If you would like to set up the operations in the USA, North Dakota can be a proper option for both small and medium entrepreneurs. Known as the Peace Garden State or the Roughrider State, North Dakota is the 9th largest area in USA and a rich state in natural resources which attract numerous investors who want to settle their companies in this field. We have prepared a general guide to company incorporation in North Dakota, a process that can be entirely explained by our team of company formation representatives in USA.

What to consider when opening an LLC in North Dakota

Among the business entities available in North Dakota, the limited liability company may represent the suitable form for future operations in this state. An LLC registration starts with the Business Division of the Secretary of the State of North Dakota. The Articles of Association represent the important documents of the company which comprise information about the owners, the activities, the business address, the board of managers and the name of the registered agent. We mention that each company in North Dakota must have a registered agent with residency in the state. Moreover, another company may act as a registered agent for a newly-incorporated firm. When starting a business in USA, and particularly in North Dakota, you can ask for complete support from our team of company incorporation representatives in USA who can also act on behalf of your enterprise in this state or in any chosen one.

Operating agreement for your company in North Dakota

Most states do not impose any other documents at the time of company formation, but you can consider creating an operating agreement, an internal paper that comprises details about the responsibilities of the owners, the managers, the voting rights, the financial and working relations, the ways in which the membership can change and information about the company dissolution when it is the case. Please ask our advisors for complete information about the operating agreement for an LLC in North Dakota.

Apply for EIN in North Dakota

Before commencing the activities in North Dakota, companies must have the Employer Identification Number (EIN) which is normally issued by the Internal Revenue Service (IRS) through the local offices in the state. This represents the federal tax ID which shows that the company is registered for tax purposes. In this sense, the company’s documents are sufficient when applying for EIN.

Taxes in North Dakota

In North Dakota, the sales tax is set at 5% and, besides that, municipalities can impose their own rate no higher than 3%. Please consider that North Dakota is subject to lodgings tax and rental tax, but not limited to this. Please bear in mind that tax advisors can help your company with tax minimization methods, if it is the case. An accounting firm in North Dakota can be a proper solution for your newly-registered company.

Business licenses for your company in North Dakota

Depending on the operations you wish to settle in North Dakota, certain licenses and permits might be necessary. If you want to open a restaurant in North Dakota, you must obtain the health and building permits among several others linked to this type of business. The Chamber of Commerce in North Dakota can be contacted for further information about the business licenses and permits or you can ask our advisors for support in this sense. Starting a company in USA can be entirely supervised by our team.

The economy in North Dakota

The natural resources in North Dakota sustain the well-developed mining sector in this state. The agriculture, the manufacturing, and the IT sectors are profitable fields in North Dakota, but the oil and petroleum fields are solid sources of incomes in this state. Bismarck is the capital of North Dakota and a major business center in the state. Your company can be set up in important cities like: Fargo, Jamestown, Grand Forks, Minot, Mandan or Devils Lake.

The progressive income tax in North Dakota is one of the lowest in the USA, being in the attention of foreign entrepreneurs looking to discover the business conditions in this state before anything else. We have prepared this article with information about the taxes a company needs to pay in North Dakota. Also, we remind that our team of company formation agents in USA are at your service with comprehensive support and information about how you can start a business in North Dakota and about the taxes involved.

What is the sales tax rate in North Dakota?

The goods and services for sales purposes in North Dakota are subject to a sales tax rate of 5% and, more than that, the municipalities can impose their own tax of no more than 3%. Our team can offer more details about this tax.

What is the corporate income tax rate in North Dakota?

There are three marginal rates through which the business income is levied as seen in the table below:

Taxable Income Tax Rate
Between 0$ and $25,000: 1.4%
Between $25,000 and $50,000: $350 and 3.55% on amount exceeding $25,000
More than $50,000: $1,237.50 and 4.1% on amount exceeding $50,000

It is good to know that the corporations in North Dakota are subject to a corporate income business tax that ranges from 1.4% to 4.31%. The same corporate income tax is imposed for limited liability companies in North Dakota and distributed to each individual, depending on the registered share in the company.

For information about how you can open a company in USA and especially in North Dakota, contact our team of advisors. Also, you can read the general guide about company incorporation in North Dakota and discover the main requirements for company formation in this state.

Is there an estate tax in North Dakota?

No, there is no estate tax in North Dakota. An important thing to observe in this matter is that owners of North Dakotan gross estates which are bigger than the federal exemption of $5.49 million will have to file an estate tax return, without having to pay any taxes.