North Dakota Business Compliance Checklist
North Dakota is one of 4 monopolistic state fund workers' comp states, and non-competes are broadly banned. This page covers everything from filing fees to sales tax to hiring laws.
$135
$50
Every year
5%
state base rate
No
1. Entity Formation
| LLC filing fee (Articles of Organization) | $135 |
| Corp filing fee (Articles of Incorporation) | $100 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | No |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Every year — fee $50 |
| Franchise tax | None |
3. Sales Tax
| State base rate | 5% |
| Combined rate range (with local) | 5% – 8.5% |
| Economic nexus (out-of-state seller) | $100,000 per year |
| Marketplace facilitator law | Yes — marketplaces (Amazon, Etsy) collect on your behalf. |
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $7.25/hr (2025) |
| Paid sick leave law | None (federal only) |
| Non-compete enforceability | Banned — non-competes generally unenforceable |
| Contractor classification test | Common-law (IRS) test |
Full employment law breakdown: North Dakota Hiring Laws.
5. Workers' Compensation
North Dakota is a monopolistic state — coverage must be purchased through the state fund, not the private market. Coverage is required starting with your first employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Progressive brackets — top marginal rate is 2.5%.
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes North Dakota Distinctive
Compliance quirks and rules that separate North Dakota from other states — worth understanding before you file.
- North Dakota charges $135 for LLC formation and $50 for the annual report.
- North Dakota's Secretary of State online filing (sos.nd.gov) is efficient.
- North Dakota's income tax is transitioning to a flat 2.5% top rate for 2025.
This is a reference, not legal advice.
State fees and rules change. Verify current values with the North Dakota Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.