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Follow these five steps to start an Alaska LLC and elect Alaska S corp designation: Name Your Business. Choose a Registered Agent. File the Alaska Articles of Organization. Create an Operating Agreement. File Form 2553 to Elect Alaska S Corp Tax Designation.
Nevada, South Dakota, and Wyoming have no corporate or individual income tax (though Nevada imposes gross receipts tax. Unlike a sales tax, a gross receipts tax is assessed on businesses and apply to business-to-business transactions in addition to final consumer purchases, leading to tax pyramiding.
The State of Alaska does not have a tax exemption certificate, as it is not necessary to have one. The Alaska Constitution provides that the State of Alaska is exempt from all taxes emanating from within Alaska.
The Alaska corporate income tax already functions primarily as a worldwide combined tax. Our review of state tax data going back to 1991 finds that almost three quarters (74 percent) of Alaska's corporate income tax collections have come from the oil and gas sectors, which have long been subject to mandatory WWCR.
Alaska requires corporations to file a biennial report. The first report must be filed by January 2 of the year following incorporation and every two years thereafter. The report is considered delinquent if not filed before February 1 and fees and penalties may apply.
Since Alaska does not levy an income tax on individuals, you are not required to file an AK State Income Tax Return. However, you may need to prepare and efile a Federal Income Tax Return.
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. Alaska's tax system ranks 3rd overall on our 2024 State Business Tax Climate Index.
Alaska is one of just a few states with no personal income tax. That means that LLCs with default tax status pay no state income tax to the State of Alaska.