By StartBusinessByStatePublisher: Robert SmithResearch process
Last updated:
Starting a business in North Dakota involves choosing a structure, checking operating approvals and setting up the tax and employee accounts your work needs. Use the checklist to make those decisions and find official routes alongside optional services. Most owners start with the North Dakota business license requirements, then layer on industry permits. Alcohol sales add a separate approval, and our North Dakota liquor license guide explains the cost and the wait.
North Dakota Business Requirements at a Glance
An LLC is one choice within a larger business setup. Work through the requirements that apply to your activity and address, then choose whether you want paid help with a specific step.
Affiliate links may earn us a commission. Paid providers are optional; official filing routes are included.
| Setup step | When it applies & what to budget | Your next step |
|---|---|---|
| Choose your business structureChoose first | An LLC can help separate business liabilities from personal assets, but is not required for every business. North Dakota LLC registration costs $135. File Articles of Organization through the Secretary of State’s FirstStop system and designate a registered agent. Check additional rules if the business involves a regulated profession or agricultural land. Paid filing and agent services are optional and can cost extra. | Understand North Dakota LLC costs and filing, or use the official state filing route. Optional filing help: ZenBusiness can prepare and submit the LLC formation filing. Review the package and any recurring add-ons. Form an LLC with ZenBusinessAffiliate · Optional provider |
| Check licenses & your locationDepends on your work | Check city approvals, zoning and state industry licensing before operating. Contractors can need a Secretary of State contractor license, while food, childcare and licensed professions use other authorities. LLC registration does not replace those activity-specific approvals. | Find your North Dakota industry guide. Check the city or county for the location where you plan to operate. |
| Register a trading nameIf using an assumed name | Check the registration route for your legal structure before using a different trading name. Keep the legal owner and business name consistent across state filings, local licenses, tax accounts and bank records. A name registration does not itself create an LLC. | |
| Get your federal tax IDIf an EIN is needed | An employer identification number (EIN) identifies your business for federal tax purposes. Whether you need one depends on your structure and activities. It is free from the IRS. If forming an LLC or corporation, form it before applying. | Check eligibility and get an EIN free. You do not need to buy an EIN service. |
| Register for sales taxIf making taxable sales | Use North Dakota’s sales/use tax guidance to determine whether your sales, rentals or services need a permit. Check local tax treatment, use tax on business purchases and separate employer withholding obligations. The state’s TAP portal handles applicable tax registration and filings. | |
| Arrange business insuranceRequired coverage varies | North Dakota generally requires workers’ compensation through Workforce Safety & Insurance (WSI) before hiring the first employee, with limited exceptions. The private insurance quote service below is for other business coverage; it does not replace required WSI coverage. Review liability, professional, property and vehicle coverage separately for your work, contracts and lease. | Check North Dakota workers’ compensation rules. Optional quote service: Simply Business can help you explore business insurance. Coverage and availability depend on your trade and underwriting. Get business insurance quotesAffiliate · Optional provider |
| Separate money & keep recordsPractical setup | Choose how you will separate business receipts and expenses, reconcile transactions and save tax records. Compare account fees, cash-deposit access and bookkeeping needs. Account-opening documents depend on the provider and business structure. | Prepare your formation or trading-name documents and tax ID, then compare business accounts. Set up a recordkeeping routine before your first payment. |
| Put customer agreements in writingDepends on your service | Agree on the work, price, payment dates, exclusions and cancellation terms before starting. A general service-agreement template may help with routine work; regulated or complex jobs can need specific contract terms or legal review. | Optional document service: use LawDepot to customize a service agreement, then check that it fits your work. Create a service agreementAffiliate · Optional provider |
| Set up invoices & paymentsChoose your payment method | Decide how customers will pay and when invoices are due. Compare transaction fees, hardware costs and payout timing. Buying a particular payment service is not a state requirement. | Optional payment service: explore Square for accepting customer payments and compare its fees with your expected sales. Explore Square paymentsAffiliate · Optional provider |
| Plan startup costs & cash reservesBorrowing is optional | Add filing costs, equipment, insurance and operating expenses before deciding whether to borrow. Financing options depend on revenue, time in business, credit and lender criteria. A new, pre-revenue business may not qualify. For local lenders and eligibility, compare North Dakota business loans. | Optional comparison service: SuperMoney Business Financing lets you explore funding options, subject to eligibility. Compare total repayment cost and payment frequency. Compare business financingAffiliate · Optional provider |
| Prepare for employeesIf hiring | Before hiring, arrange the applicable state employer accounts, federal payroll withholding and new-hire reporting. Check wage, leave and workplace-notice requirements for where the employee works, and confirm any industry-specific rules. | Check unemployment and employer registration |
| Calendar reports & renewalsFor your entity and licenses | North Dakota LLC annual reports cost $50. Check the reporting deadline for your entity, keep the registered agent current, and handle contractor or professional-license renewals separately. Tax returns and WSI payroll reporting have their own schedules. | Check the official reporting and renewal guidance. Paid filing help is optional and may cost extra. |
Need the detailed instructions? Continue below for state filings, employer obligations and links to the licensing agencies.
Related state guidance: 51-state business license requirements table.
