Between a mid-range filing fee and a personal income tax that barely registers compared to most of the country, North Dakota lands as one of the more affordable places to run a small business long-term. Everything runs through the state's FirstStop portal — there's no mail-in option, but the tradeoff is a process that moves fast. Here's what launching a business in North Dakota looks like in 2026.
1. Which business structure fits you?
Figuring out your structure means balancing liability protection against how much paperwork you want to deal with.
- Sole proprietorship. No filing needed at all, but also no legal wall between you and the business — its debts are your debts.
- Partnership. The same liability exposure as a sole proprietorship, just shared between two or more people running the business together.
- LLC. What most small North Dakota businesses choose, since it separates your personal assets from anything the business owes or gets sued over.
- Corporation, S-corp or C-corp. More formal, more paperwork, and generally only worth it once investors or multiple shareholders are involved.
Our guide on choosing a business structure goes into more depth on the tradeoffs.
LLCs and corporations register with the North Dakota Secretary of State via the FirstStop portal, which handles business filings for the whole state. Sole proprietors and general partnerships never file there.
2. Register your business
Forming an LLC
Forming an LLC in North Dakota means filing Articles of Organization with the Secretary of State through FirstStop — the only method the state accepts, since mail filings aren't allowed. The fee runs $135, and processing online generally takes about 3 to 5 business days.
Every LLC needs a registered agent at a physical North Dakota address, reachable during business hours, whether that's you personally or a commercial service you hire.
There's no legal requirement for an operating agreement in North Dakota, though writing one anyway is worthwhile, especially with more than one member, so decisions and profit splits are settled on paper rather than left to chance.
Sole proprietorships and DBAs
Articles of Organization aren't something sole proprietors file. Trade names get registered separately, also through FirstStop.
3. Get an EIN
Getting an Employer Identification Number through the IRS is free and typically takes about 15 minutes online. Banks require one to open a business account, you'll need it to hire anyone, and most business tax forms ask for it too — even for a single-member LLC with no employees.
4. Check licenses and permits
No blanket statewide business license exists in North Dakota. What actually applies depends on your industry and city: certain regulated fields need professional licensing, some cities add their own local permits, and selling taxable goods or services means registering for sales tax with the Office of State Tax Commissioner. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this territory.
5. Understand North Dakota taxes
Personal income tax in North Dakota tops out at just 2.5%, among the lowest rates of any state that has one at all. Pass-through LLCs face no separate franchise tax or minimum entity tax on top of that.
Sales tax starts at a 5% state base rate, with cities and counties adding their own local rates depending on where you're located.
6. Stay compliant
North Dakota LLCs file an Annual Report with the Secretary of State each year by November 15, beginning the year after formation, at a cost of $50. Miss that date and a $50 late fee kicks in right away, doubling the total to $100 — and the state can dissolve an LLC that stays unfiled for roughly a year.
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. Everything goes through the FirstStop online portal; there's no mail-in option.
How much does it cost to form an LLC in North Dakota?
$135 to file the Articles of Organization.
What's the personal income tax rate in North Dakota?
It tops out at 2.5% — among the lowest rates of any state that taxes personal income at all.
When is North Dakota's Annual Report due?
November 15 each year, starting the year after your LLC forms, and it costs $50.
What happens if I miss North Dakota's Annual Report deadline?
A $50 late fee applies right away, bringing the total due to $100, and the state can dissolve an LLC that stays unfiled for about a year.
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.