Hotel / Motel Permits & Licenses in Bismarck, ND

Complete guide to permits and licenses required to start a hotel / motel in Bismarck, ND. Fees, renewal cycles, and agency contacts.

Certificate of Authority (LLC Registration)

North Dakota Secretary of State
Required
Fee: $135.00-$135.00
Renewal: one time
Type: registration

Required for all domestic LLCs; annual report required thereafter ($50 fee, due by anniversary date)

Workers' Compensation Insurance

North Dakota State Water Commission (Administered by the North Dakota Workers’ Compensation Bureau)
May Apply
Fee: $500.00-$2000.00
Renewal: one time
Type: certificate

North Dakota law (ND Century Code § 38‑01‑01) requires all employers with ≥1 employee to carry workers’ comp. No statutory minimum dollar limit; policies must be sufficient to cover the state‑defined benefit schedule (e.g., up to $500 / week for temporary total disability).

General Liability Insurance

None (not state-mandated)
Required
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

While North Dakota does not impose a statutory general‑liability requirement on hotels, local jurisdictions (e.g., city fire or health departments) often condition the issuance of a Lodging Establishment Permit on proof of $1 M general‑liability coverage.

Professional Liability / Errors & Omissions Insurance

None
Required
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

Professional liability is not mandated for hotels in North Dakota, but may be prudent if the property offers services that could give rise to professional negligence claims.

Annual Report (LLC)

North Dakota Secretary of State
Required
Fee: $50.00-$50.00
Renewal: annual
Type: registration

Applies to all LLCs; filed online via SOS portal

Assumed Business Name Registration (if using DBA)

North Dakota Secretary of State
May Apply
Fee: $25.00-$25.00
Renewal: one time
Type: registration

Not required if using exact legal name; searchable registry on SOS site

Hotel-Motel License

North Dakota Department of Health & Human Services (Health Regulation)
Required
Fee: $100.00-$100.00
Renewal: annual
Type: license

Required for all hotels/motels offering sleeping rooms to transients; inspection required prior to issuance

Sales and Use Tax Permit

North Dakota Office of State Tax Commissioner
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Rooms subject to 5% state sales tax + up to 2.5% local; monthly returns required

Lodging Gross Receipts Tax License

North Dakota Office of State Tax Commissioner
Required
Fee: $0.00-$0.00
Renewal: one time
Type: license

2% tax on gross receipts from sleeping rooms; reported with sales tax returns

North Dakota Sales & Use Tax Registration (includes Lodging Tax)

North Dakota Department of Revenue
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

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North Dakota Income Tax Registration (Corporate or Personal)

North Dakota Department of Revenue
Required
Fee: $0.00-$0.00
Renewal: one time
Type: registration

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North Dakota Withholding Tax Registration

North Dakota Office of the State Tax Commissioner
May Apply
Renewal: one time
Type: registration

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North Dakota Unemployment Insurance (UI) Tax Registration

North Dakota Department of Labor and Human Rights – Unemployment Insurance Division
May Apply
Renewal: one time
Type: registration

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North Dakota Lodging (Tourism) Tax – Local City/County Registration

City of Fargo – Finance Department (example; similar requirements exist in Bismarck, Grand Forks, etc.)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

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City Business License (Fargo) – General Business Tax

City of Fargo – Finance Department
May Apply
Fee: $50.00-$50.00
Renewal: one time
Type: license

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North Dakota Sales Tax on Prepared Food (Food Service Tax)

North Dakota Department of Revenue
May Apply
Renewal: one time
Type: filing

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North Dakota Alcoholic Beverage Tax Registration

North Dakota Department of Revenue – Alcoholic Beverage Tax Division
May Apply
Fee: $50.00-$50.00
Renewal: one time
Type: registration

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City Business License

City of Fargo
May Apply
Fee: $50.00-$200.00
Renewal: annual
Type: license

Required for hotels/motels in most ND cities; check specific city code (e.g., Fargo Code Ch. 31-02)

Zoning Compliance / Use Permit

City of Bismarck Planning & Zoning
May Apply
Fee: $200.00-$500.00
Renewal: one time
Type: permit

Hotels typically allowed in C-3/Commercial zones; Bismarck Ord. 9-08-01 et seq.

