Free and Convenient Services to Form an LLC in North Dakota
Looking for free LLC formation services to form an LLC in North Dakota? Don’t worry, we’ve done the research and found the perfect option for you. Tailor Brands is a leading LLC service provider with 10+ years under its belt and 500k businesses formed. And it’s free!
Free Service. No Hidden Costs
Free LLC formation services that include everything from paperwork review to the actual application filing.
Expert support and professional guidance to ensure every process is done right the first time.
Access to business tools and resources to help you manage and grow your new business effectively.
What Should You Know Before Starting an LLC in North Dakota?
Before you go ahead and form an LLC in North Dakota, you should learn some basics, such as the associated fees and obligations. From filing an annual report to choosing a type of LLC in North Dakota, there’s a lot you should know.
Here is some essential information you should know before launching an LLC in North Dakota.
- You can form four types of LLCs in North Dakota—business, professional, farming, and authorized livestock farm.
- For any of these different categories, you can form a domestic LLC or foreign LLC in North Dakota, for the same filing fee.
- The state filing fee for registering or forming any of these limited liability companies in North Dakota is $135.
- LLCs in North Dakota need to file an annual report with the state, disclosing their finances, which costs $50 for filing.
Overall, North Dakota is not the most affordable state to form an LLC, but it’s not the most costly either. As such, if you want to transact business, forming an LLC in North Dakota is a good choice.
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How to Launch and Run a Successful LLC in North Dakota
Starting an LLC in North Dakota is pretty simple, as long as you follow the steps provided in this guide and don’t skip anything. Still, if you need help, you can always hire a professional to form your LLC in North Dakota.
Now, let’s get to the step-by-step process of starting a North Dakota LLC. Here you go.
Make a Solid Business Plan
The first step toward starting a successful LLC in North Dakota is to come up with a feasible business idea and make a business plan for how to succeed. Do some brainstorming and find a startup business idea that utilizes your skills and can be profitable.
Then, conduct thorough market research to understand the market dynamics and level of competition. Based on your research, make a comprehensive business plan for your LLC in North Dakota that details your go-to-market strategy and how you plan to succeed.
Choose a Relevant Company Name
With that out of the way, you can now start the actual LLC formation process in North Dakota. This starts with selecting a business legal name for your new LLC in North Dakota, which not only represents your business but is easy to spell and remember.
Most importantly, the name you choose for your LLC in North Dakota should be unique and should not be used by any other business. To ensure this, you’ll need to check the state’s business database. Lastly, follow the state’s naming guidelines and ensure you comply with them.
Reserve Your LLC Name
In case you’ve chosen a business name for your LLC in North Dakota but are not yet ready to register your business, you should consider reserving that name. This can be done by filing a business name reservation application online via the state’s FirstStop Portal.
Unlike other states, where names can be reserved for up to 120 days, North Dakota allows you to reserve a business name for up to one year. This gives you a lot more time to prepare. The filing fee for the same is a nominal $10.
Reserve a Matching Domain Name
If you want to run a successful business in today’s digital era, you will need to create a business website for your LLC in North Dakota. You will need a domain name for that, which should match your business name, either the official one or the assumed name (if any).
That’s why it’s prudent to reserve a domain name that represents your business and will be perfect for your business website. You can check any domain registrar and buy a domain name that suits your requirements and fits your budget.
Hire a Registered Agent in North Dakota
A resident agent or registered agent is an individual or organization that willingly takes the responsibility of receiving legal correspondence on behalf of a business. Though it’s not mandatory in many states, North Dakota requires LLCs to have a registered agent.
The agent must be someone with a physical address within the state. They should be available at all times during normal business hours at the registered address to receive any legal notices or business correspondence sent to your LLC in North Dakota.
Select a Type of Limited Liability Company
There are four types of LLCs you can form in North Dakota, depending on your type of business and industry. The options include business LLC, professional limited liability company, farming and ranching LLC, and authorized livestock farm LLC.
Apart from this, you also need to consider whether you need to form a domestic LLC or a foreign LLC in North Dakota. The former is suited if you’re establishing a new business, while the latter is required if you’re expanding an existing LLC in North Dakota.
