How To Get A Business License In North Dakota (2024)

Government authorities issue a license to allow individuals or entities to conduct business within a specific geographical area. It shows that a business meets the required regulatory requirements. Its goal is to promote accountability within local communities while simultaneously fulfilling local laws and regulations. The exact requirements for a license depend on your location and the nature of the business.

Business licenses and permits are often used interchangeably yet refer to distinct aspects of regulatory compliance. A business license is an authorization for specific types of businesses to operate within certain geographical jurisdictions. Business licenses cover various regulatory requirements and often must be renewed regularly.

However, business permits provide more targeted authorizations that are necessary for certain activities. Permits often address signage placement, building renovations and special events. There is normally no renewal for a permit. Thus, while a license grants comprehensive approval, permits provide targeted authorizations that cover specific aspects of business activities based on the regulatory framework.

Depending upon the nature of your business, licensing authorities require various documents before authorizing you to open. The usual practice involves filling out and submitting an application with supporting documents such as:

• Business entity certificate
• Taxpayer identification number
• Zoning approval
• Bank statements
• Professional license
• Proof of insurance

Remember that regulations and requirements may change over time. Regularly obtain up-to-date information from the North Dakota Secretary of State or your city or county government offices to comply with current requirements.

State, local and federal governments all issue business licenses. The licenses are issued based on which authority has jurisdiction over the business activity. Here are a few reasons why state, local and federal governments issue business licenses.

• Regulation and compliance: They are used by governments as an administrative tool to ensure businesses operate following the laws.
• Consumer protection: They safeguard consumers by ensuring compliance with minimum quality and safety standards.
• Revenue generation: The fees provide the issuing government with another source of revenue, which can then be used to fund various public services and infrastructure.
• Data collection: Governments can leverage business licenses to collect data on the businesses operating within their jurisdictions. This can be valuable for economic planning and public policy development.
• Public safety: Governments use business licenses to regulate potentially hazardous activities and ensure businesses adhere to safety protocols to protect employees, customers and the community.

Often, multiple levels of government could issue a similar license. For example, if you live in Bismarck and you sell alcohol, you need an Alcoholic Beverage License with the city, a Retail Alcoholic Beverage License with the state and possibly a federal license with the Alcohol and Tobacco Tax and Trade Bureau.

Beginning a business in North Dakota requires obtaining all necessary business licenses. This process includes locating the appropriate license, gathering the required information, filling out the applications, submitting them with supporting documents and paying the associated fees. But you might need to set up an entity before you can do anything.

Step 1. Set Up a Business Entity

Establishing a business entity in North Dakota involves several steps. First, entrepreneurs should select an appropriate legal structure such as sole proprietorship, partnership, corporation or limited liability company (LLC). Once decided, you must register the business with the North Dakota Secretary of State’s office by filing the appropriate formation documents, typically Articles of Incorporation for corporations or Articles of Organization for LLCs. Sole proprietorships and partnerships do not have to register. Part of the process is selecting a name for the business.

Business Name

Naming your business in North Dakota requires complying with applicable regulations while creating an identifiable and enduring name. Here are some helpful steps for picking your business name:

• Choose a unique and distinctive name: To avoid confusion and potential legal issues, select a business name that is unique and distinct from what other businesses in North Dakota already use. The North Dakota Secretary of State provides an online database that allows you to check availability.
• Consider legal structure requirements: Different business structures, such as an LLC or corporation, may have specific naming regulations. Be sure to select a name that complies. For instance, corporations typically require the use of “Corporation,” “Incorporated” or an abbreviated version such as “Inc.” in their business names.
• Avoid trademark infringement: Before selecting a name for your new venture, ensure it has yet to be trademarked by checking its availability in the United States Patent and Trademark Office database and with the North Dakota Secretary of State Trademark Search. This searchable directory makes checking trademark availability much simpler.

EIN

Acquiring an Employer Identification Number (EIN) for your business is straightforward. The fastest way is via an online application on the IRS’s official website. Be prepared to provide details about your business, such as its legal structure, the reason for applying and who will be the point of contact.

Getting an EIN is free. Just complete the online application between weekdays 7am and 10pm Eastern time. After completing your online application, your EIN will arrive immediately. You may also apply by mail or fax by filling out and sending Form SS-4 directly to the IRS. An EIN is necessary for many business activities, including tax filings, hiring employees, opening bank accounts and securing business licenses.

Step 2. Apply for Licenses and Permits

Applying for licenses and permits in North Dakota is a complex process. North Dakota issues licenses mainly through the Attorney General’s Office and the Secretary of State. Additional licensing bodies can be found on their New Business Registration page. Local licenses may be needed in addition to the state ones. Thus, it’s important to check with your local government.

