LLC Biennial Report and Tax Filing Requirements in Alaska

If you want to operate a limited liability company (LLC), you need to file various reporting and tax documents with the state to keep your LLC up and running. In Alaska, you must file a report for your LLC every other year and pay various business and employer taxes. Keep in mind that Alaska doesn't have a statewide personal income tax or sales tax, so you don't need to worry about those tax requirements as a small business owner.

Let's review the most important ongoing reporting and state tax filing requirements for Alaska LLCs. (If you'd like information about other states' LLC requirements, take a look at our article on LLC tax and filing requirements.)

Alaska LLC Initial and Biennial Reports

The State of Alaska requires you to file an initial report within the first six months of creating your LLC. You must also file a biennial report every two years for your LLC. These reports must be filed with the Alaska Department of Commerce, Community, and Economic Development (DCCED). You can file your reports online. If you'd like to submit a hard copy instead, you can print out your completed online filing to mail in.

Initial biennial report: You must file an initial report for your LLC within six months of forming your company. For example, if you organized your LLC on June 21, you must file your initial report by December 21. There's no fee to file the initial report.

Biennial report: You must file a biennial report for your LLC every two years before January 2 of the filing year. Reports marked after February 1 are marked late and incur a penalty. If you created your LLC in an odd-numbered year, the biennial report will be due in January of each odd-numbered year. If you created your LLC in an even-numbered year, the report will be due in January of each even-numbered year. As of 2024, the filing fee for the biennial report is $100.

For more on these filings, check out the biennial report FAQ webpage on the DCCED website.

State Business Taxes in Alaska

When it comes to income taxes, most LLCs are considered "pass-through tax entities." For pass-through entities, the responsibility for paying income taxes passes through the LLC itself and falls on the individual LLC members. By default, LLCs themselves don't pay income taxes, only their members do. Because Alaska is one of the rare states that doesn't have a personal income tax, this means LLC members will not owe state income tax on their LLC earnings. However, LLC members will still be responsible for paying federal income taxes.

If required, you must file your business tax returns with the Alaska Department of Revenue (DOR). You can file and pay taxes online using Revenue Online.

When LLCs are treated as partnerships. By default, multi-member LLCs are taxed as partnerships and single-member LLCs are taxed as disregarded entities. So, ordinarily, LLC members pay taxes on their share of the LLC's income on their personal tax returns. But Alaska doesn't have a personal income tax. As a result, if all LLC members are natural persons, your partnership doesn't need to file a return. But if your LLC has a member who's not an individual—for example, one of your members is a corporation—then your LLC must file a partnership return.

Electing corporate tax status. While LLCs are typically taxed as partnerships by default, you can choose to have your LLC taxed as a corporation for federal tax purposes. You can elect corporate tax status by filing IRS Form 2553 with the IRS. Unlike the default pass-through tax situation, when an LLC elects to be taxed as a corporation, the company itself must file a separate tax return at the federal and state levels. While Alaska doesn't tax personal income, it does tax corporate income. In Alaska, the corporate tax is computed at a series of marginal rates ranging from 0% to 9.4% (as of 2024). Visit the corporate income tax section of the DOR website for more on when and how to file this tax.

Alaska Employer Taxes

Does your LLC have employees or does it plan to hire anyone? If so, you'll need to pay employer taxes to the federal and state governments. To pay these taxes, you must first apply for a federal employer identification number (EIN) from the IRS.

Income tax withholding. Alaska doesn't impose an income tax on individuals. So, you don't need to withhold wages from employees at the state level. You'll still need to withhold wages at the federal level.

Unemployment insurance (UI) tax. While your business won't be responsible for withholding employee wages, your LLC will probably need to pay state UI taxes to the Alaska Department of Labor and Workforce Development (DLWD). Register your LLC to pay the UI tax via myAlaska. Then, each quarter, you must submit a contribution report and payment to the DLWD. You can submit reports and payments through myAlaska.

For more information, see the Alaska employer packet webpage on the DWLD website. The page links to the Employment Security Tax Handbook, a great resource for employers.

Alaska Sales and Use Tax

As of 2024, Alaska is one of just five states that doesn't charge sales tax. Consequently, if your LLC sells goods or services in Alaska, you don't need to worry about paying sales tax to the state. However, if you make sales to customers in other states, you could be required to collect sales tax for those states.

Your local government might still impose a sales tax. Check with your city, town, and county governments to determine your sales reporting requirements.

LLC Registration in Other States

If you do business outside your home state, you might need to register as an out-of-state (foreign) LLC in the states where you have business activities. For example, you might organize your LLC in Alaska but do business in California or another state.

Every state has rules for when an out-of-state business must register to do business. But typically, you'll need to qualify as a foreign business if your LLC:

• has a physical presence in the state (such as an office, warehouse, or store)
• hires employees in the state, or
• solicits business in the state (such as by telephone, print ads, mail, or the internet).

Check each relevant state's laws around qualifying as a foreign business. See our state guide to qualifying to do business outside your state for additional guidance about foreign registration.

More Information About Alaska LLCs

The DCCED and DOR websites have a wealth of information for small business owners, including online services, frequently asked questions, and other resources. Because of these government services and Alaska's few tax obligations—as compared to other states' tax obligations—many business owners can complete their LLC's ongoing legal requirements on their own. However, if your LLC operates in multiple states or your industry has additional requirements, you should consult with an Alaska business attorney.

If you want guidance related to operating your LLC, take a look at the articles in the LLC section of our website. We cover a variety of topics that might affect your LLC, including operating agreements, taxation, and asset protection.