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Whether you're launching a business in Fargo, opening a professional practice in Bismarck, or starting a farming operation in the Red River Valley, North Dakota's business-friendly environment makes limited liability corporation (LLC) formation accessible and affordable. But even the most pro-business states have specific requirements for launching and maintaining a company, and LLCs in North Dakota are no exception.
This complete guide walks you through every step of forming your North Dakota LLC, from choosing a compliant name to maintaining good standing with annual reports. You'll learn exactly what forms to file, the costs involved, and how to set your business up for success.
North Dakota LLC quick reference
- Articles of organization filing fee: $135
- Articles of organization processing time: A few days to a few weeks
- Registered agent: Required
- Operating agreement: Not required (but recommended)
- LLC franchise tax: Not imposed by the state
- Types of LLCs recognized: Business LLC, professional LLC, farming or ranching LLC, and authorized livestock farm LLC
- Annual report: Required; $50 filing fee
- General statewide business license: Not required
Why choose North Dakota for your LLC?
In addition to enjoying liability protections, entrepreneurs hoping to start an LLC in North Dakota have several other advantages.
Tax flexibility and benefits
When paying taxes, a single-member LLC files similarly to a sole proprietor, and a multi-member LLC files as a partnership by default. Both are considered "pass-through" entities. This means that rather than paying corporate taxes, you report your gains and losses on your personal tax returns. And North Dakota has some of the lowest personal income tax rates in the country, at up to 2.5%.
But LLCs can also file with the Internal Revenue Service (IRS) to pay taxes as a corporation instead. In North Dakota, corporate tax rates range 1.41% to 4.31%.
A few more unique North Dakota tax benefits include a lack of sales tax on the sale of most groceries as well as sales tax exemptions on many other types of products and services.
Unique LLC options for agriculture
In addition to a standard business LLC and professional LLC (PLLC), North Dakota also allows the formation of agricultural-focused LLCs, including a farming or ranching LLC and an ALF LLC. This is a unique advantage in North Dakota for entrepreneurs who want to participate in the industry but don’t necessarily want to form a corporation.
The cost of forming an LLC in North Dakota
The minimum total cost of forming an LLC in North Dakota is $135, but there are additional items that may add to this cost.
- Articles of organization: $135
- Name reservation: $10
- Annual report: $50 per year
- Certificate of good standing: $20
- Registered agent: $0 to $300 per year, depending on if you use a professional service
- Operating agreement: $0 to $200, depending on if you use a service
- Website domain: $10 to $45 per year on average
While it's helpful to have a clear picture of North Dakota LLC formation costs, keep in mind that these are just the basic fees for starting one. The nature of your business and the price of industry-specific business licenses and insurance will determine the true cost of forming your business.
How to form an LLC in North Dakota in 7 steps
To officially start your LLC in North Dakota, you have to register your business with the North Dakota Secretary of State (SoS). Then, you’ll complete additional steps to keep your LLC in compliance.
Here’s a rundown of what to expect.
Step 1: Choose your business name
Before you can register your new LLC, North Dakota law requires you to choose a business name that complies with certain requirements:
- Must contain the words “limited liability company” or the abbreviation “L.L.C.” or “LLC”
- Must be expressed in the English language
- Cannot imply illegal activities or a purpose other than what’s written in its articles of organization
- Must be distinguishable from other business names registered in the state
Free North Dakota Business Name Check
Use our free name check tool to search the North Dakota Secretary of State database and see if your business name is available.
By clicking "Check Availability," I agree to LegalZoom's Terms of Use. This search is a preliminary check of state databases and does not include variations or trademarks. Results do not guarantee name availability or compliance with legal requirements.
To ensure distinguishability, you’ll need to conduct a North Dakota business name search. First, check your preferred name’s availability through the SoS’ business entity search tool. Then, conduct a North Dakota trademark search and a federal trademark search to ensure that your name won’t infringe on protected names at the state and federal levels. You will also want to check the availability of your desired web domain (on sites like GoDaddy and Wix) and social media handles across various platforms.
