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North Dakota makes a bar carry two licenses at once: a state retail alcoholic beverage license from the Attorney General and a local license from the city, or from the county or tribe outside city limits. Selling without both is a Class A misdemeanor. N.D. Cent. Code § 5-02-01 requires “an appropriate license from the attorney general and a local license from the governing body of any city, or if the business is located outside the corporate limits of a city, the board of county commissioners or the governing body of an Indian tribe.” The state side is inexpensive and predictable: § 5-02-04 sets the annual fee at $50 for each beer or liquor license, or $100 each in a city over 500 people, prorated by month and renewed every December 31. The local side is where the price and the discretion live: under § 5-02-03 a city sets its on-and-off-sale liquor license fee by ordinance anywhere between two hundred and two thousand dollars a year, and a county license may not exceed one thousand. The Attorney General asks for the forms four to six weeks before opening day, and the state license cannot be issued until the local one is in hand. Under § 5-01-06.1, anyone injured by an obviously intoxicated person has a claim against whoever knowingly served that person, or someone under 21, and server training counts in the licensee’s favor when damages are set.
Training: No State Permit; Certification Mitigates the Penalty and the Damages
Chapter 5-02 does not require a bartender to hold a permit or complete a course, and the Attorney General’s licensing page lists no server certificate among the documents a new licensee submits. Training appears instead as a defense. Section 05-02-10.1 provides that on a first violation for serving alcoholic beverages, the licensing authority “shall accept as a mitigating factor” that the licensee provided its employees alcohol server training addressing intoxication, drunk driving and underage drinking, and that mitigation “must result in a lesser punishment” than the licensee would otherwise receive. Section 5-01-06.1 does the same for exemplary damages in a dram shop suit: the finder of fact may consider that the licensee trained its employees, while a plaintiff may not use the fact of training to prove culpability. Cities may impose their own requirements by ordinance, so check with the city auditor where you will operate.
The conduct rules are statewide. Section 5-01-09 makes it a Class A misdemeanor to knowingly deliver alcoholic beverages to anyone under 21, to an incompetent, or to “an obviously intoxicated individual.” Section 5-02-06 makes a licensee that dispenses to someone under 21, or lets that person remain on the premises while alcohol is being sold, guilty of a Class A misdemeanor, with exceptions for a minor accompanied by a parent or guardian and for a restaurant employing 18-to-20-year-olds to serve and collect money under the direct supervision of someone 21 or older, so long as they do not mix or dispense. Section 5-02-05 bars dispensing or consumption on a licensed premises between 2 a.m. and 8 a.m., on Christmas Day, and after 6 p.m. on Christmas Eve, and bars off-sale after 2 a.m. on Thanksgiving and between 2 a.m. and 8 a.m. on Sundays.
Two Licenses, Two Fee Schedules
The local license comes first. Under § 5-02-03 the annual fee for a local on-and-off-sale liquor license “must be set by ordinance or resolution at not less than two hundred dollars nor more than two thousand dollars,” except that outside a city the county fee may not exceed one thousand dollars; a local beer license runs from fifty to five hundred dollars; and the local body may add up to five dollars for each Sunday the licensee sells. Each city decides its own number, hearing process and conditions, and the Attorney General requires a copy of the city, county or tribal license with the state application.
The state license is the Attorney General’s. The application (SFN 11066) is filed with the license fee, a Personal Information Form (SFN 10866) for every owner, manager, officer, director, shareholder, member, governor or partner, an Alcoholic Beverage Floor Plan (SFN 14985) showing the dimensions of the area to be licensed, and the local license. Under § 5-02-04 the fee is $50 for each annual state beer or liquor license, or $100 each in a city over 500 population, charged on a calendar-year basis and prorated from the month of issuance, with no fee below $25; the application’s fee schedule shows a January license in a city over 500 at $100 falling to $25 by October. Renewals are due on or before December 31; a late renewal pays a $100 reinstatement fee in addition to the license fee, and a license not renewed by the last working day of February is expired and cannot be renewed. The renewal schedule on SFN 11066 lists beer only at $100 and beer, liquor or wine at $200 in a city over 500, and $50 and $100 in a county, small city or tribal location. The Attorney General’s office says to submit the forms “at least four to six weeks before you wish to engage in the retail sale.”
Who Qualifies
Section 5-02-02 requires a sworn application with the fee showing that an individual applicant is a legal resident of the United States and “a person of good moral character.” For a limited liability company, the manager of the licensed premises and the company’s managers and governors must meet the same test, as must members who are individuals, and the company must be properly registered with the Secretary of State; the Attorney General may run a background check and require written consent to obtain criminal history. Every individual on the Personal Information Form refiles it every five years, and anyone who lived outside North Dakota in the last five years should contact the Licensing Section for additional instructions. A gas station, grocery or convenience store seeking an off-sale license must wall off the licensed area (§ 5-02-02.1), and no license may issue in an organized township without the township board’s written consent (§ 5-01-07).
