How Much Does An LLC Cost In North Dakota? (Filing Fees)
Before you form your North Dakota LLC, knowing the associated formation costs is essential.
As a Mergers and Acquisitions expert who helped entrepreneurs establish their North Dakota LLC, I eventually determined the costs for all necessary expenses in this process.
If you want to start an LLC in North Dakota, this article will provide the details on all associated fees and costs you need to know.
To guarantee that all crucial steps are conducted accurately, enlist the help of a professional.
Reaching out to an experienced LLC service in North Dakota will smooth the LLC formation process and provide you with further advice for your business.
Quick Summary
- An LLC in North Dakota costs $125 to file the Articles of Organization.
- Once the business has been approved, additional expenses include a registered agent service, business licenses and permits, annual reports, taxes, and other documentation.
- North Dakota’s LLC personal income tax has the lowest percentage at 2.9%, which makes the state ideal for starting a business.
- Based on my experience, North Dakota is an ideal state to start an LLC since it offers tax exemptions, variable profit distribution, and business incentives.
Cost to Start an LLC in North Dakota
Before you can form an LLC in North Dakota, there are mandatory and optional fees that the company has to cover.
1. LLC Formation Filing Fee ($125 - Mandatory)
The North Dakota LLC filing fee is $125 and requires submitting LLC Articles of Organization to the Business Registration Unit.
You can submit your documents by mail, fax, or online via FirstStop - the state's convenient and user-friendly online business portal.
When a client wanted to avail of the expedited service, we discovered that the state doesn’t currently offer one due to high volume of business filings.
2. Registered Agent Service Fee ($80-$300 – Optional)
If you are forming an LLC in North Dakota, the law requires that you designate an LLC Registered Agent.
You can appoint a member to be a registered agent or employ the services of one, which costs between $80 to $300.
This person or company will be responsible for receiving and processing any legal documents and state notices on behalf of your business.
3. Name Reservation Fee ($10 - Optional)
If you want to reserve a business name, you need to file a Reserve Name Application (SFN 13015), which costs $10. The LLC name won’t be available for other businesses for up to 12 months
Before filing, I ensure that the name is available and compliant with state guidelines.
Expenses Following the Approval of Your LLC
There are several additional expenses that arise from the company once it becomes operational.
1. Business License (Depending on Line of Business - Mandatory)
Obtaining a license for your business is typically required by most municipalities, with fees and requirements varying depending on the location and the nature of your business [1]. According to the North Dakota Taxpayer Access Point (TAP), over 90% of businesses in the state must comply with specific licensing requirements that are unique to their industry and locality.
I helped a client obtain professional license and business permits to operate a medical clinic in the state.
2. Annual Report Fee ($50 – Mandatory)
All North Dakota LLCs are required to submit their Annual Report to the Secretary of State no later than November 15th.
Submissions must be made through their official website, and those who miss this deadline will incur a $100 penalty fee.
3. Operating Agreement (Optional, but Recommended)
North Dakota LLC Operating Agreement is an agreement between the members of your LLC that outlines all aspects of ownership, management, and profit distribution.
You can draft the document by yourself or hire an online LLC formation service. A client of mine wanted to cut on expenses so they availed of an online template which costs $100.
Online formation services can provide your company with an operating agreement for $100 to $200.
"In North Dakota, while it's not mandatory to have an LLC operating agreement, it's strongly recommended. This agreement is crucial as it outlines the members' rights, responsibilities, powers, and liabilities both within the LLC and towards each other."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
4. Taxes
LLC owners should be aware of the taxes they must pay when filing, which include:
- Federal taxes
- State income tax
- Local income tax
- Business taxes
- Self-employment taxes
- Sales tax
- Payroll tax
- Property tax
The nature of your business will determine what type of taxes apply.
If you want to learn more about taxes related to limited liability companies in the area, contact the North Dakota State Tax Commissioner.
5. Certified Copies Of Business Documents ($15 + $5 per page - Optional)
North Dakota charges $15 and $5 cents per page for each document.
I advise clients to obtain copies of their business documents for filing purposes and to keep the entity legally protected.
6. Certificate Of Good Standing ($15 + $5 for the state’s record search)
A Certificate of Good Standing, or as it is known in North Dakota—a Certificate of Fact—is a vital document for any LLC looking to expand their business across state lines.
You can order this certificate by fax, mail, email, phone call, or even in person, and the cost only amounts to $20 ($15 for the certification itself and $5 for the state's record search).
7. DBA Name ($25 - Optional)
A DBA, commonly referred to as a Trade Name, Fictitious Name, Assumed Name, or Fictitious Business Name is filed to the Secretary of State along with the $25 state fee.
It's an easy and affordable way to operate your business under another name without the hassle of changing official paperwork.
8. EIN ($0 - Optional, but Recommended)
Obtaining an Employer Identification Number from the Internal Revenue Service (IRS) is free and only requires a few minutes. You only need to visit their website and complete the online form. According to IRS data, in 2020, over 75% of EIN applications were processed online, highlighting the efficiency and convenience of the digital application system.
When forming a limited liability company, I advise clients to obtain an EIN since it can be used to open an LLC bank account, file income taxes, and hire employees.
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FAQs
How Much Does It Cost To Register A North Dakota Foreign LLC?
It costs $225 to register a North Dakota foreign LLC, which covers the state fee for filing the Certificate of Authority.
What Payment Methods Can I Use To Pay North Dakota’s State Fees For Filing My LLC?
Money order, check, cashier’s check, and credit card are the payment methods you can use to pay North Dakota’s state fees for filing your LLC.
References:
- https://apps.nd.gov/tax/tap/_/
