How to Form an LLC in North Dakota (2026)

1. 1Choose a name for your LLC and verify availability by searching the North Dakota Secretary of State business entity database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent with a physical street address in North Dakota.
3. 3File Articles of Organization with the North Dakota Secretary of State through the First Stop portal. The filing fee is $135.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement. Not legally required in North Dakota but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Obtain any required state and local business licenses or permits.
8. 8File your first annual report by November 15. The fee is $50.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Register for North Dakota state taxes with the Tax Commissioner
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓Apply for any local business licenses or permits
• ✓File your first annual report ($50) by November 15

Your North Dakota LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." Restricted words like "Bank," "Insurance," or "Trust" require additional licensing. The name must be distinguishable from existing business entities in North Dakota.

North Dakota LLCs are pass-through entities by default. Members pay North Dakota individual income tax on their share of profits (rates from 0% on first $44,725 to 2.5% on income over $225,975). North Dakota has some of the lowest income tax rates in the country. No franchise tax applies to LLCs.

LLC vs. other structures in North Dakota

North Dakota has moderate LLC costs: $135 to file and $50/year. North Dakota's very low income tax rates (max 2.5%) make it one of the most tax-friendly states. While not as popular as Wyoming or Delaware for out-of-state LLC formation, North Dakota is an excellent choice for businesses operating in the state.

• •File an annual report by November 15 each year — $50 fee
• •Maintain a registered agent with a physical address in North Dakota at all times
• •Keep your operating agreement current and update it when membership changes
• •File North Dakota state income tax returns for all members receiving pass-through income
• •Renew any local business licenses or permits as required

North Dakota has higher-than-average LLC costs. Weigh the total cost of formation and annual maintenance against your expected revenue before deciding.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in North Dakota, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What North Dakota LLC Owners Need to Know

• •North Dakota annual report is $50 and due November 15 each year
• •The First Stop portal handles all business filings and registrations
• •North Dakota is a less common choice for LLCs but has reasonable fees

Official North Dakota Resources

• North Dakota Secretary of State — Business Services
• North Dakota First Stop Business Portal