Startup Costs in North Dakota

Data current as of May 2026

North Dakota has one of the lowest state income tax rates in the country and affordable operating costs. Fargo is a growing tech hub with a surprisingly active startup scene. The state's small population limits the market size for most consumer businesses, but low competition can be an advantage. Energy sector fluctuations affect the broader economy.

North Dakota (ND) by the Numbers

LLC Filing Fee
$135
Annual Report
$50
State Income Tax
2.50%
Sales Tax
5.00%
Min Wage
$7.25/hr
Cost of Living
0.92x
Labor Cost
0.90x
Rent Index
0.75x

What North Dakota's Numbers Mean for Founders

  • State income tax caps at 2.50%.
  • Labor costs are 10% below the national average, a margin advantage for service and retail operations.
  • Commercial rent is 25% below the national average, which gives you more square footage for your budget.
  • Minimum wage is the federal floor of $7.25/hour, keeping entry-level payroll low.
Capital: Bismarck
Major metros: Fargo, Bismarck, Grand Forks, Minot
Top industries: Energy, Agriculture, Technology, Healthcare

North Dakota Cost Guides (10)