Starting a cleaning business in North Dakota typically costs $1,000 to $5,000 depending on your business structure and insurance needs. Each state has different rules for registration, taxes, and workers' compensation. This guide covers everything you need to start a cleaning business in North Dakota, including filing fees, licenses, insurance, labor laws, and local tips.
Why Start a Cleaning Business in North Dakota?
North Dakota has a small population but strong demand. The oil boom in the western part of the state brought workers and businesses. These workers need clean offices and housing.
Fargo is the largest city and a growing metro area. Over 250,000 people live in the Fargo-Moorhead region. The economy is stable and diverse.
North Dakota also has low income tax rates. The top rate is just 2.50 percent. That means you keep more of your profits.
Read our general How to Start a Cleaning Business guide first. This North Dakota guide adds the state-specific steps you need on top of those basics.
How Do You Choose a Business Structure?
You need to decide how to set up your business. North Dakota offers two main choices for cleaning companies.
Sole Proprietorship
This is the simplest way to start. You do not need to file with the state. North Dakota considers you a sole owner right away.
If you want a business name, file a trade name with the Secretary of State. The fee is $25.
The downside is you have no personal protection. If something goes wrong, your personal savings are at risk.
Limited Liability Company
This is the better choice for most cleaning businesses. It keeps your personal money separate from your business. If a client sues, your personal savings stay protected.
To form one in North Dakota, file Articles of Organization. You do this online through the Secretary of State website. The filing fee is $135.
North Dakota requires an annual report every year. The fee is $50. This is due by November 15 each year.
Choose a limited liability company. The $135 filing fee is reasonable. You enter people's homes every day — the liability protection is worth the cost.
- sos.nd.gov — File your Articles of Organization for a limited liability company
How Do You Get an Employer Identification Number and Tax Accounts?
An Employer Identification Number is a free number from the federal government. You need it to open a business bank account. You also need it to file taxes and hire workers.
Apply for free at the Internal Revenue Service website. You get your number right away when you apply online.
North Dakota Income Tax
North Dakota has one of the lowest income tax rates in the country. Rates range from 1.10 to 2.50 percent. Your cleaning business income passes through to your personal return.
You may need to make quarterly estimated payments. The North Dakota Tax Commissioner handles all state tax filings.
Cleaning Services and Sales Tax
This is important: cleaning services are taxable in North Dakota. The state sales tax rate is 5 percent. Local taxes can add up to 3 percent more.
Fargo adds a 2 percent local tax for a total of 7 percent. Bismarck adds 1.5 percent for 6.5 percent total. You must collect sales tax from your clients on every job.
Get a free sales tax permit before you start charging clients.
Cleaning services are taxable in North Dakota. Get your sales tax permit before your first job. Collect tax from clients and file on time to avoid penalties.
- irs.gov — Apply for a free Employer Identification Number (never pay for this)
- tax.nd.gov — North Dakota Tax Commissioner — business registration and sales tax
What Licenses and Permits Do You Need?
North Dakota has no statewide business license. There is also no special cleaning license at the state level. This keeps things simple.
However, cities like Fargo and Bismarck require local business licenses. Requirements vary by where you are located.
Local Business Licenses
Fargo requires a city business license. Bismarck and Grand Forks may also require local permits. Check with your city auditor for local rules.
Fees are usually low. Most range from $25 to $100 per year.
Sales Tax Permit
Since cleaning services are taxable, you need a sales tax permit. This is free from the North Dakota Tax Commissioner. Apply online before you start charging clients.
- tax.nd.gov — Free sales tax permit application
What Insurance Do You Need?
Insurance protects you from one bad day ending your business. North Dakota has a unique workers' compensation system. Here is what you need.
- General liability insurance — Covers property damage and injuries at a client's home or office. Costs $400 to $1,200 per year. Every cleaning business needs this
- Workers' compensation insurance — North Dakota has a monopolistic state fund called Workforce Safety and Insurance. You cannot buy private coverage. All employers must use the state fund
- Surety bond — Protects clients if an employee steals something. Not required but highly recommended. Costs $100 to $500 per year
- Commercial auto insurance — Needed if you use a vehicle for business. North Dakota requires minimum liability coverage on all vehicles
For more details on each type of coverage, read our Cleaning Business Insurance Guide.
