North Dakota’s economy runs on energy, agriculture, manufacturing and a growing services sector around Fargo, Bismarck and Grand Forks. Forming an LLC costs $135 and the annual report $50. Two North Dakota rules stand out: contractors need a state license for larger jobs, and employers buy workers’ compensation from the state, not private insurers.
What a North Dakota LLC costs
Table of Contents
| Item | Cost | When |
|---|---|---|
| Articles of Organization | $135 | At formation |
| Annual report | $50 | November 15 each year, from the year after formation |
| Late annual report | Penalty | If filed after November 15 |
| Trade name registration (if using a DBA) | Small fee | When registering |
| Contractor license (if applicable) | State fee, renewed yearly | Before contracting projects over $4,000 |
Step 1: Choose your LLC name
The name must include "limited liability company", "LLC" or "L.L.C." and be distinguishable from other names on file. Search the Secretary of State’s records through FirstStop, the state’s online business portal, then check federal trademarks, domains and social handles with our business name checklist.
To trade under another name, register a trade name with the Secretary of State.
Step 2: Appoint a registered agent
Every North Dakota LLC needs a registered agent with a physical North Dakota address. You can serve yourself, name another adult or use a commercial registered agent.
Step 3: File Articles of Organization through FirstStop
File Articles of Organization with the North Dakota Secretary of State online through FirstStop, and pay $135. You’ll include the LLC’s name, registered agent, principal office and the names of organizers. Online filings are usually processed quickly.
Step 4: Create an operating agreement
North Dakota doesn’t require you to file an operating agreement, but every LLC should have one, covering ownership, management, profit sharing and what happens when members join or leave.
Step 5: Get an EIN and open a bank account
Apply for a free EIN from the IRS online, then open a business bank account using your filed Articles and EIN. See choosing a business bank account.
Step 6: Register for state taxes
Register with the Office of State Tax Commissioner for:
- Sales and use tax, if you sell taxable goods or services. North Dakota’s state rate is 5%, and many cities and counties add local taxes.
- Employer withholding, if you hire.
Employers also register with Job Service North Dakota for unemployment insurance.
Step 7: Contractors: get a state license over $4,000
North Dakota requires anyone acting as a contractor on a project worth more than $4,000 to hold a contractor license from the Secretary of State, with proof of liability insurance and workers’ compensation coverage. Licenses are classed by project size and renewed yearly. Electricians and plumbers also need trade licenses from their state boards. Get licensed before bidding. See our home services industry profile.
Step 8: File your annual report by November 15
Every North Dakota LLC files an annual report with the Secretary of State by November 15 each year, starting the year after formation. The fee is $50. Late reports bring a penalty, and an LLC that doesn’t file can be administratively dissolved.
Workers’ compensation: buy from the state fund
North Dakota is one of a few states where employers must buy workers’ compensation coverage from the state fund, Workforce Safety and Insurance (WSI), rather than from private insurers. Register with WSI when you hire your first employee. Contractors also need WSI coverage to obtain and keep a contractor license.
How a North Dakota LLC is taxed
By default, LLC profits pass through to the owners, who pay federal income tax, self-employment tax and North Dakota personal income tax, which has some of the lowest rates in the country after recent cuts, with many lower-income residents owing little or nothing. Multi-member LLCs taxed as partnerships file a North Dakota partnership return. LLCs electing C corporation status pay North Dakota corporate income tax. Ask a tax professional which option suits you.
Hiring your first employee in North Dakota
Beyond the federal steps in our first employee guide, North Dakota employers generally:
- Register for withholding with the Office of State Tax Commissioner and unemployment insurance with Job Service North Dakota.
- Obtain workers’ compensation from WSI.
- Report new hires to the state.
