I'm a Minnesota resident but want to form an LLC in North Dakota for a side business (consulting). Do I need a registered agent in ND? Also, will I have to file taxes in both states? Any advice appreciated.
LLC Formation
Can I form a North Dakota LLC while living in Minnesota?
Yes, you need a registered agent with a physical ND address. You can be your own agent if you have an address the re, but since you're in MN, you'll likely need a commercial service. Costs about $50-100/year.
Why ND though? If you're living in MN, forming there is way simpler. Unless you have a physical presence in ND, you might be creating extra paperwork for nothing.
Mainly becausee my main client is in Fargo and they prefer working with ND entities. Plus I might open a small office there eventually.
Registered agent is a must. Also, ND has an annual report due Feb 15th. Don't forget that or you'll get hit with a $25 late fee. Ask me how i know.
Taxes: You'll file a ND return for the LLC if it does business there. MN will also tax your distributive share as a resident. So yeah, both states. Get a good CPA.
I did the opposite—ND resident with a MN LLC. The paperwork isn't too bad, but the registered agent fees are annoying. Just factor that into your budget.
Also, if you're the only member, ND doesn't require an operating agreement, but it's still a good idea to have one.
Not sure why you'd want to deal with two states' franchise taxes and annual reports. But hey, if the client insists, go for it. Just don't skip the registered agent—you'll gett fined.
Thanks for the tax heads up. I'll definitely talk to a CPA. Any recommendations for registered agent services in ND?
Northwest Registered Agent is popular. I use them for my WY LLC and they're solid. Or you can just hire a local lawyer in Fargo.
CPA first, then registered agent. Don't put the cart before the horse.
And don't forget the ND Secretary of State website has all the forms. It's pretty straightforward. Took me 20 minutes to file online.
One more thing: ND requires a biennial report too? No wait, that's for corporations. LLCs are annual. Correct me if I'm wrong.
Yes, annual report for LLCs. Due Feb 15. I've been late twice. The state loves their late fees, though.
Honestly, this sounds like a headache. But if the Fargo client is worth it, go for it. Just keep good records.
Appreciate all the info. I'll start with a CPA and then figure out the registered agent. Thanks!