The Cost of Starting an LLC in Alaska
(2025 Guide)
2025 LLC Guide
How Much Does an LLC Cost in Alaska?
Explore how much does an LLC cost in Alaska? Our informative article breaks down the necessary fees, paperwork, and process to get your business registered.
Launching an LLC in Alaska involves more expenses than just the initial paperwork filing.
However, it doesn’t have to be as costly as you might anticipate. Below, we detail all the initial and ongoing costs for an Alaska LLC and offer tips on saving money.
How much does it cost to establish an LLC in Alaska?
The fee to form an LLC in Alaska is $250, which covers the Articles of Organization. You will submit this document to the Alaska Division of Corporations, and once it’s approved, your LLC will officially be established.
Besides the LLC filing fee, there are additional expenses to consider when setting up an Alaska Limited Liability Company.
Expenses for Establishing an Alaska LLC
To establish an Alaska LLC, you’ll incur a one-time state filing fee of $250. Additionally, there are recurring expenses, such as a $50 business license and a $100 Biennial Report fee payable every two years, which we detail below.
Expenses for an LLC in Alaska
Alaska LLC Articles of Organization Filing Fee
Starting an LLC in Alaska requires a $250 fee. This amount is the state filing charge for submitting the Alaska Articles of Organization. The filing is done with the Alaska Division of Corporations, and approval of these articles officially forms your LLC. This $250 is a one-time fee with no monthly or annual payments required to establish your LLC in Alaska.
Note: In Alaska, LLCs are the most widely used business structure. They are favored due to the liability protection they provide to LLC owners.
Depending on the state, the form known as Articles of Organization might also be referred to as a Certificate of Organization or Certificate of Formation.
However, they all serve the same function: to establish your LLC.
Alaska Business Name Cost ($0)
Choosing a name for your Limited Liability Company in Alaska is free. Your LLC name gets approved at no additional cost when your Articles of Organization filing is accepted by the state.
While some sources may suggest that LLC Name Reservations are necessary, this is generally not the case. Alaska does not require a Name Reservation to form an LLC. You simply provide your chosen LLC name on the Articles of Organization form.
How Much Does a DBA Cost? ($25)
A DBA, or “Doing Business As,” is filed either with the state or county. In Alaska, this costs $25 and is filed with the state.
Note: A DBA might also be known as a Trade Name, Fictitious Name, Assumed Name, or Fictitious Business Name. These terms are interchangeable.
Alaska Registered Agent Fee (Free or $125/year)
When establishing your LLC in Alaska, it’s mandatory to appoint a Registered Agent. This role involves a person or company responsible for receiving your LLC’s legal documents and state notifications. The Registered Agent must have a physical address in Alaska and should typically be available during standard business hours.
You can serve as your own Registered Agent or appoint someone you know, such as a business partner, friend, or family member, at no extra charge. Alternatively, you can hire a Registered Agent service, which generally costs between $100 and $300 annually. These services offer additional business support and help maintain your privacy.
Consider hiring a Registered Agent service if:
- You lack an address in Alaska (as state law mandates Registered Agents to have one)
- You wish to keep your address private (some companies allow you to use their address to protect your personal information)
LLC Operating Agreement Fee ($0)
An Alaska LLC Operating Agreement is a formal contract among the Members of an LLC. It provides comprehensive details regarding the ownership structure of the LLC, its management processes, and the distribution of profits.
Regardless of whether an LLC has a single member or multiple members, it is advisable to create an Operating Agreement, retain it with business documents, and distribute a copy to each Member.
Many online platforms charge fees ranging from $50 to $200 for drafting LLC Operating Agreements. we provide free templates for LLC Operating Agreements suitable for all LLC types.
LLC EIN Number Fee ($0)
An EIN, or Employer Identification Number, also referred to as a Federal Employer Identification Number (FEIN), is essential for filing income taxes, opening a bank account for your LLC, and hiring employees if needed. While some websites charge a fee for acquiring an EIN for your LLC, you can actually get it for free.
The Internal Revenue Service (IRS) offers the option to obtain an EIN at no charge. The online application is simple and can be finished in just a few minutes.
Alaska LLC Biennial Report Fee ($100 biennially)
In Alaska, it is mandatory to update your LLC’s details by submitting a Biennial Report every two years. This ensures that your Alaska LLC remains compliant with state regulations and maintains its good standing to continue its operations.
To do this, you need to verify the information on the Biennial Report, submit it to the Alaska Division of Corporations, and pay the required Biennial Report fee. The cost for submitting the Alaska LLC Biennial Report is $100 every two years. This fee is payable every alternate year for as long as your LLC exists.
