How to Start an LLC in North Dakota (Step-by-Step Guide)

Forming an LLC in North Dakota requires filing Articles of Organization with the North Dakota Secretary of State and paying a $135 filing fee. The process takes about 3-5 business days when filed online through the state’s FirstStop portal — the only accepted filing method.

North Dakota offers a straightforward LLC formation process with one of the lowest income tax rates of any state that has an income tax. The state’s online-only filing system makes formation quick and convenient, though it means you can’t file by mail.

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 LLC name must be distinguishable from other business names registered in North Dakota. The name must include “Limited Liability Company,” “LLC,” “L.L.C.,” or an abbreviation of these terms. Your business name will appear on all official documents and public records, so choose thoughtfully.

Search the North Dakota Secretary of State’s business name database to check availability. You can also reserve a name for 12 months by filing a Name Reservation ($10 fee), giving you plenty of time to prepare your formation documents.

North Dakota naming rules:

• Must be distinguishable from any existing business entity registered in North Dakota
• Cannot include words suggesting it’s a bank, insurance company, or government entity without proper authorization
• Must include an LLC designator (“Limited Liability Company,” “LLC,” or “L.L.C.”)
• Cannot contain language implying a purpose the LLC is not authorized to pursue

Tips for choosing your LLC name:

• Check domain name availability for your future website
• Search the USPTO trademark database to avoid conflicts
• Choose a name that’s easy to spell, pronounce, and remember
• Consider how your name will look on marketing materials and online

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 accepts legal documents, government notices, and official correspondence on behalf of your LLC. The agent must be available during normal business hours.

You have three options:

Option 1: Be your own registered agent. If you have a North Dakota address and are available during business hours, you can serve as your own agent. This is free but makes your personal address part of the public record.

Option 2: Appoint a trusted individual. Any North Dakota resident with a physical address can serve as your agent.

Option 3: Use a professional service. Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $135 state fee. A professional service keeps your home address private and ensures reliable handling of legal documents.

Step 3: File Your Articles of Organization

File Articles of Organization with the North Dakota Secretary of State through the FirstStop portal. North Dakota has fully transitioned to online-only filing — traditional methods like mail, fax, and in-person filing have been discontinued.

Filing details:

• Filing fee: $135
• Filing method: Online only through the FirstStop portal (no mail or fax accepted)
• Processing time: 3-5 business days
• Payment: Credit card or electronic check

Information required on the Articles of Organization:

• LLC name
• Registered agent name and North Dakota street address
• Principal office address
• Name and address of each organizer
• Whether the LLC is member-managed or manager-managed
• Duration (perpetual is standard)
• Effective date (if different from filing date)

Member-managed vs. manager-managed: A member-managed LLC means all owners participate in daily business decisions. A manager-managed LLC designates specific people (who may or may not be members) to handle operations. Most small LLCs choose member-managed.

Step 4: Create an Operating Agreement

North Dakota doesn’t legally require an operating agreement, but having one is strongly recommended. This internal document governs how your LLC operates and defines the relationship between members.

Key provisions to include in your operating agreement:

• Ownership percentages and initial capital contributions
• Profit and loss distribution among members
• Voting rights and procedures for major decisions
• Rules for admitting new members or handling departures
• What happens if a member dies or becomes incapacitated
• Process for amending the operating agreement
• Dissolution procedures

Even single-member LLCs should have an operating agreement. It helps demonstrate that your LLC is a separate legal entity, which strengthens your personal liability protection. Most banks also require one to open a business 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. Your EIN serves as your business’s tax ID number, and you’ll need it to open a business bank account, hire employees, and file federal taxes.

Even if you’re a solo business owner with no employees, get an EIN. It protects your Social Security number and is required by most banks for business accounts.

Step 6: File Your Annual Report

North Dakota LLCs must file an annual report with the Secretary of State by November 15 each year. The filing fee is $50, and you can file online through the FirstStop portal.

Annual report details:

• Due by November 15 each year
• Filing fee: $50
• File online through the FirstStop portal
• Late filing penalty: $100 fine
• First annual report due November 15 of the year following formation
• Failure to file for three consecutive years may result in administrative dissolution

The annual report is a simple update confirming your LLC’s registered agent, principal office address, and other basic information. It takes only a few minutes to complete online.

