Benefits of Starting an LLC in North Dakota
North Dakota offers several standout advantages for LLC owners, from unique entity options to privacy protections that many neighboring states lack.
Series LLC Option
North Dakota is one of the few states that allows series LLCs, letting you create separate divisions with isolated liabilities under a single parent entity.
Anonymous LLC Formation
You can form an anonymous LLC in North Dakota, keeping member and manager names off public filings for an extra layer of privacy.
No Franchise Tax
North Dakota does not impose a franchise tax or privilege tax on LLCs, reducing your ongoing state-level costs.
No Publication Requirement
Unlike states such as New York and Arizona, North Dakota does not require you to publish a notice of LLC formation in any newspaper.
Quick Facts About a North Dakota LLC
1Name Your North Dakota LLC
Your LLC name must be distinguishable from every other business entity on file with the North Dakota Secretary of State. It must include one of these designators:
- “Limited Liability Company”
- “LLC”
- “L.L.C.”
Certain words like “bank,” “insurance,” or “engineering” may require additional licensing or approval from a state board before they can appear in your LLC name.
Use the North Dakota business name search to check whether your desired name is available. Search for close variations too, since names that are only slightly different from an existing entity may still be rejected.
Reserving Your Name
If you are not ready to file immediately, you can reserve your LLC name for 365 days for a $10 fee. This is optional but useful if you need time to finalize your operating agreement, secure funding, or line up a registered agent.
2Choose a Registered Agent in North Dakota
Every North Dakota LLC must designate a registered agent. This is the person or company authorized to receive legal documents, service of process, and official state correspondence on behalf of your LLC.
Your registered agent must meet these requirements:
- Have a physical street address in North Dakota (P.O. boxes are not allowed)
- Be available during normal business hours to accept documents
- Be either an individual resident of North Dakota or a business entity authorized to operate in the state
You have three options:
- Be your own registered agent. Allowed if you have a qualifying North Dakota address. This means your name and address become part of the public record, and you must be present during business hours.
- Appoint someone you know. A friend, family member, or business associate who lives in North Dakota and agrees to the responsibility.
- Hire a professional registered agent service. This keeps your personal address off public filings, provides reliable document handling, and frees you from being tied to one location. Most services charge $100 to $300 per year.
You can compare North Dakota registered agent services to find the best fit for your situation.
Yes. North Dakota requires every LLC to maintain a registered agent with a physical street address in the state at all times. You can serve as your own agent, appoint someone you trust, or hire a professional service.
Our Pick for Registered Agent
Northwest Registered Agent
Northwest provides a North Dakota street address, scans and forwards all legal documents, and shields your personal address from public filings.
We recommend Northwest for their transparent pricing, privacy-first approach, and responsive customer support.
3File Your Articles of Organization
Filing your articles of organization with the North Dakota Secretary of State is the step that officially creates your LLC. North Dakota handles all filings through its FirstStop online portal.
Your articles of organization will include:
- LLC name (with required designator)
- Registered agent name and physical address
- Principal office address
- Duration of the LLC (perpetual or a specific end date)
- Whether the LLC is member-managed or manager-managed
- Name and address of the organizer
| Filing Method | Fee | Processing |
|---|---|---|
| Online | $135 | 5 business days |
The $135 filing fee covers the creation of your LLC entity. It does not include name reservation ($10) or trade name registration ($25), which are separate filings if needed.
North Dakota processes LLC formations through its online FirstStop portal. This is the primary filing method and typically takes about 5 business days.
Want someone to handle all this for you?
ZenBusiness
ZenBusiness prepares and files your North Dakota articles of organization, handles compliance reminders, and gets you up and running without the paperwork.
Their free starter plan covers formation filing and a year of registered agent service, making it the most affordable hands-off option.
4Get an EIN for Your North Dakota LLC
An Employer Identification Number (EIN) is a federal tax ID for your LLC. You need one if you have employees, have multiple members, or want to open a business bank account (which you should). The IRS issues EINs for free.
Apply online at the IRS EIN application page. The process takes about 5 minutes and you receive your number immediately.
5Create an Operating Agreement
North Dakota does not legally require an operating agreement, but you should create one regardless. This internal document defines how your LLC operates and prevents disputes by putting rules in writing before any conflict arises.
A solid operating agreement covers:
- Ownership percentages and capital contributions
- How profits and losses are distributed
- Voting rights and decision-making authority
- What happens if a member leaves, dies, or wants to sell their interest
- Procedures for adding new members
- Dissolution terms
Even single-member LLCs benefit from an operating agreement. It reinforces the legal separation between you and your business, which is essential for maintaining liability protection.
It is not legally required, but it is strongly recommended. An operating agreement protects your limited liability status, clarifies member roles, and prevents the state’s default rules from controlling your business decisions.
6Open a Business Bank Account
Open a dedicated bank account for your LLC as soon as your formation is approved. Mixing personal and business finances undermines your liability protection and can lead to “piercing the corporate veil,” where a court holds you personally responsible for LLC debts.
