Getting a business licence in North Dakota helps ensure your company operates legally and complies with regulations and laws. North Dakota doesn't have a statewide business licence, but business owners might still need to deal with complex local, state, and federal licensing requirements.
Whether you're an aesthetician renting a booth or a contractor setting up a construction business, having a North Dakota business licence can help protect your business legally and financially.
Below, we'll discuss common types of business licences needed in North Dakota, the steps to apply, and how much licensing could cost.
Key takeaways
There's no state-level business licence in North Dakota. Instead, most business licences are required at the local level and issued by city and county governments.
Your business might need to obtain additional licences and permits from state agencies, professional boards, and the federal government to operate legally in North Dakota.
Many businesses must register with the North Dakota secretary of state and might have to obtain a sales and use tax permit.
Do you need a business licence in North Dakota?
North Dakota doesn't issue a state-level general business licence. However, depending on the type of business you're starting, your location, and how much money your business makes, you might need various licences and permits to operate legally in North Dakota. Some types of businesses might require local licensing and permits, while businesses in regulated industries might need professional and occupational licences. You might need to register for a sales and use tax permit depending on the products or services your business will sell.
Reviewing licensing requirements for your business at each level of government can help you determine what's needed.
What common types of business licences are needed in North Dakota?
Several types of business licences and permits might be required to operate in North Dakota:
Local business licence: Although there's no statewide business licence in North Dakota, cities and counties might require a licence to operate in their jurisdictions. Several of the major cities in North Dakota require licences for certain types of businesses. For example, in Fargo, the city requires licensing for 17 types of businesses. If you're working from home, you might be required to get a home occupation permit from a zoning and planning department.
Industry-specific state licence: Certain regulated industries require state-level licensing in North Dakota. Examples include construction, food service, and health facilities.
Sales and use tax permit: If your business is required to collect sales tax in North Dakota, you must apply for a sales and use tax permit. Retail sales, recreational activities, and lodging rentals could be subject to sales tax, according to the Sales Tax Guidelines. Remote sellers could be required to have a sales tax permit depending on how much they earn from taxable sales in North Dakota.
Professional licence: Occupations that require professional licensing to operate in North Dakota include accountancy, cosmetology, and nursing. These licences are issued by state boards.
Federal licence: Some businesses (e.g., firearms dealers, alcohol sellers, and radio and TV broadcasting companies) are required to have federal licences to operate legally in North Dakota.
North Dakota doesn't have one database for all the potential business licences and permits you might need. However, North Dakota Small Business Development Centers offer resources (e.g., business advising) to help you work through licensing requirements.
How do you get a business licence in North Dakota?
Here are the general steps to getting a business licence in North Dakota:
Choose your business structure. Will your business be a sole proprietorship, partnership, limited liability company (LLC), or corporation? Your business structure can have tax and liability implications.
Choose your business name. Use the secretary of state's FirstStop Portal business search tool to check whether your desired business name is available.
Register your business. In North Dakota, you must register your business with the secretary of state before operating in the state unless you will do business under your personal name. You can register through the FirstStop Portal online.
Get an Employer Identification Number (EIN). An EIN from the US Internal Revenue Service (IRS) is required if you choose to structure your business as a partnership or corporation, but sole proprietors can choose to get one.
Register for taxes. Businesses that are required to pay North Dakota sales tax must register for a sales and use tax permit and any other required taxes through the North Dakota Taxpayer Access Point (ND TAP). Sales and use tax permit applications must be submitted 30 days before your business opens.
Apply for local licences and permits. Contact your city and county officials to find out about local licensing requirements and application processes. In addition to business licences, local jurisdictions might require other types of licences, including zoning, building, and home occupation permits. The North Dakota Association of Counties has a county officials directory, and you can find your city's website on the North Dakota state government site.
Apply for state- and industry-specific licences. If your industry requires a state licence or permit, you must apply with the relevant licensing board and state agency. Agencies that regulate business activities and issue licences and permits include the attorney general, State Electrical Board, and North Dakota Health and Human Services.
Pay any fees and receive your licence. Pay any application fees and wait to receive your licence before you start doing business in North Dakota. Costs and processes vary depending on the licensing agency and local jurisdiction, so keep track of different procedures.
How much do business licences cost in North Dakota?
Licensing costs in North Dakota depend on which licences and permits you need. Here are potential fees to be aware of:
Local business licence fees
If there's a local business licence requirement, the fees depend on your location and type of business. Costs can range widely, from US$30.00 a year for a tattooist licence in Grand Forks to US$1,000 a year for a commercial hauling business licence in Fargo.
Industry-specific state and professional licence fees
Industry-dependent licence fees vary and are managed by state boards and agencies. Licences can cost up to several hundred dollars. For example, home inspectors must register with the secretary of state and pay an initial US$200 registration fee, while a two-year acupuncturist licence costs US$300 plus a US$50.00 application fee from the North Dakota Board of Integrative Health Care.
Business registration
The cost to register your business with the secretary of state depends on the business structure you choose and your business location.
Sole proprietors: US$0 if you choose to work under your personal name. If you choose to work under a "doing business as" (DBA) name, registering your business with the secretary of state through the FirstStop Portal costs US$25.00.
Partnerships: US$0 – US$110, which depends on the type of partnership structure you choose and whether your business is in state or out of state
LLCs: US$135
Corporations: US$100 – US$145, which depends on whether your business is in state or out of state
How do you renew a North Dakota business licence?
Business licence renewal procedures in North Dakota vary depending on which licences you have. Local business licences often require annual renewal, as do many professional licences. You also must pay a renewal fee.
Licensing boards and local governments often send renewal notices, but it's the business owner's responsibility to keep track of renewal schedules. Browse these lists of state boards and city websites to find contact information for the relevant issuing jurisdictions.
You're required to have active and up-to-date licences to operate in North Dakota. Not maintaining a licence in good standing could result in fines or legal action.
What North Dakota-specific licensing considerations should you remember?
Here are a few considerations specific to North Dakota:
"Doing business as" vs. "trade name"
"Doing business as" or DBA names are used by business owners who want to operate under a name that's not their legal name. In North Dakota, a DBA name might also be referred to as a "trade name." Sole proprietors who want to do business under their personal name don't have to register their business with the secretary of state. If you want to operate under a DBA, you must register.
Out-of-state businesses
Most out-of-state businesses (also known as "foreign businesses") with no physical locations in North Dakota must register with the secretary of state before doing business in the state. Exceptions include sole proprietors and general partnerships, although other types of partnerships (e.g., limited partnerships and limited liability partnerships) are still required to register. All LLCs and corporations must get a certificate of authority from the secretary of state.
After registering, out-of-state businesses that meet economic nexus requirements are also required to get a sales and use tax permit. An economic nexus is created when a business reaches a certain threshold of economic activity, such as sales or revenue.
In North Dakota, economic nexus is created when remote sellers reach more than US$100,000 in taxable sales in the state in the current or previous calendar year. Remote sellers that meet this threshold must apply for a sales and use tax permit 30 days before opening for business in North Dakota. The application is available online at ND TAP.
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FAQs about getting a business licence in North Dakota
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.