What does North Dakota ask of a new house cleaner?
Less than most states, with one surprise. You need no state license to clean homes or offices, and no sales tax permit for cleaning alone. The surprise is that a trade name is mandatory: North Dakota will not let you trade as “Prairie Sparkle Cleaning” until the Secretary of State has it on file. The other quirk arrives with your first hire, because workers’ comp here comes from a state agency, not an insurance broker.
Before your first paid clean
- Choose your structure: sole proprietor under your own name, sole proprietor with a registered trade name, or an LLC.
- File the trade name or Articles of Organization through FirstStop, the Secretary of State’s online portal.
- Get an EIN from the IRS if you will hire or want a business bank account separate from your Social Security number.
- Buy general liability insurance, and tell your auto insurer you drive between client homes.
- Check whether the city you work in regulates door-to-door marketing before you knock on a single door.
Before your first employee
- Open a Workforce Safety & Insurance (WSI) account. Coverage has to be in place before the person starts.
- Register with Job Service North Dakota for unemployment tax.
- Report the hire to the State Directory of New Hires within 20 days.
North Dakota’s population is small and spread out, so your service area matters more than in a dense state. A cleaner based in West Fargo can reach a lot of homes in 20 minutes; one based in Dickinson or Williston may drive twice that for the same number of clients. Price the drive in. For the parts that don’t change by state, such as which services to offer and what to buy, read our main guide on how to start a cleaning business.
North Dakota’s mandatory trade name: $25 for five years
If your business name doesn’t include your true name, you must register it with the Secretary of State before you use it. It costs $25 and lasts five years.
What the law says
Chapter 47-25 of the North Dakota Century Code says a person or organization may not engage in business in the state under a trade name until it is registered with the Secretary of State. A trade name is any name that doesn’t include the owner’s true name, or the first name and surname of each individual owner. The same chapter sets the fee at $25 for a new registration, $25 to assign one to a new owner and $10 to change one.
The Secretary of State’s register a business page repeats the $25 fee and says registrations must be renewed every five years. You renew in the 90 days before it expires by filing again, for another $25, and the office sends a reminder at least 90 days ahead.
Does your name need one?
- “Kari Halvorson” cleaning under her own first and last name: no filing.
- “Halvorson Cleaning”: the surname alone doesn’t meet the first-name-and-surname test, so register it to be safe.
- “Red River Home Cleaning”: register it.
- “Red River Home Cleaning LLC” using exactly its LLC name: the LLC filing covers it. Trading as anything else means a trade name filing for the LLC too.
Search the Secretary of State’s records before you order shirts or a van wrap. The cleaning business name generator will give you a list of options to check.
What a North Dakota LLC costs, and the November 15 deadline
$135 to form and $50 a year to keep. The annual report is due by November 15, starting the year after you form, and missing it by six months ends the LLC.
The fees
The Secretary of State’s LLC page lists:
- Articles of Organization: $135.
- Annual report: $50, with a filing deadline of November 15.
- Amendment: $50, if you later change the name or other details.
The deadline, and what happens if you miss it
The LLC chapter of the Century Code (10-32.1) puts the annual report due before November 16, with the first one due in the calendar year after the LLC was formed. So an LLC formed in October 2026 files its first report by November 15, 2027. A late report costs an extra $50. Worse, an LLC that still hasn’t filed six months after the deadline ceases to exist by operation of law, and reinstating it costs $135. One missed email can wipe out the liability protection you paid for.
Registered agent
The same Secretary of State page says LLCs must keep a North Dakota registered agent with a physical address in the state. You can name yourself at your home address, or pay a commercial agent if you would rather keep your address off the public record. We found no newspaper publication requirement for forming an LLC.
Is it worth $135?
An LLC keeps business debts and lawsuits away from your house and savings, and it reads well to commercial clients. It does not pay for a scratched hardwood floor: that is a job for liability insurance. Our guide to LLCs for cleaning businesses walks through the trade-offs, and the insurance guide explains which policies cover what.
Why North Dakota doesn’t tax your cleans
Because cleaning isn’t on the list. North Dakota’s 5% sales tax applies to goods and a short, specific list of services, and cleaning is not one of them, whether you clean a house in Mandan or an office tower in downtown Fargo. No tax line on your invoices, and no permit needed unless you sell products.
