North Dakota Business License in 2026: Sales Tax Permit, Contractor Licence and Local Rules

North Dakota keeps business licensing light. There is no general state business licence and no city-wide licence in Fargo or Bismarck for ordinary shops and offices. What the state does require is a sales and use tax permit if you sell taxable goods, a Secretary of State filing if you form an LLC or corporation or trade under a made-up name, a state contractor licence for construction jobs over $4,000, and specific licences for regulated work such as food, alcohol, electrical and plumbing. This guide walks through each layer, with the 2026 fees checked against state and city sources in October 2026.

Quick answer

North Dakota has no general state business license. Most sellers need a sales and use tax permit (free) from the Office of State Tax Commissioner, displayed at each location. Contractors need a Secretary of State licence for any job over $4,000, and Fargo and Bismarck license only listed activities, not every business.

• State sales tax 5%; 7.75% in Fargo and 8% in Bismarck

• LLC: $135 to register, then $50 a year, due November 15

• Trade name: $25 for five years

• Contractor licence: $100 to $450, renewed by March 1

Does North Dakota have a state business license?

No. North Dakota does not require every business to hold a general licence from the state. Instead, a new business deals with a handful of offices depending on what it does. The Secretary of State registers LLCs, corporations, partnerships and trade names through its FirstStop portal, and also licenses contractors. The Office of State Tax Commissioner issues sales and use tax permits and withholding accounts through ND TAP. The Attorney General licenses transient merchants, retail alcohol sales and tobacco. Boards such as the State Electrical Board and State Plumbing Board license trades, and cities and counties license particular activities, run zoning and issue building permits.

The cities are just as selective. Fargo says it does not require business licences for every type of commerce, and lists the specific activities its code covers. Bismarck states that it does not presently have a general business licence. So when people search for a "North Dakota business license", what they usually need is one or more of the registrations below, not a single all-purpose permit.

That makes the honest answer to "do I need a business license in North Dakota?" depend on your activity. A bookkeeper working from home in Minot may need nothing beyond an EIN and perhaps a trade name. A boutique in Grand Forks needs a sales tax permit. A remodeller working on a $30,000 kitchen in West Fargo needs a state contractor licence, liability insurance and building permits from the city.

The sales and use tax permit

For most retailers, restaurants and online sellers, the sales and use tax permit is the registration that matters. Anyone selling taxable goods, admissions or lodging in North Dakota needs one, and the Tax Commissioner asks you to apply at least 30 days before you open. You apply on ND TAP, the state's online tax portal. A new permit is free: the law sets a fee only to reissue a permit that was revoked.

The permit comes with rules worth knowing before your first sale. You need a separate permit for each place of business, it must be displayed there, and it cannot be transferred. If you buy an existing shop, you apply for your own permit rather than taking over the seller's. Once you are registered, you file every period the Tax Commissioner assigns, even when you made no sales, and you file and pay online because paper returns are no longer mailed out.

You charge the 5% state rate plus any city and county tax where the customer takes delivery. Fargo comes to 7.75%, Bismarck to 8%, West Fargo to 8% and Mandan to 8.25%. Out-of-state sellers must register once their taxable sales delivered into North Dakota pass $100,000 in the current or previous calendar year. Our North Dakota sales tax guide covers local rates, the grocery exemption, filing dates and penalties.

Trade names and your legal structure

North Dakota's Secretary of State handles both entity filings and trade names through FirstStop. An LLC costs $135 to register and then files an annual report each year by November 15 for $50. Corporations file by August 1, and farming or ranching entities by April 15. A business that misses its report is placed in not-good-standing status, which can trip up loans and contracts, and is typically terminated if the report is still missing six to twelve months later. You then have a year to reinstate before the entity is dissolved for good.

Sole proprietors do not register with the Secretary of State just to exist. If you want to trade under a name other than your own, though, you register it as a trade name. The fee is $25, and the registration lasts five years from filing. You can renew within the 90 days before it expires, for the same fee, and an amendment also costs $25. General partnerships trading under a fictitious name have a parallel filing.

Registration matters beyond the paperwork. The Secretary of State notes that some licences are not available until you have registered, and a contractor's licence must be in exactly the same name as the business registration. Banks will also ask for proof that "Red River Painting" is you before opening an account in that name. Our DBA guide compares the rules across states.

