How to Start an LLC in North Dakota (Step-by-Step Guide)

If you’re considering forming a North Dakota LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and file your LLC Articles of Organization.

But there’s more.

Filing your Articles of Organization in North Dakota costs about $135, and they are approved in about five business days.

This guide compiles all the information you need to start an LLC in North Dakota today.

What Are the Steps to Start an LLC in North Dakota?

To start an LLC in North Dakota, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Designate a North Dakota registered agent
• Step 3. File North Dakota LLC Articles of Organization
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. File annual reports

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Name Your North Dakota LLC

Choosing a name for your LLC is a crucial first step. You must pick a distinctive name that is compliant with North Dakota law. This means your name should not be too similar to existing companies.

Search for your desired name on the North Dakota Secretary of State website. Make sure it is available and distinguishable. If a business already uses a similar name, consider a new option.

Your LLC name must include “Limited Liability Company” or one of its abbreviations: “L.L.C.” or “LLC.” If you skip this step, your name will not be accepted.

If you prefer a more casual name for marketing, you can register a trade name or DBA (doing business as) name. This name should also meet the same availability rules. For example, if you choose “Anne & Gilbert’s,” ensure no similar names exist.

If you’re not ready to file your LLC papers, you can reserve your name for one year. Submit a Reserved Name Application through the SOS “First Stop” website. This costs a small fee and keeps your name secure while you plan.

Finally, conduct a national trademark search to protect your brand. This step is essential so no one else can claim your name or a similar one after you start your business.

Step 2: Select a North Dakota Registered Agent

A registered agent is a person or business you appoint to receive legal documents for your LLC. These documents include essential papers like lawsuits, tax notices, and official government communications.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in North Dakota:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for North Dakota Registered Agents

North Dakota law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for North Dakota?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: File North Dakota LLC Articles of Organization

To start your LLC in North Dakota officially, you must file the Articles of Organization. This document is essential as it outlines your company’s basic information and officially registers it with the state.

To file your Articles of Organization in North Dakota, follow these steps:

Step #1. Complete the Form: Obtain and complete the Articles of Organization form from the North Dakota Secretary of State website.

When completing the Articles of Organization, ensure you have the following information ready:

• Formal Name of the LLC: You’ve chosen this name for your business.
• Registered Agent: Include the name and address of your registered agent, who will receive legal documents for your LLC.
• Principal Address: Provide the primary location where your business will operate.
• Organizers: List all organizers’ names and addresses, including at least one signature.
• Purpose Statement: Describe the purpose of your LLC.

Step #2: File Online or by Mail: You can file your Articles of Organization online through the North Dakota FirstStop application portal or by mailing the completed form to:

Business Registration Unit
Secretary of State
State of North Dakota
600 E Boulevard Ave Dept 108
Bismarck ND 58505-0500

Step #3: Pay the Filing Fee: The filing fee is $135. If you file online, you can pay this fee using a credit card.

Once your articles are filed, the state will review and approve them. This process usually takes up to five business days. After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

If you want to delay the official start of your LLC, you can note an alternative effective date on your form. You can postpone the establishment for up to 90 days.

Step 4: Prepare an Operating Agreement for your LLC

An operating agreement is an essential internal document for your LLC. It outlines how your business will be run and the rights and responsibilities of its members.

While North Dakota law does not require an operating agreement, it is highly recommended. This document can help prevent member misunderstandings and protect your business in disputes.

Here’s what an operating agreement typically includes:

• Business Name and Purpose: Clearly state your LLC’s name and what it does.
• Members’ Information: List all members and their ownership percentages.
• Management Structure: Describe how your LLC will be managed and who will make decisions.
• Meetings and Voting: Outline how meetings will be held and how votes are conducted.
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Creating an operating agreement can help your LLC maintain its limited liability status. Without it, you risk personal liability for business debts.

You can use online templates or consult a legal professional to draft your operating agreement. Be sure to customize it to fit the specific needs of your North Dakota LLC.

Creating an operating agreement may feel complex, but it’s essential for clarity.

It serves as your LLC’s rulebook, guiding operations and avoiding conflicts down the line. Keeping everyone on the same page is even more vital if you have partners.

Step 5: Obtain an EIN for Your LLC

An EIN, or Employer Identification Number, is a unique number the IRS assigns.

It is like a Social Security Number for your business. You’ll need it to open a business banking account, take out a business line of credit, and obtain specific permits.

In North Dakota, having an EIN is necessary for forming your LLC. It helps identify your business in all dealings with the IRS. Without it, you may face difficulties when working with suppliers or vendors.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: It takes at least 1-2 weeks.

Step 6: File a BOI Report

If you have formed an LLC in North Dakota, you may need to file a Beneficial Ownership Information (BOI) report. This requirement comes from the Corporate Transparency Act.

