How to Start Your Own LLC in North Dakota

This step-by-step guide explains how to form an LLC in North Dakota—from choosing a compliant business name and filing formation documents to securing licenses, understanding tax obligations, and maintaining your LLC in good standing.

1. Choose a Name for Your North Dakota LLC

Choosing the right name for your LLC is one of the most important early decisions you'll make. Your business name represents your brand and must also meet North Dakota's legal naming requirements.

Before selecting a name, clarify your business concept, including the products or services you'll offer and the audience you intend to serve. Once you have a few ideas, seek feedback from people you trust and check whether suitable domain names and social media handles are available.

After narrowing your options, you must confirm that your desired name is available. Start by searching the North Dakota Secretary of State's business name database to ensure no existing business is using a similar name. You should also review names that closely resemble yours to avoid confusion in the marketplace.

North Dakota LLC Naming Requirements

Under North Dakota law, your LLC name must include "Limited Liability Company," "LLC," or "L.L.C." The name must be clearly distinguishable from other registered businesses in the state and may not include words that imply a connection to a government agency.

Certain words—such as bank, insurance, or university—require additional approval, and names suggesting illegal activity are strictly prohibited. To protect your name beyond state borders, it's also wise to search the U.S. Patent and Trademark Office (USPTO) database to ensure the name is not federally trademarked.

Reserving a Business Name

If you are not ready to file your Articles of Organization right away, North Dakota allows you to reserve a business name. Name reservations are submitted through the Secretary of State's FirstStop business portal.

Once approved, the name is reserved for one year, giving you ample time to complete your formation process. The filing fee for name reservation is $10.

Doing Business As (DBA) / Trade Name in North Dakota

Even after forming your LLC, you may want to operate under a different name for branding or expansion purposes. In North Dakota, a DBA is officially called a Trade Name.

Trade names are commonly used when a business launches new product lines or operates multiple brands under a single LLC. A registered trade name also allows you to open bank accounts and accept payments under that alternate business name.

Trade name registration is completed through the North Dakota Secretary of State's FirstStop portal. The filing fee is $25, and the registration remains valid for five years.

2. Appoint a Registered Agent

Every North Dakota LLC must appoint a registered agent to receive legal documents, tax notices, and official correspondence on behalf of the company.

A registered agent may be an individual or a business entity authorized to operate in North Dakota. The agent must maintain a physical street address in the state and be available during normal business hours.

Many business owners choose to hire a professional registered agent service to ensure timely document handling, maintain privacy, and avoid missed deadlines. While serving as your own registered agent is allowed, it requires consistent availability at the listed address.

3. Decide on Your LLC's Management Structure

North Dakota LLCs can be structured as either member-managed or manager-managed.

In a member-managed LLC, all owners participate directly in daily operations and decision-making. This structure is most common for small businesses where members want hands-on control.

In a manager-managed LLC, one or more managers—who may or may not be members—are appointed to handle business operations. This setup is often preferred when some owners wish to remain passive investors.

If you do not specify a management structure in your Articles of Organization, North Dakota law will treat your LLC as member-managed by default.

4. File Articles of Organization with the North Dakota Secretary of State

To officially form your LLC, you must file Articles of Organization through North Dakota's FirstStop online filing system.

The Articles of Organization include basic but essential information, such as the LLC's legal name, principal office address, registered agent details, business purpose, and organizer information.

The filing fee is $135. Processing times generally range from two to three weeks, depending on filing volume.

North Dakota Secretary of State Contact Information

Website: North Dakota Secretary of State – FirstStop

Phone: 701-328-2900

Fax: 701-328-2992

Mailing Address:
600 E Boulevard Avenue, Dept. 108
Bismarck, ND 58505-0500

5. Create an Operating Agreement

An Operating Agreement is a legal document that defines how your LLC will be owned and managed. While North Dakota does not require LLCs to have an Operating Agreement, having one is strongly recommended—even for single-member LLCs.

This document typically addresses ownership percentages, management authority, voting rights, profit distribution, procedures for adding or removing members, dispute resolution, and record-keeping policies. An Operating Agreement helps prevent internal conflicts and strengthens your limited liability protection.

Although templates are widely available, having an attorney review your agreement can ensure clarity and enforceability.

6. Obtain an Employer Identification Number (EIN)

An EIN is issued by the IRS and serves as your LLC's federal tax identification number. It is required if your LLC has more than one member, plans to hire employees, or elects corporate tax treatment.

You can apply for an EIN for free through the IRS website. The application requires identifying a responsible party, who must be a natural person with control over the company's finances and operations.

7. Obtain Required Licenses and Permits

North Dakota does not issue a general statewide business license. Instead, licensing requirements depend on your industry and location.

Certain professions—such as construction, healthcare, childcare, food service, and financial services—require state-issued licenses. Businesses selling taxable goods or services must register with the North Dakota Office of State Tax Commissioner to collect and remit sales tax.

Local governments may also require zoning approvals, signage permits, or occupancy certificates. Operating without required licenses can result in fines or penalties, so careful research is essential.

8. Understand Your North Dakota LLC Tax Obligations

By default, North Dakota LLCs are taxed as pass-through entities, meaning the LLC itself does not pay federal income tax. Instead, profits and losses are reported on the members' personal tax returns.

Single-member LLCs are taxed like sole proprietorships, while multi-member LLCs are taxed as partnerships unless an election is made to be taxed as a corporation.

LLCs may elect C-Corporation or S-Corporation tax treatment by filing the appropriate IRS forms. North Dakota's individual income tax rates remain among the lowest in the country, with a top marginal rate of 2.9%, which can be advantageous for pass-through entities.

Additional Ongoing Requirements

After forming your LLC, opening a dedicated business bank account is essential to keep personal and business finances separate. This separation helps preserve your liability protection.

Applying for a business credit card can help establish business credit and manage startup expenses. Business insurance—such as general liability, professional liability, workers' compensation, and commercial auto coverage—helps protect your investment and reduce financial risk.

North Dakota LLCs must file an Annual Report to remain in good standing. The report is due November 15 each year, and the filing fee is $50.

North Dakota LLC FAQs