How to Start a Business and Form Your LLC in North Dakota

North Dakota Business Facts and Environment

ND Business Facts

North Dakota outranks a number of states in America in various aspects. North Dakota has one of the lowest rate of unemployment among all 50 states. Its GDP growth in 2009 ranked third. Moreover, the state has a low crime rate and low rate of credit card default.

Major Companies Headquartered in North Dakota

North Dakota is the headquarters of many major companies including Scheels, TMI Hospitality, Altru Health System, Stallion, and University of North Dakota.

Startup Environment

North Dakota ranked first among all states in terms of the best place to start a business. The different categories included in the survey were as follows – business cost, business environment, and accessibility to various resources. In addition, North Dakota has a supportive community for new entrepreneurs.

Step 1: Decide on a Business Structure

There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.

• A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
• A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
• An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.

Step 2: Pick a Business Name

Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in North Dakota, but we highly recommend you do the following before searching North Dakota state databases:

• Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
• Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
• Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself. Tip: Search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
• Make sure your company name choice is available by searching the North Dakota Business Entity Database and doing a name search on the State of North Dakota website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).

NOTE: Familiarize yourself with the North Dakota naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.

Restrictions on North Dakota Business Name & Business Purpose

• Business names should be unique.
• North Dakota corporate names may have the following approved designations:
  • Co.
  • Company
  • Corp.
  • Corporation
  • Inc.
  • Incorporated
  • Limited
  • Ltd.
• The use of the following words and phrases in corporate names is considered “restricted” in North Dakota:
  • Bank

Step 3: Register the Business

Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in North Dakota.

How to form an LLC in North Dakota

• File the “Articles of Organization” with the North Dakota Secretary of State LLC Division.
• Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.

How to Incorporate in North Dakota

• File the “Articles of Incorporation” with the North Dakota Secretary of State Corporate Division.
• Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
• Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.

NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.

TIP: Check our order form to see how long North Dakota is currently taking to process regular and expedited orders.

How to File a DBA in North Dakota

• Check the state database of business names.
• Complete the DBA registration form.
• The filing fee is $25.

Optional Considerations when registering a North Dakota business

• Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).

Ready to register a business in North Dakota?

• We specialize in registering businesses in North Dakota.

Ready to Start Now? Let Us Do The Work

Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.

• Learn more about our business formation service
• Read our verified reviews and 100% Satisfaction Guarantee
• Contact our friendly support team if you have any questions

Step 4: Obtain Your Federal Employer Identification Number

Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.

To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.

TIP: We will obtain your EIN for you if you we form your company.

Step 5: Open Company Bank and Credit Accounts

To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).

Top 5 Major Banks in North Dakota

• Gate City Bank
• U.S. Bank
• First International Bank & Trust
• Wells Fargo Bank
• Choice Financial Group

TIP: Our business formation service includes a free banking resolution for your use.

Step 6: Set-up An Accounting System

Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.

Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.

Step 7: Obtain Licenses and Permits

Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).

TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.

Step 8: Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.

Step 9: Obtain Business Insurance

There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection. Click here to view our preferred provider of business insurance online.

Step 10: Systemize and Organize

Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.

Step 11: Branding and Marketing

Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.

Step 12: Annual and Ongoing Requirements

DBA: Your Fictitious Business Name should be valid for 5 years, with option for renewal.

LLC: North Dakota corporations are required to file a Periodic Report with the North Dakota Secretary of State by November 15 each year, in addition to general taxation. Information on your business’ taxes can be found here. The filing fee is $50.

Corporation: Business in North Dakota should file an annual report by August 1 to the Division of Corporate and Consumer Services. The annual report fee is $25.

Important North Dakota Contacts

North Dakota Secretary of State

Business Services (for Corporation and LLC filings)
State of North Dakota
600 E Boulevard Avenue Dept 108
Bismarck ND 58505-0500
Phone: 701-328-2900

North Dakota Taxation Departments

• Office of State Tax Commissioner

North Dakota Labor and Employment Departments

• Department of Labor and Human Rights

North Dakota Startup Resources

1. Small Business Administration (SBA) North Dakota District Offices

• North Dakota District Office

2. SCORE North Dakota

• The North Dakota SCORE Chapter is headquartered at 1200 Memorial Hwy, Bismarck, North Dakota. 

3. North Dakota Legal Statutes

• North Dakota Business Corporation Act – note this is the broad code that includes various other topics including North Dakota’s business corporations.
• North Dakota Limited Liability Companies – the specific act that applies to North Dakota LLC’s.

4. North Dakota Chambers of Commerce

• Greater North Dakota Chamber
• Bismarck-Mandan Chamber of Commerce
• Oakes Area Chamber of Commerce
• New Town Chamber of Commerce
• Watford City Area Chamber of Commerce

5. ND.gov

• The North Dakota Department of Commerce Economic Development & Finance Division is charged with coordinating the state’s economic development resources to attract, retain and expand wealth.

6. Angel.co North Dakota Startups

• A list of all 60+ North Dakota Startups and 4,700+ North Dakota angel investors registered with Angel.co. Good research resource.

7. North Dakota Business News

• Prairie Business magazine
• BISMARCK-MANDAN BUSINESS NEWS

8. Economic Development & Finance

• Business incentives, government accessibility, and workforce performance, combined with North Dakota’s favorable position as one of the lowest cost states for operating a business, are driving top companies to establish operations in North Dakota.

9. North Dakota Small Business Development Center

• North Dakota Small Business Development Centers (ND SBDC) business advisors have years of experience and know how to help North Dakotans to start, manage, and grow their business.

10. ELPC (Environmental Law & Policy Center)

• North Dakota’s combination of environmental treasures, challenges and opportunities make the state a key part of ELPC’s advocacy to achieve environmental progress and economic development together.