Alaska vs Hawaii LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Alaska charges $250 to form an LLC; Hawaii charges $51. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.
Over a rolling three-year window, Hawaii runs about $304 less in total state fees than Alaska. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
On speed, Alaska typically clears standard online filings faster than Hawaii. Both states offer expedited tiers at an additional cost for filers on tight timelines.
For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.
Key differences at a glance
- Hawaii costs $199 less to form ($51 vs $250).
- Hawaii is $35 per year cheaper to maintain ($115 vs $150).
- Alaska has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.
Where each state fits
For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.
What each state offers that the other does not
Only Alaska
- No state income tax
Only Hawaii
- Paid expedited tier
Both states
- Online filing
- No state sales tax
- No entity-level franchise or LLC tax
- No publication requirement
- Operating agreement not statutorily required
Three-year cost, side by side
Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.
Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).
What it costs under your specific situation
The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.
| Scenario | Year 1 | Each year after | 3-year total |
|---|---|---|---|
| You live in Alaska, business operates there No foreign LLC registration needed. You pay Alaska fees only. | $400 | $150 | $700 |
| You live in Hawaii, business operates there No foreign LLC registration needed. You pay Hawaii fees only. | $166 | $115 | $396 |
| Non-resident forming in Alaska with operations elsewhere You pay Alaska's fees plus a typical home-state foreign LLC registration of about $200 per year. | $600 | $350 | $1,300 |
| Non-resident forming in Hawaii with operations elsewhere You pay Hawaii's fees plus a typical home-state foreign LLC registration of about $200 per year. | $366 | $315 | $996 |
Alaska vs Hawaii: full comparison
| Dimension | Alaska | Hawaii |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 1 business day | 5 business days |
| Expedited option Paid fast-track filing | Not offered | $25 |
| Annual report Required in addition to tax | Required, $100 | Required, $15 |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | None | None |
| State income tax On pass-through LLC income at member level | No | Yes |
| Publication requirement Newspaper publication after formation | No | No |
| Operating agreement Required by state statute | Recommended, not required | Recommended, not required |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $350 | $51 |
| State sales tax General statewide rate | None | None |
Taxes in Alaska and Hawaii
How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.
Alaska tax
No entity-level franchise tax on LLCs. No state income tax. Corporate rate 9.4%.
Hawaii tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 6.4%.
Ongoing compliance
The recurring filings each state requires after formation.
Alaska
Annual report $100, due 01/02 each year. Registered agent required in Alaska.
Hawaii
Annual report $15, due on your anniversary month. Registered agent required in Hawaii.
Formation process, side by side
What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.
Alaska
- Check business-name availability on the Alaska entity search.
- Appoint a registered agent with a physical Alaska street address.
- File Articles of Organization (form 08-484) for $250.
- Wait for approval. Online typically 1 business days. No paid expedite offered.
- Adopt an operating agreement (recommended, not required by Alaska statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $100 when it comes due.
Hawaii
- Check business-name availability on the Hawaii entity search.
- Appoint a registered agent with a physical Hawaii street address.
- File Articles of Organization for Limited Liability Company (Form LLC-1) for $51.
- Wait for approval. Online typically 5 business days. Paid expedite from $25.
- Adopt an operating agreement (recommended, not required by Hawaii statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $15 when it comes due.
Before you pick either state
A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.
Registered agent is non-negotiable. Both Alaska and Hawaii (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.
Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Alaska or Hawaii does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.
EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.
Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.
Agency contacts
Alaska Division of Corporations, Business and Professional Licensing (Corporations Section)
- Website
- www.commerce.alaska.gov/web/cbpl/Corporations.aspx
- Phone
- (907) 465-2550
- corporations@alaska.gov
- State of Alaska, Corporations Section, P.O. Box 110806, Juneau, AK 99811-0806
- Office
- State Office Building, 333 Willoughby Avenue, 9th Floor, Juneau, AK 99801-1770
- Hours
- 8:00 AM to 4:30 PM Alaska Time, Monday to Friday (Juneau office)
Hawaii Department of Commerce and Consumer Affairs - Business Registration Division
- Website
- cca.hawaii.gov/breg
- Phone
- (808) 586-2727
- breg@dcca.hawaii.gov
- Business Registration Division, Department of Commerce and Consumer Affairs, P.O. Box 40, Honolulu, HI 96810
- Office
- 335 Merchant Street, Room 201, Honolulu, HI 96813
- Hours
- 7:45 AM to 4:30 PM Hawaii-Aleutian Standard Time, Monday to Friday
Alaska Department of Revenue, Tax Division
- Website
- tax.alaska.gov
- Phone
- (907) 269-6620
- Alaska Department of Revenue, Tax Division, P.O. Box 110420, Juneau, AK 99811-0420
- Office
- 550 W. Seventh Ave., Suite 500, Anchorage, AK 99501-3555
- Hours
- 8:00 AM to 4:30 PM Alaska Time, Monday to Friday
Hawaii Department of Taxation
- Website
- tax.hawaii.gov
- Phone
- (808) 587-4242
- Department of Taxation, P.O. Box 259, Honolulu, HI 96809-0259
- Office
- 830 Punchbowl Street, Honolulu, HI 96813-5094
- Hours
- 7:45 AM to 4:00 PM Hawaii-Aleutian Standard Time, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in Alaska or Hawaii?