If you've found the perfect name but aren't ready to register with the SoS yet, no problem. You can reserve it for one year by filing the Reserve Name Application for a $10 fee. To file this application, you’ll need to create an account through the SoS’ FirstStop business portal.
Step 2: Appoint a registered agent
Every state requires an LLC to appoint a registered agent, including North Dakota. A registered agent is an individual or entity who receives legal documents, lawsuits, and government correspondence on behalf of your LLC.
A North Dakota registered agent:
- Can be an individual residing in North Dakota or a domestic or foreign corporation or LLC with a business office in the state
- Must have an actual street address or rural route box number in North Dakota
Must be on site and available at the registered office address to accept documents during regular business hours.
Technically, you can appoint yourself to fill the role for no cost, but most businesses find it easier and more efficient to work with a professional registered agent service. Here’s why:
- Prompt notification. Documents sent to registered agents are time-sensitive, so it’s helpful to have a dedicated service whose sole responsibility is to handle incoming documents and forward them to your company.
- Enhanced privacy. Registered agent information is made public in North Dakota. This is a particular concern for home-based business owners whose home address would be public information if they serve as their own registered agent.
- Reliability. You can be sure that a registered agent service will have someone at the office at the required times to receive your LLC’s paperwork. Serving in the role yourself requires you to always be at the registered office address during business hours, and failing to do so could result in missed documents and a lack of compliance.
LegalZoom’s registered agent services are trusted by businesses everywhere, including in North Dakota. We provide timely alerts and reminders, secure online document storage, and more.
Step 3: File articles of organization
Now it's time to officially register your business in North Dakota by filing your articles of organization.
The North Dakota articles of organization asks you to provide basic information about your LLC, such as the following:
- The name of your LLC
- Principal office address (and mailing address, if different)
- The name and address of your registered agent
- A general statement on your purpose for forming the LLC
- Your LLCs formation date
- The duration or time period over which the LLC will exist (perpetual or specific term)
- The name and address of each organizer
To file your articles of organization, visit the SoS’ Business Forms page, and under the “Limited Liability Companies” section, select the appropriate LLC type that you’d like to form (e.g., business LLC, farm/ranch LLC, or PLLC). In the pop-up box, click “File Online.” This will take you to the login page for the FirstStop portal. You can either log in if you already have an account, or create a new business account.
The filing fee for articles of organization is $135 and takes anywhere from several days to a few weeks to process. Once the North Dakota SoS approves your articles, they’ll send confirmation to the address or email on file and issue a certificate of organization. With this certificate, your LLC officially exists.
If you’d like help preparing your articles of organization, LegalZoom can help. Our LLC formation service completes your articles for you seamlessly and accurately and provides a name check service to ensure that your desired business name is available.
Step 4: Create an operating agreement
While North Dakota doesn't require an operating agreement, having one is very helpful to legally settle any structural or financial disagreements that could arise within your LLC. It's essentially a legal contract that outlines ownership structure, roles, and operational procedures for your business. Without one in place, courts will settle legal disputes based on state law, which may not be in the best interest of your LLC or its members.
Your operating agreement can include the following topics:
- Management structure (member-managed vs. manager-managed)
- Ownership percentages and capital contributions
- Profit and loss distributions
- Voting rights and decision-making procedures
- Member meeting requirements
- Process for adding and removing members
- Buyout provisions (regarding death, disability, or departure)
- Dissolution procedures
Using a North Dakota LLC operating agreement template can be a convenient way of drafting this document without starting from scratch. But, as courts use this document as a basis to make litigation decisions, it's wise to have a business attorney review—or even help craft—the final version to ensure it’s watertight and aligned with your goals. LegalZoom’s operating agreement drafting service is $99, offering a simpler and cost-effective option if you're looking for guided support.
