Alaska LLC Taxes: The Complete Filing Guide (2025)

Alaska LLC Tax Basics

Navigating your Alaska LLC tax obligations doesn’t have to be complicated. We’ll walk you through the essentials of pass-through taxation, explain Alaska’s specific requirements, and highlight strategies to stay compliant and organized. This guide covers everything from federal income taxes to city-specific requirements and filing deadlines.

Use the links below to jump directly to the section you need:

• Alaska LLC Taxes at a Glance
• Understanding LLC Taxation Basics
• Federal Tax Obligations
• Alaska State Taxes
• Local Tax Considerations
• Tax Calendar and Filing Tips
• Tax Strategies for Alaska LLCs
• Forms and Resources

Alaska LLC Taxes at a Glance

Tax Type	Rate	Filing Deadline	Forms Required
Federal Income Tax	10%-37% (personal brackets)	April 15, 2025	Form 1040 + Schedule C or Schedule E/K-1
Self-Employment Tax	15.3%	April 15, 2025	Schedule SE
Federal Payroll Taxes (If Employees)	7.65% employer + 7.65% employee (FICA)	Quarterly (April 30, July 31, October 31, January 31)	Form 941
Alaska Unemployment Tax (If Employees)	1%-5.4% (payable up to taxable wage base)	Quarterly	Form TQ01C
Federal Unemployment Tax (FUTA)	6% on first $7,000 per employee (0.6% after credits)	January 31, 2026 (annual)	Form 940
Corporate Income Tax	0%-9.4%	May 15, 2025	Form 6000
Local Sales and Use Taxes	1%-7% (varies by city/borough)	Monthly or quarterly (varies by city/borough)	Varies by city (Adak, Juneau, etc.)
Biennial Report	$100 fee	January 2 (every 2nd year after formation)	File online/request a report hardcopy

Understanding LLC Taxation Basics

How Alaska LLCs Are Taxed by Default

Your Alaska LLC doesn’t pay taxes itself. Instead, profits flow through to you and your members, who report them on their personal tax returns. This is called pass-through taxation.

Here’s how it works:

1. Your LLC earns income from business activities
2. The LLC itself files no tax return (unless you elect otherwise)
3. Profits “pass through” to members based on ownership percentage
4. Each member reports their share on their personal tax return
5. Members pay tax at their individual income tax rates

What this means for you: Unlike corporations, your business profits are only taxed once — which typically saves you money.

Tax Classification Options

While pass-through taxation is the default, your Alaska LLC can choose two alternative tax treatments.

Default LLC Tax Status:

• Single-member LLC: Taxed as a sole proprietorship
• Multi-member LLC: Taxed as a partnership

Optional Tax Classifications:

• S Corporation (S Corp): This can help reduce self-employment taxes by paying “reasonable salaries” to your business’s owners
• C Corporation (C Corp): With this option, the LLC pays corporate tax on profits while members pay personal tax on their distributions (creating double taxation)

Not sure which tax classification is right for your business? Schedule a free consultation with 1-800Accountant.

Federal Tax Obligations

Income Tax

As an Alaska LLC owner, you’ll report your share of business profits on your personal tax return using:

• Form 1040 + Schedule C (single-member LLCs)
• Form 1040 + Schedule E + Schedule K-1 (multi-member LLCs)

Federal income tax rates range from 10% to 37% based on your tax bracket (actual brackets will depend on inflation adjustments and any tax law changes).

Simply Put: Whatever money your business makes (after expenses) gets added to your personal tax return — just like income from a job.

Self-Employment Tax

LLC members actively involved in the business must pay self-employment tax of 15.3% (covering Social Security and Medicare) on their share of LLC profits.

Key points:

• Applies to net earnings of $400 or more
• Calculated on Schedule SE
• You can deduct 50% of the self-employment tax as an “above-the-line” deduction, which lowers your adjusted gross income

What happens if I miss this payment? The Internal Revenue Service (IRS) charges penalties of 0.5% per month plus interest. However, first-time mistakes can often qualify for penalty abatement if you have a clean compliance history.

Employment Taxes

If your LLC has employees, you must:

• Withhold federal income tax
• Pay and withhold FICA taxes (7.65% each for employer and employee)
• Pay federal unemployment tax (FUTA)
• File quarterly employment tax returns (Form 941)
• Provide Forms W-2 annually

Estimated completion time: 2-3 hours per quarter (significantly less with payroll software or professional help)

Estimated Tax Payments

Because no tax is withheld from your LLC profits, you’ll likely need to make quarterly estimated tax payments using Form 1040-ES. These payments cover both income and self-employment taxes on your share of the business income. Missing deadlines or underpaying can lead to IRS penalties — even if you pay in full later.

Working with an accountant can help ensure accurate calculations, on-time payments, and a smarter overall tax strategy.