Create a Detailed LLC Operating Agreement
An LLC operating agreement is a document that LLC members prepare after mutual agreement and in-depth discussions. It contains the rules and policies for how the LLC in North Dakota will be managed and run on a day-to-day basis and in the long term.
It contains detailed procedures for members’ roles and rights, strategic decision-making processes, conflict resolution among members, succession planning, and more. Basically, it is a guidelines document that helps avoid conflict and manage the LLC in Dakota smoothly.
File Your LLC’s Articles of Organization
This is the most important step in the process of starting an LLC in North Dakota as it legally establishes your business entity. You need to file your LLC articles of organization with the Secretary of State in North Dakota either online or through various offline filing channels.
As mentioned, the state filing fee for registering any type of LLC in North Dakota is $135, which is neither too expensive nor too cheap. In case you want to make any amendment to your articles of organization later, it will cost you just $50.
Apply for a Federal Tax Identification Number
Even after your LLC in North Dakota is legally registered, you need to complete a few steps before you start operations. One such step is getting an employer identification number (EIN) or Tax ID for your LLC in North Dakota, as you’ll need it for tax filing and other purposes.
You will need to file an application at the federal level to get one. An EIN is what the Internal Revenue Service (IRS) uses to identify businesses for tax purposes. It’s also useful for opening a business bank account for your LLC in North Dakota and getting business funding.
Start a Bank Account for Your LLC in North Dakota
An LLC in North Dakota is considered a legal entity that’s distinct from its members and has legal rights and privileges. This allows you to create a bank account in the name of your new LLC in North Dakota, instead of using your personal bank account.
This is great for separating your finances from business finances, which comes in handy when filing taxes. It also safeguards your personal income and assets from being seized in case the business fails to pay its debts and accumulates several liabilities.
Obtain Business Licenses and Permits
Even after officially registering your LLC in North Dakota, you can’t start operations until you get all the necessary permits you need to run your business. These permits and licenses will depend on the type of business you run and your business location.
You might need licenses at county, state, and federal levels for your LLC in North Dakota, so find out the requirements and obtain all the required ones. Once you have all the necessary permits to run your LLC in North Dakota, you can then start your operations.
Choose Your LLC’s Tax Structure
By now, your LLC in North Dakota would be formed and ready for operation. However, there are still some optional steps you should complete. You need to decide whether you want to go with the default tax structure for your LLC in North Dakota or opt for a different one.
By default, an LLC in North Dakota is treated as a pass-through entity for tax purposes, so it doesn’t pay corporate taxes. However, if you want your LLC to be treated as an S-corporation or a C-corporation for tax purposes, then that’s also possible.
Get a Doing Business As (DBA)
A Doing Business As is filed to register an assumed name or fictitious name for a business. You can use this name for day-to-day business operations and marketing and branding purposes. This name should be short, catchy, and memorable.
Since North Dakota requires you to add words like “LLC” and “limited liability” to your LLC name, it can get long and not good enough for marketing purposes. That’s where an assumed name comes into play, as it’s more marketable and memorable.
Register a Trademark
A trademark is used to protect your brand or brand elements from being used by other businesses. This is a completely optional step, but we recommend that you get one if you have unique and distinct brand elements that you want to protect.
Any unique design, logo, symbol, tagline, or any other brand element can be trademarked, which prevents it from being used by any other business. You can use North Dakota’s FirstStop Portal to register this online for a nominal fee.
Stay Compliant with the State’s Policies
Lastly, and most importantly, you should comply with the state’s policies and stay in good standing with the state of North Dakota. Not doing so will cause your LLC in North Dakota to face penalties, not to mention, damage your business reputation.
The two most important ongoing obligations are filing your personal taxes and annual reports. Make sure to meet the deadlines for both and hire a professional if you need help with either. Also, find out other legal requirements and comply with them.
Why Do You Need to Outsource LLC Formation?
While the LLC formation process is straightforward, it can be overwhelming for first-timers. Outsourcing makes things easier for you.