Building a business is enough work as it is. We'll help you start your LLC with confidence.
Step 5: Obtain a federal tax ID
The next step is to apply for an employer identification number (EIN) with the IRS. The nine-digit EIN is a federal tax identification number that allows you to file federal and state taxes, hire employees, and open a business bank account. An EIN is required for all multi-member LLCs but optional for single-member LLCs that have no employees and don’t elect a corporate tax structure.
You can apply for an EIN online through the IRS website. LegalZoom also offers an EIN application service for $79 that saves you time and effort by letting us fill out the application and file with the IRS for you. We’ll ensure it’s filled out correctly and send you your EIN and official documentation once it’s approved.
Step 6: Register for state taxes
The next essential step is to register for state taxes, which are dependent on your business activities. The following are the types of taxes, permits, and licenses you might need to register for through the North Dakota Taxpayer Access Point (TAP):
- Sales and use tax permit for the sale of retail goods, admissions to recreational activities, and lodging
- Income tax withholding for LLCs with employees
- Motor vehicle excise tax for sellers of licensed motor vehicles, including trailers and semi-trailers
- Alcohol tax licenses for retailers, manufacturers, and suppliers of alcoholic beverages
- Oil and gas severance tax for oil and gas producers
Step 7: Get necessary business licenses and permits
Whether or not you need a license or permit to operate your LLC depends on the type of business you'll run. North Dakota doesn’t require a general statewide business license, but your LLC still might need one depending on your location, business activities, and industry.
Here are some examples of licenses and permits you might need to legally operate in North Dakota:
- North Dakota SoS licenses, including home inspectors, contractors, lobbyists, and more
- North Dakota Health & Human Services licenses and certifications
- North Dakota Board of Medicine licenses
- North Dakota State Board of Architecture licenses
- Federal operational licenses if conducting federally regulated activities
- Local licenses and permits issued at the city and county levels
For assistance with figuring out what you need for your LLC, use LegalZoom’s business license report & management service, which identifies all the licenses and permits that are required for your business at the federal, state, and local levels. We’ll also provide ongoing notifications regarding any licensing requirement changes or renewal deadlines.
What to do after forming your North Dakota LLC
We've covered the legal basics, but there are a few other steps you should consider to ensure your new business thrives.
Open a business bank account
As an LLC, you also want to open a business bank account to separate your business finances from your personal finances. Otherwise, a court could rule that your business isn't actually separate from you, which could jeopardize your limited liability status and liability protection.
Most banks will ask for all or some of the following when you open a business account:
- Certificate or articles or organization
- Credit check
- EIN or Social Security Number
- Personal information for everyone on the application
- Information about the business
Register a domain name
A website is an essential part of modern business. Sites like GoDaddy, Wix, and Squarespace offer domain names for purchase. You'll typically renew your domain annually, although some companies offer longer contracts. The cost of a domain ranges from $10 to $45 per year without considering email infrastructure or website management, which may add additional monthly costs.
Starting a business takes courage. LegalZoom makes sure the legal details don’t stand in your way, from the day you register until the day you retire.
Obtain a certificate of good standing
Once you've officially registered your limited liability company, you may want to order a certificate of good standing in North Dakota. You're not required to have this document, but it proves to potential partners, investors, lenders, employers, and customers that your business legally exists and has authorization to operate in North Dakota.
You can order this certificate online. First, visit the SoS’ Business Search portal and enter your business name. Click on your LLC’s name in the list of results. In the pop-up box that appears, you’ll see an option for “Request a Certificate.” Click this button and enter all the required information. There is a $20 filing fee.
Consider a foreign LLC
Registering a domestic LLC in North Dakota only authorizes you to legally operate within the state. If your business is booming and you believe it could benefit from expanding into another state, consider registering a foreign LLC.
In American corporate law, a foreign LLC refers to an entity that conducts business in a state other than the one where it was originally registered. The cost of registering a foreign LLC will vary state to state, but may be worth the effort to widen your customer base.