North Dakota is one of four states with a monopolistic workers' compensation fund. You must buy coverage through Workforce Safety and Insurance. Private carriers cannot sell this coverage here.
What Are North Dakota Labor Laws?
If you plan to hire workers, you need to follow North Dakota labor laws from day one.
Minimum Wage
North Dakota's minimum wage is $7.25 per hour. This matches the federal rate. However, the tight labor market pushes actual wages higher.
Most cleaning businesses pay $14 to $20 per hour to attract workers. In oil country areas like Williston, you may need to pay even more.
Worker Classification
North Dakota follows federal standards for worker classification. Cleaning workers who follow your schedule usually count as employees. Classifying them wrong leads to fines.
When in doubt, hire them as employees.
Unemployment Insurance
When you hire employees, register for unemployment insurance. Register through Job Service North Dakota. New employers pay a starting rate.
- jobsnd.com — Job Service North Dakota — unemployment insurance and employer information
- workforcesafety.com — Workforce Safety and Insurance — state workers' compensation fund
What Safety Rules Apply?
North Dakota uses federal workplace safety rules. The state does not have its own safety agency. Federal offices in North Dakota oversee workplace safety.
Hazard Communication
You must keep Safety Data Sheets for every cleaning chemical you use. Train your workers on each product they handle. Show them what to do if a spill happens.
Extreme Cold Safety
North Dakota has some of the coldest winters in the country. Temperatures can drop below minus 30 degrees. Workers travel between jobs in dangerous conditions.
Keep emergency kits in vehicles. Make sure your team has warm clothing and winter tires. Have a plan for days when travel is not safe.
How Do You Set Cleaning Prices in North Dakota?
North Dakota pricing varies by region. Fargo and Bismarck support standard rates. Oil country towns like Williston support much higher rates.
Typical pricing ranges in North Dakota:
- Home cleaning (hourly) — $25 to $50 per hour
- Home cleaning (flat rate) — $120 to $280 for a standard 3-bedroom home
- Deep cleaning — $200 to $450 depending on home size
- Move-in or move-out cleaning — $220 to $500
- Office cleaning — $0.06 to $0.15 per square foot
Remember to add sales tax on top of your prices. In oil country areas, you can charge premium rates due to high demand. Use our Price Calculator to find the right rate for your area.
For detailed city-by-city pricing data, see our full Cleaning Business Prices in North Dakota guide.
What Cleaning Niches Are Profitable in North Dakota?
North Dakota has unique cleaning niches. The oil industry and military bases create opportunities you will not find in most states.
Oil Country Commercial Cleaning
The Bakken oil region around Williston generates huge demand. Oil company offices, worker housing, and hotels all need cleaning. These clients pay premium rates.
Military Base Housing
Minot Air Force Base and Grand Forks Air Force Base employ thousands. Military families move often and need cleaning. This creates steady, repeat work year-round.
Fargo Metro Residential Cleaning
Fargo is the largest city with a growing economy. Young professionals and dual-income families need cleaning help. The west Fargo suburbs are growing fast.
Government Building Cleaning
Bismarck is the state capital. State government offices need regular cleaning. Government contracts provide stable, long-term income.
Post-Construction Cleaning
New homes and commercial buildings are going up across the state. Each one needs cleaning before occupancy. This specialty pays well.
The oil region pays well but costs more to operate in. Housing and fuel cost more in Williston than Fargo. Factor these higher costs into your prices if you serve oil country.
How Do You Market a Cleaning Business in North Dakota?
Getting clients in North Dakota follows the same steps as most states. Here are strategies that work well.
Google Business Profile
Set up your profile with your city, services, and photos. Ask every happy client for a Google review. Most people search online first.
Community Connections
North Dakota is a tight-knit state. Word of mouth matters more here than in big cities. Join your local chamber of commerce. Sponsor community events.
Military Community Outreach
Connect with base housing offices at Minot and Grand Forks. Offer special rates for military families. Post on military spouse groups online.
For a complete marketing plan, read our Marketing Your Cleaning Business guide and How to Get Cleaning Clients Fast.
How Much Does It Cost to Start in North Dakota?
North Dakota is affordable to start a cleaning business. Low taxes and moderate fees help keep costs down.
