Alaska Business Compliance Checklist

Alaska has no state sales tax or income tax — but many boroughs and cities levy their own. This page covers everything from filing fees to sales tax to hiring laws.

LLC Filing

$250

Annual Report

$100

Every 2 years

Sales Tax

None

Franchise Tax

No

1. Entity Formation

LLC filing fee (Articles of Organization)$250
Corp filing fee (Articles of Incorporation)$250
Registered agent requiredYes — must have a physical address in the state
Publication requirementNo
Processing time~7 business days (expedited available for extra fee)

2. Annual Maintenance

Annual/periodic reportEvery 2 years — fee $100
Franchise taxNone

3. Sales Tax

Alaska has no state sales tax. You still need to check for local option taxes and any use-tax obligations.

Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.

4. Employer Requirements

Minimum wage$11.91/hr (2025)
Paid sick leave lawStatewide mandate
Non-compete enforceabilityEnforceable — reasonable scope and duration required
Contractor classification testCommon-law (IRS) test

Full employment law breakdown: Alaska Hiring Laws.

5. Workers' Compensation

Alaska allows private-market workers' comp insurance (competitive market). Coverage is required starting with your first employee.

Estimate your premium with our Workers' Comp Calculator.

6. State Income Tax

Alaska has no state individual income tax. This applies to pass-through business income (sole prop, LLC, S-Corp).

Compliance by Business Structure

Pick your structure to see structure-specific compliance items.

What Makes Alaska Distinctive

Compliance quirks and rules that separate Alaska from other states — worth understanding before you file.

  • Alaska LLCs file a biennial report (every 2 years), not annual, keeping compliance costs low over time.
  • Alaska issues a state Business License required for nearly all commercial activity, separate from LLC/corp formation ($50 for 1 year, $100 for 2 years).
  • Alaska requires professional licensing for many trades (contracting, cosmetology) through the Division of Corporations, Business, and Professional Licensing.

This is a reference, not legal advice.

State fees and rules change. Verify current values with the Alaska Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.