How to form an LLC in Alaska

Who should form an LLC in Alaska?

Anyone who lives in Alaska or runs their business from there. If you form in another state but operate in Alaska, you will usually have to register there as a foreign LLC anyway, paying both states' fees. See home state or another state.

How do you form an LLC in Alaska, step by step?

1. Choose and check the name

   Search the state's business records and include "LLC", "L.L.C." or "Limited Liability Company" in the name.

2. Appoint a registered agent

   A person or company with a physical street address in Alaska. See what a registered agent is.

3. File the Articles of Organization

   Online through the Alaska Division of Corporations, Business and Professional Licensing, or by mail, with the $250 fee. Apply for the state business license at the same time.

4. Get an EIN and sign an operating agreement

   The EIN is free from the IRS. See LLC operating agreement.

5. Register for state taxes

   Sales tax and payroll as needed. Then note the first yearly filing date.

What does Alaska require every year?

An initial report, free, within six months of formation. After that, a biennial report every other year, $100, due by January 2 of the filing year and treated as late after February 1. Separately, the business license must be renewed each year, or every two years if you buy a two-year license.

For deadlines, fees and late penalties in detail, see Alaska LLC yearly filings.

Why does Alaska require a business license?

State law requires every business operating in Alaska to hold a state business license, regardless of size or structure. It is issued by the same division that handles LLC filings, costs $50 for one year or $100 for two, and needs an endorsement for certain regulated activities. Some cities and boroughs require their own licenses too.

What does the first year cost?

Should you file it yourself or use a formation service?

Filing yourself costs only the state fee, and the Alaska filing is short enough for most owners to complete. A formation service saves time, can act as your registered agent and may send reminders for yearly filings, but compare total yearly costs: low headline prices are often paired with paid add-ons such as expedited filing, operating agreements or EIN applications, which you can do yourself free. Whichever you choose, keep the approved filing, the EIN letter and your operating agreement together. See how much an LLC costs.

Can a non-resident form an LLC in Alaska?

Yes. Alaska has no residency or citizenship requirement for an LLC's members or managers. You need a registered agent with a Alaska street address and an EIN; a foreign owner without a Social Security number applies for the EIN on Form SS-4. A single-member LLC owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no US income. See can a non-resident own a US LLC and annual filings for foreign-owned LLCs.

What happens if you miss a required report?

The state usually charges a late fee and marks the LLC as not in good standing, which can block a certificate of good standing, a bank account or a loan. If the filing stays overdue, the state can administratively dissolve the LLC, ending its liability protection and its claim to the name. Reinstatement means filing every missing report and paying the fees owed, so put the dates in your calendar. See reinstating a dissolved LLC.

Which Alaska taxes apply to an LLC?

Alaska has no personal income tax, so owners of pass-through LLCs pay no state income tax on their share. There is no statewide sales tax, but many cities and boroughs levy their own, collected from remote sellers through a central commission. See Alaska local sales tax for remote sellers. LLCs taxed as C corporations pay Alaska corporate income tax.

Federally, a Alaska LLC is taxed like any other LLC. See how LLCs are taxed. For a side-by-side view of state costs, see how much an LLC costs.

This guide is general information. It is not tax or legal advice for your situation.