How to Form an LLC in Alaska | 2025 Guide

The latest statistics reflect moderate but notable growth in economic development for America’s northernmost state. The Alaska Department of Labor and Workforce Development forecasts a 1.6% statewide job growth rate, with approximately 5,300 new jobs expected this year.¹

With Alaska’s economy on the rise, it’s an ideal time for entrepreneurs to establish their presence in the state. Let’s walk through the step-by-step process for how to form an LLC in Alaska to help you get off on the right foot. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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How to Start an LLC in Alaska (Step-by-Step)

It is easy to start an LLC in Alaska. That said, you’ll want to keep a few key details—including biennial reports and a mandatory Alaska business license—in mind along the way.

Step 1: Choose a Business Name

Select a unique name that complies with Alaska’s naming guidelines. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.,” and can’t mislead the public by implying an association with any government agencies or regulated industries.²

You can reserve your chosen name for 120 days for a $25 fee.

Step 2: Appoint a Registered Agent

Every Alaska LLC must designate a registered agent with a physical address in the state—a P.O. box doesn’t count. Also known as a D agent, this individual must be available during regular business hours to receive legal documents.

You can serve as your LLC’s registered agent, or you can appoint an Alaska registered agent to act on your behalf. If you don’t live in the state, it can be useful to hire a registered agent service to fill this requirement.

Step 3: Determine Your NAICS Code

Alaska requires all its LLCs to select a North American Industry Classification (NAICS) code that best describes their business activities.

You’ll use this six-digit code for statistical and business taxes.

Step 4: File Alaska Articles of Organization

To formally register your Alaska LLC, you’ll file the Articles of Organization with the Alaska Division of Corporations.

This document includes your LLC’s name, purpose, NAICS code, registered agent information, management structure, and duration. It costs $250 to file.³

Step 5: Create an Operating Agreement

This next step is totally optional, but it’s still recommended for LLC owners regardless of the state they’re in.

An operating agreement outlines the management structure, roles, and procedures of your LLC. Not only does it clarify internal operations, but it also protects members’ interests in the event of future disputes.

Step 6: Get an EIN and Open a Business Bank Account

To hire employees and pay taxes, you’ll need to apply for an Employer Identification Number (EIN) through the IRS. It’s free, and you can apply through the IRS website.

Also, an EIN allows you to open a separate business bank account. That way, you can separate your personal assets and business income for greater liability protection.

Step 7: Register for State Taxes and an Alaska Business License

All Alaska LLCs will need to get a general state business license, which costs $50 annually.⁴

Depending on your business activities and location in the state, you may also need to register for additional licenses and permits.

Step 8: File Initial and Biennial Reports

Within six months of forming your Alaska LLCs, you’ll need to submit your initial report. The good news is that filing is free.

Moving forward, you’ll need to file your biennial report every two years. The filing fee is $100.⁵

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What are the Business Requirements for an Alaska LLC?

To start an LLC in Alaska, you need to file the Articles of Organization with the state.

The form requires LLC owners to list the name of a registered agent with a physical address in Alaska.

• An NAICS code for business classification and reporting purposes.
• Secure a state business license, regardless of business type or size.
• To maintain good standing with the state, they’ll need to file biennial reports every two years.

What Are The Benefits of Starting an LLC in Alaska?

One of the most attractive advantages is the absence of state income taxes, meaning LLCs don’t have to pay state tax on their earnings. Instead, profits are passed through to the individual members, who report the income on their personal tax returns.

Alaska LLCs also provide strong personal liability protection for both multi-member and single-member LLCs. Members’ personal assets are safeguarded from business debts and legal actions.

The management structure of an Alaska LLC is highly flexible, too, so it can be run either by its members or appointed managers.

Finally, compliance requirements in Alaska are pretty straightforward, especially compared to other states.

How Much Does It Cost to Start an LLC in Alaska?

The minimum cost to start an LLC in Alaska is $350, which covers both the Articles of Organization and the first year’s business license.

Name Reservation (optional)	$25
Articles of Organization	$250
State Business License	$50/year
Biennial Report	$100/2 yrs
Certificate of Good Standing	$10
Other Permits/Licenses	Varies

That said, you may incur other Alaska state fees depending on whether you choose to reserve a name or require other permits or registered agent services.