Here’s why.
Convenience
Forming an LLC requires a lot of paperwork and dealing with government departments.
When you outsource, all you need to do is fill out a form and provide the required legal documents.
Accuracy
A single mistake on your LLC application could lead to rejection.
Professionals can review it for errors since they have experience in the field. This ensures 100% accuracy.
Speed
The paperwork for starting a new business can be too much for most new entrepreneurs.
A professional can do it much faster.
What are the Advantages of Starting an LLC in North Dakota?
A limited liability company offers several advantages over other business structures. It combines the best features of many business entities to provide a great option for small businesses.
Let’s discuss the benefits of forming an LLC in North Dakota in this section.
Personal Liability Protection for Members
Starting an LLC in North Dakota offers a key advantage for LLC members—personal liability protection. Although less formal than a C-Corp, an LLC in North Dakota provides similar protection for business owners, which is great for small businesses.
If a North Dakota LLC fails to pay its debts, the members are not held personally liable, safeguarding their personal assets from being used to pay off the company’s debts. This is the main reason many new business owners prefer to start an LLC in North Dakota.
Flexible Tax Structure
An LLC in North Dakota can decide to be taxed like a Corporation or S-corporation or choose pass-through taxation like other informal businesses like partnerships. This allows LLC owners to have more control over how the business is taxed.
A single-member LLC in North Dakota will be taxed like a Sole Proprietorship automatically. Multi-member LLCs can choose to be taxed like a partnership, corporation, or an S-corporation, with the latter being the favorite choice among business owners.
Comparatively Affordable
The filing fee for starting an LLC in North Dakota is $135, which is not very cheap. However, it’s just a one-time fee and once you pay it, it’s done. The ongoing costs of running an LLC in North Dakota are pretty reasonable and affordable.
Since there are no formal rules and guidelines for running an LLC in North Dakota, you don’t need to spend time and money on holding meetings and maintaining detailed records. This is unlike a corporation, which has a lot more rules, which costs more money.
Involves Less Paperwork
The process of starting an LLC in North Dakota involves less paperwork than starting a C-corporation, which is not surprising given the formal business structure of the latter. The process of starting an LLC in North Dakota is much simpler with fewer steps and less paperwork.
Corporations also have stricter annual reporting and record-keeping requirements, resulting in more paperwork. In comparison, LLCs do not need to maintain detailed records, such as meeting minutes for all member meetings.
Easy to Manage and Run
Corporations are required to hold board meetings, keep records of these meetings through minutes, and meet numerous ongoing requirements. The strategic decision-making process also demands formal procedures.
In contrast, managing an LLC in North Dakota is easier, especially if you have a well-crafted LLC operating agreement in place. LLC members can practically set their own rules and decide how they want to run the company, without external interference.
Ownership Flexibility
Partnerships and S-corporations have several restrictions on business ownership. S-Corps, for example, do not permit non-residents to be shareholders or own businesses in the United States, which is quite limiting.
Membership in LLCs is not as strictly regulated as in other business entities. Both individuals and organizations can be members, with some limitations on certain types of organizations. There is no limit on the number of members as well.
The Right to Acquire Property or Hold Assets
Limited liability companies in North Dakota are treated as legal entities, separate from their owners. This gives your LLC in North Dakota specific rights and legal privileges, similar to those offered to individuals. The ability to buy assets and property is one such privilege.
A North Dakota LLC can buy property, equipment, or business assets in its own name, without requiring help from members. This helps create a clear distinction between business assets and property and those owned by the LLC’s members.
The Ability to Enter into Contracts
Another legal right that an LLC in North Dakota holds is the right to enter into contracts with various stakeholders. This could be legal contracts with suppliers or vendors, agreements with investors who are funding the business, and more.
This means that LLC owners don’t need to enter into contracts in their names, which protects them from legal liability on behalf of the business. It’s a great advantage for new entrepreneurs as they’re protected even if their new business fails.
Tailor Brands North Dakota LLC Formation Services: Pricing
Tailor Brands simplifies LLC formation with free and paid pricing tiers that cater to diverse needs. Tailor Brands offers expert services to help you start a successful LLC in North Dakota.
