Quick answer

Quick Answer

To start a North Dakota LLC, you must file Articles of Organization with the North Dakota Secretary of State and pay a $135 filing fee. You are legally required to appoint a commercial or noncommercial registered agent with a physical street address in North Dakota. For ongoing compliance, your LLC must file an Annual Report by November 15 each year, which costs $50. North Dakota taxes pass-through LLC profits at a very low graduated personal income tax rate of 1.1% to 2.9%.

North Dakota LLC filing fee

The state filing fee for your Articles of Organization is $135. You can submit this document online through the North Dakota FirstStop business portal. Online filings are highly recommended and are typically processed within 1 to 3 business days.

Step 1: Choose a name

Your LLC's name must be entirely unique and distinguishable from other business entities registered in North Dakota. State law dictates that the name must include an appropriate LLC designator, such as "Limited Liability Company" or "LLC". You can perform a business name search on the North Dakota FirstStop portal to see if your preferred name is available.

Step 2: Appoint a registered agent

Every North Dakota LLC must designate a registered agent (the state categorizes them as commercial or noncommercial). This is an individual or authorized business entity responsible for receiving service of process, lawsuits, and official state correspondence on behalf of the LLC. The agent must have a physical street address in North Dakota (P.O. Boxes are not permitted) and must be available during regular business hours.

Step 3: File formation documents

Your business is officially created when you file the Articles of Organization with the North Dakota Secretary of State. You must provide your LLC's name, its principal executive office address, the name and address of your registered agent, and its purpose. The state filing fee is $135.

Step 4: Create an operating agreement

North Dakota law does not require you to file an operating agreement with the state. However, drafting an operating agreement is highly recommended. It serves as the internal governing document for your LLC, establishing ownership percentages, voting rights, and how profits are divided. Additionally, almost all banks will require a copy of your operating agreement to open a business bank account.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a free 9-digit tax ID assigned by the IRS. It functions like a social security number for your business. You will need an EIN to hire employees, open a business bank account, and file federal tax returns. You can apply for an EIN online directly through the IRS website.

Step 6: Register for state taxes if needed

If your LLC sells physical goods, you must register with the North Dakota Office of State Tax Commissioner to collect the state's 5% base sales tax, plus any local additions (which can push the total to 7%–8%). For income tax, standard LLC profits pass through to your personal return and are taxed at North Dakota's extremely favorable personal income tax rates, which range from 1.1% to a top bracket of just 2.9%.

Step 7: File annual reports and stay compliant

Every North Dakota LLC must file an Annual Report to maintain its active status. The report updates the state on your address and registered agent information. It is due every year by November 15 (starting the calendar year after your LLC was formed). The filing fee is $50. If you file late, the state adds a $50 penalty.

North Dakota LLC Cost

Fee Type Amount
Formation fee $135
Registered agent estimate $39 - $150 / year
Annual report fee $50 / year
Franchise tax $0 (None)
Publication fee if applicable $0 (None)
WHEN THIS MAY NOT APPLY

If you do not live in North Dakota, do not operate from North Dakota, and do not have a specific North Dakota-related reason for forming there, a North Dakota LLC may not be the best default choice. You may still need to register the LLC as a foreign LLC in the state where you actually operate, which can create duplicate filing fees, registered agent costs, and annual compliance requirements.

North Dakota currently charges $135 to form a domestic LLC. Annual reports are currently $50. For many purely online businesses, it is usually worth comparing your home state with commonly used business-friendly states such as Wyoming, which charges $100 to form an LLC and has a $60 minimum annual license tax, before choosing North Dakota.

Should you form your LLC in North Dakota?

A North Dakota LLC usually makes sense if you live in North Dakota, operate your business from North Dakota, or have a clear legal or tax reason to use North Dakota. If you live and operate somewhere else, forming in North Dakota may create extra registered agent costs, foreign qualification requirements, and duplicate compliance obligations. North Dakota may appeal to some owners, but compare it with Wyoming, Delaware, Nevada, and your home state in our guide to the best state for an online business LLC. For a comprehensive overview of starting a business, visit our LLC formation hub.

Situation Is a North Dakota LLC usually a good fit?
You live in North Dakota Usually yes
Your business operates in North Dakota Usually yes
You want privacy Depends on state rules
You live in another state Usually only if you have a specific reason
You are a non-US resident Depends on banking, taxes, and compliance needs

North Dakota LLC vs Wyoming LLC

For non-resident business owners, Wyoming is a better choice than North Dakota. While North Dakota has a very low income tax rate (max 2.9%), Wyoming has zero state income tax. Wyoming is slightly cheaper to form ($100 vs $135) and its annual maintenance fee is comparable ($60 minimum vs $50). Most importantly, Wyoming offers strong statutory anonymity, keeping your ownership details completely off public registries, whereas North Dakota does not. If you operate a brick-and-mortar business inside North Dakota, you must register a North Dakota LLC. If you run a purely online business, Wyoming is superior.

North Dakota LLC vs Delaware LLC vs Nevada LLC

State Formation Fee Annual Fee State Income Tax Privacy
North Dakota $135 $50/yr 1.1%–2.9% Low
Wyoming $100 ~$60 minimum/yr None High
Delaware $110 $300/yr franchise tax None on LLC profits Moderate
Nevada $425 $350/yr None High