How to Start an LLC in North Dakota

Filing fee: $135

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State agency: North Dakota Secretary of State

Annual report due: November 15 each year — $50 filing fee

State tax rate: No state-level LLC franchise tax

Forming an LLC in North Dakota takes 6 steps: choose a name, designate a registered agent, file Articles of Organization with the Secretary of State (state fee: $135), create an operating agreement, get an Employer Identification Number (EIN), and obtain any required licenses or permits.

Why form an LLC in North Dakota

An LLC is the most common structure for new businesses in North Dakota because it separates your personal finances from your business finances. If the business is sued or owes a debt, your personal assets generally aren't on the hook. You also get pass-through taxation by default, which means the business itself doesn't pay federal income tax — profits and losses flow to your personal return.

North Dakota doesn't impose a state-level franchise tax on LLCs, which keeps ongoing costs lower than in states like California. The main recurring cost is the $50 annual report fee due every November 15.

Step 1: Choose a name for your LLC

Your LLC name must be distinguishable from all other business names already on record with the North Dakota Secretary of State, and it must include a limited liability company identifier — things like "LLC," "L.L.C.," or "Limited Liability Company."

Check name availability before you file. Use the Secretary of State's business search tool at firststop.sos.nd.gov to see whether your preferred name is already taken. A name that looks unique can still be rejected if it's too similar to an existing registration.

Step 2: Designate a registered agent

Every North Dakota LLC must continuously maintain a registered agent with a physical street address in North Dakota. The registered agent receives service of process and official state notices on behalf of your LLC. A P.O. box doesn't qualify — the address must be a location where someone is available during normal business hours.

Your registered agent can be an individual North Dakota resident or a business entity authorized to provide registered agent services in the state. You can serve as your own registered agent, but many business owners use a professional service to keep their personal address off public records and make sure nothing gets missed.

Step 3: File your Articles of Organization

Filing Articles of Organization with the North Dakota Secretary of State is the step that legally creates your LLC. The state filing fee is $135. You file through the Secretary of State's FirstStop portal at firststop.sos.nd.gov — you'll need to create a FirstStop account before you can submit the form.

The Articles of Organization form (SFN 58701) asks for your LLC's name, registered agent information, and other details required by North Dakota law. Once the Secretary of State approves your filing, your LLC is officially formed.

Step 4: Create an operating agreement

North Dakota doesn't require an LLC to have an operating agreement, and you don't file one with the state. But having one is worth the effort — it documents how your LLC is owned and managed, which matters if you ever have a dispute with a co-owner or need to show a bank how the business is structured.

For a multi-member LLC, an operating agreement is especially useful. It should cover ownership percentages, how decisions get made, and how either member can exit the business. Without one, North Dakota's default LLC rules under the Uniform Limited Liability Company Act fill in the gaps — and those defaults may not match what you actually want.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. You'll need one to open a business bank account, hire employees, and file federal taxes. Single-member LLCs with no employees aren't always required to have one, but getting an EIN keeps your Social Security number off business documents — which is reason enough.

You can apply for an EIN for free at irs.gov/ein. The online application takes about 10 minutes and issues your EIN immediately.

Step 6: Get licenses and permits

North Dakota doesn't issue a single statewide general business license. What you need depends on your industry and where you operate. After registering your LLC, check whether your business activity requires a state-level license or permit — the Secretary of State's registration guidance points you toward industry-specific requirements.

Also check with your city or county. Most North Dakota municipalities can require local business licenses, zoning approvals, or occupancy permits. If your LLC will have employees, you'll likely need to register with North Dakota Workforce Safety and Insurance for workers' compensation coverage.

Annual report requirements

North Dakota LLCs must file an annual report with the Secretary of State every year to stay in good standing. The deadline is November 15, and the filing fee is $50. You file through the FirstStop portal at firststop.sos.nd.gov. Missing the deadline can put your LLC out of good standing with the state.

The November 15 deadline applies to both domestic and foreign LLCs registered in North Dakota. Mark it early — the annual report is one of the few recurring compliance tasks your LLC has, and it's straightforward to file once you're in the system.