How Much Does It Cost to Start a Business in North Dakota

Starting a business in North Dakota is affordable compared to many states, but costs vary dramatically depending on your business structure. A simple LLC can cost under $200 to file, while a corporation or a business requiring specialized licensing can easily run into the thousands. This guide breaks down every cost you'll face, from filing fees to ongoing annual expenses.

LLC Formation Costs in North Dakota

Limited liability companies (LLCs) are the most popular business structure in North Dakota because they're cheap to file and offer liability protection. Here's what you'll pay:

• State filing fee: $135 to file your Articles of Organization through the FirstStop portal
• Name reservation (optional): $10 if you want to reserve your business name for 12 months before filing
• Registered agent (optional but recommended): $0 to $500+ per year depending on whether you use a professional service or handle it yourself

You file your Articles of Organization with the North Dakota Secretary of State via the FirstStop portal. Processing time is not published by the state, but secondary sources commonly cite about 5 business days for FirstStop filings. The Secretary of State's Business Services line at (701) 328-2900 can confirm current turnaround times.

The cost to start a business in North Dakota as an LLC is therefore $135 minimum, or $145 if you reserve the name first. This is a one-time filing fee. It does not include professional help (attorney or CPA), which adds cost but is optional for straightforward filings.

Corporation Formation Costs in North Dakota

If you're forming a corporation instead of an LLC, the state filing fee is $100 to file your Articles of Incorporation. This is $35 cheaper than an LLC, but corporations face higher ongoing compliance costs.

• State filing fee: $100
• Name reservation (optional): $10
• Registered agent requirement: Corporations must maintain a North Dakota registered agent with a physical address in the state (you cannot serve as your own agent)

You file Articles of Incorporation with the North Dakota Secretary of State through FirstStop. Like LLCs, corporations are subject to the same filing timeline.

The real cost difference appears in annual compliance: corporations must file an annual report by August 1 each year for a $25 fee, and they face state corporate income tax on profits. LLCs, by contrast, have lower annual reporting costs (see below).

Ongoing Annual Costs for Your North Dakota Business

State filing fees are just the beginning. Every year, your business will face recurring costs.

LLC Annual Report

All business LLCs and professional LLCs (PLLCs) must file an annual report by November 15 each year. The fee is $50. This is a straightforward renewal; the report is filed through FirstStop and is not complex. If you miss the November 15 deadline, the North Dakota Secretary of State charges a $50 late fee, and failure to file within a set period can result in involuntary dissolution. If that happens, reinstatement costs $135.

Farming or ranching LLCs have a different deadline: April 15 instead of November 15.

Corporation Annual Report

Corporations file their annual report by August 1 for a $25 fee. This is cheaper than the LLC annual report, but corporations have higher tax obligations (see below).

Sales Tax Permit

If your business makes taxable sales, you must hold a sales and use tax permit from the North Dakota Office of State Tax Commissioner. Apply through ND TAP about 30 days before opening. There is no fee to obtain the permit, but the state sales tax rate is 5% and you must remit it regularly (usually monthly or quarterly depending on your sales volume). A sales tax permit is also required even if you don't owe the tax yet, so apply early.

Additional Business Licenses and Permits

North Dakota does not require a general statewide business license. However, certain activities do require specific licenses:

Contractor License (Most Common)

If your business involves construction and the cost, value, or price of a job exceeds $4,000, you must hold a North Dakota contractor license. The cost depends on your license class:

• Class D (jobs up to $100,000): $100
• Class C (jobs $100,000 to $500,000): typically $250
• Class B (jobs $500,000 and above): typically $350
• Class A (specialized trades): typically $450

The contractor license renews annually by March 1. If you operate construction jobs under $4,000, no license is required, but you still must comply with all other business formation and tax requirements.

Other Licensed Professions

The North Dakota Secretary of State licenses only seven specific professions: athletes agents, combative sports operators, home inspectors, lobbyists, professional employer organizations (PEOs), professional fundraisers, and contractors. The Attorney General licenses alcoholic beverage retailers, amusement games, tobacco retailers, and transient merchants. Additional occupational licenses are issued by other state agencies. Check with your industry regulator before opening to confirm requirements.

Trade Name Registration

If you operate your business under a name other than your legal name, you must register it as a trade name (also called a fictitious name or DBA, "doing business as") with the North Dakota Secretary of State. The registration fee is $25 and must be renewed every 5 years for another $25. Registration grants you exclusive rights to that name within North Dakota only. File through the FirstStop portal.

