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FAQ Articles

I am a nonresident of North Dakota who owns a business that operates in North Dakota. Am I required to file a North Dakota individual income tax return?

You would have to file a North Dakota individual income tax if you (1) are required to file a federal income tax return for the tax year and (2) the business generates gross income that you are required to report on your federal return. This applies whether you are the owner of a sole proprietorship or you hold an interest in a partnership, subchapter S corporation, or a limited liability company. The state filing requirement is based on gross income, which is the amount of income before business expenses are deducted; therefore, it is possible to have a state filing requirement even if the business generates a net loss for the tax year.

If your business conducts all of its business in North Dakota, then all of the gross income (and related business expenses) from the business are reportable to North Dakota. On the other hand, if your business conducts its business both inside and outside North Dakota, then special allocation and apportionment rules will apply in determining the amount of the business’s gross income (and related business expenses) that must be reported to North Dakota.

nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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FAQ Articles

I am a nonresident of North Dakota who owns a business that operates in North Dakota. Am I required to file a North Dakota individual income tax return?

You would have to file a North Dakota individual income tax if you (1) are required to file a federal income tax return for the tax year and (2) the business generates gross income that you are required to report on your federal return. This applies whether you are the owner of a sole proprietorship or you hold an interest in a partnership, subchapter S corporation, or a limited liability company. The state filing requirement is based on gross income, which is the amount of income before business expenses are deducted; therefore, it is possible to have a state filing requirement even if the business generates a net loss for the tax year.

If your business conducts all of its business in North Dakota, then all of the gross income (and related business expenses) from the business are reportable to North Dakota. On the other hand, if your business conducts its business both inside and outside North Dakota, then special allocation and apportionment rules will apply in determining the amount of the business’s gross income (and related business expenses) that must be reported to North Dakota.

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