How to Form an LLC in North Dakota in 7 Steps

To set up an LLC in North Dakota, you must pay an initial filing fee of $135 for the articles of organization. Each year after that, you file an annual report and pay an annual report fee of $50.

The fee is $135 to file the articles of organization.

The LLC must file an annual report after the year of formation. The cost of the annual report filing is $50 and is due by November 15 of each year. It is important to file your annual report on time to keep your LLC compliant and maintain good standing.

Single-member LLC. North Dakota allows an LLC to be owned by only one member, called a single-member LLC (SMLLC). An SMLLC has the same legal formation requirements as multi-member LLCs.

Multi-member LLC. You can also set up an LLC owned by many members, called a multi-member LLC (MMLLC). The members can name one person or a group as "manager-members" to operate the LLC.

Professional LLC. If you hold a professional license with the state, you must form a professional LLC (PLLC). Many doctors, lawyers, and accountants with professional licenses set up PLLCs.

Articles of organization is the initial filing accepted by the North Dakota Secretary of State. You get a copy of your articles of organization when the Secretary of State approves them. You use the copy to show banks when opening business bank accounts or applying for licenses and permits.

A certificate of good standing verifies the status of your LLC. North Dakota certifies your LLC complies with state law. When seeking a business loan or registering to do business in another state, you might need to show a certificate of good standing. You can request a certificate of good standing from the FirstStop portal on the secretary of state's website for a $20 fee.

To set up an LLC in North Dakota, you need the following:

• An LLC business name, according to North Dakota laws
• A registered agent
• A registered office address (a physical street address in North Dakota)
• A completed online application with member information
• A filing fee of $135

One main advantage of LLCs is that this business structure offers personal liability protection. Your personal assets, such as houses and cars, will be protected if someone sues your business over a debt or obligation. Without this liability protection, you could lose your assets in a lawsuit against the LLC. There are also tax advantages. You can elect the tax structure you want, for example, as a corporation, a sole-proprietorship (for a single-member LLC), or a partnership (multi-member LLC). Additionally, LLCs have fewer reporting and recordkeeping requirements than corporations.

You keep the status of your LLC current by filing an annual report with the Secretary of State and paying a $50 fee. The report is due by November 15 each year after the year of your LLC formation.

No. The articles of organization is the first legal document to form your LLC. You file articles of organization with the state. An operating agreement is a document you keep for your business. An operating agreement outlines the management structure, profit and loss distributions, and members' rights and duties. Having an operating agreement for your business is a good idea, although North Dakota does not require it.

Yes. If you're operating under a name other than the LLC legal name you recorded with the North Dakota Secretary of State, register for a trade name in North Dakota. Other states call this a "doing business as" or DBA registration. First, search the North Dakota business name database to make sure the name is available. Then complete the application and pay a $25 fee. You must renew the trade name every five years.

You might need a specific permit based on your business, so you'll need to contact the licensing department regulating your business. You can start with licensing information on the North Dakota.gov new business registration page.

Yes. North Dakota has an online business services portal, FirstStop, where you can file articles of organization for your LLC. However, if you don't want to set up an account, you can use an LLC formation service company to handle the paperwork for you.

The secretary of state's address is:

Secretary of State
State of North Dakota
600 E Boulevard Avenue, Dept. 108
Bismarck, ND 58505-0500

Registered agent service companies file your articles of organization and maintain the good standing of your LLC. They provide registered agent services and backup to your business. Some of the key advantages of using a professional service company:

• Privacy. Your registered agent receives service of process, meaning lawsuits. You don't alert your customers about any legal difficulties.
• Compliance. The registered agent keeps you informed of requirements and deadlines, which keeps your business in good standing with the Secretary of State. Late or missed annual reports jeopardize your status, and you may face penalties or automatic dissolution.
• Administrative Assistance. If you need a copy of your articles of organization or a certificate of good standing, they can order it for you.
• Availability. The registered agent must be open to accept service of process during regular business hours of 9 a.m. - 5 p.m., Monday through Friday. Depending on your business activities, you may not be available during those times.

A domestic LLC is an LLC organized under North Dakota's laws. A foreign LLC is an LLC formed in another jurisdiction.

If you want to do business in another state, register your North Dakota LLC as a foreign LLC. Generally, when you register as a foreign LLC in another state, you must:

• Search the business records in the new state to see if your business name is available
• Complete their application for a foreign LLC
• Provide North Dakota's certificate of good standing
• Pay the foreign LLC registration fee to the state
• Set up business and tax accounts (if necessary) in the new state
• File annual reports in the new state (if required)

Any foreign (out-of-state) LLC that wants to do business in North Dakota must obtain a certificate of authority. You complete the foreign business limited liability company certificate of authority application online with the FirstStop portal. There is an online application, and the filing fee is $135.

If you want to close your LLC, file articles of dissolution and termination. To file your LLC's dissolution in North Dakota:

• Follow any dissolution procedures in the LLC operating agreement
• Close all tax and business accounts
• File the articles of dissolution and termination online at FirstStop
• Pay a $20 dissolution fee

An anonymous LLC does not list the LLC owner's name on the articles of organization. The articles of organization is a public record of the Secretary of State. Only Delaware, Nevada, New Mexico, and Wyoming allow anonymous LLC formation.