LLC Cost in North Dakota – How Much to Pay for an LLC

Perhaps you are hoping to form a North Dakota LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in North Dakota.

North Dakota LLC Cost of Filing

Here are the costs involved in forming an LLC in North Dakota.

Cost of Filing Formation Certificates

The North Dakota Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the North Dakota Secretary of State. 

North Dakota Domestic LLC

• Online Filing costs $135.
• Annual Report filing costs $50
• Name Reservation fee costs $10

North Dakota Foreign LLC

• Online Filing costs $135.
• Annual Report filing costs $50
• Name Reservation fee costs $10

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

North Dakota LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in North Dakota, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the North Dakota Department of Revenue for regulatory boards or agencies requiring licensing. 

Taxes Payable to North Dakota Office of State Tax Commissioner

To incorporate and register an LLC in North Dakota, one has to pay taxes to State & Federal Government. Some of the essential business taxes are enlisted below. The North Dakota Office of State Tax Commissioner levies two types of taxes on LLC:

State Income Tax

As the LLC owner, you have to pay state tax on any amount you earn via your LLC. All the earnings drawn by you are taxed through your personal tax return. The usual income tax rate in North Dakota ranges from 1.1% to 2.9%, depending on the amount you earn via your LLC.  

State Sales & Use Tax 

Any seller of tangible goods such as cars, electronics, etc. & any service provider company has to collect taxes at the time of the purchase and then has to pay those to the North Dakota Department of Revenue. The state sales & use tax rate on LLC in North Dakota is 5%

Federal Self-Employment Tax

The Federal Self Employment Tax is often called Social Security or Medicare tax, is paid by all the LLC Business members or managers. The self-employment tax caters to the well-being of the members of the company. The Federal self-employment tax rate in North Dakota is 15.3 percent. 

Federal Income Tax

The rate of the Federal Income Tax is calculated after carefully observing: your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing. Federal Income Tax is paid on all the profits your LLC makes in a year. 

Employee & Employer Taxes

LLCs that have appointed a number of employees have to pay Employee  & Employer Taxes too. The tax rate is calculated on the basis of the amount they earn, the number of employees, etc.

Cost Comparison Between States

North Dakota is surrounded by many states, namely Montana, South Dakota, Minnesota, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

States	Filing Fee	Annual/Biennial Fee	Sales Tax
North Dakota	$135	$50	5%
Montana	$70	$10	None
South Dakota	$150	$50	4.5%
Minnesota	$160	$50	6.875%

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. You should seek regional help to verify the tax rates or business costs of registering an LLC in North Dakota.

Other Costs

• North Dakota Name Reservation: $10
• Doing Business As (DBA): $25
• Certified Document Copies: $15.00 + $5.00 (Search of Records Fee)
• Certified of Good Standing: $15.00 + $5.00 (Search of Records Fee)
• Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta. 
• Online workspace: at least $4.20/mo for GSuite. 
• Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage. 
• Dissolution of North Dakota LLC: $20

How Much Does It Cost to Maintain an LLC in North Dakota

To maintain an LLC in North Dakota you will need to pay an annual fee of $50 along with state sales & use tax at 5%, state income tax at 1.1% to 2.9% and federal taxes.

Depending on the type of business you’re planning on starting, the costs for maintaining an LLC in North Dakota may vary. You’ll need to purchase a business license and other permits, as well as file state tax returns and federal tax returns. There’s also a chance you may need to prove your LLC’s good standing when applying for funding. Fortunately, these expenses are usually one-time fees, and you don’t have to worry about surprise expenses.

The cost of maintaining an LLC in North Dakota isn’t much higher than in other states, but you will need to file an annual report with the Secretary of State’s office. Fortunately, you can file this report online using FirstStop’s filing portal. If you fail to do so, however, you could face a $50 late fee. This could lead to your LLC falling out of good standing with the state, which means you won’t be able to renew professional licenses and you could be prohibited from doing business.

An annual report is important because it gives the state a record of your LLC’s good standing. It’s also important to file this report before November 15 of each year to avoid a $50 late fee. You can do this by visiting the North Dakota Secretary of State’s website, searching for your business, and clicking the “File Annual Report” button. You’ll also need to provide your registered agent’s information.

The registered agent is the person who accepts legal documents on behalf of the LLC. They can be a person or an outside service provider. They’ll have to have a physical address in North Dakota, and they’ll need to be available during normal business hours. It’s also important that your registered agent be a North Dakota resident.

You’ll also need to obtain a Certificate of Good Standing, also known as a Certificate of Fact. You can order this for $15 by phone, fax, or in person. You’ll also need to obtain a seller’s permit for your business. These permits are usually issued by the North Dakota Tax and Fee Administration. If you’re a pass-through entity, or a LLC, you will pay taxes on your profits. Your corporate income tax rate will depend on your income bracket. If you have employees, you’ll need to obtain a Withholding Tax permit.

If you’re selling tangible goods, you’ll also need to obtain a sales tax permit. The cost for this permit will vary depending on the type of merchandise you sell, but it’s typically between $100 and $250.

When you’re setting up your LLC, you’ll need to file formation documents with the Secretary of State. You’ll also need to file your LLC’s articles of organization and an operating agreement. You’ll need to list the official name and address of the LLC, the names and addresses of the managers, and the management structure of the LLC. You can also include a description of the LLC’s purpose, which is usually a legal one.

In North Dakota, you can also obtain a Certificate of Good Standing, which is the same thing as a Certificate of Fact. You can order this for $20 by phone, fax, or in person. It’s important to get this document before your LLC expands beyond the borders of North Dakota.

F.A.Qs

In Conclusion

The cost of North Dakota is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.