Forming an LLC in North Dakota costs $135 to file the Articles of Organization (SFN 13901) with the North Dakota Secretary of State, with online approval through ND FirstStop in 5–7 business days. The annual report is $50, due by November 15 each year. North Dakota has no LLC franchise tax and a graduated individual income tax topping out at just 2.5% — the lowest top rate of any U.S. state with an income tax. Sales tax is a flat 5% statewide. North Dakota's economy is anchored by oil and gas (the Bakken Formation made ND the second-largest oil-producing state in the U.S. behind Texas), agriculture, and unmanned aerial systems (UAS) — the University of North Dakota in Grand Forks runs one of the country's premier UAS research and test facilities. For founders in oil/gas services, ag, or UAS/drone tech, ND offers exceptional tax efficiency.
How much does a North Dakota LLC cost?
Budget at least $284 to launch a North Dakota LLC in Year 1 — that covers the $135 state filing fee plus roughly $149 for a registered agent service if you need one. Processing runs 5–7 business days once the Secretary of State receives your Articles of Organization. North Dakota keeps ongoing costs refreshingly low: the only mandatory annual obligation is a $50 annual report, with no minimum franchise tax or publication requirement tacked on. Compare that to California's $800 annual tax, New York's costly publication mandate, or Tennessee's $300 annual fee, and North Dakota looks like a bargain for small business owners. By Year 5, expect a cumulative spend of around $634 — the $135 filing fee, four years of $50 annual reports ($200), and four years of registered agent service ($596) — making it one of the more affordable states to maintain an LLC long-term.
Why form your LLC in North Dakota
Energy (Bakken oil), agriculture, and unmanned systems (UAS test site at the University of North Dakota). Quietly one of the most tax-friendly business states.
- Top individual income tax rate of 2.5% — the lowest of any state with income tax
- No LLC franchise tax
- Flat 5% sales tax (low local add-ons)
- Bakken oil & gas — 2nd-largest oil producer in the U.S.
- Major UAS/drone test site at University of North Dakota
- Strong agriculture economy
Best fit for: Oil & gas (Bakken) · Agriculture · Unmanned aerial systems
Don’t want to file yourself? Northwest Registered Agent files your North Dakota LLC for $39 + state fee and acts as your registered agent the first year free.
How to form a North Dakota LLC in 7 steps
- 1Search the North Dakota business name database
Use the North Dakota FirstStop portal to search names. The name must include "Limited Liability Company", "L.L.C.", or "LLC". Reserve a name for $10 (held 12 months) if needed.
- 2Appoint a North Dakota registered agent
Required to have a physical North Dakota street address. Can be the LLC owner if they're an ND resident, or a commercial registered agent service.
- 3File Articles of Organization (Form SFN 13901)
File online through ND FirstStop for $135. Standard processing is 5–7 business days. The Articles include LLC name, registered agent, principal office, mailing address, and management structure.
- 4Draft an Operating Agreement
Not required by ND law but strongly recommended. Defines membership interests, voting, profit/loss splits, and dissolution. Banks routinely ask for it.
- 5Apply for an EIN with the IRS
Free at irs.gov, takes 10 minutes online. Required for opening a business bank account, registering with the North Dakota Tax Department, and filing federal taxes.
- 6Register with the North Dakota Tax Department
Register through ND Taxpayer Access Point (TAP) for sales and use tax (if you sell taxable goods/services), withholding tax (if you have employees), and any industry-specific accounts.
- 7Calendar the annual report
ND LLC annual reports are due by November 15 each year. The fee is $50. File through ND FirstStop. Late filings incur a $50 penalty and risk administrative dissolution.
File directly with North Dakota Secretary of State →
North Dakota LLC taxes & compliance
North Dakota’s 2.5% top income tax rate is the lowest of any state that has an income tax. Sales tax is just 5% statewide.
Ongoing compliance checklist
- Annual report — $50, due November 15
- No franchise tax
- Sales and use tax filings (ND Tax Department)
- Withholding tax filings if you have ND employees
- Federal income tax (Form 1065 multi-member, Schedule C SMLLC)
Registered agent rules
Required — ND street address.
Hidden costs new North Dakota LLC owners forget
- $135 filing fee — higher than many midwest peers
- $50 annual report fee, due November 15
- Foreign LLC qualification: $135
- Some industries require additional state licensing (oil/gas heavily regulated)
- Late annual report: $50 penalty
- Standard processing of 5–7 business days — no expedited tier
Should you use a formation service in North Dakota?