Can I Open an LLC in Alaska Without Living There?

Yes, you can open an LLC in Alaska without living there. However, you’ll need to appoint a registered agent with a physical address in Alaska to receive any legal documents on your behalf.

If your business is registered in another state but wants to operate in Alaska, you’ll need to register as a foreign LLC to comply with state regulations.

Can a Nonresident Open a Company in Alaska?

Yes, nonresidents, including foreign nationals, can form and own an Alaska LLC. There aren’t any citizenship or residency requirements for LLC members or managers in the state. The process is the same as it is for residents, but a registered agent with a physical Alaska address is required.

Comparison with Other States

A good way to understand the benefits and drawbacks associated with an Alaska LLC is to compare its requirements with some other states on the western end of the United States.

Feature	Alaska	Washington	Oregon	California
Filing Fee	$250	$180	$100	$70
Annual Report Fee	$100 (biennial)	$60 (annual)	$100 (annual)	$800 (annual franchise tax) + $20 report
Privacy	Moderate	Standard	Standard	Standard
Tax Environment	No state income taxes; no franchise tax for LLCs6	No state income taxes; B&O tax at city/state level7	State income tax (up to 9.9%); no franchise tax for LLCs8	State income tax; $800 minimum franchise tax for LLCs9
Best For	Alaska residents, those seeking no state income tax	Those seeking no state income tax, but can navigate B&O tax	Cost-conscious startups, local businesses	Larger business, those needing access to California markets

Alaska and Washington are attractive for their lack of state income tax. However, California’s high annual costs and Oregon’s state income tax may be less favorable for small business owners.

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FAQ: Alaska LLC

Privacy Protections for Alaska LLCs

Alaska offers a moderate level of privacy protection. While member and manager information is included in state filings, it’s not publicly accessible like it is in some other states. That said, Alaska won’t provide the same level of anonymity as other states like Wyoming or New Mexico, where ownership details are kept off public records.

Why Do People Use Alaska for LLC?

Entrepreneurs choose Alaska for its lack of state income tax, straightforward compliance requirements, and strong personal liability protection. The state is particularly attractive for residents and others who regularly conduct business in Alaska, since it minimizes tax and regulatory burdens on those organizations.

Is an Alaska LLC Tax-Free?

Alaska LLCs don’t pay state income tax or franchise tax, and they’re taxed as pass-through entities. However, federal income taxes still apply.

While Alaska doesn’t impose a statewide sales tax, some local jurisdictions may levy their own sales tax. Be sure to look into your specific tax obligations for your operating area.

What Are the Disadvantages of an Alaska LLC?

Alaska has a straightforward process for entrepreneurs looking to start an LLC in the state. While it offers significant tax and liability protection benefits, there are some drawbacks to keep in mind:

• Higher Formation Fee: At $250, the formation fee is higher than in many other US states.
• Limited Privacy: Alaska isn’t an “anonymous LLC” state like Wyoming or New Mexico.
• Annual License Requirement: Unlike other states, Alaska mandates that LLCs obtain and renew their state business license annually.
• Biennial Reporting: While less burdensome than states with mandatory annual reports, missing deadlines can result in additional penalties or fees.

Also, if you don’t live or do business in Alaska, you won’t find any special advantages available to you, so it’s not ideal for out-of-state operations.

The Bottom Line

So, should you form an LLC in Alaska?

At the end of the day, it’s a decision that depends on the unique needs and circumstances of your business. With no state income tax and minimal compliance requirements, Alaska stands out as a simple and straightforward environment for LLC ownership. However, its high formation fees and annual license requirements aren’t ideal for everyone, especially if you’re looking to cut costs while getting your startup off the ground.

Learn How to Form an LLC in State
Alabama
Georgia
Hawaii
Florida

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Sources:

1. Alaska Economic Trends: January 2025
2. Selecting a Name for your Business
3. Articles of Organization
4. Business Licensing FAQs
5. LLC Biennial Report and Tax Filing Requirements in Alaska
6. LLC Biennial Report and Tax Filing Requirements in Alaska
7. Business tax structure in Washington State
8. LLC Annual Report and Tax Filing Requirements in Oregon
9. Limited liability company