How to Start a Business in North Dakota
Everything you need to form your North Dakota LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
North Dakota makes it affordable to start your business. Forming an LLC costs just $135, and the state charges no franchise tax or separate LLC privilege tax. Your only recurring state cost is a $50 annual report. Individual income tax is structured favorably, with a 0 percent rate on the first $48,475 of taxable income for single filers in 2025, then 1.95 percent and 2.50 percent in higher brackets.
This guide covers every step from choosing your business structure to securing the licenses your specific business needs.
Choosing Your North Dakota Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most North Dakota small businesses.
| Entity Type | Liability Protection | Taxation | North Dakota Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $135 | $50 Limited Liability Company Annual Report | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $100 | $25 Business Corporation Annual Report | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your North Dakota Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the North Dakota Secretary of State database. Reserve for $10 (12 months, renewable for successive 12 month periods).
- 3
Appoint a registered agent
Must have a physical North Dakota street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization (North Dakota Century Code Chapter 10-32.1, Uniform Limited Liability Company Act), filed through the FirstStop portal ($135) or Articles of Incorporation (North Dakota Century Code Chapter 10-19.1, North Dakota Business Corporation Act), filed through the FirstStop portal ($100) with the North Dakota Secretary of State.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the North Dakota Office of State Tax Commissioner. State sales tax rate: 5%.
- 7
Get required licenses and permits
North Dakota issues no general statewide business license.
- 8
Register for North Dakota taxes
Personal income tax: Graduated with a zero rate first bracket: 0%, 1.95% and 2.50%.
How Much Does It Cost to Start a Business in North Dakota?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (North Dakota Secretary of State) Required | $135 | The Secretary of State publishes no guaranteed turnaround. |
| Corporation filing fee Required | $100 | If forming a corporation instead |
| Limited Liability Company Annual Report Required | $50 | November 15 every year for business LLCs and PLLCs. |
| Name reservation | $10 | 12 months, renewable for successive 12 month periods |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | North Dakota issues no general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $135 to $485 |
Start a Specific Business in North Dakota
North Dakota Business Guides
- How to Start an LLC in North Dakota
- How to Start a Corporation in North Dakota
- Sole Proprietorship in North Dakota: How to Start One
- North Dakota Business License: What You Need and How to Get It
- North Dakota Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in North Dakota
- North Dakota Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in North Dakota
- North Dakota Registered Agent: Requirements and How to Choose One
- Best LLC Services in North Dakota
- North Dakota Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in North Dakota
Why Start a Business in North Dakota?
- Forming an LLC costs 135 dollars and forming a corporation costs 100 dollars, both filed online through the Secretary of State's FirstStop portal.
- Ongoing state maintenance is light: 50 dollars a year for an LLC annual report due November 15, or 25 dollars a year for a corporation annual report due August 1.
- North Dakota has no franchise tax and no separate LLC privilege tax, so the annual report fee is the only recurring state charge on the entity itself.
- Individual income tax tops out at 2.50 percent and the first bracket is taxed at 0 percent, covering the first 48,475 dollars of a single filer's taxable income in 2025.
- The state sales tax rate is 5 percent and corporate income tax runs 1.41 to 4.31 percent across three brackets, rates unchanged since 2015.
- The state has about 799,358 residents as of July 1, 2025 and roughly 75.4 billion dollars of current dollar GDP in 2024, and it issues no general statewide business license.
North Dakota Business Resources
Frequently Asked Questions
- How long does it take to form an LLC?
- The North Dakota Secretary of State does not publish a guaranteed processing timeline. Contact the Business Services office at (701) 328-2900 for current timing on FirstStop filings.
- What does it cost to start an LLC?
- An LLC filing costs $135. The annual report fee is $50 per year, due November 15.
- Can a non-resident form an LLC in North Dakota?
- North Dakota's Secretary of State does not publish residency requirements for LLC formation. Filings are completed online through the FirstStop portal.
- What is the cheapest way to start a business?
- Incorporating as a corporation costs $100, which is less than the $135 LLC filing fee. The corporation annual report is $25 per year compared to $50 for an LLC.
- Is an operating agreement required for an LLC?
- North Dakota does not require filing an operating agreement with the Secretary of State. You must file Articles of Organization to form your LLC.