Building Permit

City of Fargo Inspections Division
May Apply
Fee: $0.50-$2.00
Renewal: one time
Type: permit

Required per ND Uniform Construction Standards; local enforcement

Sign Permit

City of Fargo Planning & Development
May Apply
Fee: $50.00-$50.00
Renewal: one time
Type: permit

Regulated by local sign ordinances (e.g., Grand Forks Code Sec. 36-51)

Health Department Permit (Lodging)

North Dakota Department of Health & Human Services (local enforcement)
Required
Fee: $100.00-$300.00
Renewal: annual
Type: license

Local health districts (e.g., Bismarck-Burleigh) inspect per NDAC 33-25-03

Fire Safety Inspection / Permit

City of Fargo Fire Department
Required
Fee: $150.00-$150.00
Renewal: annual
Type: permit

Per IFC 2021 as adopted locally; occupancy load certificate issued

Certificate of Occupancy

City of Fargo Inspections Division
May Apply
Renewal: one time
Type: permit

Confirms zoning/building/fire compliance; local code enforcement

Fire Alarm / Sprinkler Permit

Grand Forks Fire Department
May Apply
Fee: $100.00-$300.00
Renewal: one time
Type: permit

Annual monitoring certification also needed; ND Fire Code Ch. 9

Lodging Establishment Permit Surety Bond

North Dakota Department of Health – Division of Health Services (Lodging Regulation)
May Apply
Fee: $5000.00-$10000.00
Renewal: one time
Type: certificate

North Dakota Administrative Code 10‑1‑03 requires a surety bond (minimum $5,000) as a condition of the Lodging Establishment Permit to ensure compliance with health‑safety standards.

Commercial Auto Liability Insurance

North Dakota Department of Transportation – Vehicle Registration Division
May Apply
Fee: $25000.00-$25000.00
Renewal: one time
Type: certificate

North Dakota minimum liability limits for commercial vehicles are $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage.

Liquor Liability Insurance

None
May Apply
Fee: $300.00-$1000.00
Renewal: one time
Type: certificate

North Dakota law (ND Century Code § 38‑31‑01) requires licensees to maintain liability insurance covering claims arising from the sale or service of alcoholic beverages.

Parking Lot / Site Plan Approval

City of Minot Planning
May Apply
Fee: $250.00-$250.00
Renewal: one time
Type: permit

Local zoning codes specify ratios for hotels/motels

North Dakota Corporate/Partnership Income Tax Return (Form 65 or Form 20)

North Dakota Office of the State Tax Commissioner
May Apply
Renewal: annual
Type: filing

Attach Schedule K‑1 for each member. Estimated tax payments may be required if tax liability > $500.

North Dakota Unemployment Insurance Quarterly Reporting

North Dakota Department of Labor & Human Rights
May Apply
Renewal: varies
Type: filing

Report wages and pay employer UI contributions electronically via the ND UI portal.

North Dakota Workers’ Compensation Annual Premium Payment & Report

North Dakota Department of Labor & Human Rights – Workers’ Compensation Division
May Apply
Renewal: annual
Type: certificate

Employers must maintain a Workers’ Compensation policy and submit the Annual Report of Payroll and Experience Rating.

North Dakota State Payroll Withholding Quarterly Returns

North Dakota Department of Revenue
May Apply
Renewal: varies
Type: filing

File electronically via the ND Taxpayer Access Point (TAP).

Federal Employer Identification Number (EIN) Annual Confirmation

Internal Revenue Service (IRS)
Required
Renewal: one time
Type: registration

EIN must be used on all federal tax filings and payroll reports.

Federal Form 941 – Employer’s Quarterly Federal Tax Return

Internal Revenue Service (IRS)
May Apply
Renewal: varies
Type: filing

Report federal income tax withheld, Social Security, and Medicare taxes.

Federal Form 940 – Annual Federal Unemployment (FUTA) Tax Return

Internal Revenue Service (IRS)
May Apply
Renewal: annual
Type: filing

FUTA tax is calculated on the first $7,000 of wages per employee.

Federal OSHA Workplace Safety Posters

Occupational Safety and Health Administration (OSHA)
May Apply
Renewal: one time
Type: permit

Includes the OSHA Job Safety and Health – It’s the Law poster.

Federal Fair Labor Standards Act (FLSA) Minimum Wage & Overtime Poster

U.S. Department of Labor
May Apply
Renewal: one time
Type: permit

Must be displayed in a conspicuous place where employees can see it.

North Dakota Minimum Wage Poster

North Dakota Department of Labor & Human Rights
May Apply
Renewal: one time
Type: permit

Poster includes state minimum wage, overtime, and child labor provisions.

Local Business License (City of Bismarck) – General Business License

City of Bismarck, North Dakota
May Apply
Fee: $50.00-$50.00
Renewal: annual
Type: license

Requires proof of state lodging license and fire inspection certificate.

