Is it cheaper to form an LLC in Virginia than North Dakota?

Virginia's filing fee is lower ($100 vs $135), but that's not the full picture: operating in North Dakota means also registering as a foreign LLC there ($135) and paying a Virginia registered agent. Realistic first-year cost is roughly $385 for the Virginia route versus $135 for forming in North Dakota.

Can I form my North Dakota business in Virginia?

Yes. Any North Dakota business can form its LLC in Virginia. But if the business operates in North Dakota, it must also register there as a foreign LLC ($135 filing fee) and maintain a registered agent in Virginia, so you take on two states' fees and filings instead of one.

Does Virginia have better asset protection than North Dakota?

Virginia offers more formation privacy. It allows anonymous LLCs while North Dakota doesn't. Core asset protection is similar, though: both states provide charging-order protection for LLC members. For most small businesses the practical difference is modest.

State Comparison

North Dakota LLC vs Virginia LLC (2026)

Compare North Dakota LLC vs Virginia LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.

By Edmond Hui · Last updated: August 13, 2026

For most businesses, forming an LLC in North Dakota beats Virginia. North Dakota runs $185 in year one and $50/yr after; Virginia runs $150 and $50/yr. See the full breakdown below.

Verdict: North Dakota wins for most businesses

For most North Dakota-based businesses, forming locally in North Dakota is the smarter choice. You avoid paying fees in two states and managing compliance in both. Virginia only makes sense if your business genuinely operates there or you need its specific privacy structure, and even then the total costs deserve a hard look.

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Factor	North Dakota	Virginia
Filing Fee	$135	$100
Processing Time	Not published by the state	Not published by the state
Annual Report Fee	$50	$50
Annual Report Due	November 15	Last day of anniversary month
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

Full fee breakdown for either state: North Dakota LLC cost and Virginia LLC cost.

Business Climate: North Dakota vs Virginia

Factor	North Dakota	Virginia
5-year business survival rate	54.4% (#7 of 51)	48.8% (#35 of 51)
Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months))	+14% YoY (#50 of 51 by volume)	+12.6% YoY (#14 of 51 by volume)

Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)

See the full 50-state survival ranking.

Compare LLC Costs: North Dakota vs Virginia

State A

State B

North Dakota

Formation fee$135

Annual report fee$50

State entity taxNone

Report dueNovember 15

Processing timeNot published by the state

Late penalty$50

Virginia

✓ Cheaper Upfront✓ Cheaper Long-Term

Formation fee$100

Annual report fee$50

State entity taxNone

Report dueLast day of formation month

Processing timeNot published by the state

Late penalty$25

Total Cost

North Dakota

Virginia

1 Year

$185

$150

3 Years

$285

$250

5 Years

$385

$350

Will you operate outside your home state?

Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where a state requires publication, and any one-time registration charge a state requires before the LLC may trade. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Montana's annual report is free when filed by April 15 and $35 after, a waiver the Secretary of State applies at its discretion. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.

Filing Fees & Formation Costs

North Dakota charges $135 to form an LLC, while Virginia charges $100. Virginia is $35 cheaper upfront. The cost that usually gets overlooked: if you form in Virginia but operate in North Dakota, you must also register as a foreign LLC in North Dakota (a $135 filing) and maintain a registered agent in Virginia (typically around $150 per year). That puts the realistic first-year cost of the Virginia route at roughly $385, versus $135 for simply forming in North Dakota. Speed isn't a basis for choosing between them: neither North Dakota nor Virginia publishes a standard processing time, so any figure comparing the two is guesswork.

Taxes: North Dakota vs Virginia

Both North Dakota and Virginia levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in Virginia doesn't change what a North Dakota-based owner pays. Neither state imposes a separate franchise or privilege tax on LLCs beyond standard filing fees.

Privacy & Asset Protection

Virginia allows anonymous LLC formation. Member and manager names don't appear on routine public filings. Virginia's Articles of Organization require only a registered agent (no members or managers), and Virginia LLCs file no information-bearing annual report (just a $50 annual registration fee), so owner names stay off public filings. North Dakota doesn't offer that same privacy. North Dakota's annual report lists the LLC's managers or members. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal. One important caveat: if you register your Virginia LLC as a foreign LLC in North Dakota, that North Dakota registration is itself a public record, which can undercut much of the privacy benefit for a business that operates in North Dakota.

Annual Maintenance Costs

North Dakota LLCs file an annual report ($50, due November 15), and Virginia LLCs file an annual report ($50, due in the anniversary month). If you form in Virginia while operating in North Dakota, you maintain filings in both states, Virginia's report plus North Dakota's equivalent for your foreign registration, and pay a Virginia registered agent roughly $150 per year. That brings ongoing costs of the Virginia route to roughly $250 per year, versus about $50 to keep a domestic North Dakota LLC in good standing.

When Virginia Actually Makes Sense

Forming in Virginia makes sense in a few specific situations: you need anonymous ownership. North Dakota puts owner or manager information on public filings and Virginia doesn't (usually via a holding company, since operating in North Dakota still requires a public foreign registration there), your business genuinely operates in Virginia, with a real office, employees, or property there, or you're relocating to Virginia in the near future. For a typical small business based in North Dakota, none of these usually apply. Registering a Virginia LLC to do business back home means $135 in North Dakota foreign-registration fees, on top of Virginia's $100 formation fee, while North Dakota's own annual report runs $50 a year and is due November 15. When in doubt, form where you actually do business.

Frequently Asked Questions

: Virginia's filing fee is lower ($100 vs $135), but that's not the full picture: operating in North Dakota means also registering as a foreign LLC there ($135) and paying a Virginia registered agent. Realistic first-year cost is roughly $385 for the Virginia route versus $135 for forming in North Dakota.
: Yes. Any North Dakota business can form its LLC in Virginia. But if the business operates in North Dakota, it must also register there as a foreign LLC ($135 filing fee) and maintain a registered agent in Virginia, so you take on two states' fees and filings instead of one.
: Virginia offers more formation privacy. It allows anonymous LLCs while North Dakota doesn't. Core asset protection is similar, though: both states provide charging-order protection for LLC members. For most small businesses the practical difference is modest.
: North Dakota, for most. Forming where you operate keeps costs and compliance simple. Virginia is worth considering only if you actually do business there, need its privacy structure, or have investor requirements that point there.
: Speed isn't a basis for choosing between them: neither North Dakota nor Virginia publishes a standard processing time, so any figure comparing the two is guesswork. Only 19 of the 50 states publish anything about non-expedited turnaround at all. Whichever you pick, remember that forming in Virginia while operating in North Dakota means you're not fully set up until the North Dakota foreign registration is also processed, so the out-of-state route is rarely the faster path end to end. If your timing is genuinely fixed, buy the state's expedite tier rather than relying on a standard turnaround.

Comparison chart of forming an LLC in North Dakota versus Virginia, contrasting filing fees, annual report cost and ongoing obligations across 8 factors. On balance this guide favours North Dakota. — North Dakota and Virginia side by side on the factors that decide where to form. Source: MyStateLLC 50-state cost dataset, verified against each Secretary of State's published fee schedule, July 2026.

More State Comparisons

North Dakota vs Washington →North Dakota vs West Virginia →North Dakota vs Wisconsin →North Dakota vs Delaware →Virginia vs Delaware →

North Dakota LLC Guide →Virginia LLC Guide →

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<p style="text-align:center;font-size:.8125rem;color:#6b7280">Source: <a href="https://www.mystatellc.com/llc/compare/north-dakota-llc-vs-virginia-llc">MyStateLLC, North Dakota vs Virginia LLC Comparison</a></p>