North Dakota LLC Taxes

Home » North Dakota LLC » North Dakota LLC Taxes

Need to save time?

Hire a company to form your LLC:
Northwest ($39 + state fee)
LegalZoom ($149 + state fee)

Deal alert! Our favorite company, Northwest, is forming LLCs for $39 (60% off!) See details.

Note: Our tax lesson is not as step-by-step as our other Forming an LLC in North Dakota lessons, due to the uniqueness and variation among businesses in North Dakota. Taxes are usually not as straightforward as forming an LLC in North Dakota, and therefore, the information below is an overview, and not a comprehensive guide.

You will most likely need to hire a tax professional in North Dakota to make sure you meet all your state and local tax obligations. We recommend using Thumbtack.

Do it yourself in North Dakota

North Dakota Tax Overview
ND Tax: New Businesses and Contractors

North Dakota Tax FAQs
North Dakota Taxpayer Access Point (TAP)
Under the “Resources” section, click “View Frequently Asked Questions” to access the FAQ menu.

Registering for North Dakota Taxes Online
North Dakota TAP
Under the “Businesses” section, click “Apply for a Sales and Use or Witholding Account”. Then click “Electronic Application” and follow the onscreen instructions.

North Dakota Office of State Tax Commissioner Contact Info
ND Tax: Contact Us

Other Taxes
Depending on your industry, where your North Dakota LLC is located, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.

Some examples of other taxes and forms due are:

  • Sales and use tax
  • Employer’s withholding tax
  • Tobacco tax
  • Property tax
  • Alcohol tax
  • Fuel tax
  • Local taxes
  • Coal Severance Tax
  • Corporate Income Tax
  • Fiduciary Tax
  • Oil & Gas Severance Tax
  • Prepaid Wireless 911 Fee
  • Royalty Withholding
  • S-Corp & Partnership Tax
  • Telecommunications Tax
  • And more

Your North Dakota LLC and Federal Taxes with the IRS:
By default, single-member North Dakota LLCs are taxed as Sole Proprietorships by the IRS, and by default, multi-member North Dakota LLCs are taxed as Partnerships by the IRS.

The bulleted list above refers to state and local taxes, not federal taxes filed with the IRS.

Remember, the income/losses from your North Dakota LLC will “flow through” to your personal 1040 tax return on a Schedule C, as well as additional Schedules depending on how you derive your income.

Tip: The above language often confuses a lot of people. Notice that we said taxed as. This means, in the eyes of the law, your North Dakota LLC is still a separate legal entity from you, but the IRS is treating your LLC differently (just for tax purposes).

Technically, your North Dakota LLC is still a “legal entity” with the state and the law, but your LLC is a “tax entity” (by default, a Sole Proprietorship or Partnership) with the IRS.

Additionally, your tax professional may recommend that your North Dakota LLC be taxed as a Corporation with the IRS. In that case, your LLC can be taxed as a C-Corp or your LLC can be taxed as an S-Corp. You’ll need to discuss this with your tax professional though, as this usually only works for certain types of businesses, and those businesses that are making close to (or over) $80,000 – $100,000 per year.

Our Recommendation for North Dakota LLCs

Calculating your tax obligations in North Dakota (and with the IRS) can be complicated and if done improperly can negatively impact your LLC.

We recommend that you get help from a tax professional once your North Dakota LLC is formed. You can use Thumbtack or Yelp.

Hiring a tax professional will not only help you keep your North Dakota LLC in compliance, but it will also give you an advisor to go to for other business questions.

You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.

Matt Horwitz
Matt Horwitz
Founder & Educator, LLC University®
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.

Leave a comment or question

 Email me when I get a reply.