How to Form a Single-member LLC in North Dakota (2024)


Steve Bennett
Steve Bennett
Business Formation Expert
Steve 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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Form Single-Member LLC In North Dakota

Start a Single-member LLC in North Dakota: Forming a Single-member LLC is much easier compared to other business structures. If you want to start your business in North Dakota all by yourself (without any partner) then a single-member LLC is the best option. Starting an LLC (Limited Liability Company) is overall less complicated than a corporation or partnership. It requires a handful of steps to follow. Understanding all the details of setting up an LLC in North Dakota is very important before diving right in.

The foundation of success starts with knowing exactly what needs to be done – especially when creating something as important as a legal entity, such as an LLC. With this article, we’ve laid out everything you need to know about forming a single-member LLC in North Dakota – whether you’re just starting out or have been running your business for years. So let’s get started!

Definition of a Single-member LLC in North Dakota

A single-member LLC is a business structure where only one individual runs the company. This type of limited liability company (LLC) provides legal protection to its owner and enables them to operate their business while taking advantage of certain tax benefits. In contrast, a traditional multi-member LLC must have at least two members involved in the company’s management and ownership.

Steps to Register a Single-member LLC in North Dakota

Registering a single-member LLC in North Dakota is an easy process that can open the door to many business opportunities. To get started, there are several steps to take, which include filing Articles of Organization, selecting a Registered Agent, obtaining an EIN number, and other important tasks. Here’s what you need to know to register your single-member LLC in North Dakota:

StepDescriptionRequired Forms/Documents
1LLC Name ReservationNorth Dakota Secretary of State
2North Dakota LLC Registered AgentAppoint a Registered Agent
3File Articles of Organization with the Secretary of State (SOS) office- Address-
North Dakota, 600 E Boulevard Avenue Dept 108, Bismarck ND 58505-0500
4Obtain an Employer Identification Number (EIN)Form SS-4; valid U.S. driver’s license or state ID card; Social Security Number

Step1: Naming Your Single-member LLC in North Dakota

Naming your Single-member LLC in North Dakota is important to becoming a legal business. You can set yourself up for success with the right name and ensure your company stands out. You can read the LLC naming guidelines before you name your LLC. Here are some tips on how to select the best name for your LLC:

  1. Research: Before selecting a name, it’s important to research other businesses operating in North Dakota with similar names or services. Make sure that there aren’t any current trademarks or copyrights associated with the name you choose so you don’t run into potential copyright issues later on.
  2. Comply with Requirements: North Dakota requires that all LLC names contain certain words and phrases such as “LLC” or “Limited Liability Company” and be distinct from existing entities registered with the Secretary of State. Additionally, avoid using restricted words like ‘bank,’ ‘insurance,’ etc., unless you have obtained proper licensing from authorities beforehand.
  3. Be Creative: Your LLC’s name should reflect what makes your business unique – whether it’s providing creative solutions or offering innovative products/services – make sure it speaks volumes about who you are! You want customers to remember your brand long after encountering it, so brainstorm ideas until you find something catchy and original that will help engage them further down the line.

Creating an eye-catching yet compliant name is key when forming a single-member LLC in North Dakota. However, consider if this carefully chosen title fits well with future branding efforts before finalizing it. Afterward, once everything checks out, register your new business entity online – then get ready to start building towards success!

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Step 2: Assign the North Dakota Registered Agent

registered agent

Next up is choosing your North Dakota Registered Agent who will accept legal paperwork on behalf of the company if needed. This individual should have access during normal business hours at all times since it’s their job to receive service of process notifications from courts and governmental agencies. Having this role filled out helps protect yourself and your assets from potential lawsuits down the line, so make sure it’s done properly before continuing with registration procedures.

You need to find an individual or business entity willing and able to serve as your LLC’s registered agent. This person/entity should have a physical address in North Dakota where they will accept service of process paperwork from the Secretary of State. Secondly, this individual/entity must be available during regular business hours to receive any required documents timely and efficient.

