You’ve made a business plan, budget, and mission statement. Now you’re ready to create a Limited Liability Company official in North Dakota.
An LLC protects your personal assets by making them separate from your company’s assets. North Dakota does not allow banks or certain insurance companies to file as an LLC
Are you wondering how to start an LLC in this legendary state? Maybe you need to know how to register an LLC in North Dakota. Read on to learn everything you need to know.
Is an LLC Operating Agreement Required in North Dakota?
A North Dakota LLC operating agreement is not legally required. You should still consider operating agreements when learning how to form an LLC in North Dakota. Operating agreements can serve as a common written agreement amongst members.
North Dakota Operating Agreement Laws
While North Dakota doesn’t require operating agreements, it’s still a smart move to create one for your LLC.
If you choose to create an operating agreement for your North Dakota LLC, there are a few things you should include and laws to follow. You can find the laws in the North Dakota Uniform Limited Liability Company Act – § 10-31.1-13.
First, make sure the letters ‘LLC’ or some variation of ‘Limited Liability Company’ appear in your company name.
An LLC name shouldn’t be deceptively close to any other company. LLC names should clearly align with the stated purpose of the LLC.
The North Dakota LLC operating agreement should clearly state the name and address of the state-approved registered agent. The operating agreement should clearly define the organization members’ roles and decision-making processes.
LLC owners should document amendments to operating agreements. The North Dakota Uniform Limited Liability Company Act outlines further laws and details regarding operating agreement laws.
How Much Does it Cost to Form an LLC in North Dakota?
How much is an LLC in North Dakota? The answer depends on how many documents you need and any changes you make. Keep reading to find out how to apply for an LLC in North Dakota.
The initial filing fee for a Domestic or Foreign North Dakota LLC is $135.
Copies of good-standing certificates cost $15.00. Restating articles of organization costs $125. Most other changes range from $10 to $20 to make.
The annual filing fee with the state of North Dakota for an LLC is $50.
How to Start an LLC in North Dakota
Learning how to start an LLC in North Dakota isn’t a complicated process. Here are some steps you can follow.
Domestic LLC refers to an LLC created in the state of North Dakota. Foreign LLC refers to an LLC that already exists outside of North Dakota and is applying for state approval. Foreign refers to international or within the country.
There are different types of LLCs in North Dakota. Here’s a breakdown of the most common three LLCs.
- An LLC
- A Farm LLC
- A Professional LLC (PLLC)
A Limited Liability Company protects the business owners’ assets. If someone should bring legal recourse against an LLC, the LLC owner or owners’ wealth would be protected.
A Farm LLC is a trust set up under the state of North Dakota or another state. It must consist of 15 individuals or fewer. Members of a Farm LLC must be related to one another.
A Professional LLC is comprised of a group of professionals. In North Dakota, most PLLCs operate similar to traditional LLCs. The professionals must hold a license or certificate in their respective field and present these credentials at the time of filing.
Step 1 – Name Your LLC
Are you wondering how to get an LLC in North Dakota with a unique name? Before you get too far into the creative process, make sure your preferred name isn’t already taken. The North Dakota Secretary of State’s website has a search tool.
Type in the name you’d like to register under to see if it’s already in use. The State of North Dakota also rejects deceptively similar LLC names. In other words, if your name is too close to an LLC that already exists, it may be rejected.
Step 2 – Select a Registered Agent
An LLC’s registered agent must be a physical presence in the state of North Dakota. North Dakota LLC registered agents must be a person, LLC, or corporation with a physical presence in the state of North Dakota. An LLC cannot serve as its own registered agent, although individual members may be.
Step 3 – File Articles of Organization with the State of North Dakota
Articles of organization state important facts about your Limited Liability Company, including the following:
- Name of Your LLC
- Type of LLC
- Registered Agent
- Date your LLC Began
- Address of Registered Agent
- Local LLC Address
- LLC’s purpose
North Dakota requires a $135 fee to file articles of organization. If you need to make changes to your articles of organization at any time, you can do so by submitting an amendment form.
Step 4 – Create a North Dakota Operating Agreement
Your North Dakota operating agreement should contain legal names of entities or those involved in your LLC. It should also include the official name of your LLC and the date you initially filed as an LLC in North Dakota.
The name and address of the North Dakota LLC registered agent is important to include in the North Dakota operating agreement as well.
North Dakota LLC operating agreements should include management, membership voting, and percentages of ownership. The operating agreements should also include any bylaws or operating rules.
Step 5 – Get an Employee Identification Number (EIN)
An Employee Identification Number (EIN) is how the IRS identifies your LLC. You can get an EIN by filling out the required forms on the IRS website.
If you don’t have any employees you may be wondering why you’d want an EIN. If you plan to open any bank accounts, you’ll either need your EIN or personal social security number. For security purposes, an EIN is the smarter choice when dealing with LLC finances.
Step 6 – Fund The LLC
To fund your new LLC, you’ll need a separate bank account. While it’s not required, it’s smart to make your business finances separate from your accounts.
After you set up an LLC bank account, you can fund it. Your operating agreement should make ownership percentages clear. If you are operating your LLC by yourself, simply transfer money from your account to the LLC account.
Step 7 – File Annually
November 15th of each year is the annual LLC filing deadline in the state of North Dakota. LLC owners can submit these forms along with a required $50 fee via the First Stop link provided on their North Dakota Secretary of State’s page.
Failure to file by November 15th can result in a $100 fee and unsatisfactory standing with the state. Failure to file within six months of the deadline can result in termination with the state
North Dakota Operating Agreement Template
Now you know how to start an LLC in North Dakota. You can serve as your own registered agent or select an individual or corporation in North Dakota. After you create your articles of organization, file online for as little as $135.
You’re not legally required to make a North Dakota LLC Operating Agreement, but every LLC should have one.
Here’s a template you can use to start your LLC:
LLC Operating Agreeement