Professional Services and Startup Costs

Many founders hire professionals to help with formation. These costs are optional but common:

• Attorney review or formation: $500 to $2,000 depending on complexity (operating agreements, liability review, etc.)
• CPA or tax advice: $300 to $1,500 for initial tax structure consultation and projected tax liability review
• Registered agent service: $75 to $300 per year if you hire a professional instead of serving as your own registered agent (required for LLCs and corporations)
• Business license expediting: North Dakota publishes no expedited filing option for Secretary of State filings

If you file your Articles of Organization yourself through FirstStop, you can complete the LLC startup for $135 to $145 in state fees alone. If you hire an attorney to prepare and file your documents, add $500 to $1,000. If you also consult a CPA about tax structure, add another $300 to $1,000.

Tax Costs and Obligations

Your state tax obligation depends on your business structure and income. These are not startup costs but recurring annual costs once your business is profitable:

Personal Income Tax (Sole Proprietors, Partnerships, LLCs Taxed as Pass-Throughs)

North Dakota has a graduated personal income tax with zero, 1.95%, and 2.50% brackets. For tax year 2025, a single filer pays nothing on the first $48,475 of taxable income. This means many new businesses pay zero state income tax initially because startup losses offset income.

Corporate Income Tax

If you elect C corporation tax treatment (or form a traditional corporation), North Dakota applies a graduated corporate income tax: 1.41% on the first $25,000 of taxable income, 3.55% on income from $25,000 to $50,000, and 4.31% on income over $50,000. These rates have been stable since 2015. Corporations with certain characteristics may also owe an additional 3.5% surtax.

No Franchise Tax or LLC Privilege Tax

North Dakota does not levy a franchise tax or a separate LLC privilege tax. This is a major cost advantage compared to some states. Your only recurring state tax obligation is the annual report fee ($50 for LLCs, $25 for corporations) and income tax on profits if applicable.

Industry-Specific Costs

Some industries face unique startup costs in North Dakota:

• Food production or manufacturing: Department of Health inspections and facility permits (cost varies by facility type)
• Childcare: Department of Human Services licensing and background checks (varies)
• Liquor sales: Attorney General's liquor license (several hundred dollars)
• Home-based business: City or county zoning compliance and home occupation permits (often $50 to $200)

Industries are not pre-regulated by the Secretary of State's general business filing system, so always verify specific requirements with your city, county, and relevant state agency before opening.

Tips for Minimizing Startup Costs

Use these strategies to keep your cost to start a business in North Dakota as low as possible:

• File online. The FirstStop portal is free to use. Avoid filing services that charge extra to file on your behalf.
• Skip name reservation if you're ready to file now. The $10 reservation fee is only useful if you need time to prepare your Articles of Organization.
• Serve as your own registered agent if allowed. Most sole proprietors and LLC members can act as their own registered agent and save $75 to $300 per year. Note: corporations and LLCs MUST have a registered agent, but it can be you if you have a physical North Dakota address.
• Use free templates for your operating agreement. Many attorneys' websites publish free LLC operating agreement templates. If your structure is simple, this is sufficient; consult an attorney only if you have co-members or complex ownership arrangements.
• Handle your own bookkeeping initially. Cloud-based accounting tools like Wave or Zoho Books start at $0 per month. Hire a CPA later if needed.
• Research your industry early. Determine whether you need a specialized license (contractor, childcare, food service) before filing. A late-discovered licensing requirement can delay your opening.

Total Startup Cost Summary for North Dakota

Here's what you'll pay in the most common scenario: a single-member LLC formed to start a service or retail business with no specialized licensing requirement:

• LLC filing fee: $135
• Sales tax permit: $0 (free application, though you'll owe sales tax on future sales)
• Registered agent (DIY): $0
• Total minimum: $135

If you add professional help, the cost grows:

• LLC filing fee: $135
• Attorney for formation: $750
• CPA for tax consultation: $500
• Total with professionals: $1,385

If your business requires a contractor license, add $100 to $450. If you hire a registered agent service instead of serving as your own, add $75 to $300 per year.

A Note on Accuracy and Professional Advice

This content is informational only and not legal or tax advice. North Dakota business law, fee schedules, and tax rates change. Before filing, confirm current fees on the North Dakota Secretary of State website and the North Dakota Office of State Tax Commissioner website. For your specific situation, consult a qualified North Dakota attorney and CPA. They can advise on the best business structure for your goals, tax implications, and ongoing compliance obligations.

Next Steps: File Your Business Formation

Once you've decided on your business structure and estimated your costs, you're ready to file. Most North Dakota businesses start with an LLC because the cost to start a business in North Dakota is lowest for this structure, and liability protection is immediate. You'll file your Articles of Organization through the FirstStop portal in under 30 minutes if you're prepared. The Secretary of State's Business Services team at (701) 328-2900 can answer filing questions if you get stuck.

After filing, remember your annual deadlines: LLC annual reports due November 15 ($50 fee), corporation annual reports due August 1 ($25 fee), and contractor license renewal by March 1 if applicable. Set calendar reminders now so you don't miss them and risk late fees or involuntary dissolution.