How to Start a Restaurant in North Dakota: $130 Annual License Plus $0.50 per Seat, $100 Administration Fee and the 30-Day Plan Review

If you want to open a restaurant, the order you do things in matters more than most first-time owners expect. The most common expensive mistake is signing a lease or ordering a walk-in cooler before the food license plan is submitted. This guide covers how to open a restaurant in North Dakota from entity formation to your first day of service, with the fees and deadlines you need to plan around.

North Dakota has no general statewide business license. Registering an LLC or a trade name is a filing with the North Dakota Secretary of State, not a license. The permit that governs your kitchen is the food and lodging license, and it is the one to plan around first.

What You Need Before You Start

Gather these items before you file anything:

• A business name you have checked against Secretary of State records
• A legal entity choice, usually a limited liability company (LLC)
• A North Dakota registered agent with a physical address in the state
• A floor plan drawn to scale that shows seating, kitchen layout, sinks, restrooms, storage and dish area
• A seat count for the dining room, bar and any patio you plan to use
• An equipment list with make and model numbers, which the reviewer will compare against your plans
• A full menu with preparation methods, since the menu affects which license type fits
• A federal employer identification number (EIN) from the IRS
• A budget with build-out, equipment, permit and working capital lines

Step 1: Form Your Entity

Most restaurant owners form an LLC. Articles of Organization are filed through the FirstStop portal for a $135 filing fee under North Dakota Century Code Chapter 10-32.1. The Secretary of State publishes no guaranteed processing time and no expedited option, so call Business Services at (701) 328-2900 for current timing before you sign a lease that depends on the date.

The LLC's recurring state cost is small. The annual report is $50 and is due November 15 every year for business LLCs. North Dakota levies no franchise tax and no separate LLC privilege tax. An LLC taxed as a partnership or disregarded entity passes income to its owners, who pay North Dakota individual income tax at 0 percent, 1.95 percent or 2.50 percent depending on bracket. An LLC that elects C corporation treatment pays the state corporate income tax instead.

A corporation is the alternative. Articles of Incorporation under Chapter 10-19.1 cost $100 to file, and the Business Corporation Annual Report is $25, due August 1. Choosing between them is a tax and liability decision. Have a CPA review it before you file.

Step 2: Check and Protect Your Name

Under NDCC 10-32.1-11, an LLC name must include "limited liability company," "L.L.C." or "LLC." It cannot include "corporation," "incorporated," "limited partnership" or their abbreviations. It cannot use "limited" or "company" unless it is tied to the LLC wording. The name must be distinguishable in Secretary of State records from every other registered entity, from any reserved name, and from any registered trade name, trademark or service mark.

If you need time to file, you can reserve a name for 12 months for a $10 fee, renewable for successive 12 month periods.

If the restaurant will operate under a name other than the LLC's legal name, register a trade name through the Secretary of State, not a county. Registration costs $25, amendments cost $25 and renewals cost $25. Registrations must be renewed every 5 years. A trade name gives you exclusive rights to that name within North Dakota only, so it does not protect you in other states. Read the trade name FAQ before you choose the name for your signage.

Step 3: Appoint a Registered Agent

LLCs and corporations must maintain a North Dakota registered agent with a physical address in the state. Your business cannot serve as its own agent. The agent must be a North Dakota resident individual, or a North Dakota or out-of-state entity registered with the Secretary of State that has a business office in North Dakota. Get the agent's approval before you name them. Failing to keep a valid agent can lead to involuntary dissolution.

Changing the agent or address costs $10. Service of process costs $25. If you use a commercial registered agent, confirm their current pricing directly, because the agent sets its own fees.

Step 4: Confirm Who Licenses Your Restaurant

Food establishments are licensed under NDCC 23-09-16 and NDAC 33-33-08. The license comes from one of two places. The first is the North Dakota Department of Health and Human Services (DHHS) Food and Lodging program. The second is a city or district health unit whose rules DHHS has approved. If your restaurant is licensed by an approved local unit, DHHS waives its own license. Ask the local unit which rules apply to your location before you calculate costs. Do not assume one fee schedule applies everywhere in the state. Confirm local fees with the local unit.

Step 5: Pick the License Type and Calculate the Fees

Fees rose on January 1, 2026, under NDAC 33-33-08-01. Older Health and Human Services sheets show $110, $120 and $140 figures. Those are stale, so do not budget with them. The current schedule is:

• Restaurant or catering kitchen: $130 plus $0.50 per seat, with a maximum of $310
• Limited restaurant: $130
• Retail food store, meat market or bakery: $130 up to 2,500 square feet, $145 from 2,500 to 5,000 square feet, and $170 over 5,000 square feet
• Bar or tavern: $100
• Food processing facility: $130

The per-seat formula reaches the $310 cap at 360 seats. An initial application adds a $100 administration fee. If plan review is required, add 50 percent of the annual fee. If one license covers several license types on one premises, the combined fee is capped at $180, $255 or $350, depending on floor area. Confirm the floor area breakpoints with DHHS.

