For the fourth year in a row, North Dakota has been named the nation’s most business-friendly state, according to CNBC’s annual “Top States for Business” rankings. The network evaluates all 50 states on 135 metrics across 10 categories, including economy, workforce, infrastructure, cost of doing business, technology, quality of life, and business friendliness.
The business friendliness category measures laws and regulations that impact business ownership. North Dakota stands out as one of 41 states that does not require a statewide general business license, reducing barriers for startups and entrepreneurs. The state also boasts some of the lowest corporate income tax rates in the country, ranging from 1.41% to 4.31%, compared to higher neighboring rates such as Minnesota’s 9.8% and Montana’s 6.75%.
Grand Forks has become a hub for growth under this pro-business climate. The region is home to more than seven higher education institutions serving over 39,000 students, ensuring a steady talent pipeline. Tax incentives—including exemptions on corporate income, sales and use tax, property tax, and an automation tax credit—help sustain the state’s 77% business survival rate.
North Dakota is also unique in being home to the nation’s only state-owned bank. The Bank of North Dakota partners with local lenders to provide competitive financing programs such as PACE and FlexPACE loans, giving businesses greater access to affordable capital.
“North Dakota’s continued recognition as the most business-friendly state reflects the strength of our people, policies, and partnerships,” said Keith Lund, president and CEO of the Grand Forks Region Economic Development Corporation. “Here in Grand Forks, we see firsthand how this environment helps businesses not only start but scale successfully. With our access to talent, innovative spirit, and supportive ecosystem, Grand Forks is proving to be one of the most dynamic regions in the nation for business growth and investment.”
State and local leaders say the recognition underscores North Dakota’s role as a strategic gateway for both domestic and international companies. As the state celebrates its fourth consecutive year at the top of CNBC’s rankings, communities across North Dakota remain focused on fostering innovation, attracting talent, and ensuring long-term economic growth.