How Much Does an LLC Cost in North Dakota? (2024 Filing Fees)

Starting a Limited Liability Company (LLC) in North Dakota costs around $135, plus an annual report fee of $50 that must be paid annually to keep your LLC in good standing.

But there’s more!

Understanding these costs can help you budget better and avoid surprises.

In addition to the initial formation fee, you may need to consider expenses for a registered agent, securing an LLC name, a DBA (Doing Business As), and various licenses or taxes that could apply to your business.

Lets get into the full details.

How Much Does an LLC Cost in North Dakota?

Starting an LLC in North Dakota involves several costs.

Here’s a breakdown of the main expenses you should consider:

• Filing Fee: To file your Articles of Organization, you need to pay $135 to the North Dakota Secretary of State.
• Annual Report Fee: North Dakota requires an annual report. The fee is $50 when filed online.
• Registered Agent Services: Depending on your chosen service provider, hiring a registered agent can cost between $100 and $300 annually.
• LLC Name Reservation: If you want to reserve your LLC name, it costs $10.
• Certificate of Good Standing: This certificate costs $20, which includes a $15 certificate fee and a $5 search fee.
• DBA (Doing Business As): Registering a DBA will usually cost around $25 if you plan to operate under a different name.
• Licenses and Permits: Depending on your business type, you may need local or state licenses.
• Taxes: Depending on your business activities, you may be subject to business taxes, including income or sales taxes.

LLC Costs in North Dakota (Formation Fees)

Below is a table summarizing the key requirements and fees for starting an LLC in North Dakota.

North Dakota LLC Requirements	Cost
LLC Business Name Search	$0
Articles of Organization	$135
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$50/annually
LLC Name Reservation Fee (optional)	$10
North Dakota Certificate of Good Standing (optional)	$20
Foreign LLC Registration (optional)	$225
Fictitious Name (DBA) (optional)	$25
Taxes	Varies
State Business License Fees	$0
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in North Dakota	$185 – $629

Total LLC costs in North Dakota range from $185 to $629. If you do everything yourself and skip the optional extras, you might only spend around $185. However, if you decide to pay for additional services and requirements, your costs could go up to between $500 and $629.

The first mandatory expense is the $135 fee for filing the Articles of Organization, which is essential for officially establishing your LLC. You will also need to budget for the annual report, which costs $50 annually.

Now, let’s discuss the optional costs.

Additionally, conducting an LLC business name search is free, and obtaining an Employer Identification Number (EIN) is free from the IRS. An Operating Agreement is recommended but can be obtained at no cost using services like Northwest.

You may also want a North Dakota Certificate of Good Standing, which costs $20. Registering a foreign LLC in North Dakota incurs a fee of $225. Operating under a different name (DBA) costs $25.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300.

North Dakota LLC Business Name Search Cost ($0)

When starting an LLC in North Dakota, checking the availability of your desired business name is crucial. The good news is that this name search is free.

You can conduct this search on the North Dakota Secretary of State’s website. By doing this, you avoid potential conflicts with existing businesses. This helps ensure that your chosen name meets state requirements.

If the name is available, you can proceed to register it confidently. If not, you should consider alternatives.

Remember, your LLC name should comply with North Dakota’s naming rules. It must include “Limited Liability Company” or abbreviations like “LLC” or “L.L.C.”

Staying informed about these steps can save time and effort as you create your new business. Plus, since the name search is free, it’s a cost-effective first step in your LLC formation journey.

North Dakota Articles of Organization ($135)

You must file the Articles of Organization to form an LLC in North Dakota. This document is crucial as it officially establishes your limited liability company. The filing fee for the Articles of Organization is $135.

When you submit these articles, you give the state important details about your LLC, such as its name and purpose. The filing process can be done online through the North Dakota Secretary of State’s website or by mail.

It’s important to ensure that all information is accurate. Errors might require amendments, leading to additional costs and delays. The typical North Dakota LLC processing time depends on the filing method. Online filing takes five business days, while mail filing takes 2-3 weeks.

After your filing is approved, you will receive confirmation. This allows you to begin your business operations under the LLC structure.

LLC Operating Agreement Cost in North Dakota ($0 with Northwest)

Creating an LLC operating agreement in North Dakota can be done at no cost with services like Northwest Registered Agent. While it’s not a requirement, having this document helps clarify your LLC’s structure and rules.

Using Northwest, you can access free, attorney-drafted templates. These templates are designed to guide you in setting up the agreement that fits your needs.

Here are some key points about the operating agreement:

• Purpose: It defines how your LLC will operate, covering management, member roles, and voting rights.
• Flexibility: You can customize the agreement, making it adaptable to your situation.
• Importance: Having an agreement helps prevent conflicts among members by laying out clear expectations.

If you create the agreement yourself, you can save on costs while covering all necessary details. This option is especially useful for smaller LLCs or those just starting.

Registered Agent Fee ($0-$300/year)

When forming an LLC in North Dakota, you need a registered agent. This person or service receives legal documents on behalf of your business.

You have options for your registered agent. There are no fees if you choose to act as your registered agent. You only need to provide your name and address.

