How to Start an LLC in North Dakota

North Dakota offers one of the lowest income tax rates in the country, making it an appealing state for forming an LLC. With a $135 filing fee for your Articles of Organization and 5-7 business day processing, you can have your North Dakota LLC up and running quickly. The state’s income tax rates range from 0% to just 2.5%, and LLCs must file an annual report costing $50 due by November 15 each year.

Follow these steps to start your North Dakota LLC in 2026.

How to Start an LLC in North Dakota (6 Steps)

Step 1: Name Your North Dakota LLC

Your North Dakota LLC name must be distinguishable from any existing business entity on file with the North Dakota Secretary of State. The name must include a designator such as “Limited Liability Company,” “LLC,” or “L.L.C.” You can search for available names using the North Dakota Secretary of State business search.

If you find an available name but aren’t ready to file immediately, you can reserve it for 12 months by filing a Name Reservation with the Secretary of State for $10. Before finalizing your name, check whether the matching domain name and social media handles are available, and search the USPTO trademark database to avoid infringing on an existing trademark.

North Dakota naming rules:

• Must include “Limited Liability Company,” “LLC,” or “L.L.C.”
• Must be distinguishable from other business names on file with the North Dakota Secretary of State
• Cannot include words suggesting the LLC is a bank, insurance company, or government agency without proper authorization
• Cannot contain language implying a purpose the LLC is not authorized to pursue

Step 2: Choose a Registered Agent

North Dakota requires every LLC to have a registered agent with a physical street address in North Dakota. The registered agent receives legal documents — including lawsuits, subpoenas, and official state correspondence — on behalf of your LLC. This is a legal requirement, and your LLC cannot be formed without designating a registered agent.

You can serve as your own registered agent if you have a North Dakota address and are available during business hours, or you can hire a professional registered agent service. While acting as your own agent saves money, your personal address becomes public record and you must be available at that address during all normal business hours.

Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $135 state fee. Using a professional service provides privacy, ensures you never miss an important document, and frees you from being tied to a fixed address during business hours.

Step 3: File Your Articles of Organization

To officially create your North Dakota LLC, you need to file Articles of Organization with the North Dakota Secretary of State. The fastest way to file is online through the North Dakota Secretary of State’s FirstStop portal. You can also file by mail, but online filing is recommended for faster processing.

When completing the form, you’ll provide your LLC’s name, registered agent information, principal office address, and management structure. You’ll choose between a member-managed and manager-managed structure. In a member-managed LLC, all owners participate in running the business. In a manager-managed LLC, designated managers handle daily operations while other members remain passive investors.

Filing details:

• Filing fee: $135
• Online filing: North Dakota FirstStop (recommended)
• Processing time: 5-7 business days

Information required:

• LLC name
• Registered agent name and address
• Principal office address
• Mailing address
• Management structure (member-managed or manager-managed)
• Organizer name and address
• Duration of the LLC (typically perpetual)

Step 4: Create an Operating Agreement

North Dakota does not legally require an operating agreement, but having one is strongly recommended for every LLC. An operating agreement is an internal document that establishes the rules for how your LLC operates, including ownership percentages, profit and loss distribution, voting rights, and what happens if a member wants to leave or the LLC is dissolved.

Without an operating agreement, your LLC will be governed by the default rules in the North Dakota Century Code, which may not align with your intentions. For example, default rules typically assume profits are split equally regardless of capital contributions. An operating agreement lets you customize these terms to fit your specific business arrangement. Most banks also require a copy of your operating agreement before opening a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. An EIN is a nine-digit number assigned by the IRS that serves as your LLC’s tax identification number. You need an EIN to open a business bank account, hire employees, file federal taxes, and apply for business permits. Even single-member LLCs with no employees should get an EIN to keep their personal Social Security Number off business documents.

Step 6: File Your North Dakota Annual Report

All North Dakota LLCs must file an annual report with the Secretary of State. The report is due by November 15 each year and costs $50 to file. You can file your annual report online through the North Dakota Secretary of State’s website. The annual report updates the state on your LLC’s current registered agent, principal office address, and member or manager information.

Failure to file your annual report by November 15 can result in administrative dissolution of your LLC. If your LLC is dissolved for noncompliance, you can apply for reinstatement by filing the overdue reports and paying any outstanding fees. Set a calendar reminder well before the November 15 deadline to stay in compliance each year.

