Why Form an LLC in North Dakota
North Dakota has a surprisingly strong energy-driven economy with one of the lowest income tax rates at just 2.5%.
Formation costs $135 with a $50 annual report. The FirstStop portal makes filing straightforward.
The Bakken oil formation has driven significant economic growth.
For non-residents, Wyoming offers zero income tax with lower fees, but ND's 2.5% rate is nearly negligible.
North Dakota LLC Costs and Fees
Complete fee breakdown for North Dakota LLCs. State fees sourced from the North Dakota Secretary of State.
| Fee | Amount | When Due |
|---|---|---|
| Articles of Organization | $135 | One-time |
| Annual report | $50/year | Due November 15 |
| 24-hour expedited | $100 additional | Optional |
| Registered agent | $100-150/year | Ongoing |
| Name reservation | $10 | Optional - 365 days |
Step-by-Step: How to Form a North Dakota LLC
Step 1: Choose your LLC name
Your name must be distinguishable from existing entities. Must include "LLC" or "Limited Liability Company." Check availability on the North Dakota business search. Reserve a name for 365 days for $10.
Step 2: Appoint a registered agent
Every North Dakota LLC needs a registered agent with a physical North Dakota address (not a PO Box). USLLCGlobal includes one year of registered agent service in all packages.
Step 3: File Articles of Organization
File with the North Dakota Secretary of State through the North Dakota filing portal or by mail. Required information:
- LLC name with designator
- Registered agent name and address
- LLC mailing address
- Organizer name and address
- Member-managed or manager-managed
- $135 filing fee
Step 4: Create an Operating Agreement
Not legally required in North Dakota but essential. Defines ownership, profit distribution, management, and exit provisions. Banks and the IRS expect to see it.
Step 5: Obtain an EIN
Your federal tax ID from the IRS. Required for bank accounts, hiring, and taxes. Non-residents can apply via Form SS-4 (4-6 weeks). USLLCGlobal handles EIN applications in every package.
Step 6: Open a US bank account
With your Articles of Organization, EIN, and Operating Agreement, open a US business account. Mercury, Relay, and Wise Business allow remote opening for non-residents.
Annual Compliance Requirements
What you need each year to keep your North Dakota LLC in good standing:
- Annual report: Due November 15. Fee $50.
- Federal tax filing: Form 5472 for non-US owners. $25,000 penalty.
- ND state tax: Up to 2.5%.
- Registered agent: Maintain physical ND address.
- FinCEN BOI Report: File within 30 days.
North Dakota Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| Personal income tax | Up to 2.5% | Among the lowest |
| Franchise tax | $0 | No franchise tax |
| Gross receipts tax | $0 | No gross receipts tax |
| State sales tax | 5% + local | If selling taxable goods |
Important tax note
Forming in North Dakota does not eliminate federal US tax obligations. Non-resident owners must file Form 5472 annually ($25,000 penalty for non-filing). Consult a qualified tax professional.
Processing Times
| Option | Time | Fee |
|---|---|---|
| Standard | 3-5 business days | $0 (included) |
| 24-hour processing | As described | $100 additional |
Pros and Cons of a North Dakota LLC
Advantages
- Very low income tax (up to 2.5%)
- Reasonable $50 annual report
- Strong energy economy
- Low cost of living
- 365-day name reservation (longest in US)
- Efficient FirstStop portal
- No franchise tax
Disadvantages
- Higher filing fee ($135)
- State income tax exists
- Small consumer market
- Remote location
- 5% sales tax plus local
- Not popular for non-residents
The bottom line
Best for entrepreneurs in the state or energy/agriculture sectors. The 2.5% rate is nearly negligible. For pure non-resident formation, Wyoming's zero tax is slightly better.
Our Pricing: North Dakota LLC Formation
Domestic Filers (US Residents)
$249 service + $135 state fee
International Filers (Non-US)
$349 service + $135 state fee
Every package includes:
- Articles of Organization filing with North Dakota Secretary of State
- One year registered agent service
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital delivery within 24 hours of approval
- Compliance calendar
- Dedicated email and WhatsApp support
No hidden fees. No upsells. The price listed is the price you pay.
Form your North Dakota LLC today
$384 all-in for US residents. $484 for international filers. Formed in 3-5 business days.
Start My North Dakota LLC →