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What It Costs
| License or requirement | Who sets it | Amount |
|---|---|---|
| Local on-and-off-sale liquor license | City ordinance or resolution within the statutory range (5-02-03); county licenses capped lower | Two hundred to two thousand dollars a year in a city; not more than one thousand dollars outside a city |
| Local beer license | City or county ordinance (5-02-03) | Fifty to five hundred dollars a year |
| Sunday sales surcharge | Local governing body | Up to five dollars per Sunday |
| State retail alcoholic beverage license | Attorney General (5-02-04); one fee per beer or liquor license | $50 each; $100 each in a city over 500 population; prorated monthly, minimum $25 |
| State renewal (city over 500) | Attorney General; due December 31 | Beer only $100; beer, liquor or wine $200 |
| Late renewal | Attorney General; after December 31, expired after the last working day of February | $100 reinstatement fee plus the license fee |
| Personal Information Form (SFN 10866) | Every owner, manager, officer, member or governor; refiled every five years | No fee |
| North Dakota LLC | Articles of Organization (10-32.1-92); annual report | $135; $50 annual report |
A Cheap State License, a Local License That Sets the Price, and a Dram Shop Claim Keyed to Knowledge
Several states on this site run a single local license with the state approving afterward, and several run a single state license with local zoning sign-off. North Dakota runs both as separate licenses with separate fees, but the weight is uneven: the Attorney General’s license is a flat, prorated, calendar-year fee that the statute fixes, while the city’s license carries the discretion over number, conditions and price inside a statutory band. The practical consequence is that the local ordinance, not the Century Code, tells you what a license in Fargo or Bismarck actually costs and how many are available; the state layer is paperwork, a floor plan, background forms for every owner and a December 31 deadline that bites hard, since a renewal missed past February cannot be revived.
The liability statute sits between the immunity states and the strict dram shop states. Section 5-01-06.1 gives “every spouse, child, parent, guardian, employer, or other individual who is injured by any obviously intoxicated individual” a claim for relief against “any person who knowingly disposes, sells, barters, or gives away alcoholic beverages to an individual under twenty-one years of age or to an incompetent or an obviously intoxicated individual,” with survivors recovering wrongful death damages. The word doing the work is knowingly: the claim requires that the server knew the patron was obviously intoxicated or underage, a narrower standard than negligence. The statute then bars the intoxicated person, that person’s estate, and any adult passenger in the intoxicated driver’s car from suing the bar. And it is one of the few dram shop statutes that speaks to training in both directions: a licensee’s server training is a mitigating factor when exemplary damages are sought, and a plaintiff may not turn the existence of training into evidence of fault.
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How to Get Licensed, In Order
- Get the local license first. Apply to the city auditor, or the county commissioners or tribal government outside city limits, under the local ordinance; the fee will fall between two hundred and two thousand dollars in a city under 5-02-03.
- Form the entity — North Dakota Articles of Organization are $135 through the Secretary of State’s FirstStop portal, and the annual report is $50. The Attorney General requires an LLC applicant to be registered with the Secretary of State.
- Assemble the state packet four to six weeks before opening: Application for a State Retail Alcoholic Beverage License (SFN 11066) with the prorated fee, a Personal Information Form (SFN 10866) for every owner, manager, officer, member and governor, and an Alcoholic Beverage Floor Plan (SFN 14985) with room dimensions.
- Attach a copy of the city, county or tribal license and mail the packet and payment to the Attorney General’s Licensing Section in Bismarck.
- Confirm the qualifications in 5-02-02: legal U.S. residency and good moral character for the individuals, the premises manager and the LLC’s managers and governors; expect a background check.
- Post the licenses, set the hours to close by 2 a.m. and stay closed until 8 a.m., and brief the staff that knowingly serving an obviously intoxicated or underage patron is a Class A misdemeanor and a civil claim.
- Calendar December 31 for the state renewal, and whatever date the city sets for the local one.
The permit hangs off the entity
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Staying Licensed
Renew the state license by December 31. A late renewal adds a $100 reinstatement fee, and a license not renewed by the last working day of February expires and cannot be renewed; the Attorney General says renewals take about two to three weeks to process.
Refile the Personal Information Form whenever an owner, manager, officer, member or governor changes, and every five years for each individual regardless.
Update the floor plan with an amended SFN 14985 before expanding or rearranging the licensed area; alcohol may be sold only within it.
