Is it cheaper to form an LLC in Alaska or Texas?

Alaska is cheaper at formation ($250) than Texas ($300). Ongoing costs are also different: $150 vs $100 per year. Total over three years: $700 vs $600.

Can I form an LLC in Alaska if I live in Texas?

Yes, but your Texas business will almost certainly need to register as a foreign LLC in Texas too, which means paying Texas's foreign registration fee and any ongoing Texas 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 Texas?

Alaska online: 1 business day; Texas online: 13 business days. Alaska does not offer paid expedite. Texas offers paid expedite from $25.

Which state has lower taxes for an LLC, Alaska or Texas?

Alaska: no state income tax, no entity-level franchise or LLC tax. Texas: no state income tax, 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 Texas 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 Texas 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.

Alaska vs Texas LLC comparison

Alaska charges $250 to form an LLC; Texas charges $300. 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, Texas runs about $100 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 Texas. 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.

Formation filing fee

Alaska $250

Texas $300

Alaska saves $50

Year 1 total estimate

Alaska $400

Texas $400

Tied

Ongoing per year

Alaska $150

Texas $100

Texas saves $50

3-year total

Alaska $700

Texas $600

Texas saves $100

Key differences at a glance

Alaska costs $50 less to form ($250 vs $300).
Texas is $50 per year cheaper to maintain ($100 vs $150).
Texas imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Alaska does not.

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 sales tax
No entity-level franchise or LLC tax

Only Texas

Paid expedited tier

Both states

Online filing
No state income 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.

Alaska Texas

Year 1

$400

Year 2

$550

$500

Year 3

$700

$600

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 Texas, business operates there No foreign LLC registration needed. You pay Texas fees only.	$400	$100	$600
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 Texas with operations elsewhere You pay Texas's fees plus a typical home-state foreign LLC registration of about $200 per year.	$600	$300	$1,200

Alaska vs Texas: full comparison

Dimension	Alaska	Texas
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	1 business day	13 business days
Expedited option Paid fast-track filing	Not offered	$25
Annual report Required in addition to tax	Required, $100	Required, $0
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	None
State income tax On pass-through LLC income at member level	No	No
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	$750
State sales tax General statewide rate	None	6.3%

Taxes in Alaska and Texas

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%.

Texas tax

No entity-level franchise tax on LLCs. No state income tax.

Ongoing compliance

The recurring filings each state requires after formation.

Alaska

Annual report $100, due 01/02 each year. Registered agent required in Alaska.

Texas

Annual report $0, due 05/15 each year. Registered agent required in Texas.

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.

Texas

Check business-name availability on the Texas entity search.
Appoint a registered agent with a physical Texas street address.
File Certificate of Formation: Limited Liability Company (Form 205) for $300.
Wait for approval. Online typically 13 business days. Paid expedite from $25.
Adopt an operating agreement (recommended, not required by Texas 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 $0 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 Texas (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 Texas 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
Email: corporations@alaska.gov
Mail: 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)

Texas Secretary of State, Business & Commercial Section

Website: www.sos.state.tx.us/corp/index.shtml
Phone: (512) 463-5555
Email: corpinfo@sos.texas.gov
Mail: P.O. Box 13697, Austin, TX 78711-3697
Office: James Earl Rudder Office Building, 1019 Brazos Street, Austin, TX 78701
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Alaska Department of Revenue, Tax Division

Website: tax.alaska.gov
Phone: (907) 269-6620
Mail: 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

Texas Comptroller of Public Accounts

Website: comptroller.texas.gov
Phone: (800) 252-1381
Mail: P.O. Box 13528, Capitol Station, Austin, TX 78711-3528
Office: Lyndon B. Johnson State Office Building, 111 East 17th Street, Austin, TX 78774
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Alaska or Texas?

Alaska is cheaper at formation ($250) than Texas ($300). Ongoing costs are also different: $150 vs $100 per year. Total over three years: $700 vs $600.
Can I form an LLC in Alaska if I live in Texas?

Yes, but your Texas business will almost certainly need to register as a foreign LLC in Texas too, which means paying Texas's foreign registration fee and any ongoing Texas 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 Texas?

Alaska online: 1 business day; Texas online: 13 business days. Alaska does not offer paid expedite. Texas offers paid expedite from $25.
Which state has lower taxes for an LLC, Alaska or Texas?

Alaska: no state income tax, no entity-level franchise or LLC tax. Texas: no state income tax, 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 Texas 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 Texas 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

AlaskaOpen Alaska LLC guide →
TexasOpen Texas LLC guide →

More Alaska and Texas comparisons

More Alaska vs ...

More Texas 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.
Filing fee: www.sos.state.tx.us/corp/forms/205_boc.pdf · verified April 21, 2026
Texas Secretary of State Form 205 Certificate of Formation for an LLC. $300 filing fee stated on form instructions. Authority: Texas Business Organizations Code §4.152 (formation fees).
Filing fee: www.sos.state.tx.us/corp/sosda/index.shtml · verified April 21, 2026
SOSDirect service charges a 2.7% convenience fee on credit-card transactions on top of the $300 state fee. The stated filingFee of $300 is the statutory fee exclusive of the payment-processing surcharge.
Expedited filing: www.sos.state.tx.us/corp/options.shtml · verified April 21, 2026
Texas Secretary of State expedite service: $25 per document for expedited processing (typically 2 business days). Applies to paper filings mailed or delivered to the SoS. SOSDirect online filings are normally processed within a few business days without a separate expedite fee.
Annual report fee: comptroller.texas.gov/taxes/franchise/ · verified April 21, 2026
Texas LLCs file an annual Franchise Tax Report and Public Information Report with the Comptroller by May 15. No separate filing fee for the PIR. Under SB 3 (88th Leg., 2nd C.S., effective for reports due in 2024 and later), entities with total revenue at or below the no-tax-due threshold no longer file a No Tax Due Report but still file the PIR.
Franchise tax: comptroller.texas.gov/taxes/franchise/ · verified April 21, 2026
Texas Tax Code Chapter 171 (Franchise Tax). No-tax-due threshold raised to $2.47 million for reports due 2024 forward (SB 3, 2023). Rates: 0.375% retail/wholesale margin; 0.75% other. EZ computation 0.331% on revenue up to $20M (no deductions). Confirm current threshold on Comptroller site each year.
Operating agreement requirement: statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm · verified April 21, 2026
Texas Business Organizations Code §101.052 authorizes a company agreement (Texas's term for an operating agreement). Not required to be in writing or filed; LLC may operate under default statutory rules.
Foreign LLC registration fee: www.sos.state.tx.us/corp/forms/304_boc.pdf · verified April 21, 2026
Texas Secretary of State Form 304 Application for Registration of a Foreign LLC. Filing fee $750. Authority: TBOC §9.001.
Publication requirement: statutes.capitol.texas.gov/Docs/BO/htm/BO.3.htm · verified April 21, 2026
Texas does not require newspaper publication for LLC formation. TBOC Chapter 3 governs formation filings without any publication requirement.
Business name search: mycpa.cpa.state.tx.us/coa/ · verified April 21, 2026
Texas Comptroller Taxable Entity Search (the broadly-used search for Texas business entities). SOSDirect also offers a paid name search for $1 per request.
Sales tax rate: comptroller.texas.gov/taxes/sales/ · verified April 21, 2026
Texas statewide sales and use tax rate is 6.25%. Local jurisdictions may add up to 2% for a maximum combined rate of 8.25%.

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