Before you form your North Dakota LLC, knowing the associated LLC formation costs is essential.
After years of helping people establish their North Dakota LLC, we 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.
This way, you can formulate an intelligent budget plan for your business venture.
Quick Summary
- File your North Dakota Articles of Organization with the North Dakota Secretary of State.
- Even though it is not a legal requirement, an operating agreement is legally enforceable if a problem arises among members.
- In North Dakota, an operating agreement isn't mandatory to form an LLC, but it's strongly recommended.
How Much Does An LLC Cost In North Dakota?
An LLC in North Dakota costs $135.
However, you should factor in other expenses, such as business licensing fees, registered agent fees, and business insurance premiums, that could impact your budget.
Let us discuss the expenses associated with forming a North Dakota Limited Liability Company by discussing each cost in-depth [1].
North Dakota LLC Filing Fee
The North Dakota LLC filing fee is $135 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 [2].
North Dakota LLCs are the most favored business entity in North Dakota due to their provision of protection from liabilities for their owners.
Depending on where you reside, the form used to generate your LLC may go by various names, such as Certificate of Formation or Organization and Articles of Organization.
However, it is most often known simply as Articles Of Organization.
The North Dakota Secretary of State charges a fee of $135 for filing an LLC.
You may also need to pay additional fees if you submit documents late, have additional business licenses or permits, or require other services.
North Dakota Annual Report Fee
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 $50 penalty fee.
Don't risk being late-ensure your business is compliant to avoid costly consequences.
North Dakota Registered Agent Service Fee
If you are forming an LLC in North Dakota, the law requires that you designate a LLC Registered Agent.
Fortunately, no filing fee is associated with listing this required agent on your Articles of Organization.
As an LLC, you are required to have a North Dakota Registered Agent.
This person or company will be responsible for receiving and processing any legal documents and state notices on behalf of your business.
Signing up for a North Dakota Registered Agent service, it's an ideal choice if:
- Registered Agents possess a physical address within the state. As per North Dakota Law, having a physical address is mandatory for one to be eligible and appointed as a Registered Agent.
- Privacy is important to you because some companies allow you to use their address instead of yours to keep your personal details confidential.
North Dakota Business License
Depending on the location of your LLC and its industry in North Dakota, you may be required to obtain supplementary Business Licenses or Permits.
For instance, a City Business Permit could prove necessary.
Explore the Department of Tax and Fee Administration to secure a sales tax permit.
Moreover, specific industries have special requirements for businesses needing licensing or permitting [3].
To begin operating your North Dakota foreign LLC, you must file for a state sales tax permit and any local or professional documents required by the state.
Other LLC Filing Costs
The following are some of the other North Dakota LLC fees that you may need to pay to keep your LLC up and running:
1. Certified Copies of Business Documents
When business owners require a certified copy of the North Dakota business documents, such as Articles of Organization for extending their operations to another state or opening up a bank account, North Dakota charges $20 and 50 cents per page for each document.
2. North Dakota Certificate of Good Standing
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).
Don't forget that having your North Dakota Certificate of Fact guarantees smooth operations when venturing into other states.
3. Business Insurance Premiums
Depending on the type of business you manage, obtaining liability insurance should be a consideration.
North Dakota's Workforce Safety and Insurance (WSI) is the only provider of workers' compensation insurance in the state, whose rates are slightly more than one dollar per every $100 of covered payroll [4].
4. Local Business License Fees in North Dakota
Obtaining a license for your business is typically required by most municipalities, with fees and requirements varying depending on the location.
For instance, Fargo necessitates $250 to be paid for licensing, while Bismarck only charges $75.
You can easily apply at your local city or county clerk's office to receive these licenses quickly and efficiently.
5. LLC Business Name Cost
Naming your Limited Liability Company won't cost you a penny.
In North Dakota, once the state approves the Articles of Organization filing, they will also approve your LLC name free of charge.
You might have read that an LLC Name Reservation would need to be acquired beforehand for one to form their company, but this isn't necessarily true in most states - no name reservation is required.
6."Doing Business As" (DBA) Name
When you submit a DBA, commonly referred to as a Trade Name, Fictitious Name, Assumed Name, or Fictitious Business Name in North Dakota for only $25, it is registered with the state or county.
It's an easy and affordable way to operate your business under another name without the hassle of changing official paperwork.
7. Operating Agreement Fee
North Dakota LLC Operating Agreement is an agreement between the members of your LLC that outlines all aspects of ownership, management, and profit distribution.
Whether you have a single-member or multi-member LLC, write up an operating agreement, keep a copy on file with other business records, and provide each member with their version.
8. LLC EIN Number Fee
An Employer Identification Number (EIN), or Federal Employer Identification Number (FEIN) as it is also known, serves various purposes associated with filing income taxes, opening an LLC business bank account, and hiring employees.
Obtaining one 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.
9. 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
Your North Dakota LLC taxes are unique to your industry and business activity, so it would be impossible for us to give you a general estimate.
Every company is distinct, and the specific conditions of your LLC will determine what type of taxes apply.
Your North Dakota LLC's state income tax or sales tax payments depend on your business revenue.
Therefore, if you want to learn more about taxes related to limited liability companies in the area, contact the North Dakota State Tax Commissioner.
For instance, you may require a sales permit for your LLC operations.
FAQs
How Much Does It Cost To Register A North Dakota Foreign LLC?
It costs $225 to register a North Dakota foreign LLC costs $225. This is the filing fee for submitting your application online and the feeis $235 to file by mail. You must apply and pay the state filing fee to form a Certificate of Authority in North Dakota. On top of that, if you need your documents processed quickly, there's an extra $100 for two-day processing or $250 for same-day processing.
Can I Form A Single-Member LLC In North Dakota?
Yes, you can form a single-member LLC in North Dakota. Although for most purposes, North Dakota single-member LLCs are treated as multi-member LLCs.
Do You Need Professional Help With Your North Dakota LLC?
With the North Dakota Secretary of State filing fee, business licenses and permits, state taxes, and annual report fee taken into account, the cost of forming an LLC in North Dakota is just over $135.
To guarantee that all crucial steps are conducted accurately based on your distinct case, 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.
These experts will guide your venture regarding North Dakota Laws, thus making sure that your business remains compliant at all times.
References:
- https://sos.nd.gov/business/business-services/business-structures/limited-liability-companies/limited-liability-company-llc/llc-fees.html
- https://northwestregisteredagent.com/forms/georgia/llc/articles-of-organization
- https://apps.nd.gov/tax/tap/_/
- https://www.workforcesafety.com/
