Fact Checked by Editorial Staff
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 | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK
 | $0 + State Fees |
| |
 | $39 + 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
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.
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 first expenses to consider is the initial filing fee required to register your LLC with the North Dakota Secretary of State. While this cost may vary slightly depending on certain factors, such as whether it’s a domestic or foreign LLC, you can expect to pay a modest fee to get your business up and running.
In addition to the initial filing fee, there are annual fees that must be paid to keep your LLC in compliance with state regulations. These fees are necessary to maintain your company’s status as a legal entity and ensure that you have access to the benefits and protections that come with operating as an LLC.
Other ongoing costs associated with maintaining an LLC in North Dakota include the cost of hiring a registered agent, who is responsible for receiving legal documents on behalf of your business. While you can serve as your own registered agent, many business owners opt to enlist the services of a professional to handle this important role.
Furthermore, there are potential licensing and permit fees that may be required depending on the nature of your business operations. It’s essential to research what specific licenses and permits are necessary for your industry and factor these costs into your budget.
Another consideration when calculating the cost of maintaining an LLC in North Dakota is the potential need for legal and accounting services. While it may be tempting to cut costs in these areas, having access to professionals who can provide expert guidance and assistance can ultimately save you time, money, and stress in the long run.
Lastly, it’s important to budget for miscellaneous expenses that may arise throughout the year, such as business insurance, marketing and advertising costs, and any unexpected operational expenses. By planning ahead and setting aside funds for these potential costs, you can ensure that your LLC remains financially stable and poised for growth.
While it’s undeniable that there are costs associated with maintaining an LLC in North Dakota, the benefits of operating as a limited liability company far outweigh the expenses. From liability protection to potential tax advantages, establishing an LLC can provide you with a solid foundation for building and growing your business.
By taking the time to understand and plan for the costs associated with maintaining an LLC in North Dakota, you can set yourself up for success and confidently navigate the steps required to keep your business in good standing with the state. The investment in maintaining your LLC is an investment in the future of your business, and with careful planning and budgeting, you can ensure that your company continues to thrive for years to come.
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.