LLC Cost In North Dakota - How Much To Pay In Fees & Taxes in ND
When planning a new business, it is essential to properly calculate all kinds of future expenses. And while the costs of setting up a business, purchasing goods, etc. can only be calculated by you, this guide will help you explore the obligatory LLC fees in North Dakota.
In this article, we are going to break down these issues:
- How much is an LLC in North Dakota?
- What is the North Dakota state filing fee for an LLC?
- What is the annual North Dakota LLC fee?
- What other types of costs might you need?
In this guide, we are going to focus on the financial side of the issue. If you are interested in instructions on how to open an LLC in North Dakota on your own, check out our post on this topic.
How Much Does an LLC Cost in North Dakota?
If you are researching LLC costs in North Dakota, you need to understand that your expenses may vary depending on factors such as:
- Whether the company is local or foreign;
- Whether professional licenses are required;
- Whether there are additional permits, taxes, and fees at the county level.
But first, let's answer the main question: How much does it cost to form an LLC in North Dakota?
For local LLCs:
| Service | Cost |
|---|---|
| LLC filing fee North Dakota | $135 |
| Cost of forming an LLC in North Dakota for a Foreign COmpany | $135 |
| Annual Report | $50 |
| LLC Name Reservation | $10 |
| “Doing Business As” (DBA) Name | $25 |
| Certified Document Copies | $20 + $0,50 for each page |
| Certificate of Fact | $20 |
For foreign LLCs in North Dakota state, the registration fee and other fees are no different than for local companies. Note this fact, as it costs more to register a foreign company in many other states.
Below we'll break down each type of expense in more detail.
North Dakota LLC Online Filing Fee: $135
To register an LLC in the state of North Dakota, you need to file Articles of Organization (SFN 58701) with the North Dakota Secretary of State.
It includes the following information:
- LLC name;
- Address of the company's headquarters;
- Name and address of a registered agent;
- Date of formation. If you wish, you may include a date later than the date of filing the Articles of Organization;
- The term of existence of the company: indefinite or until specified date;
- Purpose: the type of business for which the LLC is created;
- Name and address of each organizer;
- Signatures of the organizers.
You can file your Articles of Organization online at the North Dakota Secretary of State's FirstStop website or in person, by mail, or by fax. We recommend using the online form, as this will make the registration process faster.
North Dakota filing fee for LLC is $135.
North Dakota Annual Report Fee: $50
In North Dakota, each company is required to send an annual report to the Secretary of State.
- The first annual report should be filed one year after the entity is initially registered;
- Subsequent reports should be filed by November 15 of each year.
You can fill out this form on the North Dakota Secretary of State's website. There is a $50 North Dakota LLC annual fee when the report is sent.
Also, there is a $50 penalty for not submitting your annual report on time. If violations are repeated, you risk an administrative decision to revoke your company registration.
Registered Agent (Agent of Process, Resident Agent) Fee
In the state of North Dakota, you are required to have a registered agent (RA) for an LLC. This will be your representative to receive correspondence and serve the process if your company is sued.
You are required to choose an RA agent before you send your Articles of Organization for registration, as these details are required for this document.
Under the law, a registered agent can be:
- An individual who is of legal age and has a permanent address within the state;
- An entity registered in the state and offers the services of a registered agent.
You have the right to be a registered agent for your company, which seems like a tempting solution for many aspiring business owners. This would appear to be the cheapest way to start an LLC in North Dakota since you won't be paying for anyone else's services.
If you want, you can also go this way, especially since your LLC has the right to change its registered agent at any time. But we do not recommend this method of saving money. The fees paid to a professional agent are not high, ranging from $49 to $300 per year.
But the services of professionals can help you avoid some problems and get some benefits:
- Maintain confidentiality. The name and address of the company that is your registered agent, not your personal information, will be in the public domain;
- Get rid of unnecessary spam. The address and phone numbers that are publicly available end up in the databases of many marketing newsletters;
- Arrange your schedule as you like. An RA is required to be available at the office 5 days a week during business hours;
- Get a trusted assistant. Often, professional companies offer, among other things, a business reminder calendar, advice, access to useful resources, and more.
