Is it cheaper to form an LLC in New York or North Dakota?

North Dakota is cheaper at formation ($135) than New York ($200). Ongoing costs are also different: $150 vs $130 per year. Total over three years: $585 vs $590.

Can I form an LLC in New York 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 New York 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.

How long does it take to form an LLC in New York vs North Dakota?

New York online: 3 business days; North Dakota online: 5 business days. New York offers paid expedite from $25. North Dakota does not offer paid expedite.

Which state has lower taxes for an LLC, New York or North Dakota?

New York: state income tax applies to member-level pass-through income, plus a $25 minimum entity-level 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. New York 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.

Does New York or North Dakota have a publication requirement?

New York does. New LLCs must publish a formation notice in approved newspapers, which can add $50 to $1,800 to your first-year cost depending on the county where the LLC is based. North Dakota has no publication requirement.

Do I need a written operating agreement in New York or North Dakota?

New York requires LLCs to adopt a written operating agreement by statute. North Dakota treats it as strongly recommended rather than required. In practice, any LLC with more than one member, or any LLC planning to preserve its liability shield, should have a written agreement regardless of which state it's formed in.

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 New York 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.

New York vs North Dakota LLC comparison

New York charges $200 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, North Dakota runs about $5 less in total state fees than New York. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

New York imposes an entity-level annual tax on every LLC ($25 minimum). North Dakota does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

On speed, New York 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.

Formation filing fee

New York $200

North Dakota $135

North Dakota saves $65

Year 1 total estimate

New York $330

North Dakota $285

North Dakota saves $45

Ongoing per year

New York $130

North Dakota $150

New York saves $20

3-year total

New York $590

North Dakota $585

North Dakota saves $5

Key differences at a glance

North Dakota costs $65 less to form ($135 vs $200).
New York is $20 per year cheaper to maintain ($130 vs $150).
New York imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. North Dakota does not.
New York requires newly formed LLCs to publish a formation notice in local newspapers; this can add $50 to $1,800 depending on county.
New York requires LLCs to adopt a written operating agreement by statute. The other state treats it as recommended rather than required.

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.

What each state offers that the other does not

Only New York

Paid expedited tier

Only North Dakota

No entity-level franchise or LLC tax
No publication requirement
Operating agreement not statutorily required

Both states

Online filing

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.

New York North Dakota

Year 1

$330

$285

Year 2

$460

$435

Year 3

$590

$585

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 New York, business operates there No foreign LLC registration needed. You pay New York fees only.	$330	$130	$590
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 New York with operations elsewhere You pay New York's fees plus a typical home-state foreign LLC registration of about $200 per year.	$530	$330	$1,190
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

New York vs North Dakota: full comparison

Dimension	New York	North Dakota
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	3 business days	5 business days
Expedited option Paid fast-track filing	$25	Not offered
Annual report Required in addition to tax	Required, $9	Required, $50
State-imposed annual tax Franchise, privilege, or LLC tax minimum	$25 minimum	None
State income tax On pass-through LLC income at member level	Yes	Yes
Publication requirement Newspaper publication after formation	Required	No
Operating agreement Required by state statute	Required by statute	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$250	$135
State sales tax General statewide rate	4.0%	5.0%

Taxes in New York 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.

New York tax

$25 minimum annual tax (gross-receipts-tiered basis). State income tax applies to member-level pass-through income. Corporate rate 7.3%.

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.

New York

Annual report $9, due on your anniversary month. Registered agent required in New York.

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.

New York

Prepare a publication-ready notice (required in New York).
Check business-name availability on the New York entity search.
Appoint a registered agent with a physical New York street address.
File Articles of Organization (DOS-1336) for $200.
Wait for approval. Online typically 3 business days. Paid expedite from $25.
Adopt a written operating agreement (statutorily required in New York).
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 $9 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 New York 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 New York 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

New York Department of State - Division of Corporations, State Records and Uniform Commercial Code

Website: dos.ny.gov/division-corporations-state-records-and-uniform-commercial-code
Phone: (518) 473-2492
Mail: Department of State, Division of Corporations, State Records, and Uniform Commercial Code, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231
Office: One Commerce Plaza, 99 Washington Avenue, 6th Floor, Albany, NY 12231
Hours: 9:00 AM to 4:30 PM Eastern, Monday to Friday

North Dakota Secretary of State - Business Services

Website: sos.nd.gov
Phone: (701) 328-2900
Email: sosbir@nd.gov
Mail: 600 E Boulevard Avenue, Dept 108, Bismarck, ND 58505-0500
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

New York State Department of Taxation and Finance

Website: www.tax.ny.gov
Phone: (518) 457-5181
Mail: NYS Department of Taxation and Finance, W.A. Harriman Campus, Albany, NY 12227
Office: W.A. Harriman Campus, Albany, NY 12227
Hours: 8:30 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
Mail: 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 New York or North Dakota?

