Perhaps you are hoping to form a North Dakota LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in North Dakota.
On this page, you’ll learn about the following:
North Dakota LLC Cost of Filing
Here are the costs involved in forming an LLC in North Dakota.
Cost of Filing Formation Certificates
The North Dakota Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the North Dakota Secretary of State.
North Dakota Domestic LLC
- Online Filing costs $135.
- Annual Report filing costs $50
- Name Reservation fee costs $10
North Dakota Foreign LLC
- Online Filing costs $135.
- Annual Report filing costs $50
- Name Reservation fee costs $10
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
North Dakota LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in North Dakota, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
| |
 | $299 + State Fees |
|
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the North Dakota Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes Payable to North Dakota Office of State Tax Commissioner
To incorporate and register an LLC in North Dakota, one has to pay taxes to State & Federal Government. Some of the essential business taxes are enlisted below. The North Dakota Office of State Tax Commissioner levies two types of taxes on LLC:
State Income Tax
As the LLC owner, you have to pay state tax on any amount you earn via your LLC. All the earnings drawn by you are taxed through your personal tax return. The usual income tax rate in North Dakota ranges from 1.1% to 2.9%, depending on the amount you earn via your LLC.
State Sales & Use Tax
Any seller of tangible goods such as cars, electronics, etc. & any service provider company has to collect taxes at the time of the purchase and then has to pay those to the North Dakota Department of Revenue. The state sales & use tax rate on LLC in North Dakota is 5%
Federal Self-Employment Tax
The Federal Self Employment Tax is often called Social Security or Medicare tax, is paid by all the LLC Business members or managers. The self-employment tax caters to the well-being of the members of the company. The Federal self-employment tax rate in North Dakota is 15.3 percent.
Federal Income Tax
The rate of the Federal Income Tax is calculated after carefully observing: your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing. Federal Income Tax is paid on all the profits your LLC makes in a year.
Employee & Employer Taxes
LLCs that have appointed a number of employees have to pay Employee & Employer Taxes too. The tax rate is calculated on the basis of the amount they earn, the number of employees, etc.
Cost Comparison Between States
North Dakota is surrounded by many states, namely Montana, South Dakota, Minnesota, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| North Dakota | $135 | $50 | 5% |
| Montana | $70 | $10 | None |
| South Dakota | $150 | $50 | 4.5% |
| Minnesota | $160 | $50 | 6.875% |
Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. You should seek regional help to verify the tax rates or business costs of registering an LLC in North Dakota.
Other Costs
- North Dakota Name Reservation: $10
- Doing Business As (DBA): $25
- Certified Document Copies: $15.00 + $5.00 (Search of Records Fee)
- Certified of Good Standing: $15.00 + $5.00 (Search of Records Fee)
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of North Dakota LLC: $20
How Much Does It Cost to Maintain an LLC in North Dakota
To maintain an LLC in North Dakota you will need to pay an annual fee of $50 along with state sales & use tax at 5%, state income tax at 1.1% to 2.9% and federal taxes.
Maintaining an LLC is an investment in protecting your business and personal assets. Each state sets different requirements and fees for LLC maintenance, including North Dakota. It is important for business owners to understand the costs associated with an LLC and properly budget for them to avoid any surprises down the road.
One cost associated with maintaining an LLC in North Dakota is the annual report filing fee. LLCs are required to file an annual report with the North Dakota Secretary of State’s office and the fee for doing so is $50. It is crucial to file this annual report on time each year to avoid any penalties or late fees. Additionally, North Dakota requires LLCs to obtain a Business License each year, which also incurs a fee.
Another cost associated with maintaining an LLC in North Dakota is the cost of Registered Agent services. LLCs are required to designate a Registered Agent, which is a third-party individual or company who receives legal documents and notices on behalf of the LLC. It is important to choose a reliable Registered Agent, but the cost of these services can vary greatly.
There may also be other costs associated with maintaining an LLC in North Dakota, depending on factors such as whether the LLC has employees or requires additional licenses or permits. These costs should be carefully considered and planned for in a business’s budget to ensure continued operation of the LLC without major financial strain.
It is important to note that the cost of maintaining an LLC in North Dakota can be well worth it for the protection it provides for the business and personal assets of its owners. LLCs offer personal liability protection, which means that the LLC and its owners are separate legal entities. This separation can protect personal assets such as homes and cars in the event of business-related lawsuits.
In addition, LLCs offer tax benefits as business profits and losses can pass through to the owners’ personal tax returns and may result in a lower overall tax burden. This can be especially beneficial for smaller LLCs where owners are responsible for financing the business.
In summary, maintaining an LLC in North Dakota requires a budget for annual filing fees, Registered Agent services, and potentially other fees depending on the specific needs of the business. The cost of maintaining an LLC should be viewed as a worthwhile investment in protecting both the business and personal assets of owners. It is important to properly budget for these costs to avoid any surprises and ensure the continued success of the LLC.
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
In Conclusion
The cost of North Dakota is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.
