How to Get a Business License in North Dakota: Requirements & Cost (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

North Dakota has no single, statewide general business license. Instead, most businesses that sell taxable goods or services must obtain a sales and use tax permit, which is free from the North Dakota Office of State Tax Commissioner, plus any professional and local permits their specific activity requires. If you operate as an LLC, licensing is separate from forming the entity, which you do by filing Articles of Organization with the North Dakota Secretary of State through the FirstStop portal.

Does North Dakota Require a General Business License?

North Dakota does not have a single, statewide general business license that every company must hold to operate. There is no "North Dakota business license" document you apply for at one agency. Instead, the licensing question is answered by what your business does: whether it sells taxable goods or services, whether it works in a regulated profession, and which city or county it operates in. Most small businesses in North Dakota need at least a sales and use tax permit, and many need nothing more at the state level.

This is different from forming a legal entity. Creating an LLC or corporation is a filing with the North Dakota Secretary of State and does not, by itself, license you to do business. If you plan to operate through an LLC, start with how to form an LLC in North Dakota, then work through the licenses below. For the national overview of how licensing works across states, see the business license hub and the broader business licenses guide.

The North Dakota Sales and Use Tax Permit

The most common state registration North Dakota businesses need is a sales and use tax permit. Any person or business making retail sales of tangible personal property or taxable services in North Dakota must obtain this permit before making those sales. The permit authorizes you to collect North Dakota sales tax from customers and remit it to the state. The state sales tax rate is 5%, and cities and counties add local rates on top, so the combined rate you charge depends on where the sale occurs.

The sales and use tax permit is free, and you apply through the Office of State Tax Commissioner. Businesses that sell only exempt items, and service providers whose services are not taxable, generally do not need a permit, but you should confirm your specific goods or services against the Tax Commissioner's sales-and-use tax guidance. Remote sellers and marketplace facilitators over the state's economic-nexus threshold must also register. Once licensed, you file periodic sales tax returns through the North Dakota sales tax account you set up, even for periods with no sales.

How to Register: FirstStop and ND TAP

There are two main state systems for a new North Dakota business. Entity formation is handled by the Secretary of State through FirstStop, the state's online business registration portal. Sales and use tax registration is handled by the Office of State Tax Commissioner through its online ND TAP system. These are separate registrations with separate agencies, so plan to complete both if you form an entity and make taxable sales.

To register, you generally need your legal business name and any trade name, your federal EIN (or Social Security number for a sole proprietor), your NAICS business activity code, and the address of each location. After you receive your permit and account numbers, you must file returns on the schedule the state assigns. Keeping the accounts current avoids the assessments and penalties described later on this page. If you are still deciding on a structure, compare a sole proprietorship vs. an LLC first, and if you will operate under a different name, review what a DBA is.

North Dakota Business License and Registration Fees (2026)

The table below lists the state fees a typical new North Dakota business encounters. Amounts are set by statute or by the relevant state agency, not by any filing service, and can change - confirm the current figure on the agency's fee schedule before filing. Local license and professional board fees vary and are set by each city, county, or board.

Entity fees such as the Articles of Organization and annual report charges are set by the Secretary of State; verify the current amount before you file. Ongoing entity costs and the annual report due date are covered on the North Dakota annual report page and the North Dakota LLC cost breakdown.

Professional and Occupational Licenses

Many occupations in North Dakota are regulated and require a state professional license before you may practice, regardless of the sales and use tax permit. These are administered by dozens of state boards and commissions - for example, cosmetology, contractors, real estate, accountancy, health care, and food service. Each board sets its own application process, examinations, and renewal cycle.

Whether you need a professional license depends entirely on your field, not on your entity type. A single-member LLC providing regulated services needs the same professional license the owner would need as an individual. Because requirements and fees are set by each board, confirm your specific occupation directly with its licensing authority before you start operating. If your work involves a regulated profession, review North Dakota operating agreements for how ownership and management rules interact, and the single-member LLC basics.

Local City and County Licenses

Beyond state requirements, North Dakota cities and counties impose their own permits. Common local requirements include zoning approval or a certificate of occupancy for your location, a health department permit for food establishments, building and sign permits, and, in some municipalities, a local business registration or regulatory permit for specific activities such as peddling, alcohol sales, short-term rentals, or alarm systems. Home-based businesses should check local zoning rules even when no state license applies.

Because these local rules vary widely from one municipality to the next, there is no substitute for checking with your city or county directly. Contact the local government where you will operate, describe your activity, and ask which permits apply. A business that is fully compliant at the state level can still be shut down for missing a local permit. If you operate under a name other than your legal entity name, you may also need a DBA or trade name registered with the Secretary of State.

