The Complete Guide to North Dakota Business Licenses
North Dakota does not have a general business license. Sellers get a sales and use tax permit, contractors are licensed by the Secretary of State, and cities license specific trades and activities. This guide explains each step for a new North Dakota business.
Step 1: Form the LLC
File Articles of Organization with the Secretary of State through FirstStop for $135. The $50 annual report is due by November 15. See the North Dakota LLC guide for every formation step.
Step 2: Sales and use tax permit
Apply through ND TAP with the Office of State Tax Commissioner at least 30 days before you open. The state rate is 5% (7% on alcohol), and cities may add local tax. Permits cannot be transferred to a new owner. Remote sellers register once North Dakota sales pass $100,000.
Step 3: City licenses
Cities license specific trades rather than every business. Fargo, for example, has no general business license but licenses plumbers, roofers, haulers, pawn shops and alcohol sellers.
Step 4: Contractor license
Contractors need a license from the Secretary of State for any job over $4,000. The class depends on the largest single job: Class D (up to $100,000) costs $100, Class C (up to $300,000) $225, Class B (up to $500,000) $300 and Class A (over $500,000) $450. Licenses renew by March 1 each year.
Hiring staff and trade names
Employers register for withholding with the Tax Commissioner and for unemployment insurance with Job Service North Dakota. A trade name is registered with the Secretary of State for $25 and renewed every five years.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | Secretary of State | $135; $50 annual report |
| Sales and use tax permit | Tax Commissioner (ND TAP) | Apply 30 days before opening |
| Contractor license | Secretary of State | $100–$450, jobs over $4,000 |
| Trade name | Secretary of State | $25, every 5 years |
Frequently Asked Questions
Does North Dakota require a business license?
No. North Dakota has no general business license. Sellers need a sales and use tax permit, contractors a state license, and cities license specific trades.
What is the sales tax rate in North Dakota?
5% (7% on alcohol), plus any local tax. Apply for the permit through ND TAP at least 30 days before opening.
Do contractors need a license in North Dakota?
Yes, for any job over $4,000. Licenses run from $100 (Class D) to $450 (Class A) and renew by March 1.
How much does it cost to form an LLC in North Dakota?
The Articles of Organization cost $135, and the annual report is $50, due November 15.
Do I need a business license in Fargo?
Fargo has no general business license; it licenses specific trades such as plumbers, roofers, haulers and alcohol sellers.