Registrations vs operating licences in North Dakota

	What it does	Lets you run a regulated activity?
LLC registration	Creates the legal entity	No
Trade name	Records who is behind a brand name	No
Sales and use tax permit	Lets you collect and remit sales tax	No
Secretary of State contractor licence	Lets you take construction jobs over $4,000	Yes
Electrical, plumbing, food or alcohol licence	Authorizes trade work, food service or alcohol sales	Yes

LLC registration

What it does

Creates the legal entity

Lets you run a regulated activity?

No

Trade name

What it does

Records who is behind a brand name

Lets you run a regulated activity?

No

Sales and use tax permit

What it does

Lets you collect and remit sales tax

Lets you run a regulated activity?

No

Secretary of State contractor licence

What it does

Lets you take construction jobs over $4,000

Lets you run a regulated activity?

Yes

Electrical, plumbing, food or alcohol licence

What it does

Authorizes trade work, food service or alcohol sales

Lets you run a regulated activity?

Yes

Contractor licensing: the $4,000 rule

North Dakota is one of the states that licenses general contractors at state level. Under chapter 43-07 of the Century Code, anyone doing construction work where the cost, value or price of a single job exceeds $4,000 must hold a contractor licence from the Secretary of State. That covers general contractors, subcontractors, public contractors and contractors based out of state.

The licence comes in four classes, set by the largest single job you may take on. You pick the class that fits your work, and you can move up later if your jobs grow. Fees are paid when you first apply, and a smaller renewal fee is due every year.

To apply, you first make sure your business is registered with the Secretary of State if it needs to be, because the licence name must match. You then provide a certificate of liability insurance in the same name, listing the Secretary of State as certificate holder, and proof of workers' compensation from Workforce Safety & Insurance (WSI), North Dakota's state fund. If you have North Dakota employees, that is a certificate of payment; if you have none and no significant contact with the state, it is a letter of good standing.

Renewals are due by March 1 each year, and late renewals pay a late filing fee. At renewal you certify that payroll taxes, WSI premiums and unemployment insurance premiums are paid, and you list each North Dakota project, contract or subcontract over $50,000 completed in the previous calendar year. Electrical, plumbing and asbestos work need separate licences from their own boards, and cities still issue building permits and, in some cases, their own trade licences.

Getting licensed as a contractor

Step 1

Register the business (and trade name) on FirstStop

Step 2

Liability insurance certificate + WSI proof

Step 3

Choose Class A–D and pay $100–$450

Step 4

Permits for each job

renew by March 1

Food, alcohol and other regulated activities

Several activities need a specific state or local licence whatever your structure. Restaurants, food trucks and lodging are licensed and inspected for food safety, either by the state's Food and Lodging programme or by a city health department where one has taken over that role; in Bismarck, for example, the city's Environmental Health Division licenses and inspects every food establishment in the city. Retail alcohol sales need a licence from the city or county where you sell, and the Attorney General's licensing section also issues state retail alcoholic beverage and tobacco licences.

Travelling sellers have their own rule. Anyone doing temporary or transient business in North Dakota, whether from one site or on the move, needs a transient merchant licence from the Attorney General before starting. The fee is $200, the application needs a bond, a business entity must be registered with the Secretary of State, and you include your sales tax permit if you have one. The licence lasts one year, every representative carries a copy, and processing takes two to three weeks. People selling livestock or farm products are exempt, and cities can add their own requirements on top.

Professions such as cosmetology, real estate, accountancy, nursing and engineering are licensed by their own state boards, as are auctioneers through the Public Service Commission. If your work involves a regulated title or public safety, check the relevant board before you take clients.

Fargo: licences for listed trades and activities

Fargo's Auditor's Office says plainly that the city does not require business licences for every type of commerce. Its code licenses specific activities, and the list is short. Trades such as excavators, sidewalk builders, house movers, re-roofers, sign hangers and master or journeyman heating and plumbing contractors apply through the city's online licensing portal. A re-roofing licence is $125 a year, and master plumber and master heating licences are $125 a year, all expiring December 31.

Other activities go through the Auditor's Office directly, including commercial haulers, pawnbrokers and second-hand dealers, transportation vehicles, service stations and bulk oil plants, mobile home communities and alcohol sales. Pawnbrokers and second-hand dealers pay $250 a year plus a $5,000 bond, with an investigation fee for first-time applicants, and alcohol licences expire June 30 with fees by class. For anything else, the city points new businesses to the Secretary of State's FirstStop site to register.

