How to Start a Bar in North Dakota: Local Liquor License First, Then the State License at $50 or $100 and the 2 a.m. Closing Rule

Opening a bar in North Dakota takes two alcohol licenses, issued in a fixed order. You first need a local liquor license from your city, or from the board of county commissioners if the bar sits outside city limits. Then you apply to the Attorney General for a state retail license. Selling alcohol without both is a class A misdemeanor under NDCC 5-02-01. If you are searching for a north dakota bar license, this guide walks through the sequence, the fees that are published, and the hours rules that shape how you run the room once you open.

What You Need Before You Apply

Gather these items before you file anything. Most delays come from missing paperwork rather than from the agencies themselves.

• An entity registered with the North Dakota Secretary of State, such as an LLC or a corporation. Both the local and state applications require it.
• A North Dakota registered agent with a physical address in the state. Your business cannot serve as its own agent.
• A signed lease or a deed for the premises.
• A floor plan of the licensed area, submitted on state form SFN 14985.
• An application form (SFN 11066) and a personal form (SFN 10866) for every owner and officer. The SFN 10866 must be refreshed every five years.
• Proof that each applicant is a U.S. legal resident, and evidence of good moral character.
• Health and fire inspection reports for the building. The State Fire Marshal reviews the fire report.
• A copy of your local liquor license, once the city or county issues it.
• A federal employer identification number from the IRS, if you plan to hire staff or open a business bank account that requires one.
• A budget that covers the fees listed later in this article, plus the cost of any build-out or inspection corrections.

Step-by-Step: Opening a Bar in North Dakota

1. Form your business entity with the Secretary of State. North Dakota has no general statewide business license, so your first filing is with the Secretary of State through the FirstStop portal. An LLC files Articles of Organization under NDCC Chapter 10-32.1 for a $135 filing fee. A corporation files Articles of Incorporation under Chapter 10-19.1 for a $100 filing fee. An LLC name must include the words limited liability company, L.L.C. or LLC. It cannot include corporation, incorporated, limited partnership, or the abbreviations of those terms. If you need time to secure a name, a name reservation costs $10 and lasts 12 months. Name the registered agent before you file, because the agent's approval must be obtained first.
2. Register a trade name if the bar will not use your legal name. A trade name is any name a business uses that is not its legal name. Register it with the Secretary of State, not a county. Registration costs $25, amendments cost $25 and renewals cost $25. A trade name must be renewed every five years, and it gives the owner the exclusive right to that name within North Dakota only.
3. Secure the building and confirm it meets sanitation and safety rules. Sign the lease or purchase agreement before you apply, since the license is tied to a specific premises. The building must meet local and state sanitation and safety rules. Confirm zoning and building requirements with your city or county planning office. Cities license specific activities only, so ask the city which permits, if any, apply to your bar's build-out. Those local requirements are not covered by a single state fee schedule, so check with the city directly.
4. Apply for the local liquor license first. Inside city limits, the city council acts on the application. Outside city limits, the board of county commissioners acts. On tribal land, the tribal governing body acts where applicable. Local fees are set by NDCC 5-02-03. An on-and-off sale liquor license costs $200 to $2,000, with a maximum of $1,000 outside city limits. A beer license costs $50 to $500. Local governments may add up to $5 per Sunday, and a local license can run for a period of up to one year. Pace your planning around the local calendar. The Minot city council, for example, acts on alcohol applications within 45 days of a complete application (see minotnd.gov). Other cities set their own schedules and hearing requirements, so call the city clerk before you sign a lease.
5. Clear health, fire and building inspections. The Attorney General's file needs current health and fire inspection reports. The State Fire Marshal reviews the fire report, so schedule inspections early. A failed inspection means you must correct the problem and may need a reinspection before your file is complete. If you plan to serve food, confirm with the North Dakota Department of Health and Human Services whether you need a food establishment license, since that agency licenses food establishments.
6. Apply to the Attorney General for the state retail license. Do this only after you hold the local license, because the state application requires a copy of it. Apply at least four to six weeks before you plan to sell. Your package includes the application form, the SFN 10866 for each owner and officer, the floor plan on SFN 14985, the local license, the health and fire reports, the lease or deed, and your entity documents. The state fee is $50 per license per calendar year, or $100 per license in cities over 500 population at the last census. The fee is prorated by month, with a minimum of $25. Find current forms and filing instructions at attorneygeneral.nd.gov.
7. Register for your sales tax permit. Any business making taxable sales must hold a sales and use tax permit from the Office of State Tax Commissioner. Apply through ND TAP about 30 days before you open. The state sales tax rate is 5%, plus city and county taxes, so confirm your combined local rate with the Tax Commissioner. North Dakota levies no franchise tax, but the business's income tax treatment depends on its entity type, so review that with a CPA.
8. Arrange employer coverage. Workers' compensation in North Dakota is a state monopoly administered by WSI (WorkForce Safety and Insurance). If you will have employees, set up your coverage there before your first shift.
9. Build your hours around the closing rules. State law bars dispensing from 2 a.m. to 8 a.m. Dispensing is also prohibited on Christmas Day and after 6 p.m. on Christmas Eve. Off-sale sales are prohibited after 2 a.m. on Thanksgiving and from 2 a.m. to 8 a.m. on Sundays (NDCC 5-02-05). Cities may impose stricter hours than the state, so confirm your city's rules before you set your schedule. Program your point-of-sale system and staff schedule to match.
10. Calendar your recurring deadlines. State liquor licenses renew by December 31. A renewal filed after December 31 carries a $100 reinstatement fee. A license not renewed by the last working day of February expires and cannot be renewed. Your entity has its own deadlines too. An LLC annual report costs $50 and is due November 15, while farming or ranching LLCs file by April 15 instead. A corporation's annual report costs $25 and is due August 1. Local license periods vary, so confirm the renewal date for your local license with the city or county.