Hawaii is cheaper at formation ($51) than Alaska ($250). Ongoing costs are also different: $115 vs $150 per year. Total over three years: $396 vs $700.
-
Can I form an LLC in Alaska if I live in Hawaii?
Yes, but your Hawaii business will almost certainly need to register as a foreign LLC in Hawaii too, which means paying Hawaii's foreign registration fee and any ongoing Hawaii obligations on top of the Alaska ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
-
How long does it take to form an LLC in Alaska vs Hawaii?
Alaska online: 1 business day; Hawaii online: 5 business days. Alaska does not offer paid expedite. Hawaii offers paid expedite from $25.
-
Which state has lower taxes for an LLC, Alaska or Hawaii?
Alaska: no state income tax, no entity-level franchise or LLC tax. Hawaii: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
-
Do both states require a registered agent?
Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Alaska and Hawaii both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
-
Which state should I pick if I run an online business from home?
Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Alaska or Hawaii to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.
Full state guides
More Alaska and Hawaii comparisons
More Alaska vs ...
Sources
- Filing fee: www.commerce.alaska.gov/web/Portals/5/pub/08-484.pdf · verified April 21, 2026
Alaska Articles of Organization (form 08-484) instructions, citing AS 10.50.075: Filing Fee $250.00 for a domestic LLC. Same fee online and by mail. Online filings are immediate; hardcopy filings take 10 to 15 business days. - Expedited filing: www.commerce.alaska.gov/web/cbpl/Corporations/CorpFormsFees.aspx · verified April 21, 2026
Alaska Corporations Section does not offer a separate expedited service tier. Online filings post immediately; there is no faster paid option. - Foreign LLC registration fee: www.commerce.alaska.gov/web/Portals/5/pub/08-497.pdf · verified April 21, 2026
Certificate of Registration for a Foreign Limited Liability Company (form 08-497) under AS 10.50.615: filing fee $350.00. - Annual report fee: www.commerce.alaska.gov/web/cbpl/Corporations/BiennialReportsFAQs.aspx… · verified April 21, 2026
Domestic LLC biennial report fee: $100.00 (or $137.50 after February 1 with $37.50 late penalty). Foreign LLC biennial report fee: $200.00 (or $247.50 late). Due January 2 every two years, based on formation year parity (odd-year or even-year cycle). Initial Report is a separate filing due within 6 months of formation with no fee. - Operating agreement requirement: www.commerce.alaska.gov/web/Portals/5/pub/08-484.pdf · verified April 21, 2026
Form 08-484 instructions: members of an LLC may adopt an operating agreement but the State does not require it to be filed. Alaska Statutes Title 10 Chapter 50 does not require a written operating agreement. - Online filing portal: www.commerce.alaska.gov/CBP/Corporation/startpage.aspx?file=CRFIL&enti… · verified April 21, 2026
Alaska Corporations Online Filing portal for domestic LLC Articles of Organization. Online filings post immediately to the state entity database. - Business name search: www.commerce.alaska.gov/cbp/main/search/entities · verified April 21, 2026
Alaska CBPL Corporations entity search. Use to confirm name availability before filing Articles of Organization. - Franchise tax: tax.alaska.gov/ · verified April 21, 2026
Alaska Department of Revenue Tax Division publishes no franchise tax on LLCs. The biennial report fee and the separate business license fee are administrative filing fees, not franchise taxes. - Corporate income tax rate: tax.alaska.gov/programs/programs/index.aspx?60380 · verified April 21, 2026
Alaska imposes a graduated corporate income tax with ten brackets, topping out at 9.4%. This applies to C-corporations and to LLCs that elect C-corp treatment, not to default pass-through LLCs. - Sales tax rate: tax.alaska.gov/ · verified April 21, 2026
Alaska has no statewide sales tax. Individual boroughs and municipalities may levy local sales taxes (typically 1% to 7.5%), but there is no state-level rate. - Certificate of Formation form: www.commerce.alaska.gov/web/Portals/5/pub/08-484.pdf · verified April 21, 2026
