The process of an LLC formation in North Dakota is accomplished by filling out forms (Articles of Organization), which are then sent to the Secretary of State online or by mail.
Let’s take a look at how to create an LLC in North Dakota in 2022 and what features await local and foreign organizations here. We’ll also consider how much it would cost to maintain the business.
If you don’t have time to do all by yourself, choose one of the recommended LLC services:
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Note! The documents should be filled out strictly according to the law in order to get approved. Otherwise, the application will be rejected, and the applicant will have to go through the process from the beginning up to re-paying the state fee.
So, the procedure consists of 5 steps, and we suggest you read carefully about all the requirements of the state.
The process of choosing a name for an LLC is somewhat complicated because it is not enough to just decide on the word or phrase you like. The legal name is chosen according to the established laws of the country and state.
In North Dakota, there are no specific rules peculiar only to this state. So, you will have to meet only general requirements:
● Uniqueness. You cannot use names that are already registered in the state. And in order not to duplicate, we recommend using the business name search on the Secretary of State’s website;
● Originality. Your name should be 100% original. So, if your chosen name is already taken, and you make minor corrections to it (changing suffixes or characters), the Secretary of State will not approve your Articles of Organization;
● Use of specific words. Indicate your business structure in the name. For example, you may choose “Land Farmer L.L.C.” or “Land Farmer Limited Liability Company.”
● Prohibitions. Certain words that might hint that the business is a state or federal agency (e.g., “Police,” “Treasury”) are not allowed. Names that are inconsistent with the business’s purpose are also not forbidden.
Also, the legal name can be reserved in case an individual is not planning to launch the project right away. A 365-day reservation is available to you. You can do that here.
|Often, business owners choose not to publicly use the legal name but register a DBA. In North Dakota, it is called a trade name. But a DBA is not a trademark. The trademark implies more protection and guarantees the legal right to use elements such as the name and logo.|
In turn, DBA carries less value with respect to legal protection but will be very useful as a marketing and brand development tool. Its main differences from a trademark are:
● It’s easier to set up;
● Its capabilities apply at the state rather than the country level.
When asked how to start an LLC in North Dakota, we advise taking care of a domain name reservation, which is the firm’s web address. Customers will use it to find your site on the web.
The domain does not necessarily have to match the legal name of the firm. But it should be identical so that customers can identify your brand from the competition.
A resident agent (or RA for short) is required by all for-profit and nonprofit organizations in the state. All of the rules and requirements for this step are detailed in the NDCC Act, Chapter 10-01.1.
It states that every company (domestic or foreign) should appoint a RA to serve procedural documents. This is another important point without which an LLC registration North Dakota and its further activities are impossible.
RA’s duties include:
Other requirements regarding the appointment of a registered agent:
● This person needs to be at least 18 years old.
● The agent is required to have a mailing address in order to receive the documents in person. This can be a home, business, or office address.
● The agent should be a resident of ND.
Thus, the business owner can choose a friend/family member, a commercial agent as the RA, or perform these tasks on his/her own.
This may seem like a lucrative option from a financial standpoint. But it’s not so perfect when it comes to compliance and confidentiality. Let’s take a look at why you should seek help from specialized services rather than performing the agent’s tasks yourself.
The market offers many solutions, and LLC owners have a lot of options to choose from. Usually, the platforms that offer RA services can also help you form an LLC in North Dakota and take responsibility for the process.
If you are planning to free yourself from the routine of filing Articles of Organization and searching for a RA, we strongly recommend checking all the offers on the web. Some of the providers offer packages with free agent services for the first year of cooperation.
The Articles of Organization form contains all the important information about the future company. If this document is filed in writing by mail, other rules of how to get an LLC in North Dakota inherent in this format should also be considered.
For example, the forms are filled out exclusively in black ink and can be downloaded in pdf from the Secretary’s website.
|Note! It is much faster and easier to complete the registration process through the Secretary of State’s online platform. To begin filling out forms online, you have to create your account first.|
Now, let’s move on to a more detailed explanation of how to fill out the Articles of Organization:
Once the Secretary of State approves the documents, the business owner receives a confirmation letter stating that the firm is eligible to do business in the state.
Sometimes, after North Dakota LLC registration, there are reasons to make changes to the Articles of Organization. For this purpose, you should file an application for an amendment to the Secretary of State. But sometimes, it is sufficient to file an amended annual report.
The procedure can be completed through the Secretary of State’s online system, or the amendments can be submitted by fax. The processing time is up to 10 days, and there is no expedited processing in the state.
It’s going to be very difficult to properly manage a limited liability company without a specific document. So, let’s focus on the Operating Agreement. This document is an important part of setting up an LLC in North Dakota.
Note! An Operating Agreement does not need to be filed with the state, nor does it have to be witnessed by attorneys. But it is still worth creating one in North Dakota because the state recommends doing so.
Note! According to North Dakota Century Code Ch. 10-32.1-02, an Operating Agreement may be made orally. But we recommend a written document to avoid potential conflicts and misunderstandings in the future.
The Operating Agreement is made individually based on the needs of the LLC and the niche of the business. Even if you download a template online, consider whether each point fits your requirements or if you need to add your own sections.
Let’s take a look at the elements that should definitely be in your agreement:
Another important aspect of the LLC formation North Dakota has to do with obtaining a tax identification number. You can get it through the online platform of the IRS.
It’s needed not just for those who hire employees but for every LLC owner to protect the business and get a number of benefits.
|Think about getting an EIN even if it seems that there is no need for it right now. In addition, the process of obtaining a tax number is fairly simple and will take no more than 10 minutes.|
How much does an LLC cost in North Dakota during the formation period and after it?
Before registering a company, it’s worth considering not only how much an LLC formation costs in North Dakota but also future expenses:
Also, you can’t avoid paying state fees if you want to legally conduct business in the state. Otherwise, the firm will be charged additional fees (fines) or denied the right to operate in the state.
Once you’ve got your state’s approvals, let’s go over what you should do next. We’ve listed five steps that may be relevant to you:
Corporate compliance is something that all business owners should take care of if they want to maintain a positive reputation for the entire period of the firm’s existence.
Note: Use the minute book. This way, you can store all of the firm’s documentation (Articles of Organization, Operating Agreement, accounting book, meeting minutes, and more).
Recommendations for compliance:
The North Dakota LLC registration process does not seem too complicated and can be accomplished by someone new to starting a business. Of course, there are some requirements, but if you follow the manual clearly, everything will work out perfectly.
North Dakota has no unique rules for choosing a business name or filling out Articles of Organization. Every step is governed by the general laws of the country. Although you might see some differences in licensing/permitting requirements. So, we recommend checking with your local authorities beforehand to find out more accurate information.
A limited liability company is a welcoming legal structure for many businesses. Start an LLC is easy. Select your state to start.