So you’re thinking about moving your LLC to North Dakota, or perhaps you’re looking to form an LLC in North Dakota? Either way, you’ve come to the right place.
In this guide, we’ll discuss everything you need to know about LLC domestication in North Dakota, from the process itself to the benefits of doing business in the Peace Garden State.
We’ll also provide some helpful tips on what to consider when making the decision to move your LLC to North Dakota. So without further ado, let’s get started!
What is North Dakota LLC Domestication?
LLC domestication in North Dakota means changing the location or domicile of your LLC from any state into North Dakota. In other words, if you want to move your Georgia LLC to North Dakota, for instance, LLC domestication is the best way to do so.
By LLC domestication, you change the governing laws of your LLC. Domesticating your LLC into North Dakota will have the following benefits over other methods of moving your LLC to North Dakota:
- LLC domestication allows you to maintain previous business relationships.
- No need to renew contracts made in the previous state.
- No need to change bank accounts and credit rating.
- You can retain your EIN (Tax ID Number).
- No need to rehire employees.
- No need to transfer assets.
How to Domesticate your LLC in North Dakota
There’s always something new to learn in the ever-changing landscape of business, and this same goes for LLC domestication in North Dakota. Below, we explained the process of transferring an LLC from any state to North Dakota via ND LLC domestication in 3 simple steps.
Acquire a Certificate of Good Standing
A certificate of good standing is also called a certificate of existence or certificate of status in some states. It is a legal document issued by the state authorities, usually the secretary of state.
This certificate verifies that your LLC or corporation was legally formed and operated in a state compliance manner.
In other words, this official document states that you timely pay your LLC taxes, submit LLC annual reports and fees, follow the state laws in all business operations: hence, your business is in good standing with the state.
North Dakota LLC domestication requires that your LLC does not have any outstanding debts or taxes in the home state. So you have to pay state taxes, LLC annual fees, and other fees in the state where you initially registered your LLC.
To prove that your LLC is up to date on all important business marks, you need to submit a certificate of status while filing Articles of Domestication in North Dakota.
Approval of LLC Domestication
Before you file articles of domestication with the North Dakota Department of State, you need to acquire approval from the state where you originally formed your LLC.
Contact the state department where you initially filed your articles of organization and acquire permission to move your business out of that state.
For instance, if you want to move your Texas LLC to North Dakota, you need to get permission to transfer your LLC out of Texas from the Texas Secretary of State.
File an Articles of Domestication North Dakota
To formally move your LLC from the LLC’s home state to North Dakota, you need to file articles of domestication downloaded with the North Dakota department of state.
With North Dakota Articles of Domestication, you will see North Dakota articles of organization form as well. So you need to file the North Dakota certificate of domestication along with the North Dakota articles of domestication.
To download both forms, click on the link below:
Moreover, you also need to submit the certificate of good standing to show that your LLC does not have any outstanding state taxes or debts in the previous state.
Finally, depending on the LLC management structure mentioned in your LLC operating agreement, you need the signature of the authorized person to sign the North Dakota LLC domestication form. After completing all the information, send the complete forms to:
600 E Boulevard Ave Dept 108,
ND 58505, United States
Requirements to Complete North Dakota Articles of Domestication Form
As mentioned earlier that North Dakota articles of domestication are filed with the North Dakota articles or organization; the following information/documents will be needed to complete the LLC domestication process:
- Certificate of good standing from the previous state
- LLC domestication approval from the previous state
- Name of the domesticating entity (The name of your LLC with which you used to operate your business in the previous state)
- The name of the previous state where your LLC was registered
- The date when your LLC was formed initially
- North Dakota articles of organization form with North Dakota registered agent information
- Signature of the authorized person to initiate LLC domestication
- The effective date of the LLC domestication, if it is not the same as the date of filing of the North Dakota articles of domestication
North Dakota LLC Domestication Fee (Cost)
To convert an out-of-state LLC into a North Dakota LLC, you need to pay the following fee to the North Dakota Department of State along with the North Dakota articles of domestication:
- Articles of Domestication: $25
- Articles of Organization: $125
- Total to Domesticate and file: $150
Alternatives to LLC Domestication North Dakota
If you do not plan to move your LLC to North Dakota permanently, or for any other reason North Dakota LLC domestication does not seem suitable, the followings are the alternative to North Dakota LLC domestication:
What Next After North Dakota LLC Domestication?
Once the state of North Dakota domesticates your LLC, the laws of the previous state will no longer apply to your LLC.
Now your LLC will be governed under the LLC statute of North Dakota. Now, to remain compliant with the laws of North Dakota, you need to:
- Make sure you pay outstanding LLC federal taxes or debts in the previous state.
- Keep your registered agent information up to date. If you don’t have one, you can review top registered agent services here.
- Follow your LLC operating agreement.
- Acquire licenses and permits specifically required by the new state.
- Regularly submit annual reports and fees.
- Pay North Dakota sales tax (6% on the total sales).
Moving an LLC out of North Dakota
The North Dakota Department of state allows an LLC to move out of North Dakota via LLC domestication. However, the law of the other state must permit LLC domestication in its statute.
If the law of the other state does not permit LLC domestication, you should look for alternatives of LLC domestication to transfer your LLC out of North Dakota.
For the states that allow LLC domestication, you need to submit a North Dakota certificate of status to domesticate your LLC there. Click on the following link to get a North Dakota certificate of status.
FAQs on How to Domesticate an LLC in North Dakota
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