North Dakota LLC vs Delaware LLC (2026)
Compare North Dakota LLC vs Delaware LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | North Dakota | Delaware |
|---|---|---|
| Filing Fee | $135 | $90 |
| Processing Time | 3 day(s) | 7 day(s) |
| Annual Report Fee | $50 | $300 |
| Annual Report Due | November 15 | June 1 |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$135 + registered agent ~$150/yr |
Verdict: North Dakota wins for most businesses
For most North Dakota small business owners, forming locally saves money and simplifies compliance since Delaware requires expensive foreign registration plus a registered agent. Delaware only makes sense if you need maximum anonymity or have investors specifically requiring Delaware formation.
Filing Fees & Formation Costs
While Delaware's initial filing fee is lower at $90 vs North Dakota's $135, this advantage disappears when you factor in required costs. If you form in Delaware but operate in North Dakota, you must register as a foreign LLC in North Dakota for an additional $135, plus hire a Delaware registered agent for around $150 annually. This brings Delaware's true first-year cost to approximately $375 vs just $135 for forming directly in North Dakota.
Taxes: North Dakota vs Delaware
Both states impose income taxes on LLCs, so there's no tax advantage to forming in Delaware. North Dakota LLCs pay state income tax on profits, while Delaware charges both income tax and an annual franchise tax. If you form in Delaware but operate in North Dakota, you may face tax obligations in both states. For most small businesses, the tax implications are similar or slightly favor staying in North Dakota.
Privacy & Asset Protection
Delaware allows anonymous LLC formation where member names aren't publicly disclosed, while North Dakota requires organizer information on public filings. However, this anonymity comes at a significant cost premium through foreign registration and registered agent fees. Both states offer solid charging order protection for LLC members. For most small business owners, the privacy benefits don't justify Delaware's additional costs unless anonymity is absolutely critical.
Annual Maintenance Costs
The ongoing cost difference is substantial. North Dakota LLCs pay just $50 annually for their report due November 15th. Delaware LLCs face a $300 annual franchise tax plus ongoing registered agent fees of $150+ per year. If you're operating in North Dakota with a Delaware LLC, you're looking at $450+ annually vs $50 for a North Dakota LLC. Over five years, this difference exceeds $2,000.
When Delaware Actually Makes Sense
Delaware formation is justified for North Dakota businesses in specific scenarios: if you have venture capital investors who require Delaware incorporation, if your business needs maximum anonymity for legitimate reasons, or if you plan to go public eventually. For typical small businesses like restaurants, retail stores, or service providers operating primarily in North Dakota, the extra costs and complexity aren't worth it. Most entrepreneurs are better served forming locally and using that saved money to grow their business.