How to Start a Business in North Dakota (2026)

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

To start a business in North Dakota, you choose a structure and, for an LLC, file Articles of Organization with the Secretary of State for $135 through the FirstStop portal, get a free EIN, and register for a sales and use tax permit (free) with the Office of State Tax Commissioner. North Dakota has no general statewide business license.

Choose Your Structure

Start by choosing a legal structure. A sole proprietorship is simplest but offers no liability protection. An LLC combines limited liability with pass-through taxation and is the common choice for small businesses. A corporation suits ventures seeking investors. Your choice shapes liability, taxes, and paperwork.

Most North Dakota small businesses form an LLC. Compare structures in S-corporation vs LLC and the how to form an LLC hub. If you choose an LLC, the steps below register it with the state and the IRS and set up tax accounts.

Name and Registered Agent

Choose a name with an LLC designator (for an LLC) that is distinguishable from existing entities, and check availability in the North Dakota business entity search. You may reserve a name before filing.

Every North Dakota LLC and corporation must appoint a registered agent with a physical North Dakota address to receive service of process and state mail. You can serve as your own agent if you have an in-state address, or hire a commercial agent. The agent is named on your Articles of Organization.

Register With the Secretary of State

To form an LLC, file Articles of Organization with the North Dakota Secretary of State through the FirstStop online portal; the filing fee is $135. The articles list the LLC name, principal address, registered agent, and organizers. Corporations file Articles of Incorporation. Once accepted, your entity legally exists.

If you operate under a trade name as a sole proprietor, register that name instead; see North Dakota DBA filing. For the full LLC walkthrough, see how to form an LLC in North Dakota.

Get an EIN and Bank Account

Apply for a free federal EIN from the IRS — online through the EIN Assistant is fastest. An EIN is needed to open a business bank account, hire employees, and file taxes; a multi-member LLC must have one. Do not pay a third party for an EIN, since the IRS issues it free.

With your accepted articles and EIN, open a dedicated business bank account to keep finances separate and support your liability shield. See how to get an EIN in North Dakota for the process.

Register for State Taxes

If your LLC sells taxable goods or certain services, you must obtain a sales and use tax permit from the North Dakota Office of State Tax Commissioner before making sales. The permit is free, and you register through the state's Taxpayer Access Point. North Dakota also has a state income tax that applies to pass-through income at the owner level.

Register employer withholding accounts if you have employees. Your federal EIN identifies the business for these accounts. See North Dakota LLC tax filing and the business tax overview for filing details, plus self-employment tax at the federal level.

Licenses and Ongoing Compliance

North Dakota has no general statewide business license, but many professions and activities require specific state licenses or permits, and some cities require local registration. Check the relevant licensing boards and your city for requirements. See North Dakota business license for what may apply.

To stay compliant, file your North Dakota annual report with the Secretary of State, keep your registered agent current, and meet tax deadlines. Adopt an operating agreement for an LLC. If you later close, see how to dissolve a North Dakota LLC.

Banking, Insurance, and a Compliance Plan

After registering and getting your EIN, open a dedicated business bank account. Keeping business and personal finances separate is essential for an LLC or corporation to preserve the liability shield, and it makes bookkeeping and tax filing far easier. Bring your accepted Articles of Organization and EIN to the bank.

Arrange insurance suited to your business — general liability, professional liability, and workers' compensation if you have employees. Insurance works alongside the legal protection of an entity to manage operating risk. In agriculture, energy, or trades common in North Dakota, industry-specific coverage may also be advisable.

Set up your tax accounts. If you sell taxable goods or services, get the free sales and use tax permit from the Office of State Tax Commissioner and plan to collect and remit on schedule. North Dakota's state income tax reaches pass-through income at the owner level, so budget for estimated payments where needed.

Create a compliance calendar covering your annual report to the Secretary of State, your registered agent renewal, sales tax and withholding deadlines, and any professional or local license renewals. Missing a state deadline can cause penalties or administrative dissolution, so a single list of due dates pays off.

Put governance in writing. Adopt an operating agreement for an LLC (or bylaws for a corporation) covering ownership, management, and profit distribution. North Dakota does not file these, but they govern the business internally and reinforce your liability protection. See how to form an LLC in North Dakota for formation detail.