Key deadlines:

• April 15
• June 16
• September 15
• January 15

Pro Tip: Set calendar reminders 15 days before each deadline. This gives you time to prepare without the last-minute rush that leads to mistakes.

Alaska State Taxes

Alaska Corporate Income Tax

Alaska has a corporate income tax rate between 0%-9.4% that applies to your LLC only if you’ve elected to be taxed as a C corp. If you’ve chosen to maintain the default LLC tax structure, this tax does not apply. 

Filing requirements:

• Determine your corporate income tax rate
• Use Alaska Form 6000
• Due May 15, 2025

You May Not Owe Anything: If your taxable income is $25,000 or below, a 0% tax rate applies. 

Employment Security Tax

If you have employees in Alaska, you will be responsible for Employment Security Tax — also known as Unemployment Insurance (UI) Tax. 

• Register with the Alaska Department of Labor and Workforce Development
• Rate is between 1%-5.4% 
• Due quarterly 

Biennial Report Filing

While not a tax, your Alaska LLC must file a biennial report:

• Due January 2 every second year after formation
• $100 filing fee
• Filed with the Alaska Department of Commerce, Community, and Economic Development online or by mail
• Late filing fees apply

Important Note: All Alaska LLCs must file an Alaska LLC Initial Report within the first 180 days of formation.

Local Tax Considerations

Local Sales and Use Taxes

While there’s no statewide sales tax imposed, Alaska allows cities and boroughs to impose local sales and use taxes that range from 1%-7% (depending on location).

Cities with sales and use taxes include:

• Adak (4%) 
• Anaktuvuk Pass (7%) 
• Fort Yukon (4%) 
• Juneau (5%) 
• Over 100 other Alaska municipalities

Filing requirements:

• Separate returns for each city where you conduct business
• Different forms for each city
• Generally due monthly or quarterly 

Property Taxes

Property tax applies to 14 of the 18 organized boroughs and 11 cities outside of organized boroughs. 

• Rates vary by locality
• Tax is set and managed by the local assessor of each borough
• To determine tax requirements for your LLC, contact your local assessor

Tax Calendar and Filing Tips

Key Deadlines for Alaska LLCs

January:

• January 2: Submit your LLC biennial report (every second year)
• January 15: Final estimated tax payment for previous year due

• January 31: Issue Forms W-2/Forms 1099 to employees/contractors
• January 31: Fourth quarter payroll tax payment due (state and federal) 

April:

• April 15: Federal income tax returns due
• April 15: Self-employment tax returns due 
• April 15: First quarter estimated tax payment due 
• April 30: First quarter payroll tax payment due (state and federal)

May: 

• May 15: Corporate income tax return due (C corps only) 

June: 

• June 16: Second quarter estimated tax due 

July: 

• July 31: Second quarter payroll tax payment due (state and federal) 

September:

• September 15:  Third quarter estimated tax payment due

October:

• October 31: Third quarter payroll tax payment due (state and federal)

Record-Keeping Checklist

Keep these records for at least seven years:

• Business income records (e.g., invoices and receipts)
• Expense receipts and documentation
• Bank and credit card statements
• Asset purchase and improvement records
• Vehicle mileage logs
• Home office documentation
• Payroll records
• Previous tax returns

Tax Strategies for Alaska LLCs

S Corporation Election Benefits

Converting your LLC to an S corp for tax purposes can help you save on self-employment taxes. To do this, you must:

1. File Form 2553 with the IRS
2. Pay yourself a “reasonable salary” subject to employment taxes
3. Take any remaining profits as distributions exempt from self-employment tax

Example: An LLC making $100,000 in profit pays 15.3% self-employment tax on the entire amount. As an S Corp, if $60,000 is a reasonable salary and $40,000 is taken as distributions, only the $60,000 is subject to employment taxes.

Potential Savings: In this example, you’d save about $6,120 in self-employment taxes.

Business Expense Deductions

Common deductions Alaska LLC owners often overlook include:

• Home office deductions
• Business mileage (70¢ per mile for 2025)
• Health insurance premiums
• Retirement plan contributions
• Professional development expenses
• Business meals (50% deductible)

Forms and Resources

Federal Tax Forms

• Schedule C: Profit or Loss From Business (sole proprietors)
• Form 1065: U.S. Return of Partnership Income
• Schedule K-1: Partner’s Share of Income, Deductions, Credits
• Form 1120-S: U.S. Income Tax Return for an S Corporation
• Form 2553: Election by a Small Business Corporation (S Corp)
• Form 8832: Entity Classification Election

Alaska Tax Forms

• Form TQ01C: Alaska Employee Security Tax (Unemployment Insurance) 
• Form 6000: Alaska Corporation Net Income Tax Return

Helpful Resources

• Alaska Department of Revenue – Tax Division
• Alaska Department of Commerce, Community, and Economic Development 
• Internal Revenue Service