Coffee Shop / Cafe Permits & Licenses in Grand Forks, ND

Required for all LLCs formed in ND. Annual report required thereafter ($50 fee, due by anniversary date).

Applies to all active LLCs; filed online.

Renewed every 5 years ($10 fee). Not required if using exact LLC name.

Plan review required pre-opening ($200+ fee). Inspected per ND Administrative Code 33-25.

5% state sales tax + local; monthly/quarterly returns required based on revenue.

Annual testing required. Most cafes trigger this.

Quarterly/annual returns; federal EIN prerequisite.

All retailers making taxable sales in North Dakota must register. Coffee shops selling prepared food and beverages are required to collect and remit sales tax. Registration is done via the Tax Application and Registration System (TARS).

Employers must withhold state income tax from employee wages. Registration is completed through the same TARS system as sales tax.

Employers must pay state unemployment insurance (SUI) tax. New employers typically start with a standard contribution rate; rates may change after experience rating is established.

LLCs taxed as corporations must file corporate income tax. Most LLCs are pass-through entities and do not pay corporate income tax; instead, profits are reported on owners' individual returns. Registration occurs automatically upon filing initial tax return if applicable.

All LLCs doing business in North Dakota must pay an annual franchise tax. The tax is based on total capital employed in the state. Must be filed even if no activity occurred during the year.

Cities such as Bismarck, Fargo, and Grand Forks require a local business license or privilege tax. Fees and requirements vary. For example, Fargo requires a Business Registration Certificate. Check with individual city clerk’s office for exact rules.

Even single-member LLCs may need an EIN for banking or tax purposes. Applied for online via IRS website.

Required for all businesses operating within Fargo city limits. Coffee shops classified under retail/food service.

Must verify commercial zoning (e.g., C-1 district) allows cafe use. Fargo Municipal Code Chapter 19-17.

Fargo Municipal Code Title 29. Required for cafe fit-outs like counters, plumbing.

Complies with Fargo Sign Code (Chapter 19-25). Max size 1.5 sq ft per linear foot of building frontage.

Plan review required pre-opening ($150 fee). ND Administrative Code 33-25; plan review mandatory for cafes.

Employers with 10 or fewer employees may be exempt from recordkeeping but still must post the poster if required by state.

Includes accessible entrances, seating, service counters, restrooms, and reasonable modifications for employees.

Small quantity generators (<100 kg per month) have fewer reporting requirements but must still follow proper labeling, storage, and disposal.

Many small food service establishments qualify for the Small Business Stormwater Exemption, but must verify with the state environmental agency.

All marketing materials (signage, social media, promotions) must be truthful and not deceptive.

Must pay at least the federal minimum wage, overtime for >40 hrs/week, keep accurate time records, and display the FLSA poster.

Employers must complete Form I‑9 for each employee and may optionally use E‑Verify.

State licensing is also required; the federal permit is a prerequisite for the state license.

Required for all assembly/food occupancies >50 occupants. Fargo Fire Code based on IFC 2018.

Issued after zoning, building, fire, health approvals. Fargo Code Sec. 29-03.

Annual monitoring certification also needed. Fargo Code Chapter 9.

Cass County Zoning Ordinance Article 4. Commercial zoning (C-1) required for cafes.

Employers may obtain coverage through the North Dakota Workers' Compensation Insurance Fund (WCIF) or a private carrier. The state does not set a minimum policy limit; policies must meet statutory benefit limits.

The bond protects the state and the public against violations of health‑code regulations. The bond can be obtained from any licensed surety provider.

Personal auto policies generally do not cover business use; a commercial auto policy is required.

The state may also require a separate $5,000 surety bond in addition to liability insurance.

While not mandated by state law, general liability insurance is strongly recommended to protect against third‑party bodily injury and property damage claims.

The EIN is obtained online, by fax, or by mail. It is a permanent identifier for the LLC.

Single‑member LLCs are disregarded entities unless they elect corporate taxation.

Even if no FUTA tax is due, filing Form 940 is required.

Must display the OSHA “Job Safety and Health: It’s the Law” poster and maintain injury/illness records (OSHA Form 300A).

While primary enforcement is at the state level, the FDA Food Code serves as the model for state health regulations.

Most sit‑down or take‑out coffee shops that do not ship food off‑premise are exempt.

Renewal requires submission of the renewal application, updated floor plan, and payment of the applicable fee. Inspection may be required prior to renewal.

The health inspector evaluates food safety practices, sanitation, and compliance with the North Dakota Food Code.

Inspection covers fire extinguishers, exit signage, sprinkler systems (if applicable), and overall fire code compliance.

Coffee shop sales of prepared food and beverages are taxable. Returns are filed electronically via the ND Taxpayer Access Point (TAP).

LLC members must make quarterly estimated payments on their share of the LLC’s income unless the LLC elects corporate taxation.

Members report their distributive share of LLC income on Form ND‑1040.

Employers must register for UI and submit quarterly wage reports.

North Dakota requires workers’ comp coverage for most private‑sector employers.

Required for filing federal taxes, hiring employees, and opening bank accounts.

Includes Social Security, Medicare, and federal income tax withholding.

FUTA tax is credited against state unemployment taxes.

LLC taxed as partnership files Form 1065 and issues Schedule K‑1 to members.

Includes FLSA, OSHA, EEOC, and other required federal notices.

Includes Minimum Wage, Paid Sick Leave (if applicable), and Unemployment Insurance notices.

Includes sales tax returns, payroll records, employee timecards, and financial statements.

Most North Dakota cities require a general business license in addition to state permits.

Requires separate food service permit and compliance with state liquor laws.