If you hire a North Dakota registered agent service, it will usually cost between $100 and $300 per year. This option offers more privacy and support, which can be helpful for your business.

For example, LegalZoom charges around $249 annually, while ZenBusiness offers services at $199 annually.

One notable choice is Northwest Registered Agent. They provide registered agent services for free during your first year if you hire them to form your LLC. After the first year, their fee is $125, which is quite competitive compared to other providers.

Most registered agent services in North Dakota charge around $300 annually, but you can find good deals if you explore.

EIN Cost in North Dakota ($0 from the IRS website)

You will also need an Employer Identification Number (EIN) when starting an LLC in North Dakota. The good news is that obtaining an EIN is free. You can get this number directly from the IRS website at no cost.

To apply for your EIN, simply complete the online application. This process is straightforward to follow. It allows you to receive your EIN almost immediately after completing the application.

If you prefer to apply by phone, call the IRS at 267-941-1099. Be sure that the person calling is authorized to receive the EIN. They will need to answer questions related to Form SS-4, which is the application for the Employer Identification Number.

North Dakota Annual Report ($50/annually)

In North Dakota, every LLC must file an Annual Report each year. The fee for this report is $50. It is important to keep this filing current to maintain your LLC’s good standing.

The Annual Report confirms your LLC’s information with the state. You must verify your business name, address, and management structure. Filing can be done online or via mail.

You must file your Annual Report by November 15th each year.

You will be charged a $50 late fee if you miss this deadline. If you are over 60 days late, the total cost will be $100. This includes the original fee plus the late penalty.

Make sure to keep track of your filing date. You have a six-month window to file if you are late. After this period, failure to file may result in your LLC being administratively dissolved.

LLC Name Reservation Fee in North Dakota ($10)

When starting your LLC in North Dakota, you may want to reserve a name first. This helps ensure that no one else uses your chosen name before you file. The fee for reserving a business name is $10.

To reserve your name, you’ll need to check its availability. You can do this through the North Dakota Secretary of State’s website. You can submit a reservation request once you confirm that your desired name is open.

The name reservation is valid for 12 months. This gives you ample time to prepare your LLC’s formation documents without worrying about someone else taking your name.

Fictitious Name/DBA Cost in North Dakota ($25)

If you want to operate your business under a name different from your LLC, you must file for a Doing Business As (DBA) name. In North Dakota, registering your DBA costs $25.

This fee is applicable whether you are setting up a new DBA or renewing an existing one. The DBA registration lasts five years, after which it must be renewed.

You will receive a renewal form from the Secretary of State 60 to 90 days before expiration. This helps you stay on top of your business name registration without worrying about missing deadlines.

North Dakota Certificate of Good Standing ($5)

In North Dakota, if you want a Certificate of Good Standing, it is officially called a Certificate of Fact. This certificate shows that your LLC complies with state regulations.

The cost for obtaining this certificate is $20. This includes a $15 fee for the certificate and a $5 fee for the search of state records.

It’s essential to keep your LLC’s status current. You need this certificate to open a bank account or apply for loans. It can also be required for contracts and other business dealings.

When you request your certificate, ensure your LLC complies with North Dakota’s regulations. This will ensure that your request is processed without delays.

North Dakota Foreign LLC Registration Fee ($225)

If you want to operate a foreign LLC in North Dakota, you must pay a registration fee of $225. This fee covers your application to file the Certificate of Authority with the Secretary of State.

You must submit the Certificate of Authority Foreign Limited Liability Company Application to start. This document shows that your LLC was formed in another state but now wants to do business in North Dakota.

North Dakota State Business License Fee ($0)

In North Dakota, you may not need to pay a fee for a state business license. Instead, many businesses require a sales tax permit, which allows you to collect sales tax from customers.

The good news is that applying for this sales tax permit is free. This means you can focus on the other aspects of starting your business without worrying about additional fees.

To apply, you should do so at least 30 days before your business opens. This timeline ensures you are ready to comply with state regulations as you start operations.

North Dakota LLC Taxes (varies)

In North Dakota, your LLC taxes can vary based on several factors. Generally, LLCs do not pay federal or state-level company taxes. Instead, profits go directly to the individual members, who report them on personal tax returns.

• Federal Taxes: LLC members pay self-employment taxes at a rate of 15.3%. This includes 12.4% for Social Security and 2.9% for Medicare.
• State Income Tax: You must file state income tax as an individual member based on your LLC’s profits.
• Local Income Tax: Depending on your location, local taxes may apply.
• Sales Tax: You may need a sales tax permit to sell taxable goods or services.
• Payroll Tax: If you have employees, payroll taxes will apply.
• Property Tax: This is relevant if your LLC owns the property.

Your total tax responsibilities can differ greatly. They depend on your industry and how much business activity your LLC has.

North Dakota LLC reinstatement fee ($135)

If your LLC in North Dakota has been dissolved or revoked, you can reinstate it by paying a fee of $135. This process allows you to bring your business back into good standing.

You must submit your most recent past-due annual report to start the reinstatement. Along with the reinstatement fee, you’ll also need to pay any outstanding annual report fees, typically around $100.