The closed list
Century Code chapter 57-39.2 puts the tax on tangible goods, communication services, admissions, magazines, hotel rooms, rentals of tangible property, and computers, prewritten software and software maintenance. Cleaning and janitorial services appear nowhere on it. The Tax Commissioner’s sales and use tax guideline says a permit is needed by businesses making taxable retail sales of tangible personal property or certain services. A cleaner who only sells cleaning doesn’t qualify.
That is a real contrast with neighbors. Iowa, for example, taxes office and other non-residential cleaning, so a crew that crosses state lines needs to know which rules apply where the work is done.
Where you still pay sales tax
The same guideline says supplies a business buys for its own use are taxable to that business. Your mop heads, microfiber, vacuums and chemicals carry the full local rate at the register. The state’s local taxes by location guideline, effective October 1, 2026, gives these combined rates:
| City | City rate | County rate | Total with 5% state |
|---|---|---|---|
| Fargo | 2.25% | 0.5% (Cass) | 7.75% |
| Bismarck | 2% | 1% (Burleigh) | 8% |
| Grand Forks | 2.25% | None listed | 7.25% |
| Minot | 2.5% (up 0.5% on October 1, 2026) | 0.5% (Ward) | 8% |
If you start selling cleaning kits, gift cards for products or anything else you can hold, register for a permit first.
The contractor license, and why it isn’t yours
North Dakota does license some trades. The Secretary of State’s licensing page lists occupations such as contractors, home inspectors and fundraisers; cleaning isn’t among them. Its contractor page requires a license when a job to build, repair, alter or demolish property is worth more than $4,000, starting at $100 for a Class D license. Routine house and office cleaning is not construction. If you branch into repairs or remodel-adjacent work over $4,000, ask the office.
Fargo, Bismarck, Grand Forks and Minot: licenses, door knocking and income tax
None of the four largest cities requires a general business license for cleaners. What they do regulate is door-to-door selling, and Grand Forks regulates it hard. Your state income tax may be zero in your first years.
City by city
- Fargo: the city’s business and occupational licensing page says it does not require business licenses for every type of commerce, and cleaning isn’t on its list. Soliciting orders for goods or services door to door needs a solicitation permit, which lasts 90 days.
- Bismarck: the city’s new business licenses page says Bismarck does not presently have a general business license. It does license door-to-door sales.
- Grand Forks: no general license for most businesses, but its door-to-door sales license covers selling personal services at the door. It costs $500 a year or $75 a day, requires a $5,000 surety bond and a background check, and allows calls only from 9am to 8pm. Working without it is a $500 penalty per day.
- Minot: the city’s permits page says Minot does not require business licenses. Non-resident migrant merchants need a license.
Practical advice: in Grand Forks, market with flyers at local businesses, online groups and referrals rather than walking neighborhoods. A $500 license and a bond is a lot to spend on knocking. Our guide on getting cleaning clients covers cheaper ways.
Income tax: a 0% bracket
We found no city income tax in North Dakota: the state’s local tax guideline, which covers every city and county local tax, lists only sales, lodging, restaurant and car rental taxes. The state tax itself is light. The 2026 rate schedules printed in the 2026 Form ND-1ES charge a single filer 0% on the first $49,575 of North Dakota taxable income, 1.95% up to $250,400 and 2.5% above that. Married couples filing jointly pay 0% on the first $82,800. A part-time cleaner with modest profit may owe nothing to the state, though federal income tax and self-employment tax still apply, so set money aside from every payment.
Workers’ comp through WSI, North Dakota’s only insurer
In North Dakota you can’t shop for workers’ comp: Workforce Safety & Insurance (WSI) is the only option, and it covers every employee from the first one. The upside is a published rate for cleaning crews that you can budget for today.
Who must be covered
WSI’s common questions for employers say North Dakota law does not allow private insurers to underwrite workers’ comp in the state. Coverage is required for all employees, including full-time, part-time, seasonal and occasional workers, and you apply online before hiring. Coverage for yourself as owner is optional. North Dakota is one of a handful of state-fund-only states, alongside Wyoming, Ohio and Washington.
The cleaning rate
WSI’s 2026 classification manual puts cleaning crews in class 9007, building custodians and janitorial service, which it says applies to employees doing commercial or residential cleaning. The rate from July 1, 2026 is 1.74 per $100 of payroll, down from 1.91. Payroll counts only up to $46,600 per worker, so the most you pay for one person is $810.84 a year. WSI’s premium information page adds a minimum premium of $250 per period, even with no employees on the books.