Related State Registrations: Entity, EIN, and Taxes

Licensing usually sits alongside a few other registrations. If you operate through an LLC or corporation, you first form the entity with the North Dakota Secretary of State - the LLC document is the Articles of Organization, filed through FirstStop. Every North Dakota LLC must also name a registered agent in North Dakota to receive legal process, and must file an annual report to stay in good standing. You then obtain a federal EIN from the IRS, which is free, to open a bank account and handle payroll and taxes.

On the tax side, beyond the sales and use tax permit, North Dakota imposes an individual and corporate income tax administered by the Office of State Tax Commissioner. How your LLC's income is taxed federally and by North Dakota is covered on North Dakota LLC tax filing. For federal default classification, the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership unless it elects S-corporation treatment. Keep your dissolution obligations in mind if you ever close the business.

Penalties for Operating Without a Required License

Operating without a required license or permit carries real consequences in North Dakota. If you make taxable sales without a sales and use tax permit, the Office of State Tax Commissioner can assess the sales tax you should have collected, plus penalties and interest, and can pursue collection against the business and, in some cases, responsible individuals. Making taxable retail sales without registering is a violation of the sales tax law.

Practicing a regulated profession without the required license can lead to cease-and-desist orders, fines, and in some fields criminal charges. At the local level, operating without a zoning, health, or building permit can result in citations, fines, and orders to close until you comply. Because these enforcement paths are independent, being registered with the Secretary of State does not shield you from tax or licensing penalties. The safest approach is to confirm every applicable license - sales and use tax permit, professional license, and local permits - before your first sale.

Frequently Asked Questions

Does North Dakota require a general business license?

No. North Dakota does not issue a single statewide general business license. Most sellers of taxable goods or services need a sales and use tax permit instead, and specific industries and localities require their own licenses and permits.

How much does a North Dakota sales and use tax permit cost?

The permit is free. You register through the Office of State Tax Commissioner's ND TAP system. Once registered, you collect the 5% state sales tax plus any local tax and file returns on the schedule the state assigns.

Where do I get a North Dakota sales tax permit?

Register for a sales and use tax permit with the North Dakota Office of State Tax Commissioner through ND TAP. Entity formation is handled separately by the Secretary of State through FirstStop.

Do I need a license if I only sell services?

It depends. Many services are not subject to North Dakota sales tax and need no permit, but regulated professions require a state license, and some services and products are taxable and do require a permit.

Does a North Dakota LLC automatically have a business license?

No. Filing Articles of Organization with the Secretary of State creates the entity but does not license it. You still obtain any sales and use tax permit, professional license, and local permits your activity requires.

Related

• Business license hub (cluster hub)
• How to form an LLC in North Dakota
• North Dakota sales and use tax
• How much does a North Dakota LLC cost?
• North Dakota annual report requirements
• North Dakota LLC tax filing
• North Dakota registered agent
• North Dakota operating agreement
• How to dissolve an LLC in North Dakota
• Business license in New Hampshire (sibling)

Sources

1. North Dakota Secretary of State - Business Services (entity formation, forms).
2. North Dakota Secretary of State - FirstStop Online Portal (register and manage business entities).
3. North Dakota Secretary of State - Business Services Fee Schedule (Articles of Organization; annual report; trade name).
4. North Dakota Office of State Tax Commissioner - Sales and Use Tax (5% state rate; taxable sales).
5. North Dakota Office of State Tax Commissioner - Register for Sales and Use Tax (free permit; ND TAP).
6. North Dakota Office of State Tax Commissioner - Business Taxes (income and other business taxes).
7. North Dakota Century Code - Title 10, Chapter 10-32.1: Limited Liability Companies.
8. North Dakota Century Code - Title 57, Chapter 57-39.2: Sales Tax.
9. North Dakota Century Code - Title 10, Chapter 10-01.1: Registered Agents.
10. North Dakota Century Code - Title 47, Chapter 47-25: Trade Names.
11. North Dakota - Business Licensing Information (occupational and industry licenses).
12. IRS - Employer Identification Numbers (free EIN).
13. IRS - Limited Liability Company (LLC) (federal classification).
14. Cornell LII - Sales tax (legal overview).
15. Cornell LII - License (legal definition).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and license requirements change; verify current requirements with the North Dakota Secretary of State, the North Dakota Office of State Tax Commissioner, and your local government before acting.