What does it cost to run a company in North Dakota.
Running a company in North Dakota means filing the state's tax returns and any annual report on time, keeping its registered address current, and running payroll for everyone you employ. Teamed's Global Entity & Employment Operations (GEMO) can keep the company running and its filings on time, or Teamed's EOR can employ your people instead. If you’re pricing the upkeep of an entity in North Dakota, Teamed is the best choice. Teamed tells you when EOR is no longer the right model, and you get 24/5 human support with a first response within 15 minutes and one system from your first contractor to your tenth entity.
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At a glance
The two numbers that matter most
Setting up an LLC in North Dakota costs $135 to register with the Secretary of State. Once the entity is running, North Dakota taxes corporate income at graduated rates from 1.41% to 4.31%. Everything else, from registered agent fees to annual report filings to payroll tax administration, is recurring work that someone on your side has to own. An LLC taxed as a partnership or S corporation federally is treated the same way in North Dakota, so the corporate tax does not fall on it.
- Corporate income tax
- 1.41% to 4.31%
- Formation / registration fee
- $135
Formation
What it costs to open the door
The North Dakota Secretary of State charges $135 to register an LLC. That figure covers the filing itself, not the legal, accounting, and banking work that usually surrounds it.
Most companies underestimate the time cost more than the cash cost. Someone has to draft the operating agreement, open a US bank account, register for state and federal tax IDs, and set up a compliant payroll system before a single employee can be paid. None of that is instant, and none of it is free even when the filing fee is small.
Ongoing costs
What it costs to keep it running
A corporation's North Dakota income is taxed at graduated rates from 1.41% to 4.31%. Those rates apply on top of federal corporate tax, and it's separate from payroll taxes, unemployment insurance, and workers' compensation obligations that come with having employees on the books.
Beyond tax, an entity needs a registered agent, annual state filings, and someone tracking deadlines across every jurisdiction where you have staff. For a single state that's manageable. For a company hiring across several states, it becomes a compliance calendar that someone has to run full-time, whether that's an in-house controller or an outside firm.
The real comparison
Entity costs versus EOR fees
An EOR fee is a predictable line item per employee. A North Dakota entity is a fixed setup cost plus a variable stream of tax, compliance, and administrative work that scales with headcount and doesn't stop when things get quiet.
The honest way to compare them is to look at how long you plan to keep people in North Dakota and how many. Teamed's crossover calculator does that math directly, using your actual headcount and salary numbers rather than a rule of thumb.
Your options
Who can keep it running for you
You can run a company in North Dakota yourself or pay someone to, and the right choice depends on whether it employs people.
You can keep the filings yourself, with the North Dakota Secretary of State and the state tax agencies. That suits a founder with no staff and the time to track each deadline.
A company-secretarial or accounting service will keep the routine filings up to date at low cost. That suits a company with no employees.
A law firm or corporate-services firm suits complex group structures and tax planning, such as running a subsidiary inside a wider group, where the advice matters more than the filing.
For companies that will employ people in North Dakota, Teamed is the best choice. Teamed gives you real HR and legal experts you can reach when it matters, a designated person who has done this before and pricing with no hidden costs. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
If you are a solo founder with no staff, filing yourself or using a company-secretarial service is the cheaper way to keep the company in good standing.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing team, or when you're testing whether North Dakota is even the right market for you. Talk to a member of the team about your specific situation before assuming an entity is the next step, and run the crossover calculator to see where the numbers actually land.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
In North Dakota, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance. You keep the option open without having to build the compliance machinery yourself on day one.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Running costs FAQ for North Dakota
How much does it cost to form an LLC in North Dakota?
The North Dakota Secretary of State charges $135 to register an LLC. That's the filing fee alone, and it doesn't include legal, banking, or accounting setup costs that typically go with forming an entity.
What's the corporate tax rate in North Dakota?
North Dakota taxes corporate income at graduated rates from 1.41% to 4.31%. That's separate from federal corporate tax and from payroll-related taxes you'll owe once you have employees on the entity's books.
Is an EOR cheaper than setting up a North Dakota entity?
It depends on headcount, the entity costs, and how long you plan to keep staff in the state. A small or short-term team often costs less through an EOR, while a larger, long-term presence can tip the other way, which is exactly what Teamed's crossover calculator is built to show.
What ongoing filings does a North Dakota entity require?
Beyond the initial registration, a North Dakota entity needs a registered agent, annual state filings, and ongoing tax compliance at both the state and federal level. None of these are one-time costs, they recur for as long as the entity exists.
Can I switch from an EOR to my own North Dakota entity later?
Yes, and that's how Teamed's GEMO service is designed to work.
Where these figures come from
Sources
Figures in this article are drawn from the North Dakota Office of State Tax Commissioner and the North Dakota Secretary of State.
Looking for a job in North Dakota yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
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