Sequence the setup to avoid rework. Clear and reserve your name, file the Articles of Organization through FirstStop, obtain your free EIN, open a business bank account, and then register for sales and use tax and any professional licenses. Following a defined order prevents common snags, like needing the EIN before the bank account or the formation document before certain permits.

Choose your registered agent thoughtfully. The agent needs a physical North Dakota address and availability during business hours; owners with an in-state presence often serve themselves, while remote owners hire a commercial agent. Reliable agent coverage ensures legal service and state notices reach you promptly, protecting you from default judgments and missed deadlines.

Understand North Dakota's tax mix. There is no general statewide business license, but sales and use tax applies to taxable goods and services, and the state income tax reaches pass-through income at the owner level. Register the accounts you need, plan estimated payments where applicable, and keep sales tax filings on their own schedule.

Establish durable compliance habits. File your annual report with the Secretary of State, renew your registered agent, meet tax deadlines, and keep your operating agreement current as ownership changes. These steady, low-effort tasks keep your LLC in good standing, which in turn keeps financing, contracts, and any multistate expansion running smoothly. See how to form an LLC in North Dakota.

Confirm local and professional requirements alongside the state steps. North Dakota has no general statewide business license, but cities may require local registration, and regulated occupations — contracting, food, childcare, health, and others — need approval from the relevant board before you operate. Verifying these early prevents a missing local permit from delaying your opening after you have already formed the entity.

Keep organized records to support financing and taxes. Separate business banking, retained formation documents, your EIN confirmation, and tax registrations make lender and grant applications smoother and simplify your sales tax and income tax filings. Clean books from day one also protect your liability shield by demonstrating the LLC operates as a genuine, separate entity.

Finally, plan for growth beyond formation. As your North Dakota business hires employees, adds locations, or expands into other states, you will layer on payroll accounts, additional licenses, and foreign qualification where required. Building good compliance habits now — timely reports, current agent, and accurate tax filings — makes each later step far easier to manage.

Frequently Asked Questions

How much does it cost to start an LLC in North Dakota?

The Articles of Organization filing fee is $135 through the Secretary of State's FirstStop portal. Budget also for an annual report and any licenses; the federal EIN and the sales tax permit are free.

Do I need a business license in North Dakota?

There is no general statewide business license, but many professions and activities require specific state licenses, and some cities require local registration. Check the relevant boards and your city.

How do I register for sales tax in North Dakota?

Apply for a free sales and use tax permit through the Office of State Tax Commissioner's Taxpayer Access Point before making taxable sales. You then collect and remit sales tax on the assigned schedule.

Do I need a registered agent in North Dakota?

Yes. Every North Dakota LLC and corporation must maintain a registered agent with a physical North Dakota address to receive service of process and official state mail.

What portal does North Dakota use for business filings?

North Dakota uses the FirstStop online portal, operated by the Secretary of State, to file Articles of Organization, annual reports, and other business documents.

Related

• How to form an LLC (hub)
• How to form an LLC in North Dakota
• North Dakota registered agent
• North Dakota LLC tax filing
• North Dakota business license
• How to get an EIN

Sources

1. North Dakota Secretary of State — FirstStop Online Filing (Articles of Organization; $135).
2. North Dakota Secretary of State — Business Services (LLC registration and reports).
3. North Dakota Office of State Tax Commissioner — Sales and Use Tax (free permit; registration).
4. North Dakota Office of State Tax Commissioner — Business Taxes (income and withholding).
5. North Dakota Legislature — Century Code Chapter 10-32.1 (LLC Act) (LLC statutes).
6. IRS — Get an Employer Identification Number (EIN is free; issued by the IRS).
7. IRS — About Form SS-4 (Application for Employer Identification Number).
8. IRS — Limited Liability Company (LLC) (federal default classification).
9. IRS — Business Structures (entity types overview).
10. IRS — Self-Employment Tax (Social Security and Medicare Taxes) (15.3% combined rate; $400 threshold).
11. Cornell LII — 26 CFR § 301.7701-3 (entity classification election).
12. Cornell LII — Limited Liability Company (LLC) (definition).
13. IRS — About Schedule C (Form 1040) (report sole-proprietor profit or loss).

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 thresholds change; verify current requirements with the North Dakota Secretary of State and the Office of State Tax Commissioner before acting.