This includes a base filing fee of $50 and a penalty of $50.

It’s important to note that you can file for reinstatement up to one year after your LLC has been revoked. This gives you some time to arrange your documents and fees.

Prepare the necessary documents and gather all fees before contacting the Secretary of State. This process is normally handled online, making it relatively straightforward to get your LLC back up and running.

North Dakota LLC dissolution fee ($10)

To dissolve your LLC in North Dakota, you must file an Article of Dissolution. This process involves a fee that is important to know. The total cost includes a $20 filing fee and an additional $10 for the Notice of Dissolution.

When you prepare your documents, ensure all details are accurate. You can pay online or by check when mailing your forms.

Payment methods are important to check. If you file by fax, a credit card is the only option accepted. You can use a check for sending by mail.

North Dakota LLC Change of Registered Agent fee ($10)

The process is straightforward if you need to change your LLC’s registered agent in North Dakota. The fee for making this change is $10.

To initiate the change, you’ll need to fill out the required form, which can usually be found on the North Dakota Secretary of State’s website.

Once you complete the form, submit it along with your payment. You can pay the fee using a credit card or by check.

Remembering that a registered agent must have a physical address in North Dakota is important. This person or entity receives legal documents on behalf of your LLC.

The costs for their services may vary if you use a professional registered agent service. Generally, these services can charge between $50 and $300.

What is the Cheapest Way to Start North Dakota LLC?

You have a couple of affordable options to start an LLC in North Dakota.

The two most common methods are doing it yourself (DIY) or using an online LLC service. Both methods can keep your costs low, especially if you want to save money.

If you choose to DIY, you must file the Articles of Organization with the North Dakota Secretary of State. The filing fee is $135. This can be done online, which is convenient and saves time. By handling everything yourself, you avoid extra service fees.

Using an LLC service can be cost-effective, too. Some services charge as low as $29 plus state fees. These services help you prepare the necessary documents. They often guide you through the process, which can be helpful if you’re unsure about the steps.

However, even though DIY is cheaper, there are drawbacks. If you make a mistake on your forms, it could lead to delays or extra fees. Online services can reduce that risk, but you’ll spend more.

The cheapest way is to file yourself. Just remember that you must be careful with the paperwork. Taking your time can save you money and avoid headaches later on.

Should You Use an LLC Formation Service in North Dakota? (here’s why)

For many reasons, using an LLC formation service in North Dakota can be a smart move. First, it saves you time.

Filing the Articles of Organization can be confusing, and a service handles all that paperwork.

• Peace of Mind: Using a professional formation service ensures your LLC is set up correctly, giving you confidence that everything is handled accurately and according to state requirements.
• Compliance Assurance: These services manage ongoing compliance with state laws, including tracking deadlines and completing necessary paperwork, so you don’t have to worry about missing important forms or deadlines.
• Privacy Protection: Employing a registered agent service keeps your address off public records, protecting your privacy and reducing the risk of unwanted solicitations.
• Access to Expert Guidance: Many services offer free consultations with LLC formation experts and attorneys, providing valuable advice and support to help you navigate the process and address any questions.
• Support for Navigating Regulations: Expert professionals help you understand and comply with North Dakota’s specific regulations, offering reassurance and guidance that are especially useful for first-time business owners.

Frequently Asked Questions

Is North Dakota a good state to form an LLC?

North Dakota can be a good state for forming an LLC. It offers favorable tax conditions and a straightforward registration process. However, consider your specific business needs and market before deciding.

Do I need a business license for an LLC in North Dakota?

Yes, you may need a business license or permits depending on your business type and location. It’s best to check with local city or county offices to understand the requirements for your specific business.

What are the benefits of an LLC in North Dakota?

An LLC provides personal liability protection for its owners. This means your assets are generally safe from business debts. Additionally, LLCs offer flexible tax treatment and less formalities compared to corporations.

How much does it cost to reinstate an LLC in North Dakota?

To reinstate an LLC in North Dakota, you may need to pay a reinstatement fee of $135. This is in addition to any past-due annual fees that may have accumulated during the period of inactivity.

How much does it cost to dissolve an LLC in North Dakota?

Dissolving an LLC in North Dakota costs $10. This fee is paid when filing the Articles of Dissolution with the Secretary of State.

Do I need an attorney to form an LLC in North Dakota?

You are not required to hire an attorney to form an LLC in North Dakota. Many people successfully set up their LLCs using online resources and state instructions. However, consulting an attorney can help clarify any complex issues.

Should I hire an LLC formation service in North Dakota?

Hiring an LLC formation service can simplify the process, especially for first-timers. These services often ensure your paperwork is complete and filed correctly, saving you time and potential errors.

Are there penalties for paying my fees late in North Dakota?

Yes, if you pay your fees late in North Dakota, you may face penalties. These could include late fees or a delay in processing your annual reports. It’s important to keep track of your due dates.

What happens if I do not file my North Dakota LLC annual report?

If you do not file your annual report, your LLC may become inactive or administratively dissolved. This could affect your ability to conduct business legally in the state until you address the issue.