Type In Legal Alaska LLC Forms For Free

Alaska LLC Cost. Alaska's state fee for forming an LLC is $250. On top of that, you'll need to pay $100 every other year to file a biennial report. The state is currently waiving the state business license fee, but that could change.

How to start an LLC in Alaska Name your Alaska LLC. Create a business plan. Get a federal employer identification number (EIN) Choose a registered agent in Alaska. File for your Alaska LLC Articles of Organization. Obtain business licenses and permits. Understand Alaska state tax requirements.

Alaska Tax Rates, Collections, and Burdens Alaska does not have an individual income tax. Alaska has a 2.0 to 9.40 percent corporate income tax rate. Alaska does not have a state sales tax, but has a max local sales tax rate of 7.50 percent and an average combined state and local sales tax rate of 1.76 percent.

Pros and Cons of Forming an LLC in Alaska Alaska does not impose a state income tax on individuals or businesses, providing potential tax savings for LLC members. Forming an LLC in Alaska offers strong asset protection, safeguarding personal assets from business debts and legal liabilities.

LLC members' income is taxed at the 15.3% federal self-employment tax rate (12.4% for social security and 2.9% for Medicare). Alaska is the only state with both no personal income tax and no sales tax, but your LLC may need to pay taxes to your local municipality or borough.

For fees and tax purposes, the LLC is probably your best choice. An Alaska LLC will only get taxed once, in the form of personal income taxes for each member. An Alaska Corporation will be subject to double taxation: first through a state corporate tax, and second on the individual tax returns of shareholders.