It's also critical to choose a company wisely because your reputation and ability to avoid losses depend on the quality of the registered agent's services:
- If an RA is unavailable for correspondence from government agencies, your reputation may be downgraded;
- If you repeatedly fail to access a registered agent, the state government may decide that you are operating without one. So, you are breaking the law.
As a result, you risk a fine. In the worst case, your company will be dissolved by administrative decision.
It's also frustrating if you fail to know in time that a lawsuit has been filed against you. Typically, if the defendant ignores the court session, the judge makes a ruling that is not in your favor.
Another important factor is data security. Make sure that the company is concerned about protecting your information. Our rating will help you choose the best registered agent.
Cost to Form a Foreign LLC in North Dakota
If you already have an LLC in another state but want to expand your business, you don't have to open a new company in North Dakota. You can register as a foreign LLC.
That said, in New Dakota, the cost and timeline for registering a foreign company are no different than registering a local business. It is only important to choose the correct form on the Secretary of State's website when registering online.
Cost to Form a Series LLC in North Dakota
Under North Dakota law, you can form a Series LLC. This type of business allows you to create a complex structure, where the founder of several entities may not be an individual or a group of individuals but the main LLC. On the other hand, the financial obligations of each company are borne separately.
The cost to form a Series LLC in North Dakota is $135.
But we recommend that you carefully study the state law because it currently almost nullifies the benefits of a Series LLC in comparison to a regular one.
Cost to Form a PLLC (Professional LLC) in North Dakota
A Professional LLC is a special type of entity that is intended for licensed specialists who provide professional services.
The essential difference between a PLLC and a regular company is that liability protection does not extend to all members. For example, your PLLC provides medical services. If one physician makes a mistake, no other member of the LLC will be liable.
Professional LLCs in North Dakota are opened by:
- Accountants;
- Architects;
- Attorneys;
- Engineers;
- Pharmacists;
- Doctors;
- Psychologists;
- Registered dietitians;
- Social workers;
- Veterinarians.
In order to open a PLLC, each professional who will provide services should have a professional license. Also, in some cases, you may need prior approval from an industry licensing board.
The cost is the same as a regular company: $135.
Business Entity Income Tax
If you start researching taxes and North Dakota LLC fees on the ND Secretary of State's website, you will definitely notice that there are fewer taxes here than in other states in the country.
In terms of state law, an LLC is a "pass-through" entity. Thus, it will not pay income tax. But remember, you will be required to pay income tax on the amount you pay yourself from your company.
But still, your entity will need to cover some taxes, depending on your type of business. These may be these types of taxes:
- Property;
- Sales and use;
- Workers' compensation insurance;
- Unemployment insurance.
Also, be sure to check with the government of the city or county in which your business is located to see if any additional permits, taxes, and fees are needed.
Business License Renewal Fee
In North Dakota, you need to obtain a sales tax permit if you plan to sell any goods or services. This can be done online through the North Dakota Taxpayer Access Point.
There is no North Dakota LLC fee when obtaining a business license, and you do not have to renew it every year.
Other permits and licenses may vary from county to county in North Dakota. Contact the appropriate state, city, or county office for more information.
Other LLC Filing Costs
Now let's also take a look at some optional costs which may be important to you.
LLC Name Reservation
In some cases, it may be necessary to reserve the name of your future company in advance, and then submit the Articles of Organization. For example, you are afraid that someone else can register the name, while you need some time to solve some organizational issues.
In this case, you can reserve the company name for up to 12 months. The registration fee is $10.
“Doing Business As” (DBA) Name
If you plan to use the DBA on your website, billboards, and advertisements instead of the legal company name, it should be registered with the North Dakota Secretary of State.
There is a $25 North Dakota LLC fee.
You do not need to renew your DBA annually. But if necessary, you can always change that name without registering a new entity. To do that, just file a new DBA and pay the fee.
Certified Document Copies
Sometimes, investors, business partners, or financial institutions require certified copies of business documents. You can get them at your convenience by ordering through the Secretary of State website and paying $20 plus $0.50 per page.
Certificate of Fact
A Certificate of Fact, or in other words, a certificate of good standing, is often required by lending institutions and banks when you need a business loan. There are other instances where such documents are necessary as well.
You can also request one through the State Secretary's website, and there is a $20 fee for this document.