What It Costs
| Item | Cost | Renewal |
|---|---|---|
| North Dakota LLC (Articles of Organization) | $135 | Annual report: $50 |
| Sales and use tax permit (ND TAP) | Free | None |
| Contractor license (jobs over $4,000) | Class-based fee | Annual, March 1 |
| City licenses (Fargo / Bismarck / Williston) | Activity-specific | Varies |
How to Get Set Up, In Order
- Register the entity with the Secretary of State through FirstStop. Every other registration — tax permit, contractor license, WSI account — is issued to this entity.
- Open your tax account. Register at tap.nd.gov before your first taxable sale; the state advises registering ahead of opening. Filing frequency (monthly, quarterly, annually) is assigned based on volume.
- Check the $4,000 rule. If any single job you’ll perform involves construction work worth more than $4,000, apply for the state contractor license before bidding it.
- Confirm city requirements with the auditor’s office in Fargo, Bismarck, Williston, or wherever you’ll operate.
What do you need next?
Plumbers and electricians: these pages cover what insurance North Dakota requires for your trade and what it usually costs.
North Dakota Licenses by Industry
North Dakota plumbing business guide — master plumber licensing, contractor license rules and startup steps.
North Dakota electrical business guide — contracting status, business approvals, coverage and E-Certs.
North Dakota real estate agent guide — licensing steps, exam and license fees, broker activation and startup planning for new agents.
- Landscaping in North Dakota — where the $4,000 contractor threshold bites first landscaping insurance in North Dakota
- HVAC in North Dakota — mechanical licensing plus the contractor rule HVAC insurance in North Dakota
- Food trucks in North Dakota — health licensing and city vending permits food truck insurance in North Dakota
- Daycare in North Dakota — Health & Human Services licensing daycare insurance in North Dakota
- Do You Need an Arborist License in North Dakota? – No arborist license – but WSI is the SOLE workers comp provider with no private market, and seasonal and occasional workers must be covered before they begin working
- How to Get a Liquor License in North Dakota: Cost & Requirements (2026)
- North Dakota Massage License: Cost & Requirements (2026)
- How to Start a Private Investigation Business in North Dakota (2026)
- How to Start a Hair Salon in North Dakota (2026)
- How to Start a Cleaning Service in North Dakota (2026) cleaning business insurance in North Dakota
The complete walkthrough — taxes, WSI workers’ comp, hiring — is in our guide to starting a business in North Dakota.
How Long Do New Businesses Last in North Dakota?
BLS follows private-sector employer establishments, rather than every business or self-employed owner. In its March 2025 observations for North Dakota, 79.1% of establishments in the annual opening cohort for the year ended March 2024 were still operating one year later. The year-ended-March-2020 cohort had a 54.4% five-year survival rate, 3.1 percentage points above the U.S. rate of 51.3%; 32.8% of the year-ended-March-2015 cohort survived ten years. These are three different opening cohorts, not successive stages of one group. See the official state survival table.
An establishment closure is not a bankruptcy count. BLS links records across ownership changes, so a sale or restructuring does not automatically count as a closure. Nationally, the year-ended-March-2015 opening cohort averaged 4.4 employees at opening; its surviving establishments averaged 11.8 employees in March 2025. That comparison reflects both growth and which establishments survived; it does not mean every surviving business grew. See the BLS linkage method and national cohort table. More state and industry context: business survival rates by state.
Data for North Dakota
Free research and planning tools for starting a business in North Dakota. Most of the data pages compare every state, so look for North Dakota in the table or map.
- New-employer unemployment tax by state: what a new employer in North Dakota can expect to pay per worker in year one.
- Minimum wage by state for 2027: the North Dakota minimum wage that applies on January 1, 2027.
- Small business credit by state: how many North Dakota employers applied for credit and how many got it.
- Young businesses by state: how many North Dakota jobs are at firms 5 years old or younger.
- 2027 minimum wage cost calculator: what the 2027 raises add to payroll for a small business in North Dakota.
Frequently Asked Questions
Does North Dakota require a business license?
No general one. Entity registration, a free ND TAP sales tax permit when you make taxable sales, and industry or city licenses where they apply.
Who needs a contractor license in North Dakota?
Anyone doing construction work valued at more than $4,000 on a single job — a threshold low enough that most trades need the license on their first project.
How much is a North Dakota sales tax permit?
Free, through tap.nd.gov. The state sales tax rate is 5% before local additions.
Sources
| Source | What It Covers |
|---|---|
| ND Taxpayer Access Point (TAP) | Free sales and use tax permit registration |
| ND Secretary of State — FirstStop | LLC registration and contractor licensing |
| ND Office of State Tax Commissioner | Sales tax rates and filing requirements |
Running a food truck? North Dakota has its own food truck insurance requirements, with current coverage rules and costs.
Running a daycare? North Dakota has its own daycare insurance requirements, with current coverage rules and costs.
Running an HVAC business? North Dakota has its own HVAC business insurance requirements, with current coverage rules and costs.
Running a cleaning business? North Dakota has its own cleaning business insurance requirements, with current coverage rules and costs.
Running a landscaping business? North Dakota has its own landscaping business insurance requirements, with current coverage rules and costs.