Before you can start reaping the rewards of owning your own LLC, you need to form the business itself. Fortunately, this process is relatively simple—as long as you know what steps to take. Keep reading for a step-by-step guide on how to form an LLC in North Dakota.
Step 1: Choose a Name for Your LLC
The first step in forming your LLC is choosing a name for the business. This name must be distinguishable from the names of other businesses registered with the North Dakota Secretary of State. It must also include either “LLC,” “L.L.C.,” “Limited Liability Company,” or “Limited” at the end.
To check whether your chosen name is available, search the business entity database on the North Dakota Secretary of State website. If your desired name is already taken, you can reserve it for 120 days by filing a Name Reservation Application with the Secretary of State’s office.
Step 2: Appoint a Registered Agent
Every LLC in North Dakota must have a registered agent—a person or business entity authorized to receive legal documents on behalf of the LLC. The registered agent must have a physical address in North Dakota and be available during normal business hours. Many LLC owners choose to appoint themselves as their company’s registered agent, but you can also hire a professional service like Northwest Registered Agent LLC to serve in this role.
Step 3: File Articles of Incorporation
After you have chosen a name and appointed a registered agent, you must file Articles of Incorporation with the North Dakota Secretary of State’s office. These articles must include:
- The LLC’s name and address
- The name and address of the LLC’s registered agent
- The duration of the LLC (if not perpetual)
- Whether the LLC will be member-managed or manager-managed
- The names and addresses of the persons who will serve as initial managers or members
You can file your Articles of Incorporation online, by mail, or in person at the Secretary of State office in Bismarck, ND. The filing fee is $135. You should receive confirmation that your Articles have been filed within 5-7 business days if you submit them online or by mail, or immediately if you file them in person.
If you want your LLC to be operational immediately after it is formed, you can include language in your Articles of Incorporation stating that your company is formed “upon filing” with the Secretary of State’s office. Otherwise, your company will be formed on the date that your Articles are filed—even if that date is after incorporation documents are signed by all parties involved.
Step 4: Create an Operating Agreement
An Operating Agreement is not required by law in North Dakota, but it is highly recommended that all LLCs have one. This document outlines how your company will be run and sets forth rules and regulations governing member and manager relations, voting rights, profit and loss distribution, and more. Having an Operating Agreement helps prevent future disputes among members and provides protection if your company is ever sued.
Step 5: Obtain Necessary Licenses and Permits
Depending on what type of business you are running, you may need to obtain certain licenses and permits before beginning operations in North Dakota. For example, if you will be selling alcohol or tobacco products, providing professional services like accounting or healthcare, or engaging in any type of construction work, you will need to acquire special licenses from state agencies before proceeding with business activities. You can find more information about which licenses and permits may be required for your specific type of business here.
Step 6: Comply with Annual Reporting Requirements
All limited liability companies doing business in North Dakota are required to file an Annual Report with the Secretary of State each year . The Report must include information such as changes in management structure, contact information for members and managers ,and updates on any outstanding lawsuits involving your company . The filing fee for an Annual Report is $25. Reports are due each year on March 1st and can be filed online , by mail ,or in person at the Secretary of State office.
Step 7: Comply with Federal Tax Requirements
Although LLCs are not taxed as separate entities at the federal level , they must still comply with annual tax requirements. All businesses, regardless of structure ,must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is used to identify businesses for tax purposes and open bank accounts . You can apply for an EIN online, by fax, or by mail. There is no charge to obtain an EIN. Once you have obtained an EIN, you will need to file annual tax returns with both state and federal agencies detailing income earned over the course othe year . Depending on how profits are distributed among members, LLCs may also be subject tp payroll taxes.
Congratulations—you have successfully formed an LLC in North Dakota! Now it’s time to get down to business and start reaping alllllthe benefits that come along with owning your own limited liability company. From personal asset protectionto flexible management structures, LLCs offer plentyof advantages for small businesses operatingin today‘s economy.
And remember: Although this guide covers allof thee steps necessaryto form llc inthe stateof north dakota, it‘s important to consult with a qualified attorney before making any final decisions about which business structures right for you and your new venture! Best of luck to you as you begin this exciting new chapterin yoour life!