Key Details:

• The BOI report aims to improve transparency for businesses.
• It helps prevent illegal activities by requiring the disclosure of who owns or controls the company.

Who Should File?

If your LLC is not exempt, you must file a BOI report. Exempt entities generally include larger businesses and certain government bodies.

When to File:

• Companies created before January 1, 2024, have until January 1, 2025.
• New companies formed between January 1, 2024, and January 1, 2025, must file within 90 days.
• LLCs formed after January 1, 2025, must report within 30 days.

How to File:

• Visit the FinCEN BOIR e-filing page.
• Choose from the options available:
  • Initial Report
  • Correct Prior Report
  • Update Prior Report
  • Newly Exempt Entity
• Select “Initial Report” for new filings and click NEXT.

Information Needed:

• Business Name and Address: Your LLC’s official name and primary location.
• Owner Information: Names, addresses, and dates of birth for each beneficial owner.
• Identification Numbers: This could include Social Security numbers or tax ID numbers.

Provide accurate and complete information to avoid delays. Filing this report is a legal requirement and helps maintain transparency in business operations.

Step 7: File Annual Report for your North Dakota LLC

Every North Dakota LLC conducting business in the state is required to file an Annual Report each year. This is critical in ensuring your LLC remains compliant and maintains good standing with the North Dakota Secretary of State.

The primary purpose of the Annual Report is to ensure that your LLC’s contact information is kept current with the North Dakota Secretary of State.

Failure to file this report on time can result in late fees, and if ignored for an extended period, the Secretary of State may dissolve your North Dakota LLC.

Since 2019, all LLC Annual Reports in North Dakota must be filed online using the state’s FirstStop system.

The filing fee for the North Dakota LLC Annual Report is $50, due annually by the specified deadline.

The Annual Report is due by November 15th of each year. Your first report is due the year following your LLC’s approval. To find your approval date, check your LLC’s approval documents or search for the filing date on the North Dakota Business Search page.

For example:

• If your LLC was approved on September 10, 2024, your first Annual Report is due by November 15, 2025.
• If your LLC was approved on December 10, 2024, your first report is due by November 15, 2025.

If you miss the November 15th deadline, a $50 late fee is added to the $50 filing fee, totaling $100.

You have six months to submit the late report and pay the fee. If the report is not filed within this window, the Secretary of State will revoke your LLC’s charter, effectively dissolving it.

If your LLC is revoked, you can file for reinstatement within one year of the revocation. The reinstatement cost is $135, plus any overdue Annual Report fees and penalties (totaling $100).

If your LLC remains revoked for over a year, reinstatement can only be obtained through a court order.

What are the Different Methods To Start a North Dakota LLC?

When starting an LLC in North Dakota, you have several options. Each method has benefits and drawbacks, so it’s important to choose the one that best suits your needs.

DIY LLC Formation in North Dakota

Forming an LLC by yourself is a straightforward option. You will fill out and submit the North Dakota Articles of Organization and pay the required filing fee.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in North Dakota?

If you’re looking to start an LLC in Florida on a budget, the most affordable option is to do it online. By filing the Articles of Organization directly with the North Dakota Secretary of State, you can keep costs between $135, depending on your needs.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in North Dakota?

There are a myriad of North Dakota LLC services from which to choose. Choosing the wrong one can affect your North Dakota LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best North Dakota LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for one year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands in North Dakota LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in North Dakota?

Starting an LLC in North Dakota involves some essential costs. The main expense is the filing fee for the Articles of Organization, which is $135. You will pay it when you register your LLC.

Here’s a breakdown of the entire North Dakota LLC costs:

Requirement	Cost
New LLC Filing Fee (Articles of Organization)	$135
LLC Formation Service (optional)	$39 (via Northwest)
Registered Agent (optional)	$0 (via Northwest)
Annual Report	$50
Total Estimated Cost	$185 – $220

When forming a new company in North Dakota, budgeting about $185-$225 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

The most significant (and essential) expense for every North Dakota business owner is filing the Articles of Organization, which costs $135.

Pros and Cons of Forming an LLC in North Dakota

6 Important Things To Do After Creating Your North Dakota LLC

Several essential steps must be taken after forming your LLC in North Dakota. These actions ensure your business runs smoothly and complies with state and federal regulations.

Here are six essential things to consider.

1. Research the Best Licenses and Permits for Your Business

Every business may need specific licenses and permits to operate legally. Before you do so, review the local, state, and federal requirements.

A list of licensing requirements in North Dakota based on industry type can be found here.

Make a list of necessary permits. For example, if you plan to sell products, you might need a sales tax permit. If you’re running a construction business, you may need special licenses.