Your North Dakota LLC compliance calendar
| Deadline | Filing | Paid to |
|---|---|---|
| November 15 each year | Annual report ($50) | Secretary of State |
| Yearly | Contractor license renewal, if applicable | Secretary of State |
| Monthly, quarterly or yearly | Sales tax returns | Office of State Tax Commissioner |
| As assigned | Workers’ compensation premiums and payroll reports | WSI |
| Quarterly | Unemployment insurance reports, if you have employees | Job Service North Dakota |
Example: state costs for your first two years
| Year 1 | Year 2 | |
|---|---|---|
| Articles of Organization | $135 | — |
| Annual report | — | $50 |
| State total | $135 | $50 |
Add a contractor license if you’ll take projects over $4,000, trade name registration and other licenses. Use our startup cost calculator to plan.
Businesses serving North Dakota’s energy and farm economy
North Dakota’s oil fields and farms create demand for many small businesses:
- Oilfield services: hauling, equipment repair, welding, housing and food service for crews, with strict safety and insurance requirements.
- Trucking and logistics. See our semi-truck cost guide.
- Agricultural services: custom harvesting, equipment repair, grain hauling and agronomy.
- Construction trades, with the state contractor license in mind.
Demand in energy regions rises and falls with oil prices, so plan for cycles and avoid over-borrowing in boom times.
Running a North Dakota LLC through long winters
Weather shapes many North Dakota businesses, and planning for it is part of running one well:
- Seasonal work. Construction, landscaping and some agricultural services slow sharply in winter; snow removal, heating repair and indoor trades pick up. Many owners pair a summer service with a winter one.
- Cash flow. Build reserves during busy months to cover winter payroll, equipment payments and insurance.
- Equipment. Budget for block heaters, winter tires and covered storage, which extend equipment life and reduce breakdowns.
- Scheduling. Build weather delays into project timelines and contracts so customers know what to expect.
Our break-even calculator helps you check whether peak-season revenue carries the whole year.
North Dakota rules for other common businesses
Food businesses. Restaurants and food trucks are licensed by the state health department or local public health units. North Dakota allows many home-prepared foods to be sold directly to consumers under its cottage food rules. See our cottage food business guide.
Childcare. Early childhood programs are licensed by the state health and human services department. See our home daycare guide.
North Dakota compared with nearby states
| State | Filing fee | Yearly state report |
|---|---|---|
| North Dakota | $135 | $50 |
| South Dakota | $150 | $55 |
| Minnesota | $155 online | Free renewal |
| Montana | $35 | Annual report, fee currently waived if on time |
See our South Dakota, Minnesota and Montana guides.
Mistakes to avoid
- Missing November 15, which comes late in the year when many owners are busy with year-end work and aren’t thinking about filings.
- Contracting over $4,000 without a state license.
- Buying private workers’ compensation coverage, which doesn’t satisfy North Dakota’s requirement; use WSI.
- Selling taxable goods without a sales tax permit, or charging the wrong local rate.
- Letting your registered agent lapse, so state notices and legal papers go astray.
- Over-borrowing during energy booms, when demand can drop quickly if oil prices fall.
Frequently asked questions
When is my first annual report due? By November 15 of the year after your LLC is formed, and every November 15 after that. You can file online through FirstStop.
Do handymen need a contractor license? Only for projects over $4,000, though trade licenses still apply to electrical and plumbing work of any size.
Can I be my own registered agent? Yes, with a physical North Dakota address where you’re available during business hours.
Is my LLC’s information public? Your LLC’s name, registered agent and principal office appear in FirstStop’s public records.
What if my LLC is dissolved for a missed report? North Dakota generally allows reinstatement by filing the missing reports and paying fees and penalties, but your LLC loses good standing until then.
Next steps
Read the Start a Business A–Z guide, see hiring your first employee, and plan with the break-even calculator.
This guide is general information, not legal or tax advice. Fees and rules change; check the North Dakota Secretary of State and Office of State Tax Commissioner before you file.
Sources
- LLC University, LLC annual fees by state (2026)
- Stripe, Business formation fees by state
- North Dakota Secretary of State, Business Services
- North Dakota Office of State Tax Commissioner
Last reviewed October 20, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
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