StructureCost2026

Alaska: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,158 a year less than a sole proprietorship in Alaska. All figures are 2026 tax and fees.

$4,158 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Alaska, at these numbers.

More settings revenue, salary, filing status, payroll costs, PTET

Alaska, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $22,399 $0
Itemized: $22,399
Alaska state business licensecommerce.alaska.gov, checked Oct 20, 2026$50
Self-employment taxirs.gov, 2026 rates$14,122
Federal income taxirs.gov, 2026 rates$8,227
Yearly cost$22,399
Single-member LLC $22,434 +$35 $250
Itemized: $22,434
Biennial Reportcommerce.alaska.gov, checked Oct 20, 2026$50
Alaska state business licensecommerce.alaska.gov, checked Oct 20, 2026$50
Self-employment taxirs.gov, 2026 rates$14,115
Federal income taxirs.gov, 2026 rates$8,219
Yearly cost$22,434
LLC taxed as an S corp lowest $18,241 −$4,158 $250
Itemized: $18,241
Biennial Reportcommerce.alaska.gov, checked Oct 20, 2026$50
Payroll tax on your salaryirs.gov, 2026 rates$6,562
State disability and paid leavelabor.alaska.gov, checked Oct 20, 2026$200
Payroll service and tax return (estimate)$1,800
Alaska state business licensecommerce.alaska.gov, checked Oct 20, 2026$50
Federal income taxirs.gov, 2026 rates$9,579
Yearly cost$18,241
S corporation $18,241 −$4,158 $250
Itemized: $18,241
Biennial Reportcommerce.alaska.gov, checked Oct 20, 2026$50
Payroll tax on your salaryirs.gov, 2026 rates$6,562
State disability and paid leavelabor.alaska.gov, checked Oct 20, 2026$200
Payroll service and tax return (estimate)$1,800
Alaska state business licensecommerce.alaska.gov, checked Oct 20, 2026$50
Federal income taxirs.gov, 2026 rates$9,579
Yearly cost$18,241
C corporation $25,951 +$3,552 $250
Itemized: $25,951
Biennial Reportcommerce.alaska.gov, checked Oct 20, 2026$50
Payroll tax on your salaryirs.gov, 2026 rates$6,562
State disability and paid leavelabor.alaska.gov, checked Oct 20, 2026$200
Payroll service and tax return (estimate)$2,000
Alaska state business licensecommerce.alaska.gov, checked Oct 20, 2026$50
State corporate income taxakleg.gov, checked Oct 20, 2026$642
Federal corporate income tax (21%)irs.gov, 2026 rates$11,289
Federal income taxirs.gov, 2026 rates$5,158
Yearly cost$25,951
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Alaska

Electing S corp tax treatment for an LLC starts to pay in Alaska at about $52,500 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,221$5,260$6,923$7,338
$50,000$9,771$9,809$9,886$11,807
$75,000$15,533$15,572$12,286$17,298
$100,000$22,399$22,434$18,241$25,951
$150,000$37,642$37,677$30,991$44,558
$200,000$53,470$53,509$44,317$62,400
$300,000$92,143$92,161$73,913$100,186

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Alaska

LLCCorporation
Filing to form$250Articles of Organization (Form 08-0484)$250Articles of Incorporation (Form 08-0400)commerce.alaska.gov
Yearly reportBiennial Report, $100 every two yearsBiennial Report, $100 every two yearscommerce.alaska.gov
Report dueJanuary 2 every two years (even or odd year matching the year of formation)January 2 every two years (even or odd year matching the year of incorporation)
Alaska state business license$50yesyescommerce.alaska.gov

Not in the calculator: Alaska has no state sales tax, but many boroughs and cities levy local sales taxes and some have local business licenses or property taxes on business equipment.

Switching calculators for Alaska

By profession in Alaska

Questions

Is an S corp worth it in Alaska?

On these figures, from about $52,500 of profit. At $100,000 an LLC taxed as an S corp costs $18,241 a year against $22,434 for a plain LLC, $4,193 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Alaska?

The state charges Biennial Report, $100 every two years. LLCs can also owe Alaska state business license. Forming one costs $250.

Does Alaska recognise the S corp election?

Yes. The federal election carries over with no separate state form. Alaska follows the federal S election; S corps are not subject to the corporate income tax except on income taxed federally at the entity level.

What income tax does Alaska charge?

Alaska has no personal income tax on wages or business income. C corporations pay 0% to 9.4% of net income.

Sources checked 2026-10-20. Each figure links to the state or IRS page it comes from.

Other states