North Dakota LLC Costs

Total first-year cost: $185-$485. This range covers the required state filing fee ($135) plus the annual report ($50) and an optional registered agent service. If you serve as your own registered agent, your only mandatory costs are the $135 filing fee and $50 annual report. See our complete guide to LLC costs by state.

North Dakota LLC Taxes

North Dakota has one of the lowest income tax rates in the nation, with a graduated rate ranging from 0% to 2.5%. LLC profits that pass through to members are subject to North Dakota personal income tax at the applicable rate based on income level. For many small business owners, the effective state income tax rate will be very low, which is a significant advantage of operating in North Dakota.

North Dakota has a state sales tax rate of 5%, with local jurisdictions adding up to an additional 3.5% in some areas. If your LLC sells taxable goods or certain services, you’ll need to register for a sales tax permit with the North Dakota Office of State Tax Commissioner and collect and remit sales tax. Groceries, prescription drugs, and certain other items are exempt from sales tax.

At the federal level, all LLC members owe federal income tax and self-employment tax (15.3%) on their share of LLC profits. North Dakota’s low state income tax combined with reasonable filing fees makes it one of the more affordable states to operate an LLC.

North Dakota LLC Annual Requirements

Every North Dakota LLC must file an annual report with the Secretary of State by November 15 each year. The filing fee is $50. You can submit the report online through the Secretary of State’s website. The report confirms your LLC’s current registered agent, principal office address, and management information. Failure to file by the deadline can result in administrative dissolution.

In addition to the annual report, you must maintain a current registered agent in North Dakota at all times. If your registered agent changes, file a Statement of Change with the Secretary of State. Keep your operating agreement, financial records, and meeting minutes up to date. If your LLC’s name, address, or management structure changes, file the appropriate amendments with the state.

If your LLC collects sales tax, you must also file regular sales tax returns with the North Dakota Office of State Tax Commissioner. The frequency of filing depends on your sales volume and may be monthly, quarterly, or annually.

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Frequently Asked Questions

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

The state filing fee for a North Dakota LLC is $135, which is the cost to file your Articles of Organization with the Secretary of State. Additional costs may include a registered agent service ($39-$299/year), the annual report ($50), and a name reservation ($10, optional). Most people spend between $185 and $485 in their first year.

How long does it take to form an LLC in North Dakota?

Standard processing for North Dakota LLC filings takes 5-7 business days when filed online through the Secretary of State’s FirstStop portal. Filing by mail takes longer. Online filing is recommended for the fastest processing and confirmation.

What is North Dakota’s income tax rate?

North Dakota has one of the lowest income tax rates in the country, ranging from 0% to just 2.5%. This graduated rate structure means most small business owners pay very little in state income tax on their LLC profits. Members still owe federal income tax and self-employment tax (15.3%) on their share of profits.

Do I need a registered agent in North Dakota?

Yes, every North Dakota LLC is required by law to have a registered agent with a physical street address in North Dakota. The registered agent accepts legal documents and official state correspondence on behalf of your LLC during normal business hours. A P.O. box cannot be used as a registered agent address.

Does North Dakota require an operating agreement?

No, North Dakota does not legally require an operating agreement. However, creating one is strongly recommended because it defines member roles, profit sharing, voting procedures, and decision-making processes. Without one, your LLC is governed by default rules in the North Dakota Century Code. Most banks also require an operating agreement to open a business bank account.

When is the North Dakota LLC annual report due?

The North Dakota LLC annual report is due by November 15 each year. The filing fee is $50. You can file online through the Secretary of State’s website. Failure to file by the deadline can result in administrative dissolution of your LLC.

Can I be my own registered agent in North Dakota?

Yes, you can serve as your own registered agent in North Dakota as long as you have a physical street address in the state and are available during normal business hours to accept legal documents. Your address becomes public record, and many LLC owners prefer a professional registered agent service for privacy and convenience.

Can a non-resident form an LLC in North Dakota?

Yes, you do not need to be a North Dakota resident or a U.S. citizen to form an LLC in North Dakota. You will need a registered agent with a physical address in North Dakota. Many non-residents use a professional registered agent service. If you conduct business in another state, you may also need to register your North Dakota LLC as a foreign LLC there.