Local Zoning/Occupancy Permit Renewal

County or City Planning Department (e.g., Cass County Planning)
May Apply
Fee: $30.00-$30.00
Renewal: annual
Type: permit

Ensures the building meets local land‑use and occupancy classifications for lodging.

Record Retention – Tax and Financial Records

North Dakota Department of Revenue
Required
Renewal: one time
Type: permit

Includes sales tax returns, payroll tax filings, and income tax returns.

Record Retention – Employment Records

North Dakota Department of Labor and Human Rights
Required
Renewal: one time
Type: permit

Includes I‑9 forms, wage statements, UI reports, and workers’ compensation logs.

Record Retention – Health Inspection Reports

North Dakota Department of Health
Required
Renewal: one time
Type: permit

Include copies of all health inspection reports and corrective action documentation.

Annual Report to North Dakota Department of Health – Lodging Statistics

North Dakota Department of Health
Required
Renewal: annual
Type: filing

Report total rooms, occupancy rates, and any food service operations.

Product Liability Insurance

None
Required
Fee: $1000.00-$3000.00
Renewal: one time
Type: certificate

Product liability is not mandated by North Dakota law for hotels, but insurers and lenders often require it when the property sells tangible goods.

Fire & Safety Bond (Local Fire Department Requirement)

Local Fire Department / City of Fargo Fire Marshal (example city)
May Apply
Fee: $2500.00-$2500.00
Renewal: one time
Type: certificate

Many North Dakota municipalities require a fire‑safety bond as part of the building‑occupancy permit process for hotels and motels. The exact amount varies by city and building size.

Employer Identification Number (EIN)

Internal Revenue Service (IRS)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

All LLCs that will employ staff, open a business bank account, or file any federal tax return must obtain an EIN.

Federal Income Tax Filing (Partnership or Corporate) for LLC

Internal Revenue Service (IRS)
May Apply
Fee: $300.00-$300.00
Renewal: annual
Type: filing

Default classification for multi‑member LLCs is partnership. Single‑member LLCs are disregarded entities unless electing corporate tax treatment.

Employment Tax Reporting (Federal Payroll Taxes)

Internal Revenue Service (IRS)
May Apply
Renewal: one time
Type: filing

Even a single‑member LLC with employees must file these forms.

OSHA Recordkeeping & Workplace Safety (General Industry)

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $100.00-$100.00
Renewal: one time
Type: permit

Hotels fall under the General Industry standards (29 CFR 1910).

Americans with Disabilities Act (ADA) – Title III Public Accommodation Requirements

U.S. Department of Justice, Civil Rights Division
May Apply
Renewal: one time
Type: permit

Requires accessible guest rooms, bathrooms, common areas, and auxiliary aids (e.g., visual alarms).

EPA Section 608 – Refrigerant Management (Air‑Conditioning & HVAC)

U.S. Environmental Protection Agency (EPA)
May Apply
Fee: $50.00-$50.00
Renewal: one time
Type: permit

Applies to all commercial HVAC units; documentation must be retained for 3 years.

Federal Trade Commission (FTC) – Truthful Advertising & Consumer Protection

Federal Trade Commission (FTC)
Required
Fee: $200.00-$200.00
Renewal: one time
Type: permit

Hotels must ensure rate advertisements, “free” offers, and online listings are not deceptive.

Department of Labor – Fair Labor Standards Act (FLSA) Wage & Hour Rules

U.S. Department of Labor (DOL) – Wage and Hour Division
May Apply
Renewal: one time
Type: permit

Includes housekeeping, front‑desk, food‑service, and maintenance staff.

Department of Labor – Family and Medical Leave Act (FMLA) Eligibility & Recordkeeping

U.S. Department of Labor (DOL) – FMLA
May Apply
Renewal: one time
Type: permit

Hotels typically meet the employee count threshold.

Department of Labor – Form I‑9 Employment Eligibility Verification

U.S. Citizenship and Immigration Services (USCIS) under DOL
May Apply
Renewal: one time
Type: permit

Electronic completion is permitted if the system meets DHS requirements.

Federal Reporting – Form 5500 (Employee Benefit Plans) if Offering Retirement or Health Plans

Department of Labor (DOL) – Employee Benefits Security Administration (EBSA)
May Apply
Fee: $50.00-$50.00
Renewal: annual
Type: filing

Only required if the hotel maintains an employee benefit plan covered by ERISA.