Train the staff and keep the records. Under 05-02-10.1 documented server training on intoxication, drunk driving and underage drinking must reduce the penalty on a first violation, and under 5-01-06.1 it weighs against exemplary damages.
Keep the local license current on the city’s schedule. Both licenses must be valid for every sale; either one lapsing puts the business in violation of 5-02-01.
Frequently Asked Questions
How much is a liquor license in North Dakota?
Two fees. The state retail alcoholic beverage license from the Attorney General is $50 a year for each beer or liquor license, or $100 each in a city over 500 population, under N.D. Cent. Code § 5-02-04, prorated from the month of issuance with a $25 minimum; the renewal schedule on the application lists beer, liquor or wine at $200 in a city over 500. The local license fee is set by city ordinance under § 5-02-03 at not less than two hundred dollars nor more than two thousand dollars a year for an on-and-off-sale liquor license, or not more than one thousand dollars outside a city.
Who issues liquor licenses in North Dakota?
Both the state and the local government. Under § 5-02-01 a retailer needs a license from the Attorney General and a local license from the city, or from the county commissioners or tribal government outside city limits, and selling without both is a Class A misdemeanor. The Attorney General’s Licensing Section requires a copy of the local license with the state application (SFN 11066) and asks for the forms at least four to six weeks before sales begin.
How long does it take to get a liquor license in North Dakota?
The Attorney General’s office asks applicants to submit the required forms at least four to six weeks before they wish to begin retail sales, and says a renewal takes approximately two to three weeks to process. The local license comes first and runs on the city’s own hearing schedule, so the total timeline depends on the municipality.
Do bartenders need a license in North Dakota?
Not from the state. Chapter 5-02 requires no server permit or course, and the Attorney General’s application checklist lists none. Training matters after the fact: under § 05-02-10.1 a licensee that provided its employees alcohol server training on intoxication, drunk driving and underage drinking must receive a lesser penalty on a first violation, and under § 5-01-06.1 the training is a mitigating factor against exemplary damages in a dram shop suit. Cities may adopt their own ordinances.
What are the hours for alcohol sales in North Dakota?
Under § 5-02-05 a licensee may not dispense or permit consumption of alcoholic beverages on the premises between 2 a.m. and 8 a.m., on Christmas Day, or after 6 p.m. on Christmas Eve, and may not make off-sale sales after 2 a.m. on Thanksgiving or between 2 a.m. and 8 a.m. on Sundays. A violation is a Class A misdemeanor.
Can a North Dakota bar be sued for over-serving a customer?
Yes, if the service was knowing. Under § 5-01-06.1 every spouse, child, parent, guardian, employer or other individual injured by an obviously intoxicated individual has a claim for relief against any person who knowingly sold or gave alcoholic beverages to someone under 21, an incompetent, or an obviously intoxicated individual, and survivors may recover wrongful death damages. The intoxicated person, that person’s estate and an adult passenger in the intoxicated driver’s car may not sue. A licensee’s alcohol server training is a mitigating factor when exemplary damages are sought and may not be used by the plaintiff to prove culpability.
What does a North Dakota LLC cost?
The Secretary of State charges $135 to file Articles of Organization, and the annual report is $50, under N.D. Cent. Code § 10-32.1-92 and the Secretary of State’s LLC page. Filing is through the FirstStop portal.
Forming the company, taxes, insurance, and hiring are covered in our full guide to starting a business in North Dakota.
