Home Forums Hunting & Shooting Alaska Business, Corporate, & LLC taxes in Alaska?

Caught the Dan [bleep] show recently. I may have missed the full statement but I thought he said that Alaska corporate taxes are the worst in the US? Is that correct?

I understand that individuals don't pay state income tax in Alaska, is that also true if you form a limited liability corporation, (LLC)????

Of if you work for yourself with just a tax ID#???

I wouldn't count on most things that guy says...

can't speak for alaska but a couple of points you ought to understand. an llc stands for limited liability company not corporation and is taxed as a pass through like a partnership; i.e. no corporate tax liability attaches, any tax due is set at the individual member's marginal tax rate. and please please don't listen to the usual dribble from a bean counter about expensing so much you have no income to show. if you want to shield income then set up a qualified plan like a 401(k) or a variation thereof so you have the income but it is shielded from liability. Better yet, set up a ROTH 401(k), pay the tax now and take the future growth tax free.

and don't settle for anything less than a fee only certified financial planner.

In a nut shell in Alaska Corporations that are C status (regular) with IRS their net income is taxed. S corporations are not. An LLC that elects C corporate status are taxed as corporations. LLCs that elect either partnership or S corporation status are not taxed. No income tax on the self employed as soleproprietor. Since there is not Alaska income taxes on individuals here that means basically that Alaska shareholders of S Corparations and LLC's partners electing either S Corp or partnership tax status are not.