Forming an Alaska Limited Liability Company (LLC) can be a thrilling step in your entrepreneurial journey. LLCs come with numerous benefits, including personal liability protection, tax incentives, and a level of flexibility other business entities lack. Unfortunately, the paperwork and numerous Alaska LLC fees can scare people away from obtaining LLC licenses from which many could benefit.
However, starting an Alaska LLC isn’t nearly as complicated or expensive as you may believe, and we’re here to show you everything fee you may encounter and when.
In this post, we’ll discuss:
Are you ready to become an LLC? Let’s get started.
Alaska LLC Fees Name Reservation
Even if you’re a sole proprietor and already have a name for your organization, you need to make sure that the business name for your LLC isn’t taken. Because it’s an LLC, your organization must include “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.” in its name. Check the search corporations database to make sure your desired name is available and distinguishable from other Alaska LLCs.
Reserving your business name costs $25 and gives you exclusive rights to it for 120 days, which should be more than enough time to form your LLC. However, before you fill out the business name reservation form, here are a few things you should consider:
Alaska LLC Filing Fees For Your Articles Of Organization
Once you have chosen your business name, you’re ready to file your articles of organization.
These legal documents provide the Great State of Alaska with your LLC’s basic information. To complete your articles of organization, you will need to know the following:Make sure to double-check this document before you submit it, as errors can cause problems later on.
Your articles of organization cost $250 to file.
Operating Agreement Fees
Your operating agreement is a formal document that defines your LLC's rules, regulations, and liabilities. In other words, think of it as your organization’s constitution.
Arkansas does not explicitly require you to submit an operating agreement. However, it is highly recommended for all businesses, even single-member LLCs with no employees.
At a minimum, your operating agreement will make you think about the answers to questions you weren’t already asking yourself—but should be! It never hurts to have a formal plan when operating your business.
The benefits of having an operating agreement don’t stop there. If you ever end up having to resolve a legal or financial dispute, refer to your operating agreement. Without one, crucial decisions may be left up to the courts, and their rulings may not be in the best interest of your organization.
To get you started, here are a few questions you should answer in your operating agreement:
Also, include all the information you submitted in your articles of organization, and, just in case, outline how to dissolve an LLC.
Drafting an operating agreement is free. However, some websites will charge you $50 - $200 to create one. You should also consider hiring an attorney to draft or look one over.
Registered Agent Fees
A registered agent is the person or commercial entity responsible for receiving state notices and legal documents on behalf of your LLC. Your registered agent can be anyone who has a physical address in Alaska. If you want to become your LLC’s registered agent but only have a P.O. Box address in the state, this will not be sufficient.
Once your LLC is officially formed, its physical address becomes publicly available. If you prefer to keep your address private, you can appoint another LLC member as your registered agent or hire a commercial registered agent service.
Being a registered agent is free. However, if you want to hire a service, you can expect to pay $100 to $300 per year.
Business License Fees In Alaska
You’re required to get a general Alaska business license to operate in the state. Luckily, it’s a pretty straightforward process. You can apply for or renew your license on the Division of Corporations, Business, and Professional Licensing website. It costs $50 to apply for a license and an additional $50 to renew each year.
Sales Tax Registration Fees
Alaska is unique in the sense that they don’t have a statement sales tax. However, they do let some local jurisdictions levy a sales tax.
If your business makes:
You are required to collect sales tax from customers in participating jurisdictions. You must remit that sales tax on a periodic basis, either monthly, quarterly, or annually. Check the Sales and Use Tax page to see if this applies to your LLC.
If you have to get a sales tax permit, you must provide the following information:
Good news: Getting a sales tax permit is free in Alaska, and you don’t have to renew it.
Annual Alaska LLC Fees
Congratulations on getting your Alaska LLC up and running! Now that you’re officially in business, you need to remain in good standing by complying with federal, state, and local requirements. The most notable condition is filing your biennial report. This report is due by January 2nd of every other year and costs $200 to file.
While no one wants to pay an additional $200 every other year, one of the benefits of having an Alaska LLC is that you’re only filing your report every other year. Connecticut LLC fees, Georgia LLC fees, and Delaware LLC fees, along with most other states, require you to submit this report every year.
Total Cost Of Alaska LLC Fees
Here’s a complete list of the LLC fees we’ve covered and how often they’re due:
Fee Type | Cost | HOW OFTEN |
|---|---|---|
Business name reservation | $25 | One time |
DBA name designation | $25 | One time |
Articles of organization filing fee | $250 | One time |
Operating agreement costs | $0, or $50 - $200 or more | One time |
Statutory agent fees | $0, or $100 - $300 | Annually |
Business license fee | $50 | Annually |
Sales tax registration fees | $0 | Annually |
Annual fees | $200 | Biennially |
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Do you still have more questions about Alaska’s LLC fees or more questions about LLCs in general? We’re here to help!
You cannot have the following in your organization’s LLC name:
Typically, you will need to have a copy of your Certificate of Good Standing (also known as a Certificate of Compliance) to open a bank account or work with a lending institution. You can get this document on Alaska’s government website. A physical copy costs $10.
The information you need for your biennial report is very similar to what you include in your articles of organization. The form requires:
We strongly recommend forming an LLC instead of being a sole proprietor. LLCs enjoy many of the tax benefits a sole proprietor receives. However, LLCs also separate your business and personal assets. If you lack this protection, you become responsible for any of your company’s liabilities and debts. If your company experiences hardship or you get sued, your personal assets, including your home and car, could be in jeopardy.
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