Here is a worked example for an 80 seat restaurant that needs plan review, using the published schedule:

Cost item	Calculation	Amount
Annual restaurant fee	$130 plus (80 seats x $0.50)	$170
Initial application administration fee	Flat fee	$100
Plan review fee	50% of the $170 annual fee	$85
Estimated first filing total	Excludes build-out, equipment and entity fees	$355

Confirm the final amount with DHHS or your approved local health unit before you pay.

If you sell packaged, non-alcoholic drinks under your own brand, such as bottled sodas, syrups, juice or bottled water, you need a separate beverage license under NDAC 33-33-07-01 at $100 per brand or class. Bakery in NDCC 23-09-01(2) does not include home cake decorators, so a cake business run from a home kitchen does not qualify under that category.

Step 6: Submit Your Plans at Least 30 Days Before You Build or Operate

Submit your application and plans to DHHS or your approved local unit at least 30 days before you start construction or begin operating. The plans should match the floor plan and equipment list you prepared. Reviewers look for sink count, hand sink placement, food storage, dish area, ventilation and finish materials. Missing details slow the review, and a slow review pushes back your opening.

Do not order custom equipment or begin demolition until the plan review is complete. Changes after approval can require another review.

Step 7: Get the Trade Certifications and Pass the Pre-Operational Inspection

After plan approval, you need certifications from three agencies: the State Electrical Board, the State Plumbing Board and the State Fire Marshal. Each agency reviews the work that falls under its authority. Schedule the trades early, because electrical and plumbing rough-in typically happens before finish work and inspections can take time to schedule.

When the certifications are in hand, request the pre-operational inspection. The DHHS Food and Lodging program explains the sequence on its start a food business page at hhs.nd.gov. Confirm with DHHS when the license is issued after inspection, and do not schedule a grand opening until you have it in hand.

Step 8: Handle Construction, Workers' Compensation and Sales Tax

North Dakota requires a contractor license when the cost, value or price of a construction job exceeds $4,000. Class D licenses cost $100 and cover jobs up to $100,000. Class A licenses cost $450 and cover jobs over $500,000. Contractor licenses renew annually by March 1. If you hire a licensed contractor for your build-out, confirm the contractor holds a current license before work starts. If you do the work yourself above the threshold, you need the license.

Workers' compensation in North Dakota is a state monopoly through WorkForce Safety and Insurance (WSI). If you have employees, you obtain coverage through WSI rather than a private carrier.

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 percent, and cities and counties add their own taxes, so confirm the combined rate for your location.

Step 9: Plan Alcohol Licensing Separately

Serving alcohol adds two layers. You need a local license and a license from the North Dakota Attorney General. Local approval is required for retail alcohol, so start those conversations early. The alcohol application process is separate from the food license, and its fees are not included in the figures above. Confirm them with your city and the Attorney General.

If you cater events and plan to serve alcohol at an off-site event, a local event permit is available. It costs up to $25 and is valid for up to 14 days under NDCC 5-02-01.1.

Step 10: Build an Annual Compliance Calendar

Restaurant licenses expire December 31. A 60-day grace period lets you renew with a late fee of 50 percent of the license fee. After that period, you must reapply. Put the following dates on your calendar:

Deadline	Requirement
March 1	Contractor license renewal, if you hold one
November 15	LLC annual report, $50
December 31	Food license expires
Within 60 days after December 31	Grace period renewal with a late fee of 50 percent of the license fee

Corporations file a $25 annual report by August 1 instead of the November 15 LLC date.

Common Mistakes to Avoid

• Signing a lease before the plan review timeline is set. Your 30 day review window starts when you submit, not when you sign.
• Using old fee sheets. Fees changed January 1, 2026. Budget with the current schedule.
• Assuming one statewide fee. Local health units approved by DHHS may run their own process. Confirm the jurisdiction first.
• Choosing a seat count without thinking. Each seat adds $0.50 to the annual fee until the cap. Plan your dining room and bar with that math in mind.
• Forgetting the trade name. If the sign says something different from the LLC name, register the trade name.
• Missing the sales tax permit timing. Apply through ND TAP about 30 days before you open.
• Letting the license lapse. The 60 day grace period costs extra, and reapplying takes longer than renewing.

What Results to Expect

A complete, well documented application may help you move through plan review with fewer rounds of questions, and it may reduce the chance that construction has to be redone. Some applicants open on the timeline they planned, while others face delays from equipment lead times, trade inspections or incomplete plans. The Secretary of State does not publish a guaranteed processing time, so build buffer days into your schedule rather than assuming a fixed date.

Nothing in this guide promises a specific outcome for your business, your timeline or your revenue. Use it as a checklist, then confirm each requirement with the agency that issues it.

Resources

• North Dakota Secretary of State for entity, name and registered agent filings
• FirstStop for online filings
• Office of State Tax Commissioner for tax registration
• ND TAP for the sales and use tax permit
• Department of Health and Human Services for food and lodging licensing
• North Dakota Small Business Development Centers for free planning help
• SBA North Dakota District Office for federal resources

Disclaimer

This article is informational only and is not legal, tax or financial advice. Fees, deadlines and requirements can change, and local rules may add requirements. Before you sign a lease, order equipment or file, confirm the current figures with the agency that issues each requirement. Consult a qualified North Dakota attorney and a CPA for decisions about entity choice, tax treatment and contracts.