Failure to obtain the proper permits can lead to fines or shutdowns. Thus, thorough research is crucial.

2. Create Business Accounts for Your North Dakota LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds.

This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding North Dakota Tax Requirements and Managing Your Taxes

After establishing your LLC, you must be aware of your tax obligations. North Dakota has no franchise tax, but you may have other tax responsibilities, such as income and sales tax.

Register with the North Dakota Department of Revenue. This registration allows you to collect sales tax if applicable.

Funds should also be set aside for estimated taxes. To avoid penalties later, make quarterly payments based on your earnings.

4. File your Annual Report

Every North Dakota LLC conducting business in the state is required to file an Annual Report each year. This is critical in ensuring your LLC remains compliant and maintains good standing with the North Dakota Secretary of State.

Since 2019, all LLC Annual Reports in North Dakota must be filed online using the state’s FirstStop system.

The filing fee for the North Dakota LLC Annual Report is $50, due annually by the specified deadline.

The Annual Report is due by November 15th of each year. Your first report is due the year following your LLC’s approval.

If you miss the November 15th deadline, a $50 late fee is added to the $50 filing fee, totaling $100.

You have six months to submit the late report and pay the fee. If the report is not filed within this window, the Secretary of State will revoke your LLC’s charter, effectively dissolving it.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions.

Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Setup Your Business Online Presence (optional)

In today’s digital world, having an online presence is often crucial. Start by creating a professional website for your LLC. This site should include essential information about your products or services and contact details.

Consider setting up social media profiles. Platforms like Facebook and Instagram can help you connect with customers and promote your brand.

Think about investing in online marketing strategies. Tools like SEO and social media advertising can increase your visibility. Although optional, a solid online presence can significantly boost your business.

North Dakota LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

Knowing the different types of structures available in North Dakota is essential when starting a business. Understanding these structures can help you choose the best fit for your business goals and risk level.

Sole Proprietorship

A North Dakota sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk.

It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A North Dakota partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A North Dakota corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders.

A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in North Dakota

Starting an LLC in North Dakota is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

To start an LLC in North Dakota, follow these steps:

• Choose a name for your LLC.
• Appoint a registered agent.
• File Articles of Organization with the Secretary of State.
• Create an Operating Agreement to outline member roles.
• Obtain an EIN from the IRS
• File a BOI Report
• File an annual report.

The filing fee for the Articles of Organization is $135.

After forming your LLC, prepare for annual reports, which cost $50 yearly.

Learn More About Starting an LLC in North Dakota

If you need additional help to start an LLC in North Dakota, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in North Dakota?

Yes, you can change your registered agent in North Dakota. You must file a form with the Secretary of State to update your registered agent information.

How do I change my North Dakota LLC’s name?

To change the name of your LLC, you must file an amendment with the Secretary of State, include the new name, and pay the necessary fee.

How do I renew my North Dakota LLC?

Renewing your LLC involves filing an annual report with the Secretary of State and paying the renewal fee. The report must be filed on time to maintain your LLC.

How do I dissolve an LLC in North Dakota?

You must file a Certificate of Dissolution with the Secretary of State to dissolve your LLC. Make sure all debts are settled before you complete this process.

How do I add a member to a North Dakota LLC?

To add a member, you usually need to update your operating agreement and file an amendment with the Secretary of State if required.

How do I add a DBA to an LLC in North Dakota?

To add a Doing Business As (DBA) name, you must apply for an assumed name with the Secretary of State. There is a fee for this service.

Can a minor own an LLC in North Dakota?

Yes, a minor can own an LLC in North Dakota. However, their ability to enter into contracts may be limited.

When is the North Dakota Annual Report due?

Your LLC’s annual report is due on November 15th each year. Make sure to submit it on time to avoid penalties.

Does LLC expire in North Dakota?

An LLC does not automatically expire in North Dakota but must file annual reports to maintain its active status. Failure to do so can lead to dissolution.

Can a non-resident open an LLC in North Dakota?

Yes, a non-resident can open an LLC in North Dakota. However, they must have a registered agent with a physical address in the state.

Can I buy a house or car with my LLC in North Dakota?

Yes, you can buy a house or car in the name of your LLC. However, to maintain liability protection, ensure all transactions are properly documented.

Can you have multiple businesses under one LLC in North Dakota?

Yes, you can operate multiple businesses under one LLC in North Dakota. To keep each business identifiable, you would typically use DBAs.

Is North Dakota a good state to form an LLC? Is it worth it?

North Dakota has low filing fees and business-friendly regulations, making it attractive for forming an LLC. Whether it’s worth it depends on your business needs and goals.

Can one person form an LLC in North Dakota?

Yes, one person can form a single-member LLC in North Dakota. This structure offers liability protection while allowing you to control your business completely.