Business Licensing and LLC Formation in North Dakota
To start an LLC in North Dakota, first check if the name you like is available. Ensure your LLC name is written in English alphabet and contains "limited liability company" or "LLC". It should not deceive people of its operations. Also, ensure it’s distinguishable from all others in North Dakota. Check trademarks to ensure the name has not been trademarked.
To form an LLC file Articles of Organization – SFN 58701 with the Secretary of State. Provide important information like the name, address and registered agent. To ensure compliance get an LLC service provider to help register. The formation cost depends on the business structure.
Most accountants charge $300 to $900 per year for tax filings. The most significant tax for an LLC is state income tax. Depending on income North Dakota companies pay 1.41% to 4.31%. But pass-through entities pay one-tenth to two percent. You need to find out your tax amount. North Dakota has a 5% sales tax. The total LLC cost is around $135. There are also recurring federal tax fees.
If you sell goods or services subject to sales tax, you need a sales tax permit from the North Dakota Office of State Tax Commissioner. This allows you to collect and remit sales tax. Failure to obtain a permit can result in penalties. By default, single-member LLCs are taxed like sole proprietorships. Multi-member LLCs are taxed like partnerships.
Licensing Requirements for Specific Businesses
Operating certain businesses like food vendors requires a license from Fargo Cass Public Health. The license and regulations apply if situated in Fargo and West Fargo. A fundamental license serves to establish legality, ensure public safety, and compliance. It also assures customers that necessary standards are met.