Let’s take a look at the pricing options to help you launch your LLC in North Dakota with confidence.
Lite
The Lite Plan is the free, most basic option that only covers LLC formation in North Dakota. Here’s what you’ll get with this plan:
- North Dakota LLC formation: Tailor Brands will prepare and file your Articles of Organization, ensuring your LLC in North Dakota is registered and complete within two business days.
Price: Free
While it’s the most basic plan, it includes the essential services required to set up your LLC in North Dakota without incurring any costs.
Essential
In addition to LLC formation services, you’ll get the following additional features with the Essential Plan:
- Operating agreement: Tailor Brands will help create a custom legal document that clearly defines roles the structure of your LLC in North Dakota.
- Compliance reminders: Tailor Brands sends timely compliance notifications to help your LLC in North Dakota maintain a good standing with the state.
- $30 Amazon gift card: Tailor Brands offers a $30 Amazon gift card as a bonus to offset initial business expenses of your LLC in North Dakota.
Price: $199/year
This plan is ideal if you need operational support and tools to manage your North Dakota LLC more effectively after formation.
Elite
This premium plan offers everything from the Lite and Essential packages, along with advanced features to support business growth.
Here are the services the Elite Plan has to offer:
- Domain name: Tailor Brands offers a free domain name for one year to help you promote your LLC in North Dakota and build a robust online presence.
- DIY website builder: Build a fully functional website for your LLC in North Dakota using Tailor Brands’ intuitive and customizable website builder.
- Digital branding and business tools: This plan includes eight custom logos, digital business cards, and a social media post maker to promote your LLC in North Dakota.
- $50 Amazon gift card: As a bonus, this plan includes a $50 Amazon gift card you can use to purchase essential supplies for your LLC in North Dakota.
- Priority support: Tailor Brands prioritize customer support and guides you through every stage of your LLC in North Dakota formation process.
Price: $249/year
This plan is perfect for business owners who value convenience and want a comprehensive solution for establishing and growing an LLC in North Dakota.
Additional Services
In addition to the core packages, Tailor Brands offers several optional services that can be added to any plan when establishing your LLC in Dakota.
- Employer Identification Number (EIN): You’ll need an EIN or tax ID to hire employees, file taxes, and open a business bank account for your LLC in North Dakota and Tailor Brands can help you apply directly with the IRS.
- Business Licenses and Permits Tailor Brands conducts a thorough analysis of your industry and location to secure the necessary licenses and permits needed for your LLC in North Dakota to operate legally.
- Business Bank Account: Tailor Brands helps you set up the most appropriate bank account with a reputable financial institution to separate personal and business finances and streamline tax preparation.
Price: Custom Pricing
Why Should You Choose Tailor Brands to Start a North Dakota LLC?
Other than the fact that it’s a reputable company, trusted by hundreds of thousands of businesses, here are some real good reasons for choosing Tailor Brands.
Completely Free
While most agencies charge hundreds of dollars for their LLC formation services, Tailor Brands offers it absolutely free.
This is great for new business owners who are short on funds or have a low budget.
Access to Experts
When you choose Tailor Brands, you get access to numerous specialists in different fields, from tax planning to business banking.
You don’t just get LLC formation service, but a plethora of other services as well.
Stress-Free Service
The team at Tailor Brands knows what it’s doing and can make the entire process a breeze for you.
They’ll handle all the complex paperwork and hassle involved, providing a stress-free experience for you.
FAQ
You require a filled-out application or the articles of organization, along with details of your business and registered agent to start a North Dakota LLC.
Once you have the documents ready, here’s the process you need to follow to start an LLC in North Dakota.
- Come up with a profitable business idea and make a detailed business plan for your LLC in North Dakota.
- Choose a name for your business that’s short, unique, and easy to remember.
- Reserve your selected LLC name for up to a year by filing an application with the Secretary of State of North Dakota.
- Reserve a domain name that matches your business name by searching for one on a domain registrar.
