Should you form your LLC in North Dakota? We've collected the relevant information that will help you make this decision.

Pros

  • Tax rate of 3.99%
  • Among "Best States for Business" (Forbes 2016)
  • Low cost of living
  • Low cost of doing business

Cons

  • Small workforce due to small population

Cost of doing business

  • $135 filing fee / $50 periodic report

Privacy

  • Owners must be listed in periodic report

Forming an LLC in North Dakota

The name
In order to communicate to the public that your new business is an LLC, its official name will need to end with one of the following signifiers (or abbreviation of): “Limited liability company”, “LLC”, or “L.L.C.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. Do a FREE name search now.

Ownership
The owners of an LLC are called “members.” The following information must be required regarding your LLCs members:

  • Required number of members
    North Dakota LLCs must have at least one member or manager listed in their incorporation documents.
  • Age restrictions
    LLC members in North Dakota may be of any age.
  • Residence restrictions
    There are no residence restrictions imposed on LLC members in North Dakota.
  • What information needs to be included in the Articles of Organization?
    Outside of the principal member, LLC Members in North Dakota are not required to list their name or addresses in their Articles of Organization.

Requirements for the Articles of Organization

The Articles of Organization is a document that must be filed during the LLC formation process in every state. Here is the information that must be included in this document when filing in North Dakota:

Registered agent information
All North Dakota LLCs must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.

If your business is a professional practice
Professional service companies are permitted to form under the professional limited liability company (PLLC) structure.

North Dakota LLC taxation and fee requirements

There are several tax and fee requirements that must be addressed by LLCs in North Dakota. They are as follows:

Taxation
All states have complex taxation requirements. For more information regarding taxes in North Dakota, it is advised that you visit the state’s official business related website. 

Annual report requirements
LLCs in North Dakota are required to file an annual report every year by November 16. The cost of this filing is currently $50. Learn more about annual reports.

Tax identification numbers
North Dakota requires an EIN (employee identification number) for all LLCs that will have employees, and most banks will require one to open accounts. North Dakota does not require LLCs to obtain state tax ID numbers. Learn more about EINs.

Business license requirements

The business licenses and permits required in North Dakota vary wildly depending on the county or municipality in which your new LLC is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.

Need a North Dakota corporation instead? Click here.