Finally, it is important to remember that when naming someone as your LLC’s registered agent, it is essential that they consent to act in such a capacity and agree to act according to all applicable laws governing LLCs in North Dakota. Once you’ve completed these steps, you’ll be well on your way toward establishing your single-member LLC in North Dakota!

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Step 3: Filing North Dakota Articles of Organization

Now that you have chosen the name for your Single-Member LLC, it is time to draft Articles of Organization. This document will be filed with the North Dakota Secretary of State’s office and outlines some basic information about your business, such as its purpose and contact information. Here are a few key points to consider when drafting this important document:

Forming a single-member LLC in North Dakota requires filing the North Dakota Articles of Organization with the Secretary of State. This is an important step in registering your business, and you must understand the process before beginning.

Key PointsDetails
Prepare necessary paperworkOutline rules & regulations
Submit Filing Fee$135 filing fee in North Dakota
File documentsFile all documents through the appropriate channels
Monitor progressMonitor progress of government approvals

Here are four key steps to take when filing documents for your LLC:

  1. Prepare all necessary paperwork and information– Ensure you have all the required forms filled out accurately before submitting them to the state, including articles of organization and other applicable documents such as registration papers or operating agreements. You’ll need to include any additional information required by local or state regulations too.
  2. Pay associated fees for filing documents– The amount varies depending on the type of form being filed. In North Dakota, the cost of filing Articles of Organization is $135 (plus any applicable taxes). Fees can be paid online via credit card or check payable to the Secretary of State’s office.
  3. File the Documents– If available in your area, file all documents through the appropriate channels, such as mail or hand delivery service. To ensure accurate tracking and processing, keep a copy of each document submitted for your records so there’s no confusion later down the line about what was sent, where, and when it arrived at its destination(s).
  4. Monitor progress once everything has been submitted– Monitor and allow adequate time for review and approval by government authorities – usually around one month from submission unless expedited services are requested/available (which may incur extra costs). It’s also good practice to follow up periodically with relevant offices to ensure they don’t require anything else from you during this stage of the formation process; this will help speed up the overall timeline significantly!

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By following these simple steps, you should be able to properly file Articles of Organization for your new single-member LLC without issue – giving yourself peace of mind knowing that everything has been done correctly according to governing laws in North Dakota regarding registering businesses within their borders.

Step 4: Create an Operating Agreement in North Dakota

operating agreement

The Operating Agreement should include all the rules and regulations associated with running your business. It should include details on how profits or losses are divided, who has authority over decision-making, etc. Furthermore, ensure that any contact information listed includes full legal names and physical addresses (no PO boxes). Finally, submit $135 filing fee along with the Articles of Organization to the North Dakota Secretary of State’s office (North Dakota, 600 E Boulevard Avenue Dept 108, Bismarck ND 58505-0500) for organization filing. Once approved by the state, you can start operating as an official single-member LLC in North Dakota!

When drafting the North Dakota LLC operating agreement, there are several key points you’ll need to consider, including capital contributions, ownership percentages, membership rights and responsibilities, management roles, and authority levels, distributions from profits or losses, amendments to the agreement itself, taxation issues, dispute resolution procedures, dissolution policies, and other relevant provisions. These components combine to create a comprehensive contract governing all aspects of the single-member LLC’s operation.

Step 5: Obtaining an EIN in North Dakota

file EIN for llc

Now that the Articles of Organization have been filed with the Secretary of State, obtaining an EIN number in North Dakota from the IRS is time. This step is essential for a single-member Limited Liability Company (LLC) in North Dakota. An Employer Identification Number (EIN), also known as an IRS EIN or Federal Tax Identification Number, serves as a company’s identification number and will be used when filing taxes and opening bank accounts.

The first option for obtaining an EIN number is to apply online through the IRS website. The process can take approximately 15 minutes, provided all required information is available, such as business name, address, type of LLC, and personal data. Once completed, applicants receive their new EIN immediately via email.

There are other alternatives for those who prefer not to use the internet. Applicants may contact the IRS by phone at 800-829-4933 or submit Form SS-4 by fax at 855-641-6935. It should be noted that if applying by either method, there could be a delay of up to four weeks before receiving confirmation of the assigned EIN number from the IRS for a Single Member LLC.