What Each Step Costs

The table below lists the fees found on official agency pages. Confirm every figure on the agency page before you file, and confirm any fee not listed here directly with the agency.

Item	Fee	Paid to
LLC Articles of Organization	$135	Secretary of State
Corporation Articles of Incorporation	$100	Secretary of State
Name reservation (12 months)	$10	Secretary of State
Trade name registration, amendment or renewal	$25 each	Secretary of State
LLC annual report (due November 15)	$50, plus a $50 late fee after the due date	Secretary of State
On-and-off sale liquor license	$200 to $2,000 ($1,000 maximum outside city limits)	City or county
Beer license	$50 to $500	City or county
State retail liquor license	$50 per year, or $100 in cities over 500 population, prorated by month with a $25 minimum	Attorney General
Late renewal reinstatement (after December 31)	$100	Attorney General
Sales and use tax permit	Not listed here. Confirm on the Tax Commissioner's site.	Office of State Tax Commissioner

What to Expect After You File

Plan around the lead times you can verify rather than a guaranteed date. The Secretary of State publishes no guaranteed turnaround for filings, and its Business Services office directs filers to call (701) 328-2900 for current timing. The Attorney General asks applicants to file at least four to six weeks before selling. A city or county may take longer, and Minot's 45-day window is one example, not a statewide rule. A complete, accurate package can help you avoid a return for correction, though it cannot guarantee the approval date. Your state license is the last thing to arrive, so keep the opening date flexible until both licenses are in hand.

Tips and Common Mistakes to Avoid

• Applying to the Attorney General first. The state file requires a copy of your local license, so the local approval must come first.
• Assuming a state license alone is enough. You need both licenses. Selling with only one, or neither, is a class A misdemeanor.
• Looking for a general business license. North Dakota issues no general statewide business license. Your entity and trade name filings are registrations, and the alcohol licenses are activity licenses.
• Miscounting the closing hours. Dispensing stops at 2 a.m. and resumes at 8 a.m. Off-sale sales also stop from 2 to 8 a.m. on Sundays. Your city may set stricter hours.
• Missing the renewal window. Renewals are due December 31. After that, a $100 reinstatement fee applies, and a license not renewed by the last working day of February expires and cannot be renewed.
• Sharing a building with a gas station or grocery store without a barrier. The licensed area must be walled off under NDCC 5-02-02.1.
• Using a name you have not registered. If the bar's name differs from the legal entity name, register the trade name before you print signs or launch social accounts.
• Leaving the registered agent until last. The agent must approve the appointment before you name them, and a missing or unapproved agent can put your entity in jeopardy.
• Using the wrong population figure for the state fee. The $100 state fee applies in cities over 500 population at the last census. Confirm your city's figure before you budget.

Start with the city clerk or county auditor, because the local calendar drives everything else. The North Dakota Small Business Development Center, hosted by the University of North Dakota, can help you organize the file before you submit it.

This article is informational content, not legal or tax advice. Licensing rules, fees and deadlines can change, and local rules can be stricter than state law. Confirm current requirements with the Secretary of State, the Attorney General, your city or county, and the Office of State Tax Commissioner. For a complex deal, such as buying an existing bar, adding partners or structuring ownership, consult a qualified North Dakota attorney and a CPA before you sign anything.