North Dakota LLC Costs

Total first-year cost: $135-$484 (depending on whether you use a registered agent service). North Dakota’s costs are moderate — not the cheapest but far from the most expensive. See our complete guide to LLC costs by state.

Ongoing annual costs: After formation, you’ll pay $50/year for the annual report plus any registered agent fees. If you serve as your own registered agent, your only annual cost is the $50 report filing fee.

North Dakota LLC Taxes

North Dakota has one of the lowest income tax rates of any state with an income tax. LLC profits are passed through to members’ personal tax returns by default, meaning the LLC itself doesn’t pay state income tax.

• State income tax: 0% to 2.5% (graduated rates — North Dakota recently reduced its top rate, making it one of the lowest in the nation)
• Corporate income tax: 1.41% to 4.31% (only if your LLC elects corporate taxation)
• Sales tax: 5% state rate, plus local taxes that can bring the total to approximately 8% in some areas
• Self-employment tax: 15.3% federal (12.4% Social Security + 2.9% Medicare)
• Federal income tax: Standard pass-through taxation — profits pass to members’ personal returns at their individual tax rate

How North Dakota LLC taxation works: By default, North Dakota LLCs use pass-through taxation. The LLC doesn’t pay income tax at the entity level. Instead, profits flow through to each member’s personal tax return. Single-member LLCs report on Schedule C; multi-member LLCs file Form 1065 and issue K-1 forms.

Tax advantage: With a top rate of just 2.5%, North Dakota residents enjoy one of the lightest state income tax burdens in the country. This makes North Dakota an attractive state for LLC owners who live and work here.

Annual Requirements for North Dakota LLCs

• Annual report: Due November 15 each year, filed with the North Dakota Secretary of State through the FirstStop portal. Filing fee is $50. Late filing incurs a $100 fine.
• State income tax: File and pay North Dakota individual income tax on LLC profits by April 15.
• Sales tax: If selling taxable goods or services, register with the North Dakota Tax Commissioner and collect the 5% state sales tax plus applicable local taxes.
• Maintain a registered agent: Must have a registered agent with a North Dakota physical address at all times.
• Business licenses: Check with your city and county for any local license or permit requirements.

Advantages of a North Dakota LLC

• Very low income tax: Top individual rate of just 2.5% is among the lowest of states with income tax
• All-online filing: The FirstStop portal makes formation and annual reporting convenient
• 12-month name reservation: Longer than most states, giving you plenty of time to prepare
• Reasonable fees: $135 filing fee and $50 annual report are in line with the national average
• Straightforward process: The online-only system streamlines every step

Frequently Asked Questions

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

Online filings through the FirstStop portal are typically processed within 3-5 business days. North Dakota requires all business filings to be submitted online — mail, fax, and in-person filings are no longer accepted.

Is North Dakota tax-friendly for LLCs?

Yes. North Dakota has one of the lowest income tax rates of any state with an income tax, with a top rate of just 2.5%. Combined with reasonable filing fees and annual costs, North Dakota is an affordable state for LLC owners who live and do business here.

Can I form a North Dakota LLC if I live in another state?

Yes. You can form a North Dakota LLC regardless of where you live. You’ll need a registered agent with a physical North Dakota address. However, if you primarily do business in another state, you may be better off forming your LLC there instead — otherwise you’ll pay registration fees in both states. See our how to start an LLC guide for more on choosing the right state.

Does North Dakota require an operating agreement?

No, North Dakota doesn’t legally require an operating agreement. However, we strongly recommend creating one. It protects your personal liability, clarifies ownership and management structure, and most banks require one to open a business account.

When is the North Dakota LLC annual report due?

The annual report is due by November 15 each year and costs $50 to file. If you file late, a $100 penalty applies. Failure to file for three consecutive years may result in administrative dissolution of your LLC.

Can I file by mail in North Dakota?

No. North Dakota has fully transitioned to online-only business filings through the FirstStop portal. All formation documents, annual reports, and other business filings must be submitted electronically. You’ll need a credit card or electronic check for payment.

Do I need a business license in North Dakota?

North Dakota doesn’t have a general state business license, but certain industries require specific state licenses or permits. You may also need city or county business licenses depending on your location. Check with the North Dakota Secretary of State and your local government for details.

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