North Dakota LLC Operating Agreement
Free template and plain-English guide. North Dakota law requires every LLC to adopt an operating agreement. You are not required to file it with the state, but every member must receive a copy and it must be kept at your principal office.
By Cenk Karakuz · LLC formation researcher, verified against all 50 SOS portals · Last reviewed Aug 2026 · Editorial standards
North Dakota law requires every LLC to adopt an operating agreement. You are not required to file it with the state, but every member must receive a copy and it must be kept at your principal office.
What is a North Dakota LLC operating agreement?
An operating agreement is a private legal document signed by all LLC members that governs how the company is owned, managed, and dissolved. It supplements — and in most cases overrides — North Dakota's default LLC statute.
Without an operating agreement, North Dakota's default LLC statute controls all decisions about profit splits, voting rights, and member exits — rules that rarely match what founders intended.
The operating agreement is not filed with the North Dakota Secretary of State. It stays in your records, and every member should keep a signed copy.
Why your North Dakota LLC needs one
- Banks require it. Every bank that opens a business account will ask for your operating agreement. Without one, you cannot open a separate business account — which means commingling personal and LLC funds and losing liability protection.
- Overrides default state rules. North Dakota's LLC statute defaults to equal profit splits, equal voting weight, and member-managed structure regardless of who invested more.
- Protects against member disputes. The most common LLC lawsuits happen when members disagree on distributions, management decisions, or buyouts. A clear OA resolves these before they start.
- Establishes single-member legitimacy. Courts that pierce the corporate veil often cite the absence of an operating agreement as evidence the LLC was not treated as a separate entity.
- Required for S-Corp election. If you later want to elect S-Corp tax treatment, your operating agreement must be consistent with S-Corp ownership requirements.
Free North Dakota LLC Operating Agreement Template
Copy this template and fill in your details. For complex structures or multi-member LLCs with significant assets, have an attorney review it.
This template is for informational purposes. For LLCs with multiple members, significant assets, or complex arrangements, consult a North Dakota business attorney.
What each section of your North Dakota OA should cover
Article I — Organization
State your LLC's legal name exactly as it appears in your North Dakota Secretary of State records, your registered agent's name and North Dakota address, and the effective date. The purpose clause can be broad ("any lawful business") or specific to your industry.
Article II — Members and Ownership
List every member, their ownership percentage, and their capital contribution. These numbers control profit splits, voting weight, and buyout calculations unless you explicitly override them. Make sure percentages add up to exactly 100%.
Article III — Management
North Dakota LLCs default to member-managed, meaning all members participate in daily decisions. If you want a designated manager (common for passive investors), specify manager-managed and name the manager. Define which decisions require unanimous consent — typically: admitting new members, selling the company, taking on debt above a threshold, and amending the operating agreement.
Article IV — Finances
Specify how often distributions are made (monthly, quarterly, annually, or at manager discretion). The default in most states is equal splits — if your contributions differ or you want a different allocation, this section is where you set it.
Article V — Transfer Restrictions
Without transfer restrictions, a member could legally sell their interest to a stranger. Right of first refusal gives existing members the chance to buy out a departing member before anyone external gets in. Buy-sell provisions handle death, disability, divorce, or bankruptcy of a member.
Article VI — Dissolution
Describe what triggers dissolution and how assets are distributed. Under North Dakota law, creditors are paid first; members split whatever remains proportionally. Having this written out prevents disputes during what is already a stressful process.
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.
North Dakota LLC operating agreement: common questions
Is an operating agreement required for a North Dakota LLC?
Yes. North Dakota law requires every LLC to adopt an operating agreement. You do not file it with the state, but all members must have a copy.
What should a basic LLC operating agreement include?
At minimum: LLC name and principal address, member names and ownership percentages, capital contributions, profit and loss allocation, management structure (member-managed vs. manager-managed), voting rights and thresholds, transfer restrictions, buyout procedures, and dissolution process.
Does a single-member North Dakota LLC need an operating agreement?
Yes — even if you are the only member. Banks require it to open a business account. It also reinforces the legal separation between you and the LLC, which is critical for liability protection. A single-member OA is simpler than a multi-member one but just as important.
Do I need to file the operating agreement with the state?
No. North Dakota does not require you to file your operating agreement with the North Dakota Secretary of State. Keep signed copies with all members and at your principal office.
Can I amend the operating agreement later?
Yes. Most operating agreements allow amendment by a majority or supermajority vote of members. The amendment process should be written into the original agreement. Any amendment should be signed by all members and stored with the original.