If you're an entrepreneur, forming an LLC in Alaska is an excellent decision if you want to benefit from the state tax credit programs and microloans for small businesses.
To help you know what to expect and plan ahead budget-wise, we worked together with our legal team and created this Alaska LLC cost guide.
Read on to learn how much an LLC costs in Alaska.
Quick Summary
- The main filing cost for an Alaskan LLC is $250 covering the Articles of Incorporation.
- All LLCs in Alaska are required to file a biennial report of their company every two years since the launch.
- Before starting your Alaska LLC, you can choose whether or not to reserve your name for $25 and hold it for 120 days so that no other business uses the same name in the meantime.
How Much Does an LLC Cost in Alaska?
An LLC in Alaska costs $300. This amount covers the Alaska state filing fee ($250) and State Business License ($50).
Also, it's important to note that these aren't the only fees you'll be paying to the Alaska Department of Commerce throughout the process, as we'll discuss further down.
Alaska LLC Filing Fee
The Alaska LLC filing fee is $250, payable to the Division of Corporations to receive the Alaska Articles of Organization. You can submit this documentation in person, via mail, or online to formally establish your Limited Liability Company.
The good news is that this is a one-time cost if your Articles of Organization are approved.
The Articles of Organization contain essential information about your company, such as the legal name of your LLC, the nature of your company, your six-digit NAICS Industry Grouping Code, and the contact details of your registered agent [1].
It also includes your name, signature, date, and a statement that your company is either run by its membership or a manager.
Alaska Registered Agent Services Fee
In Alaska, you have two options for a registered agent: act as your own or hire a professional.
There is no extra charge if you serve as your LLC's registered agent yourself or choose a trusted third party to do so.
If you can't be your own registered agent, the alternative is to work with a professional registered agent service.
Depending on the business you choose to work with, an Alaska-registered agent will cost a different amount. Some companies impose fixed fees, while others impose yearly costs that range between $50 and $300.
The good thing about hiring a professional registered agent service is that they can safeguard your privacy while still providing other beneficial business services.
They will be in charge of accepting service of process for key legal papers and be available during regular working hours.
However, there are instances where the registered agent you've chosen resigns or you're dissatisfied with their services.
You must submit the Registered Agent Notification of Resignation form when this occurs. This service will cost you $25.
Alaska State Business License Fee
Before launching a business, Alaska LLCs must get a business license from the Division of Business Licensing [2]. The $50 initial filing charge is a necessary Alaska LLC expense.
Also, your Alaska business license needs to be updated annually. This means a $50 renewal fee must be paid annually if you wish to continue doing business as an Alaska LLC.
It's a good thing that Alaska state offers a $25 discount for senior citizens or veterans.
In order to find out if your LLC needs any further licenses, you can visit the Alaska Department of Commerce Community and Economic Development website.
Now that you've learned how much it cost to start an LLC, let's see what additional costs may apply to your new business.
Other LLC Filing Costs
Apart from the initial LLC registration fees, here are other Alaska LLC filing costs that you may incur through the LLC formation process.
1. Name Reservation
Alaska LLCs business name reservation costs $25. To make sure your name is available, you first need to check if your LLC name is available in Alaska.
Before submitting your incorporation articles, you can submit a Business Name Reservation with the Alaska Division of Corporations if you're concerned that someone can use your LLC name.
Still, it's a good option if you'd like to be sure that your company name is available for use in Alaska.
You get exclusive use of the name for 120 days after reserving it.
But remember that before forming an LLC, you'll need to contact the Alaska Division of Corporations to rescind your name reservation.
And if you wish to continue reserving the name after the 120 days have expired, you'll have to pay another $25.
2. Alaska Initial Report
You must submit an Initial Report within six months of forming your Limited Liability Company in Alaska. All authorized LLCs are required to comply with this.
It is crucial to maintain your company entity's contact information current with the state and on file with them. There is no filing charge for this first report, and submissions can be made online.
3. Alaska Biennial Report
Every two years after submitting your first report, you must keep updating the state's records with information about your LLC.
For example, if you started your LLC on 1 st January 2022, your first biennial report should be submitted on 1st January 2024.
As an LLC owner, you must submit a biennial report to remain in compliance. The biennial report costs $100 for domestic LLCs and $200 for foreign LLCs.
Note that you could be deemed non-compliant by the Secretary of State if you fail to do so.
4. DBA Name
In Alaska, a DBA registration costs $25. You'll need a DBA if you wish to do commerce under a name different from the statutory name of your company [3].