No matter which option you choose for obtaining your new EIN number, keep accurate records throughout this process so that everything goes smoothly when it comes time to file taxes and open business banking accounts in North Dakota!

Community Property State and Single-member LLC

9 States in the USA are known as community property states. In these states, if one spouse acquires any business or asset at the time of marriage, the other spouse/partner will automatically have 50% right to them. Hence, if you’re starting an LLC with your spouse in any of the following 9 states, you can easily form a single-member LLC for two partners. For the rest of the states, you cannot create a single-member LLC for a married couple. Community Property States are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Understanding Single-member LLC in North Dakota

To understand what it means to form a single-member LLC, it is important to look more closely at the definition of an LLC. An LLC is a type of legal entity that combines aspects of both corporations and partnerships. It offers many advantages over other types of business entities since it allows for pass-through taxation, which can save owners money when filing taxes and provide personal asset protection from liabilities related to their business operations.

Thus, forming a single-member LLC gives you all these benefits without worrying about working with or managing multiple people or businesses. Furthermore, you can open your own bank accounts and conduct financial transactions in the name of your new LLC rather than using your own personal information. This makes protecting yourself from potential lawsuits much easier should something go wrong with your business venture. By understanding how this type of business works, entrepreneurs can take full advantage of its numerous benefits without worrying about the risks associated with running a larger enterprise.

Requirements to Form a Single-member LLC In North Dakota

Creating a single-member LLC in North Dakota provides various advantages, but legal requirements must be met to ensure the business is compliant. To form an LLC in North Dakota and avoid potential risks, here are five key steps:

  1. Choose a Legal Name: Your company’s name should be distinguishable from all other businesses registered with the Secretary of State (SOS). It cannot contain words like Bank, Trust, or Insurance unless the state properly licenses them. Also, you need to include “LLC” at the end of your chosen title.
  2. File Articles of Organization: The Articles of Organization document needs to be filed with SOS for creating a valid LLC in North Dakota. This document includes details about the business, such as its purpose, physical address, members’ names, contact information, etc.
  3. Create an Operating Agreement: An operating agreement outlines rules and regulations that govern how the business will operate daily and helps establish financial liability protection for your LLC’s assets.
  4. Obtain Licenses & Permits: Depending on what kind of services you offer, additional permits may be required for running an LLC in North Dakota that must be obtained from local authorities or regulatory agencies before commencing operations.
  5. Pay Taxes & Fees: There are numerous taxes applicable when forming a single-member LLC in North Dakota, including sales tax, payroll tax, and franchise tax, which need to be paid promptly as per government regulations. Additionally, annual filing fees may also apply depending upon the type of business activity conducted within the state boundaries.

Benefits of Forming a Single-member LLC In North Dakota

  • Forming a single-member LLC in North Dakota can provide numerous benefits. Most notably, it offers limited liability protection for the owner of the business, shielding them from personal liability should their company face legal issues or debt. This makes it ideal for entrepreneurs and small businesses who wish to protect themselves and their assets.
  • Additionally, forming a single-member LLC has several tax advantages compared to other business structures. For example, owners may be able to avoid double taxation while still enjoying certain deductions on their annual returns.
  • Furthermore, setting up a single-member LLC is relatively simple and straightforward – often requiring just one document accompanied by minimal paperwork.
  • Plus, because this type of structure features fewer regulations than corporations or partnerships, it provides more flexibility for its owner(s).
  • It also allows for simpler decision-making processes since there’s only one person involved in running the business.

Overall, forming a single-member LLC in North Dakota offers many practical benefits that could prove invaluable to those looking to start or grow a new enterprise. With limited liability protection and asset protection, as well as attractive tax advantages combined with its simple structure and greater flexibility than other entities, it’s easy to see why so many are drawn to this option.

After Forming a Single-member LLC in North Dakota

As soon as you finish processing your LLC (check how long it takes to form an LLC), you must proceed to other tasks. The most important ones are getting a bank account and complying with local requirements.

