LLC Cost in North Dakota – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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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.

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

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#1 TOP PICK

$0 + State Fees

  • 100% accuracy guarantee

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$0 + State Fees

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

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.

StatesFiling FeeAnnual/Biennial FeeSales Tax
North Dakota$135$505%
Montana$70$10None
South Dakota$150$504.5%
Minnesota$160$506.875%

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

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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.

One of the key financial aspects of running an LLC is the maintenance fees and annual reports required by the state. In North Dakota, all LLCs are required to file an annual report with the Secretary of State’s office. This report serves as a way for the state to update its records with the latest information about your company, such as your business address, registered agent, and members or managers. By staying up-to-date with your annual reports, you ensure that your LLC remains in good standing with the state and avoids any penalties or potential loss of liability protection.

Additionally, North Dakota law mandates that all LLCs pay an annual fee to maintain their status as a legal entity. This fee varies depending on the size and type of your business, but it is typically a manageable cost for most LLC owners. While this annual fee may seem like an additional expense, it is a necessary investment in protecting your personal assets and maintaining the legitimacy of your business.

Beyond the financial obligations, there are also administrative tasks involved in maintaining an LLC in North Dakota. This includes keeping track of important documents, such as your operating agreement, meeting minutes, and financial records. It is crucial to stay organized and ensure that your LLC operates according to its established procedures and compliance requirements.

Another consideration when calculating the costs of maintaining an LLC in North Dakota is the need for legal counsel or professional assistance. While some business owners may choose to handle these responsibilities on their own, others may opt to hire a lawyer or accountant to help navigate the complexities of LLC maintenance. This additional cost should be factored into your budget when deciding whether to form an LLC and how to best manage its ongoing requirements.

Overall, the costs of maintaining an LLC in North Dakota are a necessary investment in the success and longevity of your business. By staying informed about the financial obligations, administrative tasks, and legal requirements associated with running an LLC, you can ensure that your company remains compliant and protected. While there are costs involved in operating an LLC, the benefits of limited liability and flexibility make it a worthwhile choice for many entrepreneurs.

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.

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