Should you form your LLC in Alaska? We've collected the relevant information that will help you make this decision.
- Taxed as a partnership
- No individual or state income tax
- Perfect for nature-loving, outdoor adventurers
- Tax rate of 2-9.4%
- Among "Worst States for Business" (Forbes 2016)
Cost of doing business
- $250 filing fee / $100 annual report
- One manager must be listed in filing
Forming an LLC in Alaska
In order to communicate to the public that your new business is an LLC, its official name will need to end with one of the following signifiers (or abbreviation of): “Limited liability company”, “LLC”, or “L.L.C.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. Do a FREE name search now.
The owners of an LLC are called “members.” The following information must be required regarding your LLCs members:
- Required number of members
Alaska LLCs must have at least one member or manager listed in their incorporation documents.
- Age restrictions
LLC members in Alaska may be of any age.
- Residence restrictions
There are no residence restrictions imposed on LLC members in Alaska.
- What information needs to be included in the Articles of Organization?
Outside of the principal member, LLC Members in Alaska are not required to list their name or addresses in their Articles of Organization.
Requirements for the Articles of Organization
The Articles of Organization is a document that must be filed during the LLC formation process in every state. Here is the information that must be included in this document when filing in Alaska:
Registered agent information
All Alaska LLCs must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.
Additional Alaska filing requirements
Many states have steps in the LLC formation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the atypical steps required throughout all of Alaska:
Initial report deadlines
New LLCs in Alaska are required to file an initial report within six months of incorporation.
If your business is a professional practice
Professional service companies are permitted to form as LLCs in Alaska. However, the state does not recognize the professional limited liability company (PLLC) as a formal structure.
Alaska LLC taxation and fee requirements
There are several tax and fee requirements that must be addressed by LLCs in Alaska. They are as follows:
All states have complex taxation requirements. For more information regarding taxes in Alaska it is advised that you visit the state’s official business related website.
Annual report requirements
LLCs in Alaska are required to file a bi-annual report every other year before January 2nd. This report must be first filed after year one, and if not filed by February 1st penalty fees can be applied. The cost of this filing is currently $100. Learn more about annual reports.
Tax identification numbers
Alaska requires an EIN (employee identification number) for all LLCs that will have employees, and most banks will require one to open accounts. Alaska does not require LLCs to obtain state tax ID numbers. Learn more about EINs.
Business license requirements
The business licenses and permits required in Alaska vary wildly depending on the county or municipality in which your new LLC is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.
Need an Alaska corporation instead? Click here.