If your business is not on Fargo's list, you need no city licence, but you still need zoning approval for the premises, sign and building permits for any work, and a sales tax permit if you sell taxable goods. Fargo's 7.75% combined rate applies to sales delivered within the city.

Bismarck: no general licence, specific permits

The City of Bismarck says it does not presently have a general business licence. It does require permits for particular activities, including food service, gaming, liquor sales, excavation and concrete work, and taxi operations. Administration and the police department handle alcohol, door-to-door, gaming, pawnbroker and taxi licences, while the Building Inspections Division covers building permits, inspections, sign permits and mechanical contractor licensing.

For a new storefront, the practical steps are zoning and building approval for the space, a sign permit for most permanent signs (window signs and some temporary signs are exempt), fire department inspections where required, and a food licence from Environmental Health if you serve food. Community Development can tell you whether your fit-out needs a building permit. Sales delivered in Bismarck carry 8% in combined sales tax.

If you hire employees

Hiring adds registrations rather than licences. You register for income tax withholding with the Office of State Tax Commissioner, for unemployment insurance with Job Service North Dakota, and for workers' compensation with WSI. North Dakota is one of the few states where workers' compensation comes only from the state fund, so you cannot buy it from a private insurer. North Dakota follows the federal minimum wage of $7.25 an hour, with a $4.86 cash wage for tipped staff when tips make up the difference. Get your EIN and these accounts set up before the first payroll.

Home-based businesses

A home business follows the same state rules as a storefront. If you sell taxable goods, your home address goes on your sales tax permit and you charge the rate where the customer takes delivery. A trade name, if you use one, is registered the same way. The local question is zoning: cities usually allow home occupations within limits on customer visits, employees, signs and storage, and some require a permit. Check with your city planning office before you advertise an address or put up a sign.

Before you open in North Dakota

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• Entity registered on FirstStop, or trade name registered if you use a brand
• EIN from the IRS
• Sales and use tax permit for each location, displayed
• Contractor licence class covering your largest job, if you build
• Withholding, Job Service and WSI accounts if you hire
• City licence, zoning, sign and building permits checked

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Worked examples: first-year costs

A gift shop in Grand Forks. Anna runs the shop as a sole proprietor under the name "Prairie Rose Gifts". She registers the trade name for $25, applies on ND TAP for a sales tax permit at free a month before opening, and displays it by the till. Her state registration costs in year one are $25, and she renews the trade name in five years.

A remodelling company in West Fargo. Two partners form an LLC for $135. Their largest kitchen jobs run to about $80,000, so they choose a Class D contractor licence for $100, buy liability insurance and register with WSI. Their year-one state cost is $135 plus $100, then $50 for the annual report and $30 to renew the licence by March 1. When they win a $150,000 job, they first move up to Class C.

A food truck from Minnesota. An out-of-state operator selling at summer events in Bismarck needs a North Dakota sales tax permit, a transient merchant licence from the Attorney General for $200 plus a bond, a mobile food licence from the city, and any event permits. A $12 meal in Bismarck carries 8% sales tax, or 96 cents.

Getting legally set up in North Dakota

1. 1

   Choose your structure and name

   Register an LLC for $135 on FirstStop, or run as a sole proprietor and register a trade name for $25 if you use a brand.

   Check an LLC name
2. 2

   Get an EIN

   Free from the IRS; you'll need it for tax accounts and banking.

   EIN guide
3. 3

   Apply for a sales and use tax permit

   On ND TAP, at least 30 days before opening, for each location. Display it once issued.

4. 4

   Get any state licence

   Contractors over $4,000 apply to the Secretary of State; transient merchants, alcohol and tobacco to the Attorney General; trades and professions to their boards.

5. 5

   Clear city requirements

   Check your city's licence list, zoning, sign and building permits, and any health licence for food.

Common mistakes and how to fix them

The first mistake is assuming no general licence means no licence at all. Contractors are the clearest example: a single job over $4,000 needs a state licence, and the class must cover the job's full value. If you are offered a bigger job than your class allows, upgrade before you sign the contract, not after.

The second is a name mismatch. The Secretary of State expects your contractor licence, insurance certificate and business registration to show the same name. If your LLC is "Dakota Build LLC" but your insurance says "Dakota Builders", expect the application to be returned until the documents match.

The third is opening a second location on the first sales tax permit. North Dakota issues a permit for each place of business, and each must be displayed. Add the new location on ND TAP before it opens.