- Hire a North Dakota resident agent to receive legal notices and other business correspondence or be your own registered agent.
- Select a type of LLC from the various options available, depending on your type of business. Also, choose between a single-member LLC and a multi-member LLC in North Dakota.
- Create a detailed LLC operating agreement detailing the policies and guidelines for managing your new business.
- File your LLC’s articles of organization with the North Dakota Secretary of State’s office via the online portal.
- Apply for a Tax ID or employer identification number (EIN) as that will be useful for various business purposes.
- Start a bank account in your LLC’s name, which is separate from your personal bank accounts.
- Apply for and get all the necessary business licenses and permits you need to run your LLC in North Dakota. Also, get a professional license if you provide professional services via a North Dakota PLLC.
- Choose whether you want your LLC in North Dakota to be treated as a pass-through entity for taxation or if you want it to be taxed as a corporation.
- Get a Doing Business As (DBA) by filing an application to use an assumed name, distinct from your official LLC name.
- Register a trademark to protect your brand elements from being used by other businesses.
- File your taxes and annual reports on time and comply with other state requirements to stay in good standing with the state of North Dakota.
Lastly, ensure that you file your taxes and annual report on time and follow the North Dakota laws to stay in good standing with the state.
No, North Dakota does not mandate limited liability companies to have an operating agreement. However, we strongly recommend drafting one as that will save you a lot of hassle in the long run.
An operating agreement not only helps dictate how a company should be run but also helps resolve conflict among members. It makes things much easier to manage and helps ensure smooth operations for an LLC in North Dakota.
Here are some of the key benefits of an LLC in North Dakota:
- Personal Liability Protection for Members: An LLC in North Dakota protects members’ personal assets, so they’re not held liable for the company’s debts or lawsuits.
- Flexible Tax Structure: Forming an LLC in North Dakota gives you flexibility in how you’re taxed—you can choose to be taxed as a sole proprietor, partnership, or corporation, depending on what suits your business best.
- Comparatively Affordable: An LLC in North Dakota is usually cheaper to set up and maintain than a corporation because it has fewer formalities, like annual meetings or complex paperwork. The ongoing fees and administrative costs are also generally lower.
- Involves Less Paperwork: North Dakota LLCs do not need to maintain detailed financial records or keep meeting minutes for every time members meet. This results in less paperwork compared to a corporation and less hassle as well.
- Easy to Manage and Run: Since limited liability companies are managed based on how members want, they offer more flexibility than corporations that have strict rules of governance.
- Ownership Flexibility: A North Dakota LLC can have any number of members, who can be individuals or organizations. Except for a few types of organizations, there are hardly any restrictions on who can or cannot be an LLC owner.
- The Right to Acquire Property or Hold Assets: Being a legal entity, an LLC in North Dakota has certain legal rights and privileges. One such right is that it can acquire property, equipment, or other assets in its own name, not in the members’ names.
- The Ability to Enter into Contracts: Continuing with the previous point, North Dakota LLCs also have the right to enter into legal contracts. Members don’t need to sign contracts in their names and can do so in the name of the company, which provides liability protection for them.
These are just a few of the many advantages of starting an LLC in North Dakota, which is why you should choose it over other business entities.
North Dakota LLCs do not pay any corporate taxes. This is because they’re treated as pass-through entities for taxation purposes. As such, an LLC in North Dakota passes its profits to its members, who then pay taxes as they normally would on their respective incomes. However, the state does collect sales tax and other taxes that are imposed on all businesses within the state.
The filing fee charged by the state of North Dakota to form an LLC is $135. There are no other costs involved in launching an LLC in North Dakota unless you decide to hire a professional to handle the paperwork on your behalf.
However, if you choose Tailor Brands, which doesn’t charge anything for LLC formation services, then you don’t need to pay any additional fees and still get professional help.
Form an LLC in North Dakota for Free with Tailor Brands
Starting an LLC in North Dakota is simple, quick, and free with Tailor Brands. Leverage its free LLC formation services to start an LLC in North Dakota successfully and quickly.
Check out the various services it offers.
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