You must first have a business license in Alaska to apply for a DBA. After that, you may register your DBA title for five years by filing a business name application.
Each DBA you file in Alaska requires an additional business permit/license.
5. Employer Identification Number (EIN)
You need an Employer Identification Number to submit income taxes, create a bank account for an LLC, and hire staff [4].
Obtaining an IRS Employer Identification Number for your LLC may be done for free, even though many companies charge a service fee for this.
The Internal Revenue Service (IRS) will issue an EIN for your LLC at no charge, and it takes only a few minutes to file online.
6. Certified Document Copies
In Alaska, certified copies cost a filing fee of $15 per document. As your firm grows, you might need a certified copy of your corporate records, like the LLC operating agreement, from the Alaska Division of Corporations.
For instance, if you decide to register your LLC in a different state, the government will require a signed copy of your Articles of Incorporation and operating agreements to approve your company.
Apart from that, it's also wise for LLC owners to retain certified copies of legal records on file for management purposes.
7. Certificate of Compliance
In Alaska, obtaining a certificate of compliance or good standing costs $10.
A Certificate of Compliance is required if you ever need to prove to a financial institution, shareholder, or foreign government that your LLC is current on its taxes and state reporting.
You can also use this certificate to do business outside Alaska or apply for a business insurance policy.
A Certificate of Compliance can be requested online or by mail from the Alaska Division of Corporations.
8. Alaska Professional Licensing Fee
Several specialized occupations, such as pharmacists, engineers, and loan sharks, require a professional license from the Alaska body that regulates that field.
Professional licensing costs vary from industry to industry. For example, a Marine Pilot Registration and licensing cost $100, while a Permanent Cosmetic Coloring License application fee is $150, plus $60 for the exam offered by the professional licensing office.
9. Premium Business Insurance
Depending on the scale and demands of your company, business insurance filing fees can range in price from $50 to $1000+ monthly if your company owns costly property or faces the possibility of being sued.
Also, according to the law, you must obtain workers' liability insurance if your company has employees.
As there is no public program for workers' compensation in Alaska, you must get this insurance from a commercial provider. It's a good idea to compare prices because the cost of this insurance fluctuates.
10. Website Services
If you're running an online business, your LLC should register a domain name for a website. Depending on the registrar, domain prices vary, but you can typically expect to spend $10 to $20 annually for a .com domain.
Also, you'll need to spend money on on-site design and hosting services, which may cost anywhere from free (for open-source choices) to $100+ for deluxe plans.
11. Attorney Services
Your LLC's intricacy may impact Alaska's attorney costs if you choose to retain counsel. The typical fee for legal services ranges between $2,000 and $3,000; however, it may be higher or lower depending on the level of expertise required.
As you can see, there are several expenses and stages involved in starting an LLC in Alaska, which is why it is suggested that you get help from an LLC company provider.
Foreign LLC Registration
If you have already established your LLC in another state and wish to extend your business into Alaska, you must register your LLC in Alaska as a foreign LLC.
An Alaska foreign LLC registration will cost you approximately $350. During this registration, you need to submit a Foreign Limited Liability Corporation Certificate of Registration either online, mail-in, or in person.
Related Article:Â How to Cancel an LLC in Alaska
FAQs
How Can I Pay My Alaska LLC Cost Filings To the Alaska Division of Corporations?
You can pay your Alaska LLC cost filings to the Alaska Division of Corporations through cash, credit card, or cheque.
How Long Does It Take To Form an LLC in Alaska?
It takes anywhere between 10 to 15 days to form an LLC in Alaska by mail. If you do the process online, it'll be approved instantly. Also, remember that the mail-in order turnaround will depend on how soon you submit your articles of organization.
What Documents Do I Need To Register an Alaska LLC?
You need the Articles of Organization and operating agreements to register an Alaska LLC. You also need to apply for the necessary business licenses and permits based on the entity type you run.
Do You Want To Start an LLC in Alaska?
It may be pretty gratifying to run your own business. It does not imply, however, that the task is simple.
Thankfully, you don't have to go through this procedure by yourself. We have selected the best LLC services in Alaska that can work with you to launch, run, and expand your business effectively.
Having tried these services, we are 100% assured that they can help you save time and money as they’ve been in the business formation industry for years and will walk you through the process step by step.
References:
- https://www.law.cornell.edu/wex/articles_of_organization
- https://www.commerce.alaska.gov/web/cbpl/BusinessLicensing.aspx
- https://online.csp.edu/resources/article/dba-meaning/
- https://www.sba.gov/blog/what-ein-why-it-important
