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.

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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

There are a number of fees associated with operating an LLC in North Dakota. While most of these fees are one-time, you may need to pay them periodically. Luckily, these fees are often one-time and you can pay them well in advance of your business’s start-up. However, there are also a number of recurring fees, which you should be aware of. This article will cover the most common and least expensive recurring costs.

In North Dakota, you’ll need to pay a fee to form your LLC. This fee ranges from $135 to $145, depending on whether you’d like to reserve a business name. You’ll also need to submit an annual report to the State of ND. You’ll need to fill out the form online, indicating the management structure of your LLC. It will also require information about the official business name, its purpose, address, and the names and addresses of all the members and managers.

The fee for filing an Annual Report in North Dakota is $50 plus $0.50 per page. If you fail to submit your Annual Report within the required deadline, you’ll have to pay a late fee of $100. If you don’t file it within six months, you’ll have to pay an additional $50 late fee. Additionally, failing to file a required annual report will cause your LLC to fall out of good standing with the state. An LLC that is in bad standing will not be eligible to receive loans from most lenders.

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.

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