Set Up an LLC in Alaska Today​

Quick facts about forming an Alaska LLC

Filing Fee	$250
Processing Time	10–15 business days; expedited service available
Annual/Biennial Report Fee	$100 (biennial report every 2 years)
Registered Agent Required	Yes, must be a true resident of Alaska or corporation
State Franchise Tax	None
Initial Report	Required within 6 months of forming an LLC (mandatory, no fee)
Business License	$50 annual state business license required
Managing Authority	Alaska Division of Corporations

Why open an LLC in Alaska?

Alaska offers several advantages to small business owners and entrepreneurs. For one, there’s no state-level income tax, meaning your business income is generally only taxed at the federal level. Additionally, Alaska’s low cost of entry, relatively simple filing process, and strong privacy protections make it an attractive place to start a business.

Whether you’re launching a small business in Anchorage, starting a remote operation from Fairbanks, or offering services across the state, forming an LLC gives you flexibility, liability protection, and credibility.

At Tailor Brands, we make the process simple, guiding you step by step through the paperwork and filings so you can focus on launching your business with confidence.

How to start an LLC in Alaska in 7 steps

Starting your LLC in Alaska requires a few specific steps. While the process is pretty straightforward, it includes a few unique state requirements, like the initial report and state business license (that many other states don’t have).

Here’s what you’ll need to do:

1. Name your Alaska LLC
2. Choose your registered agent
3. File articles of organization
4. File your initial report
5. Create an operating agreement 
6. Get an EIN
7. Apply for a state business license

Each step is discussed in more detail below.

Step 1: Choose a name for your LLC

Your business name must be distinguishable from any other registered business in Alaska and must include one of the following designators: “Limited Liability Company,” “LLC,” or “L.L.C.”

The name must not mislead the public or imply your business provides services it isn’t authorized to perform (e.g., using “bank” or “engineering” without a license). It’s best to do an Alaska business entity search before filing to ensure your name is available.

Step 2: Appoint a registered agent

An Alaska registered agent is required for all LLCs. This is a person or business with a physical address in Alaska who can accept legal and tax documents on your company’s behalf.

You can act as your own registered agent, but many business owners prefer using a service (like Tailor Brands offers) to maintain privacy and ensure consistent availability during business hours.

Alaska law requires every corporation to maintain a registered agent and registered office within the state at all times. The registered agent, either an Alaska resident or a business authorized to operate in Alaska, acts as the official point of contact for receiving legal documents, notices, and other official communications.

If you choose an individual as your registered agent, they must be a true Alaska resident, meaning they are physically present in the state with the intent to remain indefinitely and make Alaska their home. An individual cannot qualify if they claim residency, benefits, or domicile in another state, territory, or country.

Step 3: File articles of organization

The Articles of Organization is the legal form that officially creates your LLC. You can file it online or by mail through the Alaska Division of Corporations. It includes information such as:

• Your LLC’s name and address
• Registered agent information
• Whether your LLC will be member-managed or manager-managed

Filing Fee: $250 (non-refundable).

Step 4: File an initial report

Unlike most states, Alaska requires you to file an Initial Report within 6 months of forming your LLC. This is a free filing, but it’s mandatory. It provides the state with up-to-date information on your business’s ownership, contact info, and registered agent.

If you fail to file, your LLC may fall out of good standing and risk administrative dissolution, so it’s important not to skip this step.

Step 5: Create an operating agreement

Although not required by the state, an Alaska LLC operating agreement is strongly recommended. This document lays out how your LLC will be structured and operated, including details on ownership shares, voting rights, profit distribution, and what happens if a member leaves the company.

It’s especially important if your LLC has more than one member, as it can help prevent future disputes or assist in resolving them.

We offer operating agreement template in some of the formation packages, making it easy to customize and keep on file.

Step 6: Get an EIN

Your Employer Identification Number (EIN) is like a Social Security Number for your business. It’s required to open a business bank account, hire employees, and file taxes. You can get one for free directly from the IRS, or Tailor Brands can obtain an EIN for you during your setup process.

Step 7: Apply for a state business license

All LLCs in the state are required to hold an Alaska business license, which is separate from your Articles of Organization. This license must be obtained before your LLC starts doing business and needs to be renewed annually.

• Fee: $50 per year or $100 for two years
• You can apply online through the Alaska Department of Commerce

Not all states require this, it’s a unique part of doing business in Alaska, so make sure you’re compliant.

Depending on your industry and location, you may also need local permits or professional licenses. For example, businesses in construction, food service, healthcare, or transportation may have additional licensing steps.

Check with your local city or borough government to ensure compliance with any additional rules.

Alaska LLC fees and requirements

Here’s a breakdown of the key costs and filing requirements for Alaska LLCs: (see all Alaska LLC costs):

Requirement	Cost	Frequency
Articles of Organization	$250	One-time at formation
Initial Report	Free	Within 6 months
State Business License	$50	Annual
Biennial Report	$100	Every 2 years
Registered Agent (optional)	Varies by provider	Annual (if outsourced)
EIN (from IRS)	Free	One-time

Next steps after creating your Alabama LLC

File your Biennial report

After your LLC is formed, you’re required to file an Alaska biennial report every two years to confirm or update your company information. The first is due two years after your LLC’s formation date and costs $100.

Obtain necessary permits and licenses for Alaska LLCs

Once your LLC is formed with the Alaska Corporations Section, the next important step is ensuring you have the proper licenses and permits to legally operate in the state. Alaska does not issue a general “LLC license,” but every business conducting activities in Alaska must hold an Alaska Business License, and certain industries require additional professional licenses or endorsements.

Alaska Business License (mandatory)

All LLCs doing business in Alaska must obtain an Alaska Business License, issued by the Department of Commerce, Community, and Economic Development (DCCED). This is a legal requirement for every entity, regardless of industry or business size.

Before you can apply, two important prerequisites must be met:

1. Entity Registration
   Your LLC must be officially formed in Alaska and issued an Alaska Entity Number. This number must be entered on your Business License application, and the LLC itself, not an individual, must be listed as the owner.
2. Professional Licensing (If Applicable)
   If your LLC performs activities regulated by a professional board (e.g., construction contracting, accounting, nursing, engineering, hairdressing, massage therapy, or medical services), you must secure the appropriate professional license before applying for your Business License. Your application must include the relevant NAICS codes and match them with your approved professional license.

Industry-specific permits and endorsements

Most Alaska LLCs only need the standard Business License, but companies selling regulated products may need additional Endorsements. These operate similarly to permits and are required for each physical location where regulated goods are sold.

You must obtain an Endorsement if your LLC sells:

• Tobacco products
• Electronic smoking devices
• Any product containing nicotine

These endorsements are attached to your Business License and are mandatory before you begin selling these items.

Costs for endorsements

• $100 per Endorsement, per location
• The cost is the same whether you hold a 1-year or 2-year Business License.
• All Business License fees—including Endorsements—are non-refundable after issuance.
• Because the fee is flat, many businesses opt for the 2-year license for better value.

Additional notes and filing tips

• Online filings post immediately in Alaska’s public Business License Search.
• For security reasons, the state does not accept filings or payments by email, use online filing or U.S. mail for paper submissions.
• Each DBA or trade name your LLC operates under requires a separate Business License.
• Up to ten 6-digit NAICS codes may be listed to describe your business activities.