North Dakota pairs a moderate filing fee with one of the lowest income tax rates of any state that actually has one. Filing is online-only through the state's FirstStop portal, which keeps the process quick even if it means you can't file by mail. Here's what it takes to start a business in North Dakota in 2026.
1. Which business structure fits you?
Before you file anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No filing required to start, and you and the business are legally the same entity. Simple, but you're personally liable for whatever the business owes.
- Partnership. Two or more people running a business together, with the same liability exposure as a sole proprietorship, just split across partners.
- LLC. The most common structure for small businesses in North Dakota. It separates your personal assets from the business's debts and lawsuits.
- Corporation, either S-corp or C-corp. More paperwork and more formality, usually worth it once you're bringing on investors or multiple shareholders.
For a deeper comparison, see our guide on choosing a business structure.
LLCs and corporations register with the North Dakota Secretary of State through the FirstStop portal, the agency that handles business filings statewide. Sole proprietorships and general partnerships don't register there.
2. Register your business
Forming an LLC
You form an LLC in North Dakota by filing Articles of Organization with the Secretary of State through FirstStop, the only accepted filing method; mail isn't an option. The filing fee is $135, and online processing takes about 3 to 5 business days.
Every LLC needs a registered agent with a physical North Dakota address, available during business hours. You can act as your own agent, or hire a commercial service.
North Dakota doesn't require an operating agreement by law, but it's still worth writing one, particularly for multi-member LLCs, to spell out how decisions and profits get split.
Sole proprietorships and DBAs
Sole proprietorships don't file Articles of Organization. If you're operating under a trade name, you'll register it separately through FirstStop.
3. Get an EIN
An Employer Identification Number is free straight from the IRS and takes about 15 minutes online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even if you're a single-member LLC with no employees.
4. Check licenses and permits
North Dakota doesn't issue a single general statewide business license either. What you need depends on your industry and city: professional licensing for regulated fields, local permits in some cities, and sales tax registration with the Office of State Tax Commissioner if you sell taxable goods or services. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this.
5. Understand North Dakota taxes
North Dakota has a personal income tax topping out at 2.5%, among the lowest rates of any state that levies one at all. Pass-through LLCs owe no separate franchise tax or minimum entity tax.
Sales tax starts at a 5% state base, with local additions on top depending on your city and county.
6. Stay compliant
Every North Dakota LLC files an Annual Report with the Secretary of State, due November 15 each year, starting the year after formation. The fee is $50. Miss the deadline and a $50 late fee applies immediately, bringing the total to $100; the state can dissolve an LLC that goes roughly a year without filing.
North Dakota business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC) | $135 |
| Annual Report (every year, due Nov 15) | $50 |
| Late fee | $50 (total $100) |
| Registered agent service (optional) | $100 to $200/year |
| EIN | Free (IRS) |
| State income tax | Up to 2.5% |
| State sales tax | 5% + local |
Frequently asked questions
Can I file LLC paperwork by mail in North Dakota?
No, North Dakota only accepts filings through its FirstStop online portal.
How much does it cost to form an LLC in North Dakota?
$135 for Articles of Organization.
What's the personal income tax rate in North Dakota?
Topping out at 2.5%, among the lowest rates of any state that levies one at all.
When is North Dakota's Annual Report due?
November 15 each year, starting the year after formation, for $50.
What happens if I miss North Dakota's Annual Report deadline?
A $50 late fee applies immediately, bringing the total to $100, and the state can dissolve an LLC that goes roughly a year without filing.
Fees and rates above come from the North Dakota Secretary of State and Office of State Tax Commissioner as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a North Dakota-licensed attorney or CPA about your specific situation.