How to Get a Business License in North Dakota: Filing and Taxes

North Dakota does not issue a single, all-purpose business license, so learning how to get a business license in North Dakota really means learning which registrations and permits your specific business needs. Almost every new business handles three tracks: registering the entity with the Secretary of State, getting tax permits from the Office of State Tax Commissioner, and picking up whatever local licenses your city or county requires for what you actually do. Regulated professions and employers add more on top.

Pick a Structure and Clear Your Name

Start by deciding how the business will be organized. Corporations and LLCs are governed by North Dakota Century Code Title 10; partnerships fall under Title 45.¹ The structure controls your personal liability, tax treatment, and which formation documents you file.

Before you file anything, search the Secretary of State’s FirstStop portal to confirm your proposed name is distinguishable from names already on record, the standard set by Administrative Code chapter 72-03-02.² If someone else already holds the name, you’ll need to change yours, get written consent from the current holder (with a $10 fee), or produce a court judgment establishing your prior right. Wait for the state’s acknowledgment before printing signs or ordering business cards.

Sole Proprietors and Trade Names

A sole proprietor operating under their own legal name generally doesn’t have to register with the Secretary of State. The moment you use a name that doesn’t include your surname, you do. File a trade name registration through FirstStop for $25, and renew it every five years.² General partnerships operating under a name that doesn’t include the actual partners’ names must register that fictitious name before using it.

File With the Secretary of State

All formation documents go through the Secretary of State’s FirstStop online portal.³ You’ll create an account, enter your business purpose, list initial directors or managers, name your registered agent, and pay by credit card or electronic check. Common fees:

Domestic corporation (Articles of Incorporation): $100
Domestic LLC (Articles of Organization): $135⁴
Trade name registration: $25²

Electronic filings generate an immediate receipt. Once the office reviews and approves your paperwork, it sends the Certificate of Organization (for LLCs) or equivalent document electronically.

Registered Agent

Every registered entity needs a registered agent with a physical North Dakota address. The agent accepts legal papers and official notices on the business’s behalf, a requirement set by the Registered Agents Act in Chapter 10-01.1.⁵ The address must be an actual street address or rural route box number; a P.O. box alone is not enough. You can serve as your own agent if you have a qualifying address, or hire a commercial service, typically $100 to $300 a year.

Get a Federal EIN

Almost every business other than a single-member sole proprietorship with no employees needs an Employer Identification Number from the IRS. Apply free online at irs.gov during business hours and you’ll receive the EIN immediately on approval. The session expires after 15 minutes of inactivity and can’t be saved, so have your information ready. The IRS limits applicants to one EIN per responsible party per day.⁶ Skip any third-party site that charges for this; the IRS itself charges nothing.

Sales and Use Tax Permit

If your business sells tangible goods or taxable services in North Dakota, get a Sales and Use Tax Permit from the Office of State Tax Commissioner before your first sale. The state rate is 5%, and cities may add local tax on top.⁷ Apply through the Taxpayer Access Point portal, where you’ll also file returns and make payments going forward.⁸ Century Code Section 57-39.2-14 makes the requirement blunt: no one may engage in business as a retailer in the state without a permit from the Tax Commissioner.⁹

Don’t overlook use tax. When your business buys equipment or supplies from an out-of-state seller who doesn’t charge North Dakota sales tax, you owe 5% use tax on those purchases.¹⁰ This catches new owners off guard, especially with online purchases. Report and pay use tax quarterly to the Tax Commissioner if you didn’t already pay it to the seller.

Profession-Specific Licenses

Some industries need a separate license from a professional board, not the Secretary of State. Century Code Title 43 covers dozens of regulated occupations, from accountants and architects to plumbers and electricians.¹¹ Each board sets its own exams, fees, and renewal cycles. Fees commonly run from $50 to several hundred dollars.

These licenses attach to the individual practitioner, not the business. Opening a healthcare practice, engineering firm, or cosmetology salon doesn’t shortcut this: every licensed professional on your team needs an active credential from the relevant board before practicing, and your Secretary of State registration doesn’t substitute for it.

If You’ll Hire Employees

Hiring your first employee triggers several extra registrations. Missing any of them can mean penalties, back-owed premiums, or both.

