Indiana vs North Dakota LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Indiana charges $95 to form an LLC; North Dakota charges $135. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.
Over a rolling three-year window, Indiana runs about $142 less in total state fees than North Dakota. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
On speed, Indiana typically clears standard online filings faster than North Dakota. Both states offer expedited tiers at an additional cost for filers on tight timelines.
For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.
Key differences at a glance
- Indiana costs $40 less to form ($95 vs $135).
- Indiana is $34 per year cheaper to maintain ($116 vs $150).
Where each state fits
For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.
Three-year cost, side by side
Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.
Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).
What it costs under your specific situation
The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.
| Scenario | Year 1 | Each year after | 3-year total |
|---|---|---|---|
| You live in Indiana, business operates there No foreign LLC registration needed. You pay Indiana fees only. | $211 | $116 | $443 |
| You live in North Dakota, business operates there No foreign LLC registration needed. You pay North Dakota fees only. | $285 | $150 | $585 |
| Non-resident forming in Indiana with operations elsewhere You pay Indiana's fees plus a typical home-state foreign LLC registration of about $200 per year. | $411 | $316 | $1,043 |
| Non-resident forming in North Dakota with operations elsewhere You pay North Dakota's fees plus a typical home-state foreign LLC registration of about $200 per year. | $485 | $350 | $1,185 |
Indiana vs North Dakota: full comparison
| Dimension | Indiana | North Dakota |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 1 business day | 5 business days |
| Expedited option Neither state offers paid expedite | Not offered | Not offered |
| Annual report Required in addition to tax | Required, $32 | Required, $50 |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | None | None |
| State income tax On pass-through LLC income at member level | Yes | Yes |
| Publication requirement Newspaper publication after formation | No | No |
| Operating agreement Required by state statute | Recommended, not required | Recommended, not required |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $105 | $135 |
| State sales tax General statewide rate | 7.0% | 5.0% |
Taxes in Indiana and North Dakota
How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.
Indiana tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.9%.
North Dakota tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.3%.
Ongoing compliance
The recurring filings each state requires after formation.
Indiana
Annual report $32, due on your anniversary month. Registered agent required in Indiana.
North Dakota
Annual report $50, due 11/15 each year. Registered agent required in North Dakota.
Formation process, side by side
What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.
Indiana
- Check business-name availability on the Indiana entity search.
- Appoint a registered agent with a physical Indiana street address.
- File Indiana Articles of Organization (State Form 49459) for $95.
- Wait for approval. Online typically 1 business days. No paid expedite offered.
- Adopt an operating agreement (recommended, not required by Indiana statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $32 when it comes due.
North Dakota
- Check business-name availability on the North Dakota entity search.
- Appoint a registered agent with a physical North Dakota street address.
- File Articles of Organization (Limited Liability Company) for $135.
- Wait for approval. Online typically 5 business days. No paid expedite offered.
- Adopt an operating agreement (recommended, not required by North Dakota statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $50 when it comes due.
Before you pick either state
A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.
Registered agent is non-negotiable. Both Indiana and North Dakota (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.
Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Indiana or North Dakota does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.
EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.
Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.
Agency contacts
Indiana Secretary of State, Business Services Division
- Website
- www.in.gov/sos
- Phone
- (317) 232-6576
- inbiz@sos.in.gov
- Indiana Secretary of State, Business Services Division, 302 W. Washington Street, Room E018, Indianapolis, IN 46204
- Office
- Indiana Statehouse, 200 W. Washington Street, Room 201, Indianapolis, IN 46204
- Hours
- 8:00 AM to 4:30 PM Eastern, Monday to Friday
North Dakota Secretary of State - Business Services
- Website
- sos.nd.gov
- Phone
- (701) 328-2900
- sosbir@nd.gov
- 600 E Boulevard Avenue, Dept 108, Bismarck, ND 58505-0500
- Hours
- 8:00 AM to 5:00 PM Central, Monday to Friday
Indiana Department of Revenue
- Website
- www.in.gov/dor
- Phone
- (317) 232-2240
- Indiana Department of Revenue, 100 N. Senate Avenue, Indianapolis, IN 46204
- Office
- 100 N. Senate Avenue, Indianapolis, IN 46204
- Hours
- 8:00 AM to 4:30 PM Eastern, Monday to Friday
North Dakota Office of State Tax Commissioner
- Website
- www.tax.nd.gov
- Phone
- (701) 328-7088
- 600 E. Boulevard Ave., Dept. 127, Bismarck, ND 58505-0599
- Hours
- 8:00 AM to 5:00 PM Central, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in Indiana or North Dakota?
Indiana is cheaper at formation ($95) than North Dakota ($135). Ongoing costs are also different: $116 vs $150 per year. Total over three years: $443 vs $585.
-
Can I form an LLC in Indiana if I live in North Dakota?
Yes, but your North Dakota business will almost certainly need to register as a foreign LLC in North Dakota too, which means paying North Dakota's foreign registration fee and any ongoing North Dakota obligations on top of the Indiana ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
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How long does it take to form an LLC in Indiana vs North Dakota?
Indiana online: 1 business day; North Dakota online: 5 business days. Indiana does not offer paid expedite. North Dakota does not offer paid expedite.
-
Which state has lower taxes for an LLC, Indiana or North Dakota?
Indiana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. North Dakota: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
-
Do both states require a registered agent?
Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Indiana and North Dakota both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
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Which state should I pick if I run an online business from home?
Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Indiana or North Dakota to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.
Full state guides
More Indiana and North Dakota comparisons
More Indiana vs ...
Sources
- Filing fee: law.justia.com/codes/indiana/title-23/article-0-5/chapter-4/section-23… · verified April 21, 2026
Indiana LLC Articles of Organization filing fee is $95 when filed online through INBiz and $100 when filed by paper/mail. Form is State Form 49459. Online is the default and fastest path with approximately 1 business day processing. Indiana does not offer a separate expedited service tier; online filing through INBiz is the fast lane. - Expedited filing: inbiz.in.gov/business-filings · verified April 21, 2026
Indiana does not publish a formal expedited service tier for LLC Articles of Organization. Online INBiz filings are processed in approximately one business day at the standard $95 fee, so the practical expedite path is to file online rather than by mail. - Annual report fee: law.justia.com/codes/indiana/title-23/article-0-5/chapter-2/section-23… · verified April 21, 2026
Ind. Code 23-0.5-2-13 requires every domestic filing entity and registered foreign entity (including LLCs) to deliver a biennial report to the Secretary of State every two calendar years on a schedule set by the SOS. Filing fee is $32 online through INBiz and $50 by paper. No statutory late monetary penalty; failure to file leads to administrative dissolution. - Corporate income tax rate: www.in.gov/dor/business-tax/corporate-income-tax/ · verified April 21, 2026
Indiana corporate adjusted gross income tax is a flat 4.9% as of July 1, 2021 and remains at 4.9% for 2026. Applies to C-corporations and to LLCs electing C-corp treatment. - Sales tax rate: www.in.gov/dor/business-tax/sales-tax/ · verified April 21, 2026
Indiana statewide sales and use tax is 7% flat, with no local add-on. Food and prescription drugs are generally exempt. - Foreign LLC registration fee: forms.in.gov/Download.aspx?id=13562 · verified April 21, 2026
Indiana foreign LLC Application for Certificate of Authority: $105 online through INBiz, $125 by paper/mail. After registration, the foreign LLC owes the same $32 online biennial Business Entity Report. - Business name search: bsd.sos.in.gov/publicbusinesssearch · verified April 21, 2026
Indiana Secretary of State Business Search. Confirm LLC name availability before filing Articles of Organization. - Operating agreement requirement: law.justia.com/codes/indiana/title-23/article-18/chapter-4/section-23-… · verified April 21, 2026
Ind. Code 23-18-4-4 permits but does not require a written operating agreement. 23-18-1-16 defines operating agreement as any written or oral agreement of the members. Indiana does not mandate that LLCs adopt a written operating agreement. - Filing fee: www.sos.nd.gov/business/business-services/business-structures/limited-… · verified April 21, 2026
North Dakota SoS LLC page lists Registration (Articles of Organization) filing fee as $135 for both domestic and foreign LLCs. Same fee whether filed online via FirstStop or by mail. - Expedited filing: firststop.sos.nd.gov/ · verified April 21, 2026
North Dakota does not offer a state-level expedited processing tier. All filings go through the FirstStop online portal, which the SoS reports processes LLC formations in approximately 5 business days. - Foreign LLC registration fee: www.sos.nd.gov/business/business-services/business-structures/limited-… · verified April 21, 2026
Foreign LLC registration fee matches the domestic Articles of Organization fee at $135, per the ND SoS LLC fee listing. - Operating agreement requirement: www.ndlegis.gov/cencode/t10c32-1.pdf · verified April 21, 2026
N.D.C.C. 10-32.1-02(36) defines 'operating agreement' to include agreements that are oral, in a record, implied, or any combination thereof. The North Dakota Uniform LLC Act does not require a written operating agreement. - Publication requirement: www.ndlegis.gov/cencode/t10c32-1.pdf · verified April 21, 2026
Chapter 10-32.1 (Uniform Limited Liability Company Act) contains no newspaper publication requirement for LLC formation. Only NY, AZ, and NE require publication. - Annual report fee: www.sos.nd.gov/business/business-services/business-structures/limited-… · verified April 21, 2026
ND SoS LLC page lists the annual report fee as $50 for Business LLC, PLLC, and foreign LLC. Business LLCs and PLLCs are due November 15 each year; Farming/Ranching and Authorized Livestock Farm LLCs due April 15. - Corporate income tax rate: www.tax.nd.gov/business/corporate-income-tax · verified April 21, 2026
ND Office of State Tax Commissioner corporate income tax page: top bracket is taxable income over $50,000, taxed at $1,240 plus 4.31% of the amount over $50,000. Graduated rates 1.41% to 4.31%. Applies to C-corps; LLCs taxed as C-corps would use these rates. - Sales tax rate: www.tax.nd.gov/business/sales-and-use-tax · verified April 21, 2026
ND Office of State Tax Commissioner: statewide general sales and use tax rate is 5%. Cities and counties levy additional local option taxes on top of the state rate. - Business name search: firststop.sos.nd.gov/search/business · verified April 21, 2026
FirstStop business entity search, used to confirm name availability before filing Articles of Organization. - Online filing portal: firststop.sos.nd.gov/ · verified April 21, 2026
FirstStop is the North Dakota SoS online business filing portal. The SoS directs all LLC filings through FirstStop; online filings are typically approved within 5 business days.