You did it. Your Alaska LLC is officially up and running, ready to take on challenges, roll in the profits, and change the world.
There’s no doubt that this is an exciting time in your business journey After starting your LLC, it’s easy to get carried away in all the excitement and expectations. After all, as a new business owner, you’ve got a lot on your plate.
But the state does too. They need to keep updated records on thousands of businesses so that they can effectively reach out with any important tax or legal communications down the road. How do they do it? With your cooperation, of course.
Every other year, your LLC must submit a Biennial Report to the Department of Commerce, Community, and Economic Development to keep your information current. Unsure how to go about it? Never even heard of it? No worries at all. That’s why we’re here. Keep reading for everything you need to know.
What is an Alaska Biennial Report? Why is it Important?
Consider a biennial report the state’s regular checkup on your LLC. It’s similar to a census in that its purpose is to collect the necessary contact and structural information about each Alaska business.
Each state has its own biennial reporting requirements, and some don’t even require them. But in most states, you’re required to submit one per year that includes your LLC name, principal office address, registered agent information, and member/manager names and addresses. Whether you run a domestic or foreign LLC, you should plan on submitting a biennial report.
Don’t be intimidated, but it’s not something you want to take lightly. This is how the state updates your LLC’s record with the most recent information. They need to know how to reach you with important information about your business status, upcoming filings, taxes, and service of process.
For example, if you change your registered agent, or your current agent resigns, you’ll need to keep the state informed so they can update their contact information. Miss one of their communications and your LLC in Alaska might end up falling out of good standing or, even worse, administratively dissolved.
Moreover, keeping your information current will help other businesses and potential customers find you. If the Department of Commerce, Community, and Economic Development has the most updated data on record, people can find your business by performing a business name search.
How Much Does the Alaska LLC Biennial Report Fee Cost?
If you’re putting together a budget for all your LLC’s costs – like formation costs, name reservation fees, and initial operating expenses – it’s important to include recurring filings like this one, just so that there are no surprises.
Costs vary from state to state. Some are free while others can be several hundred dollars. But at $100, Alaska’s Biennial Report won’t break the bank. If you run a foreign LLC, however, the price is $200 instead. You will need to pay this amount every two years throughout the life of your business, so make sure to include it in your budget.
Due Date and Frequency for a Biennial Report in Alaska
After successfully starting your domestic LLC, you are required to file an Initial Report within six months. The good news is that this filing is free and can be completed entirely online. Just make sure you have your Entity Number on hand when you start the process.
Your Biennial Report will be due on January 2, every other year. The years you file, however, depend on when you formed your LLC. If you started your company during an even-numbered year, you will file on January 2 of every subsequent even-numbered year. If you formed it during an odd-numbered year, you will file during subsequent odd-numbered years.
What Happens if You Don’t File?
You might be thinking, “that sounds like a pain. How bad could it be if I just fly under the radar?” The short answer: don’t try it. Failing to file your Biennial Report can yield some serious consequences.
After January 2, the state gives your LLC a one-month grace period to submit your Biennial Report. If you don’t file by February 1, you will incur a late fee of $37.50 for a domestic LLC or $47.50 for a foreign one. Plus, a missing Biennial Report will cause you to fall into “non-compliant” status. Remain in non-compliance long enough and the state will dissolve your LLC.
We’ve mentioned that the Biennial Report’s purpose is to update the state on your LLC’s information. But what, exactly, does that entail? Here’s what you’ll need to include when you submit your report:
- Legal LLC name
- LLC address
- Registered agent name and address
- Member/manager names and addresses
If any of these things have changed, make sure you enter your most recent information. If not, simply include your current information. You’ll breeze right through it!
You can file your Biennial Report one of two ways: online or with a hard copy. Filing online is easier and faster, but if you prefer the feel of a paper form, that’s just as effective.
This page includes detailed, step-by-step instructions on how to file electronically. Read through them, then click “Proceed to Online Filing” at the bottom. Enter your Entity Number and/or LLC name and complete the on-screen form. Your report will be processed immediately.
Hard Copy Filing:
From the Department of Commerce, Communication, and Economic Development’s Biennial Reports page, click “Biennial Report Hard Copy Filing,” enter your Entity Number, and print your form. Then, you can mail it to:
State of Alaska
Division of Corporations, Business and Professional Licensing
P.O. Box 110806
Or, if you live near Anchorage or Juneau, you can submit your material in person to:
550 W 7th Ave, Ste 1500
Anchorage, AK 99501-3567
333 Willoughby AVE, 9th FL
State Office Building
Juneau, AK 99801-1770
Processing time for hard copy filings is 10-15 business days between March and September, and 15+ business days from October to February.
Does the State Send Reminders?
Reminders are always nice. They help you stay on top of your business requirements and ensure that you won’t fall out of good standing.
You won’t, however, receive any reminders from Alaska’s Department of Commerce, Community, and Economic Development. Instead, make sure you mark it on your calendar, put a note in your phone, or set up other reminders so you don’t forget to file.
Can I Hire a Service to Handle it?
You probably have a full plate as it is, and the thought of adding one more responsibility to your to-do list might make you shudder. You’re not alone.
Plenty of other LLC owners have outsourced their reporting duties to LLC services. These companies will take the entire process off your hands, handling your Biennial Report each year. If that piques your interest, we recommend ZenBusiness, which is an experienced and trustworthy LLC company.
But their services aren’t restricted to forming an LLC or managing Biennial Reports. They can also help you form your business, draft an operating agreement, handle registered agent responsibilities, and much more, all for a reasonably low price.
If thinking about your LLC responsibilities ties your stomach in knots, let ZenBusiness take some of those worries off your plate.
There you have it, everything you need to know about Alaska’s reporting requirements. Follow this guide to a T and your LLC will be prepared to operate smoothly and in good standing long into the future.
And remember, if at any point it seems overwhelming, you’re not alone. A good LLC service like ZenBusiness (or LegalZoom) can be a valuable resource, taking care of all the little details, so you can focus on growing your business.