State guide · North Dakota
Starting a Medical Practice in North Dakota
What physicians need to know about North Dakota's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Corporation or Professional LLC
LLC permitted
No
CPOM enforcement
Strict
Top income tax
2.5%
Min. franchise tax
None
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
North Dakota physicians may form a Professional Corporation under N.D.C.C. Chapter 10-31 or a Professional LLC under Chapter 10-32.1. All shareholders or members must be licensed ND physicians.
Filing is with the North Dakota Secretary of State.
- •Form a Professional Corporation or Professional LLC
- •All shareholders/members must be licensed North Dakota physicians
- •File Articles of Incorporation or Articles of Organization with the Secretary of State
- •File Annual Report with the Secretary of State
Corporate Practice of Medicine
North Dakota enforces a strict Corporate Practice of Medicine doctrine. The state explicitly prohibits the corporate practice of medicine outside the professional entity context. Fee-splitting is prohibited.
Tax Considerations
North Dakota has a graduated personal income tax with a top bracket of 2.5% — among the lowest. No franchise tax.
- •Top personal income tax: 2.5%
- •No franchise tax
- •5% statewide sales tax
North Dakota Board of Medicine
North Dakota does not require entity registration with the Board of Medicine for general practices.
- •No general entity registration required
- •All practicing physicians must hold an active ND medical license
Employment Law Considerations
North Dakota is generally employer-friendly. At-will employment, no state-mandated paid sick leave. Notably, North Dakota disfavors non-compete agreements (N.D.C.C. §9-08-06 makes most non-competes void as restraint of trade).
- •At-will employment
- •No state-mandated paid sick leave
- •Non-competes generally void under N.D.C.C. §9-08-06 (limited exceptions for sale of business)
- •ND minimum wage at federal $7.25/hour
Heads up
North Dakota voids most non-compete agreements as unlawful restraint of trade. Non-solicitation agreements may be enforceable if narrow.
Official resources
Bookmark these official agency portals for North Dakota entity formation, tax registration, and medical board information.
Looking for North Dakota licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for North Dakota.
View North Dakota licensing guide →Get the complete practice startup guide
Everything you need to launch an independent practice — free download