Bring these items to the bank:
- Filed articles of organization (or certificate of organization)
- Your EIN confirmation letter
- Your operating agreement
- A valid government-issued photo ID
How Much Does a North Dakota LLC Cost
Here is a full breakdown of the costs involved in forming and maintaining a North Dakota LLC.
| Item | Cost | Frequency | Notes |
|---|---|---|---|
| Articles of Organization (online) | $135 | One-time | Filed through the FirstStop portal |
| Name Reservation | $10 | One-time | Optional, holds name for 365 days |
| Registered Agent Service | $100 – $300 | Annual | Free if you serve as your own agent |
| EIN | $0 | One-time | Free from IRS |
| Operating Agreement | $0 – $200 | One-time | Free if DIY, or pay an attorney/service |
| Annual Report | $50 | Annual | Due November 15 each year |
| Certificate of Good Standing | $20 | As needed | Sometimes required by banks or lenders |
Articles of Organization (online)
$135 · One-timeFiled through the FirstStop portal
Name Reservation
$10 · One-timeOptional, holds name for 365 days
Registered Agent Service
$100 – $300 · AnnualFree if you serve as your own agent
EIN
$0 · One-timeFree from IRS
Operating Agreement
$0 – $200 · One-timeFree if DIY, or pay an attorney/service
Annual Report
$50 · AnnualDue November 15 each year
Certificate of Good Standing
$20 · As neededSometimes required by banks or lenders
How Does North Dakota Compare
North Dakota Filing Fee
$135
National Average
$127
North Dakota’s $135 filing fee is just slightly above the national average. When you factor in the lack of franchise tax, no publication requirement, and access to both series and anonymous LLCs, the overall cost of doing business here remains very competitive.
North Dakota LLC Taxes
State Income Tax
North Dakota has a state income tax. Your LLC’s income will pass through to your personal tax return by default, and you will pay North Dakota individual income tax on those earnings. North Dakota’s income tax rates are among the lowest in the country, which keeps the burden manageable for most small business owners.
The default federal tax classifications apply:
- Single-member LLC: Treated as a disregarded entity (taxed as a sole proprietorship)
- Multi-member LLC: Taxed as a partnership
You can elect S-corp or C-corp taxation with the IRS if a different classification better suits your situation.
Franchise Tax
North Dakota does not impose a franchise tax or privilege tax on LLCs. Your only ongoing state obligation is the annual report fee.
Sales Tax
North Dakota has a 5% state sales tax. If your LLC sells taxable goods or services, you must obtain a sales and use tax permit and collect sales tax from customers. Local jurisdictions may add additional sales tax on top of the state rate, so verify the combined rate for your area.
By default, a single-member LLC is taxed as a sole proprietorship and a multi-member LLC is taxed as a partnership. In both cases, profits pass through to the members’ personal tax returns and are subject to North Dakota individual income tax. You can elect S-corp or C-corp status with the IRS if you prefer different treatment.
After Forming Your North Dakota LLC
Annual Report
Every North Dakota LLC must file an annual report by November 15 each year. The fee is $50. File through the Secretary of State’s online portal by searching for your business and selecting the annual report filing option.
If you miss the November 15 deadline, a $50 late fee is added, bringing your total to $100. If the report remains unfiled for six months past the due date, the state can involuntarily terminate your LLC. Reinstatement after termination costs $135 plus all delinquent annual report fees and penalties.
BOI Report
As of March 2025, FinCEN revised the Beneficial Ownership Information (BOI) reporting rule so that it only applies to companies formed outside the United States. Domestic LLCs formed in North Dakota are exempt from BOI reporting.
Federal Tax Obligations
Regardless of your state obligations, your LLC must meet all federal tax requirements. This includes filing the appropriate income tax return (Form 1040 Schedule C for single-member LLCs, Form 1065 for multi-member LLCs) and paying self-employment taxes on net earnings. If you have employees, you must withhold and remit federal payroll taxes.
Yes. North Dakota requires every LLC to file an annual report by November 15 each year with a $50 fee. Failure to file results in a $50 late penalty, and prolonged non-compliance can lead to administrative dissolution of your LLC.
Dissolving a North Dakota LLC
If you decide to close your LLC, you must formally dissolve it with the North Dakota Secretary of State. Filing articles of dissolution costs $20. This formally notifies the state that your LLC is no longer in operation and stops future annual report obligations from accruing.
Before filing, you should:
- Settle all outstanding debts and obligations
- Distribute remaining assets to members according to your operating agreement
- File any outstanding annual reports
- Close your business bank account and cancel any licenses or permits
- File final state and federal tax returns
If your LLC was involuntarily terminated by the state for non-compliance (such as failing to file annual reports), reinstatement costs $135 plus all delinquent annual report fees and penalties. It is almost always cheaper to dissolve voluntarily than to let the state terminate you and then clean up the aftermath.
An LLC does not automatically expire in North Dakota. It exists in perpetuity unless you voluntarily dissolve it or the state involuntarily terminates it for non-compliance, such as failing to file annual reports. Voluntary dissolution costs $20.
Frequently Asked Questions
The minimum cost is $135 for the articles of organization filing. You may also want to budget $10 for a name reservation and $100 to $300 per year if you hire a professional registered agent. The annual report costs $50 per year after formation.
Online filings through the FirstStop portal are typically processed within 5 business days. North Dakota does not offer an expedited filing option, so plan accordingly if you need your LLC formed by a specific date.
Yes. North Dakota allows single-member LLCs. One person can form, own, and operate the LLC. A single-member LLC is taxed as a disregarded entity (sole proprietorship) by default.
North Dakota is a strong choice, especially if you value privacy or flexibility. It offers anonymous LLC formation, series LLCs, no franchise tax, and no publication requirement. The filing fee is close to the national average, and annual compliance costs are low at $50 per year.