North Dakota is cheaper at formation ($135) than New York ($200). Ongoing costs are also different: $150 vs $130 per year. Total over three years: $585 vs $590.
Can I form an LLC in New York 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 New York 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.
How long does it take to form an LLC in New York vs North Dakota?

New York online: 3 business days; North Dakota online: 5 business days. New York offers paid expedite from $25. North Dakota does not offer paid expedite.
Which state has lower taxes for an LLC, New York or North Dakota?

New York: state income tax applies to member-level pass-through income, plus a $25 minimum entity-level 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. New York 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.
Does New York or North Dakota have a publication requirement?

New York does. New LLCs must publish a formation notice in approved newspapers, which can add $50 to $1,800 to your first-year cost depending on the county where the LLC is based. North Dakota has no publication requirement.
Do I need a written operating agreement in New York or North Dakota?

New York requires LLCs to adopt a written operating agreement by statute. North Dakota treats it as strongly recommended rather than required. In practice, any LLC with more than one member, or any LLC planning to preserve its liability shield, should have a written agreement regardless of which state it's formed in.
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 New York 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

New YorkOpen New York LLC guide →
North DakotaOpen North Dakota LLC guide →

More New York and North Dakota comparisons

More New York vs ...

More North Dakota vs ...

Sources

Filing fee: dos.ny.gov/fee-schedules · verified April 21, 2026
NY DOS Division of Corporations fee schedule: domestic LLC Articles of Organization filing fee = $200. Professional service LLC same fee.
Expedited filing: dos.ny.gov/fee-schedules · verified April 21, 2026
Expedited surcharges on top of the filing fee: 24 hours = $25, same day = $75, 2 hours = $150. We report the cheapest 24-hour tier. Biennial Statements cannot be expedited.
Foreign LLC registration fee: dos.ny.gov/application-authority-foreign-limited-liability-companies · verified April 21, 2026
Foreign LLC Application for Authority filing fee = $250 (standard). Professional service foreign LLC = $200. Foreign LLCs are also subject to the publication requirement.
Operating agreement requirement: www.nysenate.gov/legislation/laws/LLC/417 · verified April 21, 2026
NY LLC Law Section 417(a): 'the members of a limited liability company shall adopt a written operating agreement.' Must be adopted before, at, or within 90 days after the filing of the Articles of Organization. The agreement is not filed with the state, but is statutorily required.
Publication requirement: www.nysenate.gov/legislation/laws/LLC/206 · verified April 21, 2026
NY LLC Law Section 206 requires publication of a notice of LLC formation in two newspapers for six consecutive weeks within 120 days of formation, followed by filing a Certificate of Publication ($50) with DOS. Failure to publish suspends the LLC's authority to carry on, conduct, or transact business in New York. Cost ranges are referenced via county clerk designations; representative estimate ~$1,200 mid-range.
Annual report fee: dos.ny.gov/biennial-statements-business-corporations-and-limited-liabi… · verified April 21, 2026
Biennial Statement fee = $9, mandated by NY LLC Law Section 301(e). Filed via the e-Statement Filing Service. Filing period is the calendar month of original Articles of Organization filing, every two years.
Franchise tax: www.tax.ny.gov/pit/efile/annual_filing_fee.htm · verified April 21, 2026
New York charges an annual LLC filing fee on Form IT-204-LL, tiered by NY source gross income: <=$100k = $25; $100,001-$250,000 = $50; $250,001-$500,000 = $175; $500,001-$1M = $500; $1M-$5M = $1,500; $5M-$25M = $3,000; over $25M = $4,500. Disregarded-entity single-member LLCs pay a flat $25. Recorded as gross-receipts-tiered franchise-style charge because it functions as a mandatory annual state charge on the LLC entity even when pass-through.
Corporate income tax rate: www.tax.ny.gov/bus/ct/def_art9a.htm · verified April 21, 2026
Article 9-A NY corporate franchise tax: base rate 6.5% for most corporations; 7.25% applies to business income over $5M (extended through 2026 under the 2021 state budget). LLCs are pass-through by default and do not owe Article 9-A unless they elect C-corp status federally.
Sales tax rate: www.tax.ny.gov/bus/st/stidx.htm · verified April 21, 2026
NY statewide sales and use tax rate is 4%. Local jurisdictions add additional rates; combined rates range from about 7% to 8.875% (NYC). We record the statewide rate only.
Business name search: apps.dos.ny.gov/publicInquiry/ · verified April 21, 2026
NY DOS Division of Corporations Public Inquiry entity search. Can lookup by entity name or DOS ID.
Online filing portal: dos.ny.gov/articles-organization-domestic-limited-liability-company-0 · verified April 21, 2026
Official DOS page for Articles of Organization for domestic LLCs. Links to online filing. Acknowledgement receipt emailed within minutes; processing typically completed in 2-3 business days.
Certificate of Formation name: dos.ny.gov/system/files/documents/2024/05/articles-of-organization.pdf… · verified April 21, 2026
Form DOS-1336, Articles of Organization for a Domestic Limited Liability Company, published by the NY DOS Division of Corporations.
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.

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