North Dakota has a business-friendly climate making it a perfect place to start an LLC. By following this guide on how to register an LLC in North Dakota, you can start a new business in just six straightforward steps.
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North Dakota LLC Quick Facts
- To register an LLC in North Dakota, you must file Articles of Organization.
- The filing fee to start an LLC in North Dakota is $135.
- In North Dakota, all LLCs are required to submit an Annual Report.
- It is important to appoint a registered agent for your North Dakota LLC.
6 Steps to Registering an LLC in North Dakota
Starting an LLC in North Dakota is easy, simply follow the steps below.
To register an LLC in North Dakota, follow these six steps:
- Name Your North Dakota LLC
- Appoint a Registered Agent
- File the Articles of Organization
- Create an Operating Agreement
- Obtain an EIN and Handle Taxes
- File a Beneficial Ownership Information Report
Step 1: Name Your North Dakota LLC
The first step towards forming an LLC in North Dakota is choosing a name for your business.
North Dakota LLC names must:
- Include “Limited Liability Company” or an abbreviation
- Be unique and distinguishable from any other business entity in the state
- Cannot include terms associated with another business structure such as “corporation”
For the full list of naming requirements for North Dakota LLCs, reference the state’s Uniform Limited Liability Act.
To ensure your business name is unique, you will need to complete a business name search on the North Dakota Secretary of State website.
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Step 2: Appoint a Registered Agent
In North Dakota, one of the important steps in registering an LLC is selecting a registered agent. A registered agent is an individual or entity appointed to receive legal documents on behalf of the LLC.
A registered agent in North Dakota must:
- Have a physical address within the state
- Be available during normal business hours to receive important documents
- Be at least 18 years old
Who Is Eligible To Serve as a Registered Agent In North Dakota?
The registered agent cannot be the LLC itself but can be an individual, another company, or an LLC owner or employee. It is crucial to choose a reliable registered agent to ensure that your LLC stays compliant with North Dakota state laws.
Step 3: File the Articles of Organization
To officially register an LLC in North Dakota, you need to file the Articles of Organization for your LLC with the Secretary of State. This can be done online through the Secretary of State’s website.
The filing fee is $135.
Before proceeding with the filing, ensure that you have the necessary details ready, such as:
- Your LLC’s name and physical address
- The name and address of your registered agent
- Your LLC’s management structure (member-managed vs. manager-managed)
- All names and addresses of LLC organizers
- Your LLC’s duration
Quick Note: If your LLC is already established in another state, you will need to register as a foreign LLC in North Dakota. This can be done by submitting a Certificate of Authority online along with a $135 filing fee.
Step 4: Create an Operating Agreement
An operating agreement is a key document that outlines the internal procedures and ownership details within your LLC. While it is not required by the state of North Dakota, having an operating agreement in place can help prevent future conflicts among LLC members and ensure that everyone is on the same page.
Make sure to create a comprehensive operating agreement that addresses important aspects such as member roles and responsibilities, profit distribution, decision-making processes, and how the LLC will be managed.
Step 5: Obtain an EIN and Handle Taxes
After successfully registering your LLC in North Dakota, the next crucial step is to obtain an Employer Identification Number (EIN) for tax reporting purposes. An EIN is necessary for taxes, hiring purposes, and opening a business bank account.
You can easily obtain your EIN for free on the IRS website.
In addition to obtaining your EIN, it is essential to identify any additional tax requirements for your LLC in North Dakota. You can do this by visiting the North Dakota State Tax Commissioner’s website for detailed information on tax obligations.
Step 6: File a Beneficial Ownership Information Report
As of January 2024, LLCs are required to provide beneficial ownership information by filing a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN).
Newly formed LLCs must submit this report within 90 days of formation, while existing LLCs have a filing window between January 1st, 2024, and January 1st, 2025. Failure to file this report on time may result in a $500 per day fine.
Fortunately, the filing process can be completed online for free on the FinCEN website.
Next Steps
- Open a business bank account to separate and protect your personal assets. Sign up for a business bank account in minutes with Lili.
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- Get any licenses and permits that may be required federally or by the state. Make sure to research and apply for the necessary licenses and permits to legally operate your LLC.
- File an Annual Report with the Secretary of State online to maintain your LLC’s good standing.
- Obtain appropriate insurance coverage for your LLC. Consider obtaining general liability, workers’ compensation, and personal liability insurance to protect your business from potential risks. Get an online quote today from Next Insurance of fast, affordable coverage.
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Additional Tips for Success
- Build a strong network within the local business community to gain support and opportunities.
- Stay informed about compliance requirements and deadlines to ensure your LLC remains in good standing.
- Plan for the future by setting clear goals and milestones for your LLC to achieve long-term success.
Conclusion
Starting a business in North Dakota and registering as a Limited Liability Company (LLC) can be a straightforward process if you follow the necessary steps diligently. By completing the required paperwork, paying the fees, and meeting all legal obligations, you can successfully register your LLC in North Dakota.