- Limited liability company filing — $135 (one-time, through the Secretary of State)
- Annual report — $50 per year (due November 15)
- Trade name — $25 (if using a different business name)
- Sales tax permit — Free (required since cleaning is taxable)
- Local business license — $25 to $100 per year (varies by city)
- General liability insurance — $400 to $1,200 per year
- Workers' compensation insurance — Through state fund only (rates vary by payroll)
- Surety bond — $100 to $500 per year (recommended)
- Cleaning supplies and equipment — $200 to $500 to start
- Marketing (initial) — $100 to $500
What Is on Your North Dakota Startup Checklist?
Follow these steps in order. Complete each one before moving on.
- Choose your business structure — Form a limited liability company at sos.nd.gov ($135)
- Get an Employer Identification Number — Apply free at irs.gov
- Get a sales tax permit — Apply free at tax.nd.gov
- Open a business bank account — Keep personal and business money separate
- Get your local business license — Check your city requirements
- Buy general liability insurance — Get at least $1 million in coverage
- Buy cleaning supplies — Start with the basics and upgrade as you grow
- Set your prices — Use our Price Calculator and factor in North Dakota sales tax
- Set up your Google Business Profile — This is your most important marketing tool
- Book your first clients — Tell friends, join your chamber of commerce, reach out to property managers
- Register with Workforce Safety and Insurance before hiring — This is the only workers' compensation option in North Dakota
- Register for unemployment insurance — Required before your first employee starts
What Are the Best Tips for North Dakota?
Here are practical tips for success in North Dakota.
- Start solo to keep costs low — The $135 filing fee is reasonable. Work alone until you have enough clients to justify hiring
- Always collect sales tax — Cleaning is taxable in North Dakota. Build it into your quotes so clients know the total upfront
- Use the state workers' compensation fund — It is your only option. Register with Workforce Safety and Insurance before your first hire
- Consider oil country for premium rates — Williston and the Bakken region pay more. But costs are higher too
- Prepare for extreme winters — Keep emergency kits in every vehicle. Have a plan for dangerous cold days
- Serve military families — Minot and Grand Forks bases provide steady demand year-round
- File your annual report on time — It is $50 each year, due November 15. Do not forget or you risk losing your company status
- Use MaidProfit to manage bookings — Track jobs, invoices, and sales tax with one tool
What Are the Guides for Nearby States?
If you serve areas near the North Dakota border, these guides may help.
- South Dakota Guide — Start a cleaning business in South Dakota
- Minnesota Guide — Start a cleaning business in Minnesota
- Montana Guide — Start a cleaning business in Montana
- South Dakota Cleaning Prices — Hourly rates and city-by-city pricing for South Dakota
- Minnesota Cleaning Prices — Hourly rates and city-by-city pricing for Minnesota
- Montana Cleaning Prices — Hourly rates and city-by-city pricing for Montana
Where Do You Find North Dakota Government Resources?
Here is a complete list of every government website in this guide. Bookmark these for later.
- North Dakota Secretary of State — Register your business and file formation documents
- North Dakota Tax Commissioner — Sales tax permits and state tax filing
- Workforce Safety and Insurance — State workers' compensation fund (required for all employers)
- Job Service North Dakota — Unemployment insurance and employer information
- Internal Revenue Service — Free Employer Identification Number application
- Small Business Administration — Free counseling and local assistance for small businesses
What Other Guides Can Help Your Business?
These free guides cover topics every cleaning business owner needs. They work hand-in-hand with this state guide.
- How to Price Cleaning Services — Set profitable rates with flat-rate and hourly formulas
- Cleaning Business Insurance Guide — General liability, bonding, and the coverage you need
- How to Get Cleaning Clients Fast — Fill your schedule with paying clients
- Marketing Your Cleaning Business — Online and offline strategies that bring real results
- Cleaning Business Taxes and Deductions — Every deduction you can claim and how to file
- How to Get Cleaning Contracts — Find and win residential and commercial contracts
- How to Hire and Train Cleaning Staff — Where to find workers and how to keep them
Start Your North Dakota Cleaning Business Today
North Dakota offers low taxes and strong demand for cleaning. The oil region, military bases, and growing cities create real opportunity.
Start by forming your limited liability company. Get your Employer Identification Number and sales tax permit. Buy insurance, check local licenses, and set your prices.
Then focus on getting clients through Google and local connections.
The tight labor market means less competition for new cleaning businesses. Every successful North Dakota cleaning company started with one owner and one first client. Take action today.