Are you thinking about starting a business in North Dakota? You’ll likely need a license and possibly a permit to do so. Thankfully, the Peace Garden State doesn’t charge an egregious sum of money for a business license.
Though North Dakota does not require a general business license, most enterprises require a legal formality given by the state to satisfy bureaucratic requirements. That formality is an important hurdle to overcome before providing goods and/or services.
This is your inside guide to North Dakota business license cost. Below, we also provide important information about the types of businesses and occupations that require a license including their respective costs.
How much does a business license cost in North Dakota?
Let’s cut to the chase: the cost of a business license in North Dakota. You’ve got supplies to buy, employees to hire and marketing messages to spread. That means money is tight. Get the business license cost out of the way and you’ll focus on what matters most: sales.
North Dakota business license and permits are often referred to as sales tax permits. In some cases, the license is called a seller’s permit. As long as your enterprise has a presence in the state or meets specific economic nexus criteria, you’ll need a business license.
The state’s sales tax permits are issued by the Department of Tax Fee and Administration. The cost of this hurdle to conducting business differs by each individual North Dakota city.
As an example, a $135 one-time fee to start an LLC is required by North Dakota state government.
When in doubt, reach out to the city or even the county where your planned business will reside to ensure you’ve met all the business license and permit requirements. Most such requirements hinge on location, as determined by zoning, business activity and other nuances.
Types of business licenses in North Dakota and their cost
City licenses are necessary when running food service enterprises or pawn shops in the city of Bismark. North Dakota state law mandates that businesses register with the North Dakota Office of the Secretary of State before a single transaction is processed.
However, there is an exception to the state law registration rule: if business is being conducted strictly using one’s personal name, the requirement does not have to be met.
Here’s a quick breakdown of common business types and their North Dakota business license cost:
| Business Type | Fee |
| Appraisal Management Company | $2,500 |
| Collection Agency | $400 |
| Commercial Painter | $50 – $300 |
| Cosmetology | $80 |
| Debt Management | $400 |
| Durable Medical Equipment | $200 – $400 |
| Electrical Contractor | $50 – $300 |
| Engineering Firm | $200 |
| Franchise | $250 |
| General Contractor | $100 – $450 |
| Home Improvement | $100 – $450 |
| HVAC Contractor | $300 |
| Insurance Agency | $100 |
| Mortgage Broker | $800 |
| Pharmacy | $175 |
| Plumbing Contractor | $50 – $200 |
| Private Investigation Agency | $350 |
| Private Security | $350 |
| Roofing Contractor | $300 |
| Tattoo Parlor | $110 |
Keep in mind, registration is helpful for reasons beyond bureaucracy. Registration might also provide your business entity with certain protections and rights in accordance with North Dakota law.
The state also has nuanced requirements for those working in specific occupations. Some such occupations require a license or registration from the North Dakota state board or agency.
Examples of different industries and the different licenses they require in North Dakota
If you are launching a new business in North Dakota and are beneath the overarching umbrella of a specific occupational group, you might be legally mandated to obtain a license of registration.
As an example, the Office of the Secretary of State requires contractors to obtain or renew a specific license for contracting. The state also requires home inspectors to register to work in the field of residential inspection.
Are you considering becoming a professional fundraiser? You’ll have to register to do so.
Those looking to start a professional employer organization are also required to register.
Even those looking to work as professional agents to represent budding athletes must meet a bureaucratic requirement in the state of North Dakota. So-called “athlete agents” are required to register to represent the interests of student athletes.
Other issued licenses encompass the following fields and more:
- Food service
- Concrete work
- Excavation
- Liquor sales
- Gaming
However, it must be noted that there is no general business license for the city of Bismarck.
In contrast, a Fargo, North Dakota restaurant will require a Food Establishment License from the state’s Department of Health and Human Services Division of Food and Lodging. A Minot home-based accounting enterprise will require a certified public accountant license. Known as the CPA, the license is issued by the State Board of Accountancy.
Consider the example of a web-based e-tailer of products located in Grand Forks, North Dakota. Such an enterprise requires a Sales Tax Permit form the State Tax Commissioner office. Even if the enterprise lacks a tangible storefront, the permit is required as soon as the threshold of six-figures of taxable sales is reached.
In the end, it is the location and industry of your North Dakota business that ultimately determines if a business license is necessary. It is also interesting to note that Bismark hair salons are required to have professional cosmetology licenses from the state’s Department of Licensing and Regulation. Such a license is necessary for each individual cosmetologist on the premises.
Renewing your business license in North Dakota
Your business license to operate in the state of North Dakota will have to be renewed in due time. The idiosyncrasies of renewal timing and cost differ by jurisdiction. Take a close look at your business license application when filling it out and you’ll likely find details about renewal requirements.
When in doubt, reach out to your local city/county office for more details about business license renewal to determine the specific frequency at which your license is to be renewed. In general, business licenses tend to be renewed on an annual basis in accordance with state requirements.
North Dakota business license costs vary depending the county, type and scope of the business. Business licenses in North Dakota need to be renewed and paid for regularly, so check with your jurisdiction for more details about how often yours will need to be renewed.
Conclusion
Setting up a business in North Dakota isn’t as daunting of a task as most assume. As is commonly said, if there is a will, there is a way.
Ask for guidance from local government or a business law attorney to streamline the process for your business license. In the end, you’ll find the North Dakota business license cost is worth every penny.
FAQ
If your business has a physical presence within the state, you must obtain a business license. However, if your enterprise is not located within the state’s boundaries and you strictly sell online, there is no requirement for a business license.
Once you’ve determined the legal operating structure for the business and selected a name, connect with the Office of the Secretary of State. You can register through the convenient online FirstStop Portal. Keep in mind, it might also be necessary to register the name of the business with your county clerk at the site of the business’s location. Additional permits or local licenses might be necessary based on your unique municipality.
You can expect a wait between five business days and several weeks to obtain your business license.
There is no standardized business license requirement for North Dakota LLCs. However, you must pay the state’s $135 LLC formation fee. It is also recommended to obtain an Employer Identification Number (EIN).
No. Business licenses are bureaucratic formalities required by state, county, and municipal governments. LLCs are business structures that limit legal liability, separating business funds from personal funds. For a clearer picture of what forming an LLC involves, reviewing how to start an LLC in North Dakota can help put those differences into context.
The state does not have a broad-based business license requirement. However, if your company has a physical presence in the state and it does not meet licensing/permit requirements, fines might be applicable.
Check with your city clerk to ensure another company doesn’t have the same name or a similar name. Your city clerk will notify you of duplicate filings. Be sure to bring your business’s proposed name, address, EIN number and contact information to meet North Dakota requirements.