Complying With Local Licensing And Zoning Requirements

Compliance with local licensing and zoning requirements is essential to forming a single-member LLC in North Dakota. The state has specific regulations that must be adhered to when setting up your business entity. Depending on the type of business you plan to operate, there may also be additional local restrictions or ordinances that must be taken into consideration before filing for the LLC. It’s important to research all applicable rules and regulations at the state and local levels before launching your company.

For all businesses in North Dakota, according to the Corporate Transparency Act, a BOI (Beneficial Ownership Information) Report needs to be filed to maintain transparency in the company. Though, single-member LLCs are exempted from filing a BOI report in North Dakota, however, any other types of LLC and several other business structures are liable to file this report within the given time.

When it comes to local licensing requirements, it’s essential that you check with your county clerk or city hall regarding any permits or licenses required for operation within their jurisdiction. In some cases, depending on the business activities involved, you may need to obtain special permission from other government agencies, such as the fire department, health department, etc. Additionally, most cities have zoning regulations that dictate where certain types of businesses can operate within their boundaries—so make sure your chosen location complies with these laws!

By ensuring compliance with all relevant legal obligations related to operating a single-member LLC in North Dakota, you’ll set yourself up for success right off the bat. You’ll save yourself money (and headaches!) down the road by ensuring you’ve satisfied all necessary LLC compliance measures upfront. Don’t underestimate the importance of following proper procedures – not doing so could lead to costly fines or even shutting your business altogether!

Opening a Bank Account

Opening a bank account for your LLC is the next step in establishing yourself as an official business. This can be done online, but you may want to visit a local branch so that you have someone to assist with any questions or issues along the way. It’s important to remember that opening a business bank account requires different documents than those necessary when setting up a personal bank account. You will need proof of identity and address, evidence of registration as an LLC, and information about all members associated with the company.

It’s also essential to decide whether you would like to open a checking or savings account first — depending on the transactions you plan to make for your business. Once these decisions are made, completing the application process and starting your new banking setup should be straightforward.

When signing up, ensure you understand the fees associated with each transaction. Review all paperwork carefully before agreeing to anything; some banks may require additional documentation such as tax returns or other financial statements. After gathering everything needed and submitting the appropriate forms, all that’s left is waiting for confirmation that your business banking accounts are set up!

Keeping Records and Paying Taxes

Having drafted an operating agreement for your North Dakota single-member LLC, it is important to ensure that you diligently keep records and pay taxes in compliance with state regulations. This section will discuss the best practices for record-keeping and tax payment as a single-member LLC in North Dakota.

Record Keeping

One of the essential components of running a successful business is maintaining accurate records. For a single-member LLC, this means having a system in place to keep track of all income and expenses related to the company’s operations. Additionally, any documents associated with contracts or agreements should also be stored securely within the bookkeeping system. Relevant information such as invoices, receipts, bank statements, payroll records, and other financial data must all be accurately documented for proper record keeping.

Tax Payment

Paying taxes correctly and on time is paramount for any business entity, including a single-member LLC in North Dakota. The following table provides guidance on what type of taxes need to be paid by when:

TaxFrequency
Income TaxAnnually
Unemployment TaxQuarterly
Sales & Use TaxMonthly/Quarterly depending on activity level

To ensure that payments are received on time and in full, it may be beneficial to set up reminders or automatic payments through banking services so that deadlines aren’t missed. Lastly, businesses should always confirm they have filed their Annual Form (Limited Liability Company Return of Income) with the Franchise Tax Board if needed to comply with the tax system.

In summary, staying organized and proactive about managing records and paying taxes are two key aspects that can help maintain strong financial health for your single-member LLC in North Dakota. Sticking to these guidelines will protect you from potential fines and give you peace of mind knowing your finances are being managed properly!

Dissolution Procedures For Your Single-member LLC In North Dakota

Dissolving an LLC in North Dakota is not as daunting of a task as one may think. You can easily dissolve your business without any hassles or complications with the right knowledge and resources. To begin the dissolution process for your single-member LLC in North Dakota, there are several steps to take.

The first step is to file a Dissolution document form with the Secretary of State’s office. This document must include information about the company’s name, address, date of formation, and other pertinent details. Additionally, you should notify all creditors that your company is closing its doors and provide them with final payment agreements if necessary.

