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.
In Alaska, an LLC needs to file a biennial report every other year to keep its information current with the state. 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.
If you’d like to hand off this responsibility to save time and focus on running your business, affordable LLC services are a great solution. Not only will they form your business in the first place, but they’ll also manage ongoing requirements like ongoing report filing. Once you're ready to lock it down, have ZenBusiness file all the paperwork.
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 annual or biennial reporting requirements, and some don’t even require them. But in most states, you’re required to submit one 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, being 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 by 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
Juneau, AK, 99811-0806
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 Floor
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.
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.
Frequently Asked Questions
About Filing the Alaska Biennial Report
Should I use a biennial report service, hire an attorney, or prepare and file my own reports?
This question largely comes down to personal preferences, but we do have some general insights. The DIY route can be quite a bit of work, as you’ll need to keep track of your due dates and complete the entire report on your own with no assistance. As for hiring an attorney, this can be prohibitively expensive for many businesses, as a lawyer can charge hundreds or even thousands of dollars to prepare and file your biennial reports.
You can think of business services companies as a middle ground between these options. While most of these companies charge a fee to prepare and file your biennial reports, that fee will be significantly less expensive than an attorney’s fee. At the same time, you still aren’t going it alone. Instead, you have an experienced professional guiding you through the entire process.
I’ve heard the most about LegalZoom. Are they the best biennial report service?
LegalZoom is the most well-known of all business services companies, thanks to its long track record and extensive advertising campaigns. That said, all of that brand power comes at a cost, as LegalZoom’s pricing and features don’t always compare advantageously to its competitors. While we do appreciate LegalZoom’s biennial report filing service, it isn’t our top choice.
When is my biennial report due?
The due date for your biennial reports depends on when you formed your LLC. If you formed your LLC in an even-numbered year, you will file your reports in even-numbered years. Similarly, if your formation was in an odd-numbered year, you will continue filing in those years. Either way, your due date is January 2nd.
Does Alaska require LLCs to file initial reports?
In some states, LLCs are also required to file initial reports. These reports are typically quite similar to annual or biennial reports, with the difference being that an initial report either accompanies your formation documents or follows their filing within a couple of months.
In Alaska, you’ll need to file your initial report within 2.5 months after your LLC starts transacting business in the state. This report is quite similar to the biennial report, but it does use a different form, which you can find right here.
What if I need more time to complete my biennial report?
If you need some additional time to finish preparing your biennial report, don’t worry! While the state does say that biennial reports are due by January 2, it also offers a built-in grace period of 30 days. Alaska does not enforce any late fees or other penalties until after February 1.
Where can I find more official information about Alaska’s LLC biennial reporting requirements?
The best resource for info straight from the state is the Division of Corporations, Business, and Professional Licensing’s Biennial Report FAQ page. That said, Alaska really doesn’t provide much info online regarding biennial report guidelines, so if your questions aren’t answered on that page, you may need to call the state for further assistance.