Official Articles of Organization (form 08-484, Rev. 01/07/2013) for a domestic Alaska LLC. Use for hardcopy filings; online filings use the Corporations Online Filing portal instead. - Naming rules: www.commerce.alaska.gov/web/cbpl/BusinessLicensing/SelectaBusinessName… · verified April 21, 2026
Alaska Division of Corporations guidance on selecting a business name, including the LLC naming rule that the name must contain limited liability company, L.L.C., or LLC. - Online filing portal: cca.hawaii.gov/breg/ · verified April 21, 2026
Hawaii BREG is launching a replacement business registration portal on April 27, 2026 (the legacy hbe.ehawaii.gov system went offline April 20). The new portal URL is not yet published. Until we can confirm the new direct URL, we point filers at the BREG division homepage, which lists the live online filing entry point. Re-verify once the new portal URL is announced. - Business name search: cca.hawaii.gov/business-check/ · verified April 21, 2026
DCCA Business Check is Hawaii's current live business-name search surface and remains the right entry point regardless of the BREG portal migration. - Filing fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Hawaii DCCA Business Registration Division Form Fee Schedule (Rev. 12/2022): Limited Liability Company Articles of Organization filing fee = $50.00. A $1.00 State Archives preservation fee (HRS Section 94-8) is also imposed on permanent documents collected by BREG, bringing the day-one total to $51.00. - Expedited filing: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Hawaii DCCA Form Fee Schedule: Expedited Review Fee = $25.00 (additional) for most LLC filings including Articles of Organization. Expedited online filings are typically processed in 1 to 3 business days per BREG guidance. - Foreign LLC registration fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Foreign LLC Application for Certificate of Authority filing fee = $50.00 plus $1.00 State Archives preservation fee = $51.00 day-one cost. - Operating agreement requirement: law.justia.com/codes/hawaii/title-23a/chapter-428/section-428-103/ · verified April 21, 2026
HRS Section 428-103 (Effect of operating agreement; nonwaivable provisions) permits but does not require an operating agreement. Hawaii Uniform Limited Liability Company Act does not require a written operating agreement. - Publication requirement: cca.hawaii.gov/breg/registration/dllc/ · verified April 21, 2026
Hawaii BREG LLC registration page and HRS Chapter 428 contain no publication requirement for LLCs. - Annual report fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Annual Report (Domestic/Foreign) LLC filing fee = $15.00 per Hawaii DCCA Form Fee Schedule. Due during the calendar quarter containing the LLC's registration anniversary per HRS Section 428-210. Late fee $10 per year. Authority confirmed via HRS Section 428-210. - Franchise tax: tax.hawaii.gov/geninfo/get/ · verified April 21, 2026
Hawaii Department of Taxation: no franchise tax on LLCs. The General Excise Tax (GET) is a gross receipts tax, not a franchise tax. LLCs owe GET on business activity, not a separate entity-level franchise or privilege tax. - Corporate income tax rate: taxfoundation.org/location/hawaii/ · verified April 21, 2026
Hawaii corporate income tax: 4.4% on income up to $25,000, 5.4% on $25,001 to $100,000, 6.4% on income above $100,000. Record top marginal rate 6.4% as the income-only max. LLCs that default to pass-through do not owe this tax. - Sales tax rate: tax.hawaii.gov/geninfo/get/ · verified April 21, 2026
Hawaii has no retail sales tax. The General Excise Tax (GET) at 4% state plus 0.5% county surcharge is a gross receipts tax on the business. Recorded salesTaxRate as 0 per schema convention (statewide retail sales rate). GET nuance captured in taxes.notes. - Business name search: hbe.ehawaii.gov/documents/search.html · verified April 21, 2026
Hawaii Business Express (HBE) document and entity search. Confirm name availability before filing. Note: HBE is being replaced by a new BREG portal on April 27, 2026; URLs may update. - Certificate of Formation form: files.hawaii.gov/dcca/breg/registration/forms/llc-1.pdf · verified April 21, 2026
Official Form LLC-1 Articles of Organization for Hawaii LLC, published by DCCA Business Registration Division. Can be filed online via HBE, by mail, fax, email, or in person.