Here’s an overview of the key steps you’ll need to take to start your own business in North Dakota.
The most common legal structures for a small business are:
There also are special versions of some of these structures, such as limited partnerships and S corporations. You’ll want to consider which business entity structure offers the type of liability protection you want and the best tax, financing, and financial benefits for you and your business. Check Choose Your Business Structure on Nolo’s website for more information on how to choose the best ownership structure for your business.
For LLCs and corporations, you will need to check that your name is distinguishable from the names of other business entities already on file with the North Dakota Secretary of State (SOS). You can check for available names by doing a business records search on the SOS website. You can reserve an available name for twelve months by filing a Reserve Name Application with the North Dakota SOS. There are certain name requirements for LLCs and corporations (like including a word such as “LLC” for LLCs or “Company” for corporations). See How to Form an LLC in North Dakota and How to Form a Corporation in North Dakota for more information.
Sole proprietorships and partnerships in North Dakota must file a Trade Name Registration with the North Dakota SOS if they use a business name that is different from the name of the business owner (for a sole proprietorship) or names of the individual partners (for a partnership).
If you plan on doing business online, you may want to register your business name as a domain name. See Choose and Register a Domain Name for more information. In addition, to avoid trademark infringement issues, you should do a federal and state trademark check to make sure the name you want to use is not the same as or too similar to a name already in use. See How to Do a Trademark Search for more information.
Tax Registration. If you will be selling goods in North Dakota, you must register for a sales and use tax permit with the North Dakota Office of the State Tax Commissioner (STC). If you will have employees in North Dakota, you must register with the STC for employer withholding tax. For both types of tax, you can register through the North Dakota Taxpayer Access Point.
EIN. If your business has employees or is taxed separately from you, you must obtain a federal Employer Identification Number (EIN) from the IRS. Even if you are not required to obtain an EIN, there are often business reasons for doing so. Banks often require an EIN to open an account in the business’s name and other companies you do business with may require an EIN to process payments. You can get an EIN by completing an online application on the IRS website. There is no filing fee.
Regulatory licenses and permits. These cover areas such as:
For regulatory licenses and permits issued by the state, check the Licensing Information section of the nd.gov website. You’ll find that some of the agencies that issue business-related licenses and permits are: