How to Start a Security Guard or Private Investigator Business in North Dakota: Board Licenses, $450 Agency Fee and the State Pre-Emption of Local Licenses

If you plan to guard property or investigate cases for pay in North Dakota, the license you need comes from the state. Private investigative and security services are regulated by the Private Investigative and Security Board under North Dakota Century Code Chapter 43-30, and the statute says a person may not be required to hold any other license to provide these services. That rule shapes everything else in this guide.

This article walks through the order that works best for most owners: decide which services you will sell, form the business, apply for the agency license, license the people doing the work, and calendar your renewals. Anyone searching for a north dakota private investigator license or a security guard license north dakota needs the same handful of fees and deadlines, so they are all listed below.

Important Notice

This article is informational content, not legal or tax advice. Fees, forms and deadlines can change. Confirm current figures with the Private Investigative and Security Board and the North Dakota Secretary of State before you file or pay anything. If your situation is complex, such as multi-state operations, armed contracts, mixed ownership or a question about how income is taxed, talk with a qualified attorney or CPA.

What You Need Before You Start

• A written list of services: private investigation, security guard services, or both
• A business name that meets North Dakota's entity naming rules
• A North Dakota registered agent with a physical address in the state
• Funds for the entity filing, the agency application and license, individual licenses, the exam and background checks
• Personal details for every owner holding 10% or more of the business, since each one must complete a criminal history check
• Workers' compensation coverage through WSI if you will have employees
• A calendar that marks the September 30 renewal date and the November 15 LLC annual report

Step 1: Confirm That Your Work Requires a License

Section 43-30-05 requires a license to provide private investigative or security services. The requirement applies when you provide these services to someone else. Section 43-30-02.2 exempts an employer that guards only its own property. That employer needs no license, although its officers may register voluntarily.

The line matters. A business that posts its own employees at its own warehouse does not need a license. A business that sends guards to a client's site, or sells investigation services to the public, does. If you do both, plan to license the outside work.

Step 2: Understand the State Pre-Emption of Local Licenses

Section 43-30-05 provides that, notwithstanding any other law or ordinance, a person may not be required to hold any other license to provide these services. In practical terms, the state pre-empts local security licenses. Cities do not license security guards. You will not pay a city fee for a guard or investigator license, and a local ordinance cannot add a second license on top of the state one.

North Dakota has no general statewide business license, and cities license specific activities only. Pre-emption does not remove every local rule, though. Zoning, signage and rules for operating from a storefront can still apply to where you locate your office. Ask your city's planning or zoning office about those rules before you sign a lease.

Step 3: Form Your Business Entity

Forming an entity is a filing with the Secretary of State. It does not authorize you to provide services. Most owners choose a limited liability company. The Articles of Organization are filed under North Dakota Century Code Chapter 10-32.1 through the FirstStop portal at https://firststop.sos.nd.gov/, and the filing fee is $135.

Your name must follow these rules under Section 10-32.1-11:

• It must include "limited liability company," "LLC" or "L.L.C."
• It may not contain "corporation," "incorporated," "limited partnership," "limited liability partnership" or their abbreviations
• It must be distinguishable in the Secretary of State's records from every other registered entity, reserved name, registered trade name and trademark
• It may not imply a purpose the company is not organized for

If you need time to clear a name, reserve it for $10. A reservation lasts 12 months and can be renewed for successive 12 month periods. The Secretary of State publishes no guaranteed turnaround and no expedited option, so call Business Services at (701) 328-2900 for current timing before you set a launch date.

Every LLC needs a North Dakota registered agent. The agent must be an individual who resides in North Dakota, or a North Dakota or out of state corporation or LLC that is registered with the Secretary of State and has a business office in North Dakota. Your business cannot serve as its own agent. Get the agent's approval before you name them, because failure to do so may result in involuntary dissolution. Changing the agent or address costs $10, and service of process costs $25.

If you will operate under a name other than your legal name, register a trade name for $25 with the Secretary of State. Registration must be renewed every five years, and it gives you the exclusive right to that name within North Dakota only. Trade names are registered with the state, not with a county.

On taxes, North Dakota has no franchise tax and no separate LLC privilege tax. The only recurring state charge on the LLC itself is the $50 annual report. An LLC taxed as a partnership or disregarded entity passes income to its owners, who pay North Dakota individual income tax at 0%, 1.95% or 2.50% depending on bracket. An LLC that elects C corporation treatment pays corporate income tax at 1.41%, 3.55% or 4.31% by bracket. Choosing between these treatments is a decision for your CPA.

Step 4: Apply for the Agency License

The agency license is the business-level authority to provide services. Budget for two separate charges: a $150 agency application fee and a $450 agency license fee, which also applies at renewal. Have your entity documents ready, and make sure the business name on your application matches your Secretary of State filing. Confirm the full submission list with the Board, since it sets the requirements for the application.

Each owner holding 10% or more must also clear the criminal history check described in Step 6. Late agency renewals cost $150 a month, so put the agency renewal on the same calendar as your individual renewals.

