personal and business assets separate.

When you merge your personal and business accounts, you put your personal assets (your home, car, and other valuables) at risk if your Alaska LLC is sued. In commercial law, this is known as breaching the corporate veil.

You may start protecting your LLC in Alaska by doing the following:

1. Open a business checking account:

• This keeps your personal assets apart from those of your company, which is necessary for asset protection.
• It makes bookkeeping and tax reporting easier.

2. Applying for a company credit card:

• Assists in classifying and isolating all business expenses for tax purposes at the end of the year.
• Aids in the growth of your business credit score, which is a vital step in the future acquisition of a line of credit or a company loan.
• Allows you to keep track of department expenditures by issuing multiple cards to your employees (each with a different budget).

3. Hiring a business accountant:

• Prevents overpayment of taxes and helps you avoid penalties, fines, and other costly tax blunders.
• Allows you to spend more time on your growing business by streamlining bookkeeping and payroll.
• Improves your company’s financial management by discovering areas of unexpected loss or profit.

Keep your Company’s Alaska Compliance Permits and Licenses up to date

In order to run an LLC, you must adhere to federal, state, and local government regulations. Restaurants, for example, will almost probably need health licenses, building permits, signage permits, and other approvals.

The requirements for business licenses and permits vary by state. Make certain you read everything carefully. Don’t be surprised if some quick lessons are required.

The cost of a company license or permit varies depending on the type of license you need.

Recruiting Employees in Alaska

If you want to hire employees, take the following steps to guarantee that you are in compliance with the law:

• Verify that new hires are legally permitted to work in the United States.
• Employees should be recorded as “new hires” to the state.
• Workers’ compensation insurance should be carried by all employees.
• Withholding taxes from employees is a good idea.
• Print workplace compliance posters and display them in high-traffic areas across your company.

What is the minimum wage in Alaska? The minimum wage in Alaska is $10.34 per hour.

How often I should pay my staff? Employees in Alaska are required to be paid monthly or semi-monthly.

FAQ: Alaska LLC – Various Costs

Get Professional Help in Forming an LLC in Alaska

It can be difficult and time-consuming to form an Alaska LLC. It might be beneficial to have some assistance, and we’ve compiled a list of two of the top LLC creation services available.

#1 – ZenBusiness Can Help You Form an LLC in Alaska

ZenBusiness provides LLC creation services at a low cost and with several useful features. Most LLCs will benefit from two of these aspects. All ZenBusiness’s products include a year of complimentary registered agent service. With their Pro and Premium Packages, they offer ensure worry-free compliance. ZenBusiness will file your yearly report and notify you if there is anything further you need to do to follow the state under this assurance. For $119 per year, those with the basic package can purchase worry-free compliance.

ZenBusiness will help you form an LLC in Alaska for $250. They have a customer satisfaction rating of 98 percent and over 4500 verified reviews.
For a full Zenbusiness review – click here.

#2 – Create an LLC in Alaska using Northwest Registered Agent

With decades of expertise, Northwest Registered Agent is an exceptional LLC creation service. They deliver excellent, well-informed customer service. Their biggest benefit, though, is the seclusion they provide. They don’t outsource any of their services to third parties, don’t sell your information, and even build their own code.

Northwest can help you form an LLC in Alaska right now. They have a customer satisfaction rating of 98 percent and over 4150 verified reviews. They’ll come with a complimentary year of registered agent service!
Here’s our in-depth Northwest review.

In Conclusion

We’ve gone over a number of Alaska LLC fees in this piece, some of which will apply to all LLCs in the state. As you can see, there are some charges that will only apply to certain LLCs. The most important point is that you should not try to avoid paying these fees by hunting for loopholes because the consequences might be severe and easily avoidable.

In addition, starting an Alaska LLC isn’t as expensive as it seems.
The total cost shouldn’t exceed:

• $49 +state fees if you’re forming a basic LLC with all the basic options with ZenBusiness.
• $39/mo +state fees if you’re forming an LLC with Northwest.
• ~$285 if you’re forming an Alaska LLC yourself.

However, there are certain ways to cut your LLC creation and maintenance costs, such as employing a low-cost business formation service to handle your Articles of Organization filing and function as your registered agent.