Federal Alcohol Permit (if Hotel Serves Alcohol on‑Premises)

Alcohol and Tobacco Tax and Trade Bureau (TTB) – ATF
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: license

Most hotels obtain the permit through the state’s liquor authority; the federal permit is required for manufacturers, importers, or wholesalers, but the TTB still requires a Basic Permit for any entity handling alcohol.

North Dakota LLC Annual Report

North Dakota Secretary of State
Required
Fee: $50.00-$50.00
Renewal: annual
Type: filing

Report must include current address, registered agent, and members/managers. No separate filing for LLCs that are taxed as partnerships.

North Dakota Lodging (Hotel/Motel) License

North Dakota Department of Health
Required
Renewal: annual
Type: license

License is required for any establishment offering overnight lodging for a fee. Renewal includes submission of a completed inspection report.

Annual Health Inspection for Lodging Establishments

North Dakota Department of Health
Required
Renewal: annual
Type: permit

Inspection covers sanitation, food service (if applicable), and guest room conditions.

Annual Fire Safety Inspection

North Dakota State Fire Marshal’s Office
Required
Fee: $50.00-$50.00
Renewal: annual
Type: permit

Includes verification of fire extinguishers, smoke detectors, egress routes, and occupancy limits.

North Dakota Sales and Use Tax – Lodging Tax

North Dakota Department of Revenue
May Apply
Renewal: varies
Type: filing

All lodging charges (room rate, taxes, fees) are subject to sales tax. Returns filed electronically via the ND Taxpayer Access Point (TAP).

Step-by-Step Compliance Guide

  1. Secure an Employer Identification Number (EIN) from the IRS, which is required for all businesses operating in Bismarck, ND.
  2. Comply with OSHA General Industry Safety Standards (29 CFR 1910) to ensure a safe working environment for your hotel staff.
  3. Ensure your hotel meets Americans with Disabilities Act (ADA) Title III Accessibility Requirements for Lodging, potentially incurring fees between $5000.00 and $200000.00.
  4. Adhere to Federal Trade Commission (FTC) Truth-in-Advertising and Consumer Protection Rules to avoid deceptive practices.
  5. Maintain thorough Record Retention for Tax Purposes as mandated by the IRS, with varying fees depending on your record-keeping system.
  6. Address Federal Income and Self-Employment Tax Filing obligations if operating as an LLC, with potential fees reaching $160400.00.
  7. Ensure compliance with FTC Hotel Advertising and Booking Compliance regulations, specifically regarding bait-and-switch tactics and misleading advertisements.
  8. Understand and implement Federal Consumer Protection – Online Booking Transparency guidelines from the FTC to ensure clear and honest online advertising practices.

Common Mistakes to Avoid

  • Failing to obtain an EIN can result in penalties from the IRS.
  • Ignoring OSHA safety standards can lead to citations and fines from the Occupational Safety and Health Administration.
  • Non-compliance with ADA Title III can result in lawsuits and substantial financial penalties from the Department of Justice.
  • Misleading advertising practices can trigger investigations and penalties from the Federal Trade Commission.
  • Incorrectly filing LLC taxes can lead to significant financial repercussions from the IRS.

Frequently Asked Questions

What ADA compliance requirements apply to hotels in Bismarck, ND?

Hotels must comply with ADA Title III, ensuring accessibility for guests with disabilities, including accessible rooms, public areas, and services. The Department of Justice enforces these requirements, and non-compliance can lead to substantial fines ranging from $1500.00 to $5000.00, or even higher depending on the severity of the violations.

Are there specific advertising rules hotels in Bismarck need to follow?

Yes, the FTC has specific rules regarding hotel advertising, including accurate pricing, disclosure of fees, and truthful representations of amenities. Failing to comply with FTC Hotel Advertising and Pricing Disclosure Rules can result in legal action and penalties.

What is the cost associated with ADA compliance?

ADA compliance costs vary significantly depending on the size and existing features of your hotel. Fees can range from $1500.00 to $200000.00, covering accessibility assessments, modifications, and ongoing maintenance to ensure compliance with Department of Justice standards.

What are the tax obligations for a hotel operating as an LLC in Bismarck, ND?

As an LLC, your hotel will have Federal Income and Self-Employment Tax Filing obligations, potentially incurring fees up to $160400.00. It’s crucial to understand these obligations and file accurately with the IRS to avoid penalties.

Does the FTC regulate online booking practices for hotels?

Yes, the FTC enforces rules regarding online booking transparency, requiring hotels to clearly disclose all fees and charges before a consumer makes a reservation. This includes avoiding hidden fees and ensuring accurate pricing information is displayed.

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