Starting a service business in North Dakota comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in ND costs $135, ongoing reporting is $50/yr, sales tax is 5% + local, and personal income tax runs 0%–2.5% (voters approved near-elimination). Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new North Dakota owners off guard.
Most new registrations come out of Fargo — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | ND cost |
|---|---|
| LLC / entity filing (one-time) | $135 |
| Annual / periodic report | $50/yr |
| Federal EIN (IRS) | Free |
| Sales tax registration | Typically free |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the ND Secretary of State and the North Dakota Office of State Tax Commissioner.
Choose your structure and file with the ND Secretary of State ($135). Get your free EIN from the IRS the same day.
Register for North Dakota sales tax with the North Dakota Office of State Tax Commissioner, then open a business bank account under the registered name.
Apply for your trade license and local business license. This is usually the longest step: Sales tax permit; Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$135
Annual Report
$50/yr
Sales Tax
5% + local
Income Tax
0%–2.5% (voters approved near-elimination)
Choose business structure
File with ND Secretary of State
Get EIN
Register for state taxes
Get local permits
Open business bank account
North Dakota has one of the lowest income tax rates in the nation
Small, business-friendly regulatory environment
Nearly eliminated — voters approved measures to drastically reduce it.
Online LLC filings with the ND Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in North Dakota and still invoice customers legally. An LLC ($135 to file, $50/yr) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
North Dakota sales tax is 5% + local. Materials and goods are commonly taxable, while labor treatment depends on the type of work, so bill parts and labor as separate lines and register with the North Dakota Office of State Tax Commissioner before you start collecting.
Open a business bank account under the registered name, then invoice from a tool that applies ND tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.