Starting a Business in North Dakota
To start a business in North Dakota, follow these steps:
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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.
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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.
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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
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Filing Articles of Organization
- Submit Articles of Organization – SFN 58701 with the Secretary of State, providing essential information.
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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.