Next, you will need to cancel all licenses and permits associated with your business operations. Once this is done, it’s time to settle outstanding debts by paying back creditors and other third parties who may have been owed money at the time of closure. You should also distribute the remaining assets among members according to their interests before filing tax returns for the final year of operation.

After these procedures are complete, you can officially terminate your single-member LLC in North Dakota by completing additional paperwork and submitting fees to the Secretary of State’s office. The dissolution process typically takes four to six weeks, depending on how quickly each step is completed. By following these steps properly, you can quickly close out your single-member LLC in North Dakota while ensuring that all legal obligations are met along the way.

Getting Professional Assistance With Setting up a Single-member LLC in North Dakota

Forming a single-member LLC in North Dakota can be intimidating, especially if you are unfamiliar with the legalities. Fortunately, help is available to ensure that your business is properly set up and compliant with all state regulations. Professional assistance from experienced attorneys and accountants can provide invaluable advice when it comes to setting up your single-member LLC in North Dakota.

When looking for professional assistance, it’s important to find someone who specializes in the area of business formation you need help with. For example, an attorney should have experience dealing specifically with LLC setup and maintenance, while an accountant should specialize in tax filing issues associated with running a business. Ensure any professionals you consult understand the specific needs of forming a single-member LLC in North Dakota so they can provide relevant guidance and advice. Check out the best LLC services for your reference.

In addition to getting expert legal and financial advice, professional assistance may also include filing paperwork on behalf of the company or helping you complete other necessary steps, such as creating bylaws. This will save time and eliminate potential mistakes caused by trying to do everything yourself without proper knowledge of applicable laws or regulations. Working with qualified professionals will also give you peace of mind knowing that your business has been correctly established according to state law.

Starting a new business venture requires careful planning and execution; enlisting the services of knowledgeable experts can make this process much smoother while ensuring compliance with all applicable rules and regulations. Get started today by finding professionals who specialize in providing support for forming single-member LLCs in North Dakota.