Types of LLCs you can form in North Dakota
North Dakota is unique in that it allows the formation of four different types of LLCs in the state. Here’s an overview of the four types and their specific requirements or limitations.
Standard business LLC
This is the most common type of LLC that’s available in all other states. North Dakota’s business LLC can be formed by one or more people for most lawful business purposes. LLC owners can choose to have their LLC be member-managed or manager-managed, depending on the company’s needs.
- Articles of organization filing fee: $135
- Annual report filing fee and due date: $50; November 15
Professional LLC (PLLC)
PLLCs aren’t allowed in every state, but they are in North Dakota. PLLCs can only be formed by licensed professionals that provide a professional service requiring a license. Some examples of individuals who might form a PLLC include architects, dentists, and accountants.
- Articles of organization filing fee: $135
- Specific formation requirements: Must provide certification from the relevant North Dakota licensing board for all members
- Annual report filing fee and due date: $50; November 15
Farming or ranching LLC
Farming or ranching LLCs are intended for LLCs that raise or produce livestock and livestock products, agricultural crops, and other products (Chapter 10-06.1 of the North Dakota Code excludes certain products or activities). This type of LLC can have up to 15 members, and all members must be related within specified degrees of kinship (e.g., step-daughter, grandparent, first cousin, spouse).
All managers of the LLC must be actively engaged in the LLC’s operations. Additionally, this type of LLC must derive at least 65% of its gross income from farming or ranching activities.
- Articles of organization filing fee: $135
- Annual report filing fee and due date: $50; April 15
LegalZoom can help you file your state's formation paperwork for as little as $0 + state filing fees.
Authorized livestock farm LLC
Some of the activities not allowed for a farming or ranching LLC are allowed for an ALF LLC, such as livestock backgrounding and finishing and the production of dairy, poultry, and swine products. These LLCs can’t own more than 160 acres of land and can have a maximum of 10 members, all of whom must be U.S. citizens or permanent residents.
Members who have 51% of membership interests must be:
- Individuals engaged in the business of farming or ranching
- A farming or ranching corporation
- Another farming or ranching LLC
Additionally, at least 65% of the LLC’s gross income has to come from farming operations. Other requirements are listed on the North Dakota SoS’ LLC information page.
- Articles of organization filing fee: $135
- Specific formation requirements: Cannot begin farming until officially registered with the SoS
- Annual report filing fee and due date: $50; April 15
Annual filing requirements for North Dakota LLCs
North Dakota requires all registered businesses to file an annual report. This report allows your LLC to remain active and keeps state records up-to-date. Essentially, it requires you to review and confirm your business address, registered agent, and member information.
You will file your annual report through the North Dakota Secretary of State for a $50 filing fee. The filing deadline for business LLCs and PLLCs is November 15 each year, and the deadline for farming/ranching and ALF LLCs is April 15. Be sure to file by your respective deadline each year, as failing to file on time can result in penalties, loss of good standing, and potential administrative dissolution.
LegalZoom can also file your annual report for you so that you can focus on your business. Working with LegalZoom can help ensure that your annual report is filed accurately and on time to avoid any penalties and protect your business’ good standing in North Dakota.
Operating in North Dakota as an out-of-state LLC
Have you already registered your LLC in another state but want to expand to North Dakota? This is a desirable option for many businesses, from those in neighboring states like Montana or South Dakota to remote, online companies that want to sell in North Dakota.
When considering a foreign LLC in North Dakota, there are a couple of things to keep in mind:
- You’ll need to complete a certificate of authority application for your LLC type and file it with the North Dakota SoS.
- As part of your application, you’ll likely need to provide a certificate of good standing from your home state.
- If you’d like to operate under a different business name than your registered name, you must file a trade name registration with the North Dakota SoS.
- PLLCs must provide evidence of licensure or certification from the North Dakota licensing board.
- Foreign LLCs must file annual reports in North Dakota, with deadlines of November 15.
