How is my business taxed in North Dakota?

Corporate income tax (1.41–4.31% graduated), individual income tax (1.1–2.9% graduated), sales tax (5%), no franchise tax for LLCs. Consult a CPA familiar with North Dakota tax law for your specific situation.

What happens if I miss an annual report filing?

Missing your annual report deadline can result in penalties, loss of good standing, and eventually administrative dissolution of your entity [§ 10-32.1-89; 10-32.1-92]. Most states offer a grace period before dissolution.

Do I need workers' compensation insurance?

In North Dakota, workers' compensation insurance is required for businesses with 1 or more employees[src:https://www.dol.gov/agencies/owcp/wc|DOL Workers' Comp]. Operating without required coverage is a criminal offense in most states.

What is the minimum wage in North Dakota?

The minimum wage in North Dakota is $7.25/hr (federal minimum applies)[src:https://www.dol.gov/agencies/whd/minimum-wage/state|DOL Wage Data]. Tipped employees may have a lower minimum wage. Federal FLSA overtime rules require 1.5x pay after 40 hours per week[src:https://www.dol.gov/agencies/whd/flsa|DOL FLSA].

Topic guideUpdated 2026-02-27

North Dakota Business Compliance — Licensing, Taxes & Regulations

Business licensing, tax obligations, annual filing requirements, and employment compliance for North Dakota businesses.

Every business in North Dakota must comply with federal, state, and local regulations. Failure to maintain proper licenses and permits can result in fines, penalties, or forced closure.

Business Licensing

North Dakota licensing and registration depend on the activity; certain occupations (e.g., contractors, home inspectors) may require a license or registration from the Secretary of State; check the responsible state agency and city before operating; professional licenses from applicable state boards; confirm with a lawyer.

Licensing is managed by North Dakota Department of Commerce; various professional licensing boards.

Tax Obligations

Corporate income tax (1.41–4.31% graduated), individual income tax (1.1–2.9% graduated), sales tax (5%), no franchise tax for LLCs.

Collect and remit sales tax if applicable

File and pay estimated income/franchise taxes quarterly

Withhold and remit employee payroll taxes

File annual tax returns by the deadline

Annual Filing Requirements

North Dakota LLCs and corporations must file annual reports with the Secretary of State. Annual report fee is $50 for LLCs; $25 for corporations. §10-32.1-89; §10-32.1-92.

Employment Compliance

If you have employees in North Dakota:

Obtain workers' compensation insurance (required for 1 or more employees)^{[DOL Workers' Comp]}

Comply with wage and hour laws (state minimum wage: $7.25/hr (federal minimum applies))^{[DOL Wage Data]}

Post required workplace notices

Maintain I-9 forms for all employees

File quarterly payroll tax returns

✓Create a compliance calendar marking all filing deadlines for your business entity type. Missing a filing deadline can result in penalties, loss of good standing, or even administrative dissolution.

Prepare for Your Consultation

Quick checklist (Small Business)

Gather these before your first consultation.

Business formation docs

(articles of org., EIN, operating agreement)

Contracts and agreements

(client contracts, vendor agreements, leases)

Licenses and permits

(business license, permits, tax registrations)

General preparation tips only. Specific needs depend on your state and business type.

No Obligation

Ready to Talk to a Lawyer?

Submit a short intake form and a participating North Dakota attorney who handles this type of matter may reach out to you. No commitment required.

Request a Free Consultation →

No attorney-client relationship is created unless you later sign an engagement agreement. Participating attorneys may pay a marketing fee to receive inquiries.

Common Questions