Workers’ Compensation Through WSI

North Dakota is one of a small number of states running a monopolistic workers’ compensation fund. You cannot buy coverage from a private insurer. You must obtain it through Workforce Safety and Insurance (WSI) before your first hire, whether the worker is full-time, part-time, seasonal, or occasional.¹² Apply through WSI directly. Premiums vary by industry classification and payroll.

Unemployment Insurance and Withholding

Register for state unemployment insurance tax with Job Service North Dakota. For state income tax withholding, North Dakota Administrative Code requires you to register with the Office of State Tax Commissioner within seven days of hiring an employee.¹³ You handle this through the same Taxpayer Access Point portal you used for sales tax.⁸ At the federal level you’ll also owe FUTA, generally 6.0% on the first $7,000 of each employee’s wages, with an effective rate of 0.6% when you pay state unemployment taxes on time.¹⁴

Local Licenses and Zoning

State registration doesn’t automatically let you open the doors in a specific city or county. Local governments issue their own licenses for activities like food service, liquor sales, gaming, taxi operations, and construction.¹⁵ The city clerk or auditor’s office is where you start. Some permits require health inspections, background checks, or proof of insurance.

Before signing a lease, confirm with the local planning department that your intended address is zoned for your kind of business. Cities do issue fines and closure orders when businesses operate in the wrong zone, and a zoning verification protects you from finding that out after move-in.

Home-Based Businesses

Running a business from home is generally allowed, but most North Dakota cities restrict what that can look like. Bismarck, for example, splits home occupations into “minor” and “major.” A minor home occupation permits one outside employee, limits client visits to one party at a time by appointment, and bars outdoor storage. A major home occupation allows up to three outside employees and unlimited client visits, but adds noise limits and caps CDL-requiring vehicles at one. Both types limit the business to no more than 50% of the home’s floor area and require the home to keep its residential appearance.¹⁶ Other cities have their own versions, so check with your local planning office.

Staying in Good Standing

Registration isn’t a one-time event. Corporations and LLCs both file annual reports to keep good standing, and the deadlines and fees differ:

Domestic corporations: annual report due August 1, $25 filing fee. A $20 late fee applies through November 1, then $60 after. A full year of nonfiling risks administrative dissolution.
LLCs: annual report due November 15, $50 filing fee, $50 late fee. The state can start dissolution proceedings after just six months of noncompliance.

File annual reports through the same FirstStop portal used for initial registration.³ The report updates your business address, registered agent, and the names of directors or managers. Falling behind is one of the most common ways small businesses lose good standing, and reinstating a dissolved entity costs more time and money than filing on time.

Trade name registrations follow their own clock. They expire every five years, and you have to renew to keep the exclusive right to that name in North Dakota.²

1
North Dakota Legislative Branch. North Dakota Century Code Chapter 10-32.1 Uniform Limited Liability Company Act
2
North Dakota Secretary of State. Register a Business
3
North Dakota Secretary of State. Online Business Services
4
North Dakota Secretary of State. Limited Liability Company LLC
5
North Dakota Legislative Branch. North Dakota Century Code Chapter 10-01.1 Registered Agents Act
6
Internal Revenue Service. Get an Employer Identification Number
7
North Dakota Legislative Branch. North Dakota Century Code Title 57 Chapter 39.2
8
North Dakota Office of State Tax Commissioner. Official Portal for North Dakota Office of State Tax Commissioner
9
North Dakota Legislative Branch. North Dakota Century Code Title 57 Taxation 57-39.2-14 Permits Application Fee for Reissuance
10
North Dakota Legislative Branch. North Dakota Century Code Title 57 Chapter 40.2 Use Tax
11
North Dakota Legislative Branch. North Dakota Century Code Title 43 Occupations and Professions
12
North Dakota Secretary of State. Start a Business
13
Legal Information Institute. North Dakota Administrative Code 81-03-3.1-02 Employers Application
14
Internal Revenue Service. Topic No. 759, Form 940 Employers Annual Federal Unemployment FUTA Tax Return Filing and Deposit Requirements
15
Bismarck, ND – Official Website. New Business Licenses and Permits
16
Bismarck, ND – Official Website. Home Occupations