How to Start Your LLC in North Dakota
Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!
Quick Summary:
- Filing Fee: $135
- Turnaround time: 5 business days
How do I start an LLC in North Dakota?
Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.
If you want to check the name availability for North Dakota, visit https://firststop.sos.nd.gov/search/business.
After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.
What are the costs & processing times of starting a business in North Dakota?
Here's the rundown for North Dakota:
- The filing fee is: $135
- There are ongoing fees of $50 (every year)
- It usually takes 5 business days if you're filing online or 5 business days (plus mail time) if by mail.
Why North Dakota is a great state for your LLC
Starting a company in North Dakota offers a variety of benefits that make it an attractive option for entrepreneurs. Here are some key advantages:
- Incentives for Investment: North Dakota has established Opportunity Zones that provide incentives for businesses to invest in low-income and urban communities. This program encourages long-term investments, which can lead to significant growth and support for startups.
- Ease of Establishment: Forming a North Dakota limited liability company (LLC) is one of the fastest and most straightforward options for new businesses. The process is streamlined, which helps entrepreneurs focus more on their business operations rather than complex legal structures.
- Simplified Regulations: The state has simplified rules and regulations governing LLCs, making it easier for startups to create, manage, and maintain compliance. This is particularly beneficial for small to medium-sized enterprises seeking efficiency and clarity in business management.
- Tax Advantages: Starting an LLC in North Dakota allows for easier tax filing, and entrepreneurs can explore potential advantages in tax treatment that may not be available to other business structures. This can lead to significant cost savings.
- Asset Protection: One of the standout features of an LLC is the personal liability protection it offers. Entrepreneurs can protect their personal assets from business debts and liabilities, providing peace of mind as they grow their companies.
- Affordability: The cost to file an LLC in North Dakota is relatively low, at just $135. This makes it a financially accessible option for many entrepreneurs, reducing the barrier to entry for starting a business.
Overall, North Dakota presents a favorable business environment that supports entrepreneurship through incentives, ease of establishment, regulatory simplicity, tax benefits, asset protection, and low costs.
Legal Requirements
Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for North Dakota:
Articles of Organization
The articles of organization must include:1. The name of the LLC; and
- With respect to the registered agent:
a. The name of the commercial registered agent of the LLC or the name and address of a noncommercial registered agent in North Dakota;
b.The address of the principal executive office; and
c. The name and address of each organizer.
The articles of organization may state an effective date of organization, which must not be later than 90 days from the date of filing with the secretary of state.
Articles of organization also may contain statements as to matters other than those that are required.
N.D. Cent. Code § 10-32.1-20
Filing fee: $135
N.D. Cent. Code § 10-32.1-92
Filing Process
After you've prepared the initial formation documents, you need to file it! Here is what North Dakota laws require for filing:
A record authorized or required to be filed with the secretary of state must be captioned to describe the purpose of the record, be in a medium permitted by the secretary of state, and be delivered to the secretary of state. If the filing fees have been paid, unless the secretary of state determines that a record does not comply with the filing requirements, the secretary of state must file the record and, for all records except annual reports, send an image of the filed record to the person who filed the record.
N.D. Cent. Code § 10-32.1-86
Additional Legal Considerations
Here are some additional relevant laws that might be useful when operating your business in North Dakota:
Operating agreement–Scope, function, and limitations
N.D. Cent. Code § 10-32.1-13
Operating agreement effect on an LLC and persons becoming members–preformation agreement
N.D. Cent. Code § 10-32.1-14
Operating agreement–effect on third parties and relationship to records effective on behalf of an LLC
N.D. Cent. Code § 10-32.1-15
Annual report to the secretary of state
N.D. Cent. Code § 10-32.1-89
Certificate of existence and authorization
N.D. Cent. Code § 10-32.1-93
Series LLC Provisions
N.D. Cent. Code § 10-32.1-102