What that looks like
Say you employ two part-time cleaners who each earn $24,000 in a year:
- Payroll: $48,000
- WSI premium at 1.74 per $100: $48,000 ÷ 100 × 1.74 = $835.20
- That is above the $250 minimum, so $835.20 is the bill before any discounts or credits.
Workers’ comp only covers injuries to your employees. A broken vase or a flooded laundry room at a client’s home is a liability claim, so you still need a general liability policy from a private insurer.
North Dakota payroll: minimum wage, unemployment tax and new-hire reports
The legal floor is $7.25 an hour, there is no state paid sick leave mandate, new employers pay 1% unemployment tax on the first $46,600 of each worker’s wages, and new hires are reported within 20 days.
Wages
Century Code chapter 34-06 sets the minimum wage at $7.25, unchanged since 2009, and we found no paid sick leave requirement in it. The Department of Labor and Human Rights wage and hour FAQ adds rules worth knowing: you must pay at least once each calendar month, overtime starts after 40 hours a week, a 30-minute break is due on shifts over five hours when two or more employees are on duty, and paid time off you have made available counts as wages when an employee leaves. A tipped wage of $4.86 is allowed, but house cleaners rarely earn enough tips for that to work.
In reality, Fargo and Bismarck employers compete with healthcare, retail and energy jobs for the same workers, so $7.25 won’t fill a schedule. Price your cleans on the wage you will really pay.
Unemployment insurance
Job Service North Dakota’s 2026 rate schedules set the taxable wage base at $46,600. A new employer outside construction pays 1.00% if its account balance is positive, which works out to at most $466 per employee a year. The rate for a new employer with a negative balance is 6.07%.
New-hire reporting
The state’s child support division says employers must report each new hire within 20 days of the employee’s first day of work to the State Directory of New Hires. Penalties apply for skipping it.
One visit, costed
A cleaner paid $18 an hour spends 2.5 hours in a home and 30 minutes driving. Wages: 3 × $18 = $54. WSI adds about $0.94 and unemployment tax about $0.54, before federal payroll taxes and supplies. On a $150 clean, labor is over a third of the price. The profit calculator will show you the margin on your own numbers.
What does it cost to open a cleaning company in North Dakota?
State fees are modest: $25 for a trade name or $135 for an LLC, and no sales tax permit. Insurance and equipment cost more than the paperwork.
Fees were checked on official North Dakota pages on October 10, 2026. Rows marked “estimate” are our ranges, not quotes.
| Item | Cost | Notes |
|---|---|---|
| Trade name registration | $25 | Required for any name without your first and last name. Renew every 5 years. |
| LLC Articles of Organization | $135 | Optional. |
| LLC annual report | $50 a year | Due by November 15, starting the year after formation. |
| Sales tax permit | Not needed | Only if you sell products. |
| Door-to-door license | $500 a year in Grand Forks | Only if you canvass. Fargo and Bismarck have their own permits. |
| WSI workers’ comp | $250 minimum, 1.74 per $100 of payroll | From your first employee. |
| Unemployment tax | Up to $466 per employee | 1% of the first $46,600, new employers, 2026. |
| General liability insurance | $400 to $1,000 a year (estimate) | Get at least two quotes. |
| Supplies and equipment | $250 to $600 (estimate) | See the supplies list. |
| Booking and scheduling software | Optional | BroomBook starts at $29 a month. |
A solo cleaner with a registered name, liability insurance and a starter kit can be open for under $1,000. Budget for winter, too: snow days cancel cleans, so keep a reschedule policy in writing from day one.
Finding North Dakota clients, and where BroomBook fits
In a state where many towns run on word of mouth, the first ten clients usually come from people you know, local Facebook groups, church and school networks, and a Google Business Profile listing the towns you serve. Ask every happy client for one referral. If your area spills across the Red River into Moorhead, read our Minnesota guide before you take those jobs.
We make BroomBook, booking and scheduling software for residential cleaning businesses. Clients book online and see an exact price from your price list, recurring visits land on one calendar, each cleaner gets a private link with their jobs and checklists, and cards are charged after the clean. Hours from clock-in and clock-out feed a payroll export, which helps when you are working out WSI payroll. It won’t file your trade name or your annual report for you; put November 15 in your calendar.
Plans are $29 a month on Solo (up to 2 cleaners) or $59 a month on Team (unlimited cleaners), with a 14-day free trial. The cleaning scheduling software page shows how the calendar works.