Forming a limited liability company (LLC) typically involves costs, but how much money a new company will need to pay for its formation will vary greatly from state to state. Alaska is a little pricier compared to some other states.
As you get started, you’ll want to gain an understanding of the steps you’ll need to take and the various costs involved. The process is not too difficult, but it does take time. Forming an LLC in Alaska is even easier if you use a service like Tailor Brands. Our team is highly skilled in setting up LLCs, and we can manage the entire process for you and provide you with a target of how much you should budget for.
One question you are probably wondering is how much does an LLC in Alaska cost? The answer is, it depends. Some fees are a necessary cost, while others are optional. Let’s take a closer look at what is involved and how much each required and optional component of forming an LLC costs.
To form and launch an LLC company in Alaska, you will need to take several steps and pay a variety of fees. In the following sections, we’ll break down what you need to do and how much each component costs.
Performing a name search in Alaska is free, but if you decide to reserve a business name, you will need to pay a fee of $25. This will reserve your preferred name for 120 days. Additionally, if you decide to file for a DBA (“doing business as”) in Alaska, this is an additional $25 fee which has a requirement to renew your DBA every five years.
To begin, you will need to file your articles of organization with the Alaska Department of Commerce, Community, and Economic Development (DCCED). An LLC Alaska cost will be $250 for this essential step. This one-time-only filing fee is the first level fee you will need to pay to get your company established as an LLC in The Last Frontier state.
Generally speaking, it takes about two to three weeks to process articles of organization filings. However, Alaska does offer a “rush” processing for $79, which will bring your waiting period down to one to two days if you’re in a hurry.
Every LLC in Alaska will need to have a registered agent who is available to serve as a point of contact for your business. A registered agent must be available to be able to accept legal documents from the state, such as court processes, notices, or other demands allowed by law to be served upon your business. Once your agent receives any documents, it is their responsibility to pass them onto your company.
If you plan to perform the registered agent duties yourself, you can do this free of charge, so long as you are living in Alaska, are physically present in the state, and have a permanent physical and mailing address. If using a registered agent service like Tailor Brands, you will have a fee of $199 (other companies will offer similar services but may charge up to $400). Keep in mind that the company you select to serve as your registered agent must be authorized to transact business in Alaska.
Creating an operating agreement is optional in Alaska, but it is a good idea to do so. The price of this step will vary, depending on how you choose to approach it. If you do it yourself, it won’t cost you anything. You can also purchase an online template for $50 to $200 to help you go through this process.
However, it is common to find the process of structuring operating agreements to be complex, even with a predefined template. Many small businesses do not have the time, knowledge, or resources to sort out all the necessities while trying to stay on track.
If you hire a lawyer, it can range anywhere between several hundred dollars to $1,000 (depending on if you are a single-member LLC or a multi-member LLC). Another option is to use a service, such as Tailor Brand’s operating agreement service, which would cost far less than an attorney.
Many small businesses find it to be worthwhile to pay a fee to a professional who is skilled with LLC formations to ensure everything is established correctly. Missing a step can lead to delays and disruptions.
Alaska requires LLCs to file an online Initial Report within six months of the LLC’s formation. There is no fee associated with this step, but you need to do it to ensure your company’s contact information is on file and is up-to-date with Alaska’s state records.
Alaska requires LLCs to file biennial reports with the state. This is a necessary step to maintain compliance in the state; this will cost $100 every two years.
Depending upon state and local laws, a business may need to obtain specific licenses and permits to operate. Alaska imposes a $50 business license fee which is paid annually. If your local municipality has fees or your LLC has industry-specific licenses and permits you’ll need to budget for them as well. Some Alaskan cities have them, others do not.
Common license fees include zoning, environmental, building, and health. Also often required are seller’s permits or professional licenses. Alaska has a comprehensive list of license and permit types on its website.
The State of Alaska requires LLCs to obtain a Certificate of Compliance. Also referred to as a “Certificate in Good Standing”, this document is a form of verification to show your LLC is properly formed and legally compliant. This document will typically need to be produced if your company wants to do business outside of Alaska, secure funding, open a business bank account, or purchase business insurance. To obtain your Certificate of Compliance, there is a $10 filing fee.
In the initial formation steps, you’ll designate a registered agent. If your agent resigns, doesn’t meet Alaska’s requirements, or otherwise becomes unavailable, you’ll need to file a Registered Agent Notice of Resignation form with the Department of Commerce, Community, and Economic Development. Keep in mind, that there is a fee of $25 associated with the filing of this form.
While it seems you will be paying numerous fees to form your Alaska-based LLC, the good news is most of the LLC formation costs are tax-deductible when you go to file your federal tax return. Examples of fees you can deduct include:
Finding these and other expenses you can legally deduct on your tax return will help reduce your overall tax obligation and empower you to put more money back into the operational aspects or expansion plans of your company.
Articles of Organization filing fee | $250 (and $79 if you select “rush” processing) |
Reserving a business name (optional) | $25 |
DBA fee (optional) | $25 |
Registered agent (optional) | $199-$400 |
Operating Agreement (optional) | $0 to $1,000 |
Biennial reports | $100 every two years |
Business license and permits (varies) | $50 per year for a business license; prices for other licenses and permits will vary |
Compliance fee | $10 |
Registered agent resignation fee (if applicable) | $25 |
As you attempt to launch a new small business LLC in Alaska, determining all the requirements and ensuring each step is taken can be overwhelming. At Tailor Brands, we understand the challenges entrepreneurs face and this is why we offer LLC formation services.
Our team is highly knowledgeable about LLCs in Alaska and throughout the U.S. and we bring an extensive history of experience to our clients. We can help you get your new company up and running as quickly as possible. Our team members enjoy seeing new business owners succeed in their ventures and want to help.
Forming an LLC doesn’t have to be a struggle! Allow us to lend our expertise to help you get your LLC properly registered in Alaska while you focus on the numerous other details necessary to get yourself up and running for opening day! To learn more about our services, contact Tailor Brands today.
Your company can pay required and optional fees by credit card, check, or cash. Keep in mind that cash payments must be made in person and checks can only be used if paying in-person or via USPS.
Yes. Alaska imposes financial penalties for late payments, including interest charges, late fees, and sanctions.
Unlike other states, Alaska does not have a franchise tax, so this is a step you can skip over when forming your LLC.
The due date set by Alaska for all LLCs to file their Biennial reports is January 2. You will pay every other year. For instance, if your LLC formation occurs in 2024, your first biennial report will be due on January 2, 2026. While it’s not an initial LLC cost, it is an ongoing one you’ll want to include in your budget.
If you need certified copies of any of your business documents, you can contact the Division of Corporations to request what you need. The fee is $15 per document.
Yes, you can. However, the fee is higher, at $350. Additional requirements include an Alaska Certificate of Registration and an Alaskan business license, along with any industry-specific or local licenses or permits as required.
Yes, you can. However, the fee is higher, at $350. Additional requirements include an Alaska Certificate of Registration and an Alaskan business license, along with any industry-specific or local licenses or permits as required.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
Products
Resources
@2024 Copyright Tailor Brands