You can absolutely file directly with the North Dakota Secretary of State for the $135 state fee. The reasons most North Dakota owners use a service anyway are (1) registered-agent privacy — keeping their home address off public filings — and (2) calendar reminders for ongoing compliance.
Have Northwest form your North Dakota LLC for $39 + state fee
Free registered agent for the first year. Real human support. Privacy-by-default — your home address stays off public filings.
Free tool
See the real 5-year cost of a North Dakota LLC
Filing fee · registered agent · annual report · franchise tax — all calculated, year by year.
Open cost calculator for North Dakota →North Dakota's November 15 annual report trap and no franchise tax
North Dakota is one of the few states that imposes no franchise tax or gross receipts tax on LLCs — a genuine advantage over neighbors like Minnesota, which levies a minimum franchise tax, or South Dakota, which has no income tax but charges higher registered agent fees. Pass-through income flows directly to members and is taxed at North Dakota's relatively modest personal income tax rates, which top out at 2.5% — among the lowest in states that impose income tax at all. There is no publication requirement (unlike New York's costly newspaper mandate), no first-year minimum tax (unlike California's $800), and no capital-based fee. The one procedural wrinkle unique to North Dakota is the annual report deadline: November 15. Nearly every other state anchors its deadline to January, April, or the anniversary of formation — November 15 sits in a blind spot for multi-state operators who run their compliance calendar around Q1. Miss it and the state can administratively dissolve your LLC. North Dakota's energy sector (anchored by the Bakken Shale formation) and agriculture-heavy economy also mean many LLCs deal with mineral rights and surface-use agreements, making proper operating-agreement drafting especially consequential here.
Year 1: $135 (Articles of Organization filing fee) + $149 (registered agent service) + $0 (no annual report due in formation year if filed after November 15) = $284 total. Year 2 onward: $50 annual report + $149 registered agent = $199/yr. By Year 5: approximately $284 + (4 × $199) = $1,080 total — with no franchise tax or minimum tax adding to that figure.
Multi-state LLC owners accustomed to spring or anniversary-based deadlines miss North Dakota's November 15 annual report cutoff. Because it falls outside the Q1 compliance window most operators track, the $50 report goes unfiled, the Secretary of State administratively dissolves the LLC, and reinstating a dissolved entity requires a separate application and fee — far exceeding the cost of the original $50 report.
North Dakota LLC: frequently asked questions
How much does it cost to start an LLC in North Dakota?
ND SOS charges $135 to file Articles of Organization. The annual report is $50, due November 15 each year. Realistic year-one cost: $135. Ongoing yearly cost: $50.
How long does it take to form an LLC in North Dakota?
Online filings through ND FirstStop approve in 5–7 business days. Mail filings take 2–3 weeks. North Dakota does not offer a separate paid expedited tier.
Does North Dakota have an LLC franchise tax?
No franchise tax. Pass-through LLCs pay no state-level entity tax. Owners pay personal income tax (graduated up to 2.5%) on their share of LLC profits — the lowest top rate of any U.S. state with an income tax.
What's the North Dakota LLC tax rate?
ND has a graduated individual income tax with a top rate of just 2.5% — the lowest of any state with an income tax. Sales tax is a flat 5% statewide with limited local add-ons. LLCs taxed as pass-through don't owe state-level entity tax.
When is the North Dakota LLC annual report due?
November 15 each year. The fee is $50. File through ND FirstStop. Late filings incur a $50 penalty and risk administrative dissolution.
Can a non-resident form an LLC in North Dakota?
Yes. ND has no residency requirement for LLC members or managers. You only need an ND-based registered agent. Out-of-state owners commonly use a commercial registered agent service.
Is North Dakota a good state to form an LLC?
For ND residents and businesses tied to oil/gas (Bakken), agriculture, or UAS/drone tech: yes — the 2.5% top income tax (lowest of any income-tax state) is exceptional. For non-ND businesses, the 5–7 day processing and no expedited tier may be a friction point.
What is the North Dakota Bakken oil region?
The Bakken Formation is a massive oil and gas reservoir spanning western North Dakota, eastern Montana, and parts of Saskatchewan. Hydraulic fracturing (fracking) of the Bakken made North Dakota the second-largest oil-producing state in the U.S. (behind Texas). Williston, Dickinson, and the surrounding boomtowns have substantial oil-services LLC activity.