How to Start a Cleaning Service in North Dakota (2026)

Last updated: February 26, 2026

Starting a cleaning service in North Dakota is one of the more accessible business ventures in the state. There is no state-level license required specifically for cleaning companies, and most smaller North Dakota cities have minimal local licensing requirements. The most important compliance steps are entity registration with the Secretary of State, sales tax registration with the Tax Commissioner (commercial cleaning may be taxable), and – critically – registering with Workforce Safety & Insurance (WSI) before hiring any employees. North Dakota’s monopolistic workers’ comp system means you cannot buy private workers’ comp insurance; WSI is the only option.

Cleaning Service Requirements in North Dakota at a Glance

Requirement	Agency	Cost	Timeline
LLC formation (Articles of Organization)	ND Secretary of State (FirstStop)	$135	1-3 business days
Annual LLC report	ND Secretary of State	$50/year (due Nov 15)	Online only
Trade Name / DBA (if applicable)	ND Secretary of State	$25 (5-year term)	Immediate online
Sales and Use Tax Permit	ND State Tax Commissioner (ND TAP)	Free	Apply 30 days before opening
WSI workers’ comp (if employees)	Workforce Safety & Insurance	Premium based on payroll	Register before day 1 of employment
Unemployment insurance (if employees)	Job Service North Dakota	Payroll-based rate	Register within 20 days of first hire
Local business license (larger cities)	City clerk (varies by city)	Varies	Before operating locally
General liability insurance	Private insurer of your choice	$500-$1,500+/year	Before first client job

How to Start a Cleaning Service in North Dakota (Step by Step)

Step 1: Choose and Register Your Business Entity

Most cleaning business owners in North Dakota choose between a sole proprietorship and an LLC:

Sole Proprietorship with Trade Name: If operating under a business name other than your own legal name, register a Trade Name with the Secretary of State for $25 via FirstStop. No formal entity formation is required, but you bear full personal liability.
LLC: File Articles of Organization with the North Dakota Secretary of State via the FirstStop portal for $135. Limits your personal liability. Pay the $50 annual report fee each November 15 to stay in good standing.

Either way, you must maintain a registered agent with a physical North Dakota address.

Step 2: Get Your Federal EIN

Apply for a free Employer Identification Number (EIN) from the IRS at irs.gov. You need this before opening state tax accounts. Even solo operators often find an EIN useful to separate business and personal finances and avoid sharing their Social Security number with clients or vendors.

Step 3: Register for State Taxes

Register for a Sales and Use Tax Permit via ND TAP at least 30 days before you begin operating. The permit is free. In North Dakota, the taxability of cleaning services depends on context:

Commercial cleaning (offices, businesses): Generally taxable in North Dakota at the state rate of 5.0% plus any applicable local rates.
Residential cleaning: Review current guidance with the Tax Commissioner at (701) 328-1246 or tax.nd.gov, as taxability may differ.

When in doubt, register for a sales tax permit and consult the Tax Commissioner. There is no cost to register.

Step 4: Register with WSI Before Hiring

This is the most critical compliance step for North Dakota cleaning business owners with employees. Do not hire anyone before registering with WSI.

North Dakota is one of four monopolistic workers’ comp states. You cannot legally purchase workers’ comp from a private insurer. All coverage must come from Workforce Safety & Insurance (WSI).
Register at workforcesafety.com/employers before the first employee’s first day.
WSI sets your premium based on payroll estimates and industry class code. Cleaning businesses are generally assigned a standard service class code.
Penalty for non-compliance: $10,000 plus $100/day for each day uninsured. The business becomes directly liable for all claim costs.
Sole proprietors: Exempt from mandatory WSI coverage. However, you may elect voluntary coverage through WSI if you want protection for yourself.

Step 5: Register for Unemployment Insurance

Register with Job Service North Dakota within 20 days of hiring your first employee. Use the UI EASY portal at apps.nd.gov/jsnd/uiiatax. New employers in the service industry start at a 1.0% tax rate on wages up to the taxable wage base. File quarterly contribution and wage reports through the same portal.

