Last Updated: July 31, 2025 by TRUiC Team


North Dakota Business License: Who Needs One & How to Apply (2025)

As of 2025, North Dakota does not impose a general business license requirement; instead, business licensing is regulated on a local, state, and federal level. 

This means that whether you need a North Dakota business license or not will depend on your business’s location and industry. 

This article will cover:

Woman holding open sign after getting her business license

What Is a Business License in North Dakota?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately. 

So, if there isn’t a “general business license” in North Dakota, what exactly is there?

Well, North Dakota — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do. 

For example:

It all depends on what you do, and where you’re located. There is no “business license” that you will need to obtain just to operate no matter what, and while most businesses will need some form of business license to operate, this will not be the case for everyone. 

Do I Need a North Dakota Business License? 

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

North Dakota Business Licensing at a Glance

JurisdictionBusiness LicensesWho Needs It & Where to Apply
Local
    Health Permits, Zoning Permits, Occupancy Certificates, Industry-Specific Permits, etc.
Varies by location.

Contact your local municipality to determine local requirements.
StateSales and Use Tax PermitBusinesses selling taxable goods or services, or purchasing items for resale. 

Apply via the North Dakota Office of State Tax Commissioner.
Professional LicensesRequired for professions (e.g., accountants, contractors, cosmetologists, etc). 

Apply via the relevant state licensing board.
Industry-Specific State LicensesBusinesses in regulated industries (e.g., food, liquor, cannabis, childcare).

Apply through the relevant North Dakota agency.
FederalIndustry-Specific LicensesBusinesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife.

Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.

Recommended Solution

Figuring out your licensing needs can be complicated and time-consuming, taking focus away from running and growing your business. We recommend using an affordable service instead for just $150.

How to Get a Business License in North Dakota

The process of obtaining a business license in North Dakota will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

  • Personal liability protection
  • Improved legitimacy 
  • Larger access to loans and corporate finance
How to Start an LLC Tip Icon

Recommended Business Structure

We generally recommend almost all small business owners to form an LLC. This offers personal liability protection, is extremely affordable, and offers a ton of flexibility when it comes to how it can be taxed and managed. 

You can use a formation service for just $29 (excluding the $135 state fee).

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in North Dakota 

This step will depend on the business license in question.

North Dakota Local Business Licenses

Many North Dakota cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

  • General Business License: While North Dakota doesn’t require a general state business license, some cities require licenses for specific business types (e.g., if you operate a towing service in Grand Forks, you need to obtain a business license from the City of Grand Forks Finance Department).
  • Industry Permits: This includes health permits required for restaurants, food trucks, and businesses handling food products (e.g., if you’re opening a bakery in Bismarck, you would need a food establishment permit from the Bismarck Environmental Health Division).
  • Zoning Permits: You may need this to ensure that your business’s location is zoned appropriately and complies with local laws (e.g., if you’re converting a residential property to a commercial use in Fargo, you would need to apply through the City of Fargo Planning Department).
  • Sign Permits: These can be required before installing business signage (e.g., if you’re installing an outdoor sign for your business in Grand Forks, you would apply through the Grand Forks Building Safety Department).
  • Certificate of Occupancy: Required for most businesses before they can legally occupy a building or space. This verifies that the structure meets building codes and is safe for the intended use (e.g., if you’re opening a retail store in a newly renovated space in Fargo, you would obtain this through the City of Fargo Inspections Department).
  • Home-Based Business Permits: While North Dakota doesn’t require a state license for home-based businesses, some cities and counties may have specific requirements for businesses operating out of residences (e.g., if you’re running a consulting business from your home in West Fargo, you should check with the City of West Fargo for any zoning restrictions).

To find your local county or city’s official contact information and licensing requirements, you can visit the North Dakota League of Cities.

North Dakota State Business Licenses

Below we’ve included the most common business licenses that are required on a state level. 

North Dakota Sales Tax License

You can register for a North Dakota sales tax permit online. You will need to create an account to log in to the website.

Apply Online With the North Dakota Taxpayer Access Point

Apply Online

Fee: None

Keep in mind that you’ll need a NAICS code in order to apply. For more information on this, you can have a look at our North Dakota Sales Tax guide.

North Dakota Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some North Dakota businesses require additional licenses based on the particular industry they operate in. These licenses are issued by specific state agencies and must be obtained before the business can legally operate.

Here are some common examples of industry-specific state licenses in North Dakota:

Note: This is not a complete list. Licensing requirements vary by industry and business model. For more, consult the relevant state agency.

North Dakota Environmental Permits

If your business activities could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the North Dakota Department of Environmental Quality (DEQ).

Examples of industries regulated here include:

  • Underground/Aboveground Storage Tank Registration: Required for tanks storing petroleum products or hazardous substances. Tanks must meet leak detection and prevention requirements set by the Underground Storage Tank Program.
  • Air Quality Permits: Required for facilities with emissions or pollutant discharge. This includes both Permits to Construct for new facilities and Permits to Operate for existing facilities that emit regulated air pollutants.
  • Stormwater Permits: Required under the North Dakota Pollutant Discharge Elimination System (NDPDES) for construction sites disturbing one acre or more, and for industrial facilities with stormwater runoff.
  • Hazardous Waste Generator ID: Required for businesses that generate hazardous waste. Different requirements apply based on generator status (very small quantity, small quantity, or large quantity generators).
  • Water Quality/Discharge Permits: Required under NDPDES for facilities discharging wastewater to surface waters, including municipal wastewater treatment plants and industrial facilities.
  • Wetlands Permits: Required for activities that may impact wetlands, including dredging, filling, or construction near water bodies.
  • Solid Waste Management Permits: Required for facilities that handle, store, or dispose of solid waste, including landfills and transfer stations.
  • Radiation Materials License: Required for facilities using radioactive materials in medical, industrial, or research applications.

Recommended Solution

Figuring out your licensing needs can be complicated and time-consuming, taking focus away from running and growing your business. We recommend using an affordable service instead for just $150.

Federal Business Licenses for North Dakota LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

North Dakota Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years. 

This is not required for a sales tax permit, but is required for practically all professional licenses. 

Several of the local permits will also need to be renewed annually; this includes health department permits, signage permits, and fire department permits, which generally all need to be renewed annually.

Having said that, this will depend on both your location and the license in question.

North Dakota Business License FAQs

A business license is an official authorization issued by a government agency that allows you to legally operate your business within a specific jurisdiction. Depending on your location and business type, you may need one or more licenses or permits at the local, state, or federal level.

North Dakota doesn’t require a general business license that applies to all businesses. However, depending on your location and industry, you’ll likely need specific permits or licenses at the local, state, or federal level. 

The Sales and Use Tax Permit is free. License costs vary widely depending on the type. Local permits typically range from $25 to $500, professional licenses can cost anywhere from $100 to over $1,000, and specialized licenses like liquor licenses often fall between $335 and $1,000 per year.

No, an EIN (Employer Identification Number) is not the same as a business license. An EIN is a federal tax ID issued by the IRS for tax reporting purposes, while a business license is a permit issued by a local, state, or federal agency that authorizes you to legally operate your business. Most businesses will need both.