How to start an LLC in North Dakota with LegalZoom
North Dakota offers a lot of helpful resources to support new business in the state, but the process remains time-consuming and nuanced. For this reason, many legal services—including ours—have created streamlined LLC formation packages to further simplify the process while ensuring compliance with state laws.
The LegalZoom process takes only three steps:
- Complete our LLC questionnaire. Take a few minutes to fill out a simple questionnaire. Tell us whether you want to form a new LLC or convert an existing partnership or sole proprietorship into an LLC, and which personal liability protection provisions you want to include.
- We apply for your LLC. After you’ve given us all of the important information about your new business, we compile your documents and file them with the North Dakota SoS. Then, we’ll create and file your articles of organization, required licenses or permits, and an LLC operating agreement tailored to your specifications.
- Receive confirmation. Once the SoS processes and confirms your documents, we’ll send you your finished articles of organization, business registration certificate, other relevant documents, and actionable instructions on the next steps to ensure your LLC’s success.
Launch your LLC with LegalZoom to provide peace of mind that your application is completed correctly and efficiently. We offer three packages, ranging from basic services to premium, which include bookkeeping tools, unlimited customized proposals and invoices, unlimited 30-minute attorney consults, an EIN, an operating agreement, and more.
Start an LLC in Any State
North Dakota LLC FAQs
How long does it take to form an LLC in North Dakota?
It can take a few weeks for North Dakota's Secretary of State to process your formation paperwork. The seller's permit that many businesses need to start operating takes about two to three weeks to process.
What are the benefits of filing an LLC in North Dakota?
The tax benefits of filing in North Dakota are particularly enticing. While many other states require sales tax for items like electricity, groceries, and natural gas, North Dakota typically doesn't (with some exceptions). Additionally, North Dakota generally allows tax exemption for personal property outside of certain types of gas refineries and oil utilities.
How do I correct filing errors in ND?
You can file amendments through the FirstStop business portal, although there may be some fees involved depending on what amendments you need to make.
How do I dissolve a North Dakota LLC?
There are two ways you can officially dissolve your business with the North Dakota government. You can either dissolve your LLC by filing a dissolution notice with the North Dakota Secretary of State for a $20 filing fee, or you can file Articles of Dissolution by Organizers—as long as your LLC hasn't taken on debt. If it has, you'll need to file both.
Working with a business dissolution service like LegalZoom can help ensure that your articles are filed accurately. This process avoids future fees or taxes that could arise from mistakes made during the filing process. Once filed, we’ll send your articles of dissolution in the mail.
Do I need an operating agreement for my North Dakota LLC?
LLCs in North Dakota aren’t required to have operating agreements, but they’re highly recommended for avoiding member disputes and for detailing specific processes, profit distributions, and more.
Can I be my own registered agent in North Dakota?
Yes, you can be your own registered agent in North Dakota. While this can save on annual costs, using a registered agent service is advisable because it can protect your privacy, provide a level of professionalism, and ensure that all documents and notices are received in a timely manner.
Can a non-resident form an LLC in North Dakota?
Non-residents can form a business LLC, professional LLC, and farming or ranching LLC, but they can’t form an authorized livestock farm (ALF) LLC. AFL LLC members must be U.S. citizens or permanent resident aliens.
What types of LLCs can I form in North Dakota?
In North Dakota, you can form business LLCs, professional LLCs, farming or ranching LLCs, and ALF LLCs.
Can I form a single-member LLC in North Dakota?
Yes, you can form a single-member LLC in North Dakota. All four types of LLCs recognized in North Dakota allow a minimum of one individual member.
What happens if I miss the annual report deadline?
If you miss the annual report deadline in North Dakota, your business could lose its good standing and risk administrative dissolution by the SoS, which would require reinstatement. This is why it’s crucial to submit annual reports by the due date.
Rudri Bhatt Patel and Fabrienne Bottero contributed to this article.
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