The regulatory requirements can differ depending on the nature and location of a business. Once you know what licenses you need and from whom, you must fill out and submit the application forms with supporting documents such as proof of insurance or financial statements. Most licensing applications have a fee that must be paid before the application will be reviewed.

After submitting, remain patient. Processing times can vary depending on what agency is reviewing your application.

Professional Licenses

There are many regulating bodies in North Dakota that offer professional licenses. These business licenses are necessary for individuals who partake in a regulated profession. Below is a list of some of the industries that need a professional license in North Dakota:

• Medical professionals: Doctors, nurses, dentists, pharmacists and other healthcare providers often must obtain licensure from either the North Dakota Board of Medical Examiners or their relevant licensing body to practice.
• Attorneys: Attorneys in North Dakota must receive licensure from the North Dakota Supreme Court through its State Board of Law Examiners.
• Real estate professionals: Real estate agents and brokers must obtain licenses from the North Dakota Real Estate Commission before engaging in this profession.
• Accounting and finance: Certified Public Accountants in North Dakota are licensed to practice by the North Dakota State Board of Accountancy.
• Engineering and architecture: Professional engineers and architects usually require licenses from either the North Dakota State Board of Registration for Professional Engineers and Land Surveyors or the State Board of Architecture to practice.
• Teaching and education: Teachers in North Dakota are licensed by the North Dakota Education Standards and Practices Board.

Many professions require specific educational qualifications from accredited institutions to receive a professional license. In addition, many professionals also need to pass a state or national examination related to their field.

Applicants submit a completed application form with all required documentation, such as transcripts, exam results and fees, to the relevant licensing board or agency. Some applications even require a background check as part of the licensing process.

Sales and Use Tax Permits

North Dakota Sales and Use Tax permit allows businesses to collect and remit sales tax on tangible goods sold in retail and certain services provided through retail sales. The Office of State Tax Commissioner issues them and they must be obtained before conducting taxable sales within North Dakota.

Before applying for a Sales and Use Tax permit in North Dakota, determine whether your business has any significant connections in North Dakota. Typically, registration for such permits will likely be necessary if the business has a physical presence such as stores, offices or warehouses within its borders or sales exceeding $100,000 per year.

Apply online through the North Dakota Taxpayer Access Point (TAP) system. Create an account on TAP and fill out a Sales and Use Tax permit application. Additional documents may be requested. Once submitted, the Office of the State Tax Commissioner reviews it. Upon approval, you will receive your Sales and Use Tax permit.

Get acquainted with sales tax filing and reporting requirements. Businesses typically must file regular sales tax returns and remit the collected taxes to their state government.

Federal Licenses

Identify whether you need to obtain a federal license for your business. This can be done by visiting the U.S. Small Business Administration website. After doing this, visit the website of the agency issuing the license. Make sure to review the requirements and complete its application.

You will also have to pay any associated fees before submitting your application. Be patient while it processes and follow up as necessary. Make sure you comply with regulations related to an approved federal license.

County, Town or City Licenses and Permits

The city, town or county you plan to operate your business in may require you to obtain a license or permit depending on the type of business you plan to operate. Check with the county or town clerk or city offices.

Step 3. Maintain Compliance

Maintaining compliance with licenses and permits in North Dakota involves ongoing efforts to abide by regulations set by relevant state and local authorities. Below are the steps for ensuring this compliance.

• Understand regulatory requirements: Become acquainted with each license or permit your business holds and their associated requirements from state government agencies in North Dakota and local authorities.
• Keep up with expiration dates: Stay aware of your licenses’ and permits’ expiration dates to avoid lapses in compliance. Create a system to track renewal deadlines well in advance to stay compliant.
• Notify authorities of any changes: Notify all relevant authorities promptly if there are any changes to your business information, such as address changes, ownership changes or business activities that require updating. Keeping information current is vital for compliance purposes.
• Adhere to reporting requirements: Certain licenses and permits require reporting obligations, including annual reports or financial disclosures, which must be fulfilled according to licensing agencies’ instructions. Become informed on what these reporting obligations entail before fulfilling them.
• Continued education: For certain professions, staying compliant may require participating in ongoing education or training programs. Stay abreast of any educational requirements associated with your licenses.
• Stay abreast of regulatory changes: Remain aware of changes to regulations or licensing requirements that could impact your business, such as changes at the state and local levels in North Dakota. Check regularly with these entities for any updates affecting you and your employees.
• Respond swiftly: Should any violations or notices from regulatory authorities surface, act swiftly to address them and develop an action plan to resolve issues and avoid future noncompliance.

Businesses can achieve compliance with North Dakota licenses and permits more efficiently by taking proactive measures to comply with them, thus lowering penalties risk and guaranteeing the legal operation of their enterprises.