Alaska Business License ($50 annually)
Every LLC in Alaska must secure a Business License from the Division of Business Licensing prior to commencing operations in the state. The initial application fee is $50, a mandatory expense for any Alaska LLC. This Business License needs to be renewed each year, with the renewal also costing $50 annually for the duration of your Alaska LLC’s existence.
Additional Alaska Business License and Permit Fees (varies)
Depending on the location and industry of your LLC in Alaska, you might need to acquire additional Business Licenses or Permits, such as a City Business Permit.
The fees for these extra licenses or permits differ based on the specific location and industry, but they tend to be relatively low. Some of these licenses and permits are regulated at the state level, while others are managed by local municipalities, such as towns, cities, or counties.
LLC Taxes (varies)
The taxes applicable to Alaska LLCs vary significantly, leading to a wide range of annual costs for owners.
These taxes can include:
- Federal taxes
- State income tax
- Local income tax
- Business taxes
- Self-employment taxes
- Sales and use tax
- Payroll tax (for businesses with employees)
- Property tax (if the LLC owns property)
The taxes owed by your Alaska LLC depend on your industry and level of business activity, making it difficult to provide a specific estimate. Each business is unique, and the taxes that apply to your LLC are determined by your individual circumstances.
Engaging an Accountant
Determining the tax payments for your small business is most effectively done by collaborating with a skilled accountant in Alaska. The fees for hiring an accountant can differ. Generally, accountants may charge around $300 annually for a basic tax return, while more complex filings could cost up to $900.
How to Start an LLC in Alabama – FAQs
How much does it cost to open an LLC in Alaska?
Starting an LLC in Alaska requires a one-time fee of $250 for filing the LLC Articles of Organization
How much does an LLC in Alaska cost per year?
If you engage a Registered Agent service, you’ll incur an annual subscription fee, typically around $125 per year.
All Alaska LLCs must obtain a business license within the state. The cost for renewing an Alaska business license each year is $50. Additionally, your Alaska LLC might require a municipal business permit, which varies based on your industry and location. It’s essential to consult your local municipality to determine if there are any annual renewal fees for the business permit.
Every two years, all Alaska LLCs are required to submit a Biennial Report with a fee of $100. These state fees are paid to the Division of Corporations. This payment is necessary to maintain your LLC’s good standing and is due every two years, not annually.
Should I hire an LLC formation service?
Hiring a professional service for forming your Alaska LLC isn’t mandatory; you can do it yourself. However, to save time and ensure correct filing, consider Northwest Registered Agent. They offer excellent customer service, include free Registered Agent services for the first year, and can assist with an Operating Agreement and Biennial Report filing. Check out Best LLC Services for more options.
Do I need to hire an attorney to form an LLC?
You don’t need to hire an attorney to establish your LLC in Alaska. You have the option to set up your LLC on your own if you prefer.
However, some individuals might choose to hire a lawyer if their LLC involves a complicated ownership or management setup, includes investors, or needs specialized industry documents. Typically, a business attorney’s fee for forming an LLC ranges from $800 to $2,500.
How do I start an LLC in Alaska?
Below are the steps to establish an LLC in Alaska:
- Choose a business name for your LLC and verify its availability.
- Select your Alaska Registered Agent.
- Submit the Alaska Articles of Organization.
- File the Alaska LLC Initial Report.
- Draft and sign an Operating Agreement for your LLC.
- Acquire a Tax ID Number (EIN) from the IRS.
- Secure an Alaska Business License.
- Set up an LLC bank account.
Determine if additional business or sales tax licenses are required in Alaska.
What’s the cheapest way to start an LLC?
Forming your LLC yourself, being your own Registered Agent, and using our free Operating Agreement template can save you over $400.
How long does it take to get an LLC in Alaska?
Approval time for an Alaska LLC depends on how you file. Online filings are approved immediately, while mail filings take 10-15 business days plus mailing time.
How much does an Alaska business bank account cost?
Business bank account fees vary. Some banks charge $10 to $20 monthly, though these can sometimes be waived by meeting specific requirements like direct deposits or maintaining a minimum balance. Some banks may not charge any monthly fees, so it’s worth inquiring about ways to avoid fees before opening an account.
How much is a Foreign LLC in Alaska?
A Foreign LLC, formed in another state, must register in Alaska if it conducts business there.
The cost for registering a Foreign LLC in Alaska is $350. A Domestic LLC is formed and registered in Alaska, while a Foreign LLC is registered in Alaska after being formed in another state.
Is Alaska a good state for an LLC?
Yes, Alaska is an excellent state to start a business. It doesn’t charge a state business license fee, offers quick approval times, and has helpful representatives at the Alaska Department of Commerce Division of Corporations.
However, the key factors in choosing where to start a business are your residence and where you conduct business. If you live or do business in Alaska, it’s best to start your business there.
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