Before You Start
Before conducting affairs in Alaska, a foreign LLC shall register with the Department of Commerce, Community, and Economic Development. Corporations are subject to the same requirement. The following are not considered to be “conducting affairs” in Alaska:
(1) maintaining, defending, or settling a court action or other proceeding or a claim;
(2) holding meetings of the members or managers of the company or directors or shareholders;
(3) maintaining bank accounts;
(4) selling through independent contractors;
(5) soliciting or procuring orders by mail, through employees, agents, or otherwise, if the orders require acceptance outside the state before becoming binding contracts;
(6) creating as borrower or lender, or acquiring, indebtedness or mortgages or other security interests in real or personal property;
(7) securing or collecting debts, or enforcing rights in property securing debts;
(8) conducting an isolated transaction that is completed within 30 days and that is not part of a course of repeated transactions of a similar nature;
(9) conducting affairs in interstate commerce; or
(10) maintaining an office or agency for the transfer, exchange, and registration of securities of the corporation, or appointing and maintaining a trustee or depository for the securities of the company.
As a general matter, Alaska’s threshold to collect and remit sales tax is $100,000 in statewide gross receipts or 200 separate transactions but Alaska does not collect a state sales tax but rather facilitates the rules and requirements for each of its municipalities to collect sales tax. As a result, the current rates fluctuate from 1.5% to 7% depending on where you are shipping goods or providing taxable services.