North Dakota (ND) levies a 5% state sales tax, making it essential for businesses to understand collection and remittance obligations. As of 2026, the LLC filing fee is $135 with no annual franchise tax.
Economic Nexus in North Dakota
Remote sellers must collect North Dakota sales tax if they exceed $100,000 in annual sales within the state. This threshold has been in effect since 2019-10-01. Marketplace facilitators like Amazon and Etsy are also required to collect and remit tax on behalf of third-party sellers. The North Dakota Office of State Tax Commissioner enforces these provisions and provides registration guidance at https://www.tax.nd.gov.
LLC Formation in North Dakota (2026)
Forming an LLC in North Dakota costs $135 for the initial filing. There is no annual franchise tax, keeping ongoing costs low. The annual report fee is $50. North Dakota imposes a state income tax, which affects pass-through LLC taxation.
The process involves filing Articles of Organization with the Secretary of State, obtaining a federal EIN, and registering for applicable state tax accounts. You will also need a sales tax permit from the North Dakota Office of State Tax Commissioner.
Key Tax Rules
• North Dakota has a 5% state sales tax rate.
• Local taxes can add up to 3.5%.
• Groceries and prescription drugs are exempt.
• Economic nexus threshold is $100,000 in annual sales.
Sales Tax Exemptions
The following categories are generally exempt from sales tax in North Dakota: groceries, prescription drugs, medical devices, agricultural equipment. Businesses should maintain proper documentation for exempt transactions.