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.

An LLC is a legal entity that allows you to start and operate a business in a particular state. It requires certain business licenses, depending on the type of business you’re running. For example, if you want to operate a bakery or sell ice cream, you need to get a state business license. In North Dakota, the Department of Revenue provides a list of regulatory boards and their fees.

To keep your LLC in good standing, you must file a North Dakota annual report with the Secretary of State. You’ll have to pay a $50 filing fee if you’re late with the report. The state will also suspend your LLC if you don’t file your annual report within six months. To avoid a late fee, hire a registered agent service to handle your filings for you.

LLC maintenance fees vary by state, so be sure to budget for the recurring annual payments. State reports, taxes, and additional fees will be due annually. Failure to pay these fees can lead to serious legal penalties. North Dakota requires LLCs to file annual reports, but it also requires that you maintain current information on your LLC’s contact information. If you change any of your contact information, you’ll have to file a change request with the state to update your business’s information.

You must file annual reports, also known as periodic reports or statements of information. These filings typically cost $25 to $100. Some states waive annual fees for LLCs if they don’t make any changes. However, other states require a yearly franchise tax that all LLCs must pay. This tax is known as a franchise tax, and increases in rate as your income grows. However, North Dakota does not require operating agreements for LLCs. An operating agreement can serve as a common written agreement among the members of an LLC.

If you choose to use an independent registered agent, you’ll need to make sure that they’re a North Dakota resident and can accept important legal documents. The fee for this service is relatively low, and you can choose a reliable and cheap agent who will accept these important documents on your behalf. As a business owner, ensuring that you’re protected from personal liability is of paramount importance.

Another important aspect of LLCs is compliance with regulations. Failure to file annual reports can lead to the suspension of your LLC’s license. Failure to submit an annual report can cost you a $50 late fee. Additionally, failing to submit a state report can result in your LLC falling out of good standing with the state, which means it can’t qualify for loans or professional licenses. And, in some states, LLCs will not be allowed to conduct business.

You must obtain an Employee Identification Number, or EIN. This nine-digit number is issued by the Internal Revenue Service and is like a Social Security number for your company. You can get a free EIN through the IRS website. You must also register a separate bank account for your LLC. If you’re in the state of North Dakota, you’ll have to pay an additional fee to obtain an EIN.

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.