Step 5: License the People Doing the Work

Every person who provides private investigative or security services needs the right individual credential. The individual PI or security license costs $225 initially and $225 to renew, with a late renewal charge of $75 a month. Confirm with the Board which roles need which credential before you hire.

Other charges depend on the work you take on:

• Exam: $150. Confirm with the Board which applicants must test.
• Private security training certificate: $40
• Armed certificate: $45 per year, for guards who carry firearms on the job
• Individual registration: $45, with a late charge of $15 a month. Confirm with the Board who must register.

Step 6: Clear the Criminal History Checks

Under Section 43-30-06, every applicant must pass a state and nationwide criminal history check. That includes owners holding 10% or more. The applicant pays the cost of the check. Confirm the current check fee and vendor instructions with the Board before you budget.

Start the checks early. Section 43-30-05.1 provides for a temporary license while a criminal check is pending. Ask the Board how that temporary license works in your case, including whether it covers every type of work you plan to take, before you put anyone on a job.

Step 7: Set Up Workers' Compensation, Payroll and Sales Tax

North Dakota runs workers' compensation through WSI (WorkForce Safety and Insurance), which is the state's exclusive provider. If you hire guards as employees, put WSI coverage in place before the first shift.

The state sales tax rate is 5%, plus any city and county taxes. Whether your services are taxable is a question for the Office of State Tax Commissioner. If you make taxable sales, apply for a sales and use tax permit through ND TAP about 30 days before you open. Confirm your position with the Tax Commissioner rather than assuming an answer.

Step 8: Calendar Your Deadlines

• September 30: the annual renewal period ends for individual and agency licenses. Section 43-30-11 provides for prorated fees, so confirm how proration applies before you renew.
• November 15: LLC annual report, $50. A $50 late fee applies after the statutory due date. Once the LLC has been terminated, a $135 reinstatement fee applies under NDCC 10-32.1-92.

Startup Cost Summary

Item	Fee	Notes
LLC Articles of Organization	$135	Filed through FirstStop
Name reservation	$10	Lasts 12 months
Trade name registration	$25	Only if you use a name other than your legal name
Registered agent change or address change	$10	Statement of change
Service of process fee for registered agent	$25	Paid by the agent's service
Board exam	$150	Confirm which applicants must test
Agency application	$150	One time
Agency license, initial and renewal	$450	Late renewal $150 a month
Individual PI or security license, initial and renewal	$225	Late renewal $75 a month
Individual registration	$45	Late charge $15 a month
Private security training certificate	$40	Confirm requirement with the Board
Armed certificate	$45	Annual
LLC annual report	$50	Due November 15
Criminal history check	Set by the check provider	Paid by the applicant; confirm the current amount

As an example, an LLC with one owner who also holds an individual license will pay at least $960 in state fees before the exam, background checks and optional items: $135 for the entity, $150 for the agency application, $450 for the agency license and $225 for the individual license.

Common Mistakes to Avoid

• Paying a city for a security or investigator license. The state pre-empts those licenses.
• Treating the LLC filing as the license. The Secretary of State filing does not authorize you to provide services.
• Assuming the own-property exemption covers contract work for clients.
• Skipping the criminal check for a minority owner. Every owner holding 10% or more is covered.
• Naming a registered agent without getting the agent's approval first, or naming your own company as its agent.
• Letting a renewal lapse past September 30 and paying the monthly late charges.
• Choosing a name that is too close to an existing entity, reserved name or registered trade name.
• Putting guards on contracts before a license or temporary license is confirmed.

Expected Results

Following these steps in order should reduce rework, since delays most often come from incomplete applications, name conflicts and background checks that start too late. Ask the Board about its processing times. The Secretary of State publishes no guaranteed turnaround, so build a buffer before you commit to client start dates. Once the agency and individuals are licensed, you may be able to bid on work that requires a state license, though winning contracts depends on your market, staffing and insurance.

Where to Get Help

The North Dakota Small Business Development Centers, hosted by the University of North Dakota Nistler College of Business and Public Administration, can help with business planning and financial questions. The U.S. Small Business Administration also lists resources for North Dakota at its district page. For licensing questions about specific duties or ownership, contact the Private Investigative and Security Board directly. Find its current contact details through the state's official directory before you file.

Official Resources

• North Dakota Secretary of State: https://www.sos.nd.gov/
• FirstStop filing portal: https://firststop.sos.nd.gov/
• Business search: https://firststop.sos.nd.gov/search/business
• Name reservation and business registration: https://www.sos.nd.gov/business/business-services/register-business
• Trade name FAQs: https://sos.nd.gov/business/business-services/trade-name-franchise-name/north-dakota-trade-name-faqs
• Office of State Tax Commissioner: https://www.tax.nd.gov/
• ND TAP sales tax permit application: https://tap.tax.nd.gov/?Link=Application
• North Dakota Small Business Development Centers: https://und.edu/ndsbdc/index.html
• U.S. Small Business Administration, North Dakota: https://www.sba.gov/district/north-dakota

This article is informational content, not legal or tax advice. Consult a qualified attorney or CPA before you form a business or make tax elections.