FAQs

What is a Single-Member LLC in North Dakota?
A Single-Member LLC in North Dakota is a limited liability company with only one owner.
Do I need an Operating Agreement for my Single-Member LLC in North Dakota?
Although not required by law, it is highly recommended to have an operating agreement for a Single-Member LLC in North Dakota.
How do I form a Single-Member LLC in North Dakota?
To form a Single-Member LLC in North Dakota, you must file Articles of Organization with the Secretary of State.
What is the filing fee for forming a Single-Member LLC in North Dakota?
The filing fee for forming a Single-Member LLC in North Dakota is $135.
Can I be my own registered agent for my Single-Member LLC in North Dakota?
Yes, you can serve as the registered agent for your Single-Member LLC in North Dakota as long as you have a physical address in the state.
Are there annual reporting requirements for a Single-Member LLC in North Dakota?
Yes, Single-Member LLCs in North Dakota are required to file an annual report with the Secretary of State and pay a $50 fee.
Can a Single-Member LLC in North Dakota be taxed as a corporation?
Yes, a Single-Member LLC in North Dakota can elect to be taxed as a corporation by filing Form 8832 with the IRS.
What is the liability protection offered by a Single-Member LLC in North Dakota?
A Single-Member LLC in North Dakota provides limited liability protection, which means the owner’s personal assets are generally protected from business debts and liabilities.
Can I convert my sole proprietorship to a Single-Member LLC in North Dakota?
Yes, you can convert your sole proprietorship to a Single-Member LLC in North Dakota by filing Articles of Organization with the Secretary of State.
Do I need a separate EIN for my Single-Member LLC in North Dakota?
It is not required, but it is recommended to obtain a separate EIN for your Single-Member LLC in North Dakota for tax and banking purposes.
Can a Single-Member LLC in North Dakota have more than one owner?
No, a Single-Member LLC in North Dakota can only have one owner, as the name suggests.
What are the ongoing compliance requirements for a Single-Member LLC in North Dakota?
In addition to filing an annual report, Single-Member LLCs in North Dakota must also maintain accurate records and comply with all state tax obligations.
Can a Single-Member LLC in North Dakota have employees?
Yes, a Single-Member LLC in North Dakota can hire employees, but the owner is responsible for complying with all employment laws and tax requirements.
Is a Single-Member LLC in North Dakota required to have a bank account?
Yes, it is recommended for a Single-Member LLC in North Dakota to have a separate bank account to keep personal and business finances separate.
Can I change the name of my Single-Member LLC in North Dakota after it has been formed?
Yes, you can change the name of your Single-Member LLC in North Dakota by filing an amendment to the Articles of Organization with the Secretary of State.
Can I transfer ownership of my Single-Member LLC in North Dakota to someone else?
Yes, ownership of a Single-Member LLC in North Dakota can be transferred by assigning membership interest to another person or entity.
Are there any restrictions on the name I can choose for my Single-Member LLC in North Dakota?
Yes, the name of a Single-Member LLC in North Dakota must include “Limited Liability Company” or an abbreviation, such as “LLC.”
How long does it take to form a Single-Member LLC in North Dakota?
The processing time for forming a Single-Member LLC in North Dakota can vary, but it typically takes a few days to a few weeks.
Can I operate my Single-Member LLC in North Dakota from out of state?
Yes, you can operate your Single-Member LLC in North Dakota from out of state, but you may need to appoint a registered agent in the state.
What is the cost of renewing my Single-Member LLC in North Dakota each year?
The cost of renewing a Single-Member LLC in North Dakota each year is $50 for filing an annual report with the Secretary of State.
Is a Single-Member LLC in North Dakota required to hold annual meetings?
No, Single-Member LLCs in North Dakota are not required to hold annual meetings, as they only have one owner.
Can I dissolve my Single-Member LLC in North Dakota if I no longer want to operate it?
Yes, you can dissolve your Single-Member LLC in North Dakota by filing a Certificate of Termination with the Secretary of State.
Can I add more members to my Single-Member LLC in North Dakota in the future?
Yes, you can add more members to your Single-Member LLC in North Dakota by filing an amended Operating Agreement with the Secretary of State.
Is there a publication requirement for forming a Single-Member LLC in North Dakota?
No, there is no publication requirement for forming a Single-Member LLC in North Dakota.
Can I change the business purpose of my Single-Member LLC in North Dakota?
Yes, you can change the business purpose of your Single-Member LLC in North Dakota by amending the Articles of Organization with the Secretary of State.
Do I need to file state taxes for my Single-Member LLC in North Dakota?
Yes, Single-Member LLCs in North Dakota are required to file state taxes and may also be subject to local taxes depending on the location of the business.
Can I move my Single-Member LLC in North Dakota to a different state?
Yes, you can move your Single-Member LLC in North Dakota to a different state by registering as a foreign LLC in the new state and filing for domestication or conversion in North Dakota.
Can I use a DBA (Doing Business As) name for my Single-Member LLC in North Dakota?
Yes, you can use a DBA name for your Single-Member LLC in North Dakota by filing a Fictitious Name Registration with the Secretary of State.
What is the minimum age requirement to form a Single-Member LLC in North Dakota?
There is no minimum age requirement to form a Single-Member LLC in North Dakota, but you must be of legal age to enter into contracts.
Can a non-resident of North Dakota form a Single-Member LLC in the state?
Yes, a non-resident can form a Single-Member LLC in North Dakota as long as they appoint a registered agent with a physical address in the state.

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In Conclusion

In conclusion, forming a single-member LLC in Oklahoma is an excellent way to protect your business and personal assets. By following the steps outlined above, you can easily register your own single-member LLC and enjoy the benefits it provides. This article shows all the DIY steps to form your single-member LLC. The best part of having a single-member LLC is it does not need complicated processes or tax structures. Though, we have shared everything you need to start your LLC, however, if you need help or have questions along the way, don’t hesitate to get professional assistance. ZenBusiness is one of the best LLC formation services that offer LLC creation at $0.

With all that said, setting up a single-member LLC in North Dakota doesn’t have to be difficult—it just requires some research and preparation on my part. Good luck!

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