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


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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.

LLC Service

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$49 + State Fees

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  • EIN & Website Included

  • Operating Agreement Included

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.

StatesFiling FeeAnnual/Biennial FeeSales Tax
North Dakota$135$505%
Montana$70$10None
South Dakota$150$504.5%
Minnesota$160$506.875%

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

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.

When setting up an LLC, it’s important to understand the costs involved in maintaining your business. In North Dakota, an LLC is taxed based on its gross revenue, so it is necessary to pay any tax owed on income and expenses. Additionally, an LLC must pay all administrative fees and taxes. The following are costs associated with LLC maintenance in North Dakota. Weigh the costs of operating an LLC in North Dakota against the benefits you’ll gain from this business structure.

First of all, you’ll need to obtain the proper licenses for your business. This will vary depending on the type of business you plan to run. Business licenses vary from state to state. In North Dakota, you’ll need a business license for your specific industry. In addition, you’ll need to pay a registered agent for your LLC. You should compare fees and services from several different providers before deciding which one to use.

In addition to these fees, LLCs are required to file annual reports. These reports contain financial information on each business activity. They also include information on the business’s employees and contractors. An annual report is also mandatory, and if filed late, it can lead to hefty financial penalties. You can opt to hold an annual meeting for your LLC. If you’re unsure about the process, we’ve prepared a list of costs associated with LLC maintenance in North Dakota.

The next step to fully functioning your business is to fund it. Funding an LLC is fairly simple for one member LLCs. The same process applies to multiple member LLCs. Each member of the LLC pushes money into the middle of the table to fund the business. However, remember that funding your business with your own property or services can attract scrutiny from the IRS. You should always keep the business’s financial information separate from your personal funds.

Another cost of LLC formation is the filing fee for the Articles of Organization. While these are not required in North Dakota, they’re highly recommended. An LLC operating agreement is a vital internal document for any company. It helps the LLC open a bank account, track initial funding, and handle additions and removals of members. Keeping up with these fees is a necessary part of operating an LLC.

When it comes to filing an annual report, LLCs in North Dakota must do so by Nov. 15. A late filing penalty is $100 and the LLC will be closed if it doesn’t file within six months. North Dakota’s Department of Revenue lists regulatory boards and fees for LLC formation. If you’re unsure of which one you’ll need, check the state’s website to find out more.

Another cost of LLC registration in North Dakota is taxes. North Dakota charges different rates for corporations and pass-through entities. C corporations are taxed at 1.41%, while pass-through entities pay between 1.1% and 2.9%. If your business has employees and sales, it’s important to pay unemployment insurance and sales and use tax. You can find these tax websites and fill out the necessary forms.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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.

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