Step 6: Check Local Business License Requirements

North Dakota has no statewide business license. Local requirements vary significantly:

Fargo, Bismarck, Grand Forks, Minot: These larger cities may have local business license or occupation tax requirements. Contact the city clerk’s office before operating in these markets.
Smaller cities and rural areas: Most smaller North Dakota municipalities have no local business licensing requirement for cleaning services. Your Secretary of State entity registration is typically sufficient.

Step 7: Get General Liability Insurance

No North Dakota law mandates general liability insurance for cleaning businesses, but it is essential in practice. Commercial cleaning clients routinely require proof of insurance and bonding before awarding contracts. Industry standard coverage:

General liability: $1 million per occurrence / $2 million aggregate is the typical minimum for commercial clients
Janitorial services bond: Protects clients against employee theft; commonly required for commercial accounts
Commercial auto insurance: Required by law if using business-owned or business-registered vehicles

Cost to Start a Cleaning Service in North Dakota

Item	Cost	Notes
LLC formation (Articles of Organization)	$135	One-time state filing fee via FirstStop
Annual LLC report	$50/year	Due November 15 annually
Registered agent (if using professional service)	$49-$150/year	Optional if you’re a ND resident and serve as your own agent
Sales and Use Tax Permit	$0	Free registration via ND TAP
WSI workers’ comp (per employee)	Payroll-based premium	Rate set by WSI based on payroll and class code
General liability insurance	$500-$1,500+/year	Varies by coverage limits and number of employees
Janitorial bond	$100-$300/year	Often required for commercial accounts
Cleaning supplies and equipment	$500-$3,000+	Startup inventory; varies by service type

Estimated total startup cost: $1,300 to $5,000+ (excluding vehicle and large equipment)

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Frequently Asked Questions

Do I need a license to start a cleaning business in North Dakota?

No state-issued license is required specifically for cleaning businesses in North Dakota. You do need to register your business entity (LLC: $135 via FirstStop, or trade name: $25) with the Secretary of State. Some larger cities like Fargo or Bismarck may require a local business license – check with the city clerk where you plan to operate. The most critical compliance step if you have employees is registering with Workforce Safety & Insurance (WSI) before the first day of work.

Is cleaning service taxable in North Dakota?

The taxability of cleaning services in North Dakota depends on the type of service. Commercial cleaning services (offices, businesses, industrial) are generally subject to North Dakota sales tax at the 5.0% state rate plus applicable local rates. Residential cleaning may be treated differently. Register for a Sales and Use Tax Permit via ND TAP (free) and contact the Tax Commissioner at (701) 328-1246 to confirm the taxability of your specific services before you open.

Can I buy private workers’ comp insurance for my cleaning business in North Dakota?

No. North Dakota is a monopolistic workers’ compensation state. Private insurance companies are legally prohibited from selling workers’ comp policies in North Dakota. All employers must purchase coverage exclusively through Workforce Safety & Insurance (WSI). Register before your first hire at workforcesafety.com/employers. Sole proprietors are exempt but may elect voluntary coverage.

Do I need to be bonded to start a cleaning business in North Dakota?

No state law requires cleaning businesses to be bonded. However, commercial clients and property management companies frequently require a janitorial services bond before awarding cleaning contracts. A bond protects clients against employee theft or property damage. Bonding typically costs $100-$300 per year and is purchased from a private surety company – not the state. It is strongly recommended even when not legally required.

How much does it cost to start a cleaning business in North Dakota?

Startup costs for a North Dakota cleaning business typically range from $1,300 to $5,000 for the licensing and insurance side, excluding equipment and vehicles. This includes: LLC formation ($135), annual report ($50/year), general liability insurance ($500-$1,500/year), a janitorial bond ($100-$300/year), and basic cleaning supplies and equipment ($500-$3,000). WSI workers’ comp premiums are payroll-based and apply only once you hire employees.

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About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

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