How Much Does It Cost to Start a Business in North Dakota?

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Starting a Business in North Dakota

To start a business in North Dakota, follow these steps:

  1. Check Business Name Availability

    • Go to the Secretary of State’s Business Search to ensure the name is unique.
    • Make sure the name complies with North Dakota LLC regulations and trademark requirements.

  2. Forming the Business Entity

    • File necessary documents with the North Dakota Secretary of State’s Office, with the formation cost varying by business structure.
    • Register a limited liability partnership by filing a Limited Liability Partnership Registration with a fee of $35.00.

  3. Tax Considerations

    • Understand tax implications based on your business structure and income.
    • Single-member LLCs are taxed like sole proprietorships, while multi-member LLCs are taxed like partnerships.

Establishing an LLC in North Dakota

  1. Filing Articles of Organization

    • Submit Articles of Organization – SFN 58701 with the Secretary of State, providing essential information.

  2. Tax Obligations

    • State income tax for North Dakota companies ranges from 1.41% to 4.31%.
    • Pass-through entities pay one-tenth to two percent.
    • North Dakota imposes a 5% sales tax with additional state and federal tax fees.

Licensing and Compliance in North Dakota

  • License Requirements
    • Obtain a sales tax permit if your business sells taxable products or services.
    • Some industries may require additional permits, varying by business activity and location.

Additional Business Considerations

  • North Dakota offers incentives, tax breaks, and resources for businesses.
  • LLC costs include a filing fee of $135 and yearly report submission of $50.
  • Secure an Employer Identification Number (EIN) for business operations.
  • Ensure compliance with state and local licensing regulations based on your industry and location.

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