North Dakota: what each business structure costs a year

At $100,000 profit, an S corporation costs $4,353 a year less than a sole proprietorship in North Dakota. All figures are 2026 tax and fees.

$4,353 a year

less as an S corporation than as a sole proprietorship in North Dakota, at these numbers.

North Dakota, 2026: $100,000 profit, single filer

Structure

Yearly cost

vs yours

To set up

Sole proprietorship yours

$22,897

Itemized: $22,897

Self-employment taxirs.gov, 2026 rates	$14,130
Federal income taxirs.gov, 2026 rates	$8,235
State income taxtax.nd.gov, checked Oct 20, 2026	$532
Yearly cost	$22,897

Single-member LLC

$22,930

+$33

$135

Itemized: $22,930

Annual Reportsos.nd.gov, checked Oct 20, 2026	$50
Self-employment taxirs.gov, 2026 rates	$14,122
Federal income taxirs.gov, 2026 rates	$8,227
State income taxtax.nd.gov, checked Oct 20, 2026	$531
Yearly cost	$22,930

LLC taxed as an S corp

$18,565

−$4,332

$135

Itemized: $18,565

Annual Reportsos.nd.gov, checked Oct 20, 2026	$50
Payroll tax on your salaryirs.gov, 2026 rates	$6,562
Payroll service and tax return (estimate)	$1,800
Federal income taxirs.gov, 2026 rates	$9,588
State income taxtax.nd.gov, checked Oct 20, 2026	$565
Yearly cost	$18,565

S corporation lowest

$18,544

−$4,353

$100

Itemized: $18,544

Annual Reportsos.nd.gov, checked Oct 20, 2026	$25
Payroll tax on your salaryirs.gov, 2026 rates	$6,562
Payroll service and tax return (estimate)	$1,800
Federal income taxirs.gov, 2026 rates	$9,592
State income taxtax.nd.gov, checked Oct 20, 2026	$565
Yearly cost	$18,544

C corporation

$26,547

+$3,650

$100

Itemized: $26,547

Annual Reportsos.nd.gov, checked Oct 20, 2026	$25
Payroll tax on your salaryirs.gov, 2026 rates	$6,562
Payroll service and tax return (estimate)	$2,000
State corporate income taxtax.nd.gov, checked Oct 20, 2026	$1,433
Federal corporate income tax (21%)irs.gov, 2026 rates	$11,138
Federal income taxirs.gov, 2026 rates	$5,073
State income taxtax.nd.gov, checked Oct 20, 2026	$316
Yearly cost	$26,547

What these figures count

State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
The 20% qualified business income deduction with its income limits and the professional-service rule.
Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in North Dakota

Electing S corp tax treatment for an LLC starts to pay in North Dakota at about $50,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

North Dakota has no pass-through entity tax electionforvismazars.us.

Profit	Sole prop	LLC	LLC as S corp	C corp
$30,000	$5,181	$5,221	$6,757	$7,179
$50,000	$9,732	$9,771	$9,691	$11,769
$75,000	$15,574	$15,611	$12,185	$17,557
$100,000	$22,897	$22,930	$18,565	$26,547
$150,000	$39,045	$39,079	$32,127	$46,035
$200,000	$55,774	$55,813	$46,398	$64,663
$300,000	$96,492	$96,509	$78,013	$103,377

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in North Dakota

	LLC	Corporation
Filing to form	$135Articles of Organization (registration via FirstStop)	$100Articles of Incorporation (registration via FirstStop)	sos.nd.gov
Yearly report	Annual Report, $50 a year	Annual Report, $25 a year	sos.nd.gov
Report due	November 15	August 1

North Dakota taxes personal income in 3 brackets, from 0% to 2.5% (2026, single filer). tax.nd.gov
C corporations pay 1.41% to 4.31% of net income. tax.nd.gov
North Dakota follows the federal S corp election.
New employers pay state unemployment tax of 1% on the first $46,600 of each employee's wages. That applies to an owner's salary from an S or C corp. jobsnd.com
Farming or ranching LLCs file by April 15 instead.

Not in the calculator: No local income taxes. Some cities levy local sales and lodging taxes, not modelled.

Switching calculators for North Dakota

By profession in North Dakota

Questions

Is an S corp worth it in North Dakota?

On these figures, from about $50,000 of profit. At $100,000 an LLC taxed as an S corp costs $18,565 a year against $22,930 for a plain LLC, $4,365 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in North Dakota?

The state charges Annual Report, $50 a year. Forming one costs $135.

Does North Dakota recognise the S corp election?

Yes. The federal election carries over with no separate state form. Federal S election is followed. No entity-level tax on S corps or LLCs beyond the annual report fee.

What income tax does North Dakota charge?

North Dakota taxes personal income in 3 brackets, from 0% to 2.5% (2026, single filer). C corporations pay 1.41% to 4.31% of net income.

Sources checked 2026-10-20. Each figure links to the state or IRS page it comes from.

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