Sources
| Source | What It Covers |
|---|---|
| N.D. Cent. Code chapter 5-02 — Retail licensing (PDF): 5-02-01 state and local license required; 5-02-02 qualifications; 5-02-03 local license fees; 5-02-04 state license fee; 5-02-05 hours; 5-02-06 individuals under twenty-one; 05-02-10.1 server training | Any person engaging in the sale of alcoholic beverages at retail without first securing an appropriate license from the attorney general and a local license from the governing body of any city, or if the business is located outside the corporate limits of a city, the board of county commissioners or the governing body of an Indian tribe, is guilty of a class A misdemeanor; a retail license may not be issued unless the applicant files a sworn application accompanied by the required fee showing the applicant is a legal resident of the United States and a person of good moral character, and for a limited liability company the manager of the licensed premises and the managers and governors must be legal residents of the United States and of good moral character; the fee for an annual local on and off sale liquor license must be set by ordinance or resolution at not less than two hundred dollars nor more than two thousand dollars, except outside the corporate limits of a city the fee shall not exceed one thousand dollars; the fee for an annual on and off sale local beer license must be not less than fifty dollars nor more than five hundred dollars; a license fee may be increased by not more than five dollars for each Sunday the licensee sells; the fee for an annual state beer or liquor license is fifty dollars each, except in cities over five hundred population the fee is one hundred dollars for each license, prorated from the first day of the month in which the license is issued, except that no license fee will be less than twenty-five dollars; a reinstatement fee of one hundred dollars is required for each license renewal applied for after December thirty-first; a person may not dispense or permit the consumption of alcoholic beverages on a licensed premises between two a.m. and eight a.m., on Christmas Day, or after six p.m. on Christmas Eve, and may not provide off sale after two a.m. on Thanksgiving Day or between two a.m. and eight a.m. on Sundays; a licensee who dispenses alcoholic beverages to an individual under twenty-one years of age is guilty of a class A misdemeanor; a restaurant may employ an individual eighteen to twenty-one to serve and collect money for alcoholic beverages under the direct supervision of an individual twenty-one or more years of age but not mixing or dispensing; for a first violation the licensing authority shall accept as a mitigating factor that the retail licensee provided its employees alcohol server training that addressed intoxication, drunk driving, and underage drinking, and the mitigating factor must result in a lesser punishment |
| N.D. Cent. Code chapter 5-01 — General provisions (PDF): 5-01-06.1 claim for relief for fault resulting from intoxication; 5-01-07 township consent; 5-01-09 delivery to certain persons unlawful | Every spouse, child, parent, guardian, employer, or other individual who is injured by any obviously intoxicated individual has a claim for relief for fault against any person who knowingly disposes, sells, barters, or gives away alcoholic beverages to an individual under twenty-one years of age or to an incompetent or an obviously intoxicated individual, and if death ensues, the survivors of the decedent are entitled to damages; if a retail licensee is found liable and exemplary damages are sought, the finder of fact may consider as a mitigating factor that the licensee provided to an employee alcohol server training that addressed intoxication, drunk driving, and underage drinking; a person with a claim may not use the fact that the retail licensee provided this training to prove culpability; a claim may not be had on behalf of the intoxicated individual nor the intoxicated individual’s estate, nor on behalf of an adult passenger in an automobile driven by an intoxicated individual; no retail beer or liquor license may be issued in any organized township without the written consent of the board of township supervisors; any individual knowingly delivering alcoholic beverages to an individual under twenty-one years of age, or to an incompetent or an obviously intoxicated individual is guilty of a class A misdemeanor |
| North Dakota Attorney General — Retail Alcoholic Beverage License | Any person who intends to engage in the retail sale of alcoholic beverages must be licensed by the Attorney General; submit the required application forms at least four to six weeks before you wish to engage in the retail sale of alcoholic beverages; the state retail alcoholic beverage license must be renewed on or before December 31st each year by completing the Application form SFN 11066 and remitting the license renewal fee; late renewals will be required to pay an additional license reinstatement fee; licenses not submitted for renewal before close of business on the last working day in February are considered expired and cannot be renewed; it takes approximately 2-3 weeks to process a license renewal; to apply, complete and submit the Application for a State Retail Alcoholic Beverage License (SFN 11066) and the appropriate license fee, a Personal Information Form (SFN 10866) for any owner, manager, officer, director, shareholder, member, governor, or partner, which every individual must update every five years, an Alcoholic Beverage Floor Plan (SFN 14985) including the dimensions of the area to be licensed, and a copy of the beer and/or liquor licenses issued from the local city, county, or tribal authority |
| North Dakota Attorney General — Application for a State Retail Alcoholic Beverage License, SFN 11066 (PDF) | New license fee schedule, premises located in city with population over 500, beer and liquor/wine: January $100.00, February $91.67, March $83.33, April $75.00, May $66.66, June $58.33, July $50.00, August $41.67, September $33.33, October through December $25.00; city with population under 500, county, or tribal licensee: $50.00 in January falling to $25.00; license renewal fee schedule, premises in a city with a population over 500: beer only $100.00, beer, liquor or wine $200.00; premises in county limits or city under 500 and tribal locations: beer only $50.00, beer, liquor or wine $100.00; retail alcoholic beverage licenses expire on December 31st of each year and must be renewed before expiration or a reinstatement fee will be required; mail to Office of Attorney General, Licensing Section, 600 E Boulevard Avenue, Dept 125, Bismarck, ND 58505-0040 |
| North Dakota Secretary of State — Limited Liability Company (LLC) | Articles of Organization (domestic) $135; Annual Report (domestic and foreign) $50; Amendment $50; file online through FirstStop |
| N.D. Cent. Code chapter 10-32.1 — Uniform Limited Liability Company Act (PDF), 10-32.1-92 Secretary of state fees and charges | The secretary of state shall charge and collect for filing articles of organization and issuing a certificate of organization, one hundred thirty-five dollars; filing articles of amendment, fifty dollars; after the termination of the limited liability company, the reinstatement fee of one hundred thirty-five dollars |
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