How to Form an LLC in North Dakota
Introduction
North Dakota is a great place to start your own business, but it’s important that you follow the right procedure. Fortunately, starting an LLC in North Dakota is easy! Here’s what you need to know:
Choose a name for your North Dakota LLC.
Choosing a name for your North Dakota LLC is the next step in forming your new business. You will want to choose a name that is not already in use, and one that does not mislead or confuse others. You also want to keep the name short and memorable while avoiding any confusion with your own legal name.
Here are some tips for choosing an appropriate firm name:
- Avoid using generic words such as “incorporated” or “corporation” as part of your firm’s name if you’re creating an LLC because these terms indicate to potential customers that you may be incorporated, but they do not show what type of company you run. Instead of saying “The Bank,” try saying “The Bank That Serves Your Neighborhood” so everyone knows what kind of bank it is (or isn’t). Similarly, don’t say “Copper” if you’re selling plumbing parts; call yourself Copper Plumbing Supply instead so people know what kind of product line you have available for purchase!
- Your company’s website address should match its domain name (e.g., www.[company].com) so customers can quickly find it online through search engines like Google and Bing when conducting research about products/services similar businesses offer near their homes or offices etcetera….
File Articles of Organization with the Office of the Secretary of State.
The next step is to file Articles of Organization with the Office of the Secretary of State. You can do this online, but you’ll need to print out a copy and submit it in person at their office in Bismarck, North Dakota. The filing fee is $100; you’ll also have to submit a $50 annual report each year as long as your company exists.
If you’re doing business in multiple counties, or if your business will have employees (even if they’re part-time), then you’ll need to file Articles of Organization with each county clerk’s office where you will be conducting business activities or hiring people. In addition to submitting their copies through their website and paying a $100 fee for filing each time, there may be additional costs associated with having them issue official certificates reflecting these filings made by the Secretary of State’s Office on behalf of other agencies such as county commissioners’ offices or state tax administration offices like North Dakota Department Taxation
Create an LLC operating agreement.
The operating agreement is a contract between all of the members of an LLC. It should include the name and address of the LLC, as well as the name and address of each member. In addition, it should contain any provisions regarding how decisions are made by members, whether there’s a manager to make those decisions on behalf of the members or if they will be made by vote among all members, etc.
Get an EIN.
An Employer Identification Number (EIN) is a nine-digit tax number assigned to businesses by the IRS. It helps identify which company you’re dealing with and simplifies reporting requirements, so it’s very important to get one before you start operating as a business. You can apply for an EIN online or over the phone; either way, it will take about 24 hours for your application to be reviewed and approved. During that time period, it’s best not to use your new EIN on any official documents or transactions until your application has been approved—you don’t want someone else using that number first!
- How should I use my new EIN?
Once your new EIN has been approved, you’ll need to update all of your accounts with this new identification number so that everything starts flowing through this single source instead of several different ones from different companies (which could lead people who aren’t familiar with them being confused). Make sure everything has been updated properly before putting out any official announcements about these changes, because otherwise there will likely be some confusion in their wake!
- When do I NOT need an employer identification number? If you’re working independently from home most days but occasionally takes jobs off site then having one isn’t necessary unless those jobs require payroll deductions such as paying workers’ compensation premiums or withholding income taxes from wages (in which case those payments would have been deducted automatically anyway). If all goes according
State tax and registration requirements.
As a North Dakota LLC, you will be required to file your state taxes based on the type of business you conduct. If you’re a single-member LLC with no employees, then your tax filing requirements are limited to an annual report.
If your company is multi-member or has more than one owner, then it’s considered an “general” partnership in North Dakota and must file an annual tax return by May 15th of each year. However, if the LLC does not have any employees or operates as a professional service firm (such as law firms or accounting businesses), it can apply for exemption from paying state income tax on its profits (and some other types of businesses).
In addition to these basic requirements for all North Dakota companies, there are two additional state-specific issues that new LLCs should be aware of: registration with Secretary of State and Department of Revenue.
Annual franchise tax.
You’ll also owe an annual franchise tax to the state of North Dakota. The annual franchise tax is $300, due on January 1. You must pay this fee in full before the end of the month it was due (for example, if you file a Certificate of Organization on June 15 and your filing fee is $125, you’ll need to have paid that amount prior to July 31). Payments may be made by check or money order made out to “State Treasurer-N.D.,” payable at any bank or credit union in North Dakota.
You can follow these steps to create your own LLC in North Dakota.
If you’re looking to open your own business and you don’t want to deal with the paperwork involved in creating a corporation, then an LLC may be right for you. If your business is small enough and doesn’t have many expenses, then forming an LLC can save time and money. You can choose to pay someone else to create it for you or do it yourself online. Either way, this guide will show how to form an LLC in North Dakota easily and quickly.
Conclusion
That’s all there is to it! You can now go ahead and create your own LLC in North Dakota. Just remember that you need to file the Articles of Organization with the state, create an operating agreement, obtain an EIN and pay annual franchise taxes. And don’t forget that each step outlined above will cost you money upfront before you begin earning anything back from your new business venture. But if you do decide to proceed with these steps, we wish you all the best!