The fourth is letting the annual report slide. An LLC that misses November 15 falls out of good standing, and one that stays delinquent is terminated. Diary the date, and ignore look-alike letters offering to file for you at a mark-up; the Secretary of State has warned about them.

The fifth is out-of-state sellers setting up at events without a transient merchant licence. Apply two to three weeks ahead with your bond and sales tax permit, and check the host city's peddler rules too.

Official North Dakota links

• Secretary of State — ContractorsClasses, fees, renewals
• Secretary of State — Maintain registrationAnnual report due dates
• FirstStop business portalRegister entities and trade names
• Office of State Tax Commissioner — Sales and use taxPermits and ND TAP
• Attorney General — Transient merchant licence
• City of Fargo — Business licensing
• City of Bismarck — New business licences and permits

What to do next

Pick your structure, check the name with the LLC name checker and get a free EIN. Apply for your sales tax permit a month before you open, and use our North Dakota sales tax guide and sales tax calculator to charge the right local rate. If you build, choose the contractor class that covers your biggest job, and if you trade in Fargo or Bismarck, check the city's list before you sign a lease. Budget the whole set-up with the startup cost calculator. For neighbouring states, see our South Dakota and Minnesota guides or the business licenses overview.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Does North Dakota require a general business license?

No. North Dakota has no general state business licence that every company must hold. Instead, most sellers need a sales and use tax permit from the Office of State Tax Commissioner, contractors need a Secretary of State contractor licence for jobs over $4,000, and regulated activities such as food, alcohol, electrical and plumbing work need their own licences. Fargo and Bismarck license only listed activities.

How much does a North Dakota business license cost?

There is no general licence fee. A new sales and use tax permit is free. An LLC costs $135 to register, plus a $50 annual report, and a trade name is $25 for five years. Contractor licences run from $100 for Class D to $450 for Class A, with yearly renewals.

Do I need a contractor license in North Dakota?

Yes, if any single job's cost, value or price exceeds $4,000. The Secretary of State issues four classes based on the largest job you may take, from Class D (up to $100,000) to Class A (over $500,000). You need liability insurance and proof of Workforce Safety & Insurance coverage, and the licence must be renewed by March 1 each year.

Do I need a business license in Fargo?

Only for listed activities. The City of Fargo says it does not require business licences for every type of commerce. Its Auditor's Office licenses specific trades and activities, including re-roofers, master plumbers, excavators, pawnbrokers, commercial haulers and alcohol sales. A re-roofing licence, for example, is $125 a year. Most shops and offices need no city licence.

Do I have to register a trade name in North Dakota?

If you trade under a name that is not your own legal name, you should register it as a trade name with the Secretary of State through FirstStop. Registration is $25 and lasts five years, after which you renew for the same fee. LLCs and corporations register their legal names when they form, and need a trade name only for a different brand.

What is a transient merchant license in North Dakota?

It is a licence from the Attorney General for anyone doing temporary or travelling business in the state, such as door-to-door sellers and pop-up vendors from out of town. The fee is $200, a bond is required, and the licence lasts one year. Sellers of livestock or farm products are exempt, and cities may add their own peddler rules.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 13 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Contractors — North Dakota Secretary of State · accessed 13 October 2026
2. 2.Limited Liability Company fees — North Dakota Secretary of State · accessed 13 October 2026
3. 3.Maintain Registration — North Dakota Secretary of State · accessed 13 October 2026
4. 4.Sole Proprietorship fees — North Dakota Secretary of State · accessed 13 October 2026
5. 5.N.D.C.C. chapter 47-25 — Trade names — North Dakota Legislative Branch · accessed 13 October 2026
6. 6.Sales and use tax — North Dakota Office of State Tax Commissioner · accessed 13 October 2026
7. 7.N.D.C.C. chapter 57-39.2 — Sales tax — North Dakota Legislative Branch · accessed 13 October 2026
8. 8.Transient Merchant — North Dakota Attorney General · accessed 13 October 2026
9. 9.Business Licensing — City of Fargo · accessed 13 October 2026
10. 10.New Business Licenses and Permits — City of Bismarck · accessed 13 October 2026
11. 11.Secretary warns of misleading annual report letters (news release, April 15, 2025) — North Dakota Secretary of State · accessed 13 October 2026
12. 12.North Dakota Business License — Harbor Compliance (secondary) · accessed 13 October 2026