North Dakota contractor license requirements

North Dakota licenses contractors through the Secretary of State, not a trade board, and there is no exam. Under North Dakota Century Code chapter 43-07, anyone acting as a contractor on a job where the cost, value, or price exceeds $4,000 needs a license first. That includes general contractors, subcontractors, public contractors, and nonresident contractors. The license class you buy sets the largest single job you can contract, and you renew it every year with proof of insurance and a list of your larger projects.

The $4,000 threshold

Four thousand dollars is a low bar. It covers a roof tear-off, a small concrete pad, or a single bathroom remodel. The threshold applies per job, and subcontracts count on their own when the subcontract exceeds $4,000. Working without a license is a class A misdemeanor, and the registrar can also assess civil penalties. There is a business cost too: an unlicensed contractor cannot maintain a claim or lawsuit in a North Dakota court related to its contracting business. If a customer refuses to pay on an unlicensed $30,000 job, the courthouse door is closed. Check the North Dakota mechanics lien page for how lien rights work alongside licensing.

Choosing a license class

The class limits the value of a single contract or project, not your annual volume. A Class D contractor can do twenty $90,000 jobs in a year, but cannot sign one $120,000 job. You can move up at renewal by paying the fee for the new class. Say a framing sub with a Class C license is invited to bid a $340,000 package on an apartment project. That bid needs a Class B license, so upgrade before you submit it. If you plan to grow, compare the fee difference against the work you would have to turn down.

How to get a North Dakota contractor license

1. Register the business. The name on the license application must match your business registration. Sole proprietors may need a trade name, general partnerships may need a fictitious partnership name, and LLCs and corporations must be registered with the Secretary of State.
2. Get liability insurance. File a certificate of liability insurance in the same name as the license, listing the North Dakota Secretary of State, 600 E Boulevard Ave, Dept 108, Bismarck, ND 58505, as certificate holder. The Secretary of State page does not list a minimum dollar amount, so confirm with the office if a customer or GC asks.
3. Get WSI proof. If you have employees living in North Dakota, you need a current certificate of payment from Workforce Safety and Insurance. If you do not and you do not meet the significant contact tests, provide a letter of good standing from WSI.
4. Apply through FirstStop. Submit the Contractor License Application on the FirstStop portal at firststop.sos.nd.gov, choose your class, pay the fee, and sign the statement of experience and qualifications. You must be at least 18, and the registrar can request criminal history information.

Annual renewal

The contractor year renews on or before March 1. The renewal application must include a list of every project, contract, or subcontract over $50,000 that you completed in North Dakota the prior calendar year and the nature of the work. The registrar forwards that list to the state tax commissioner. You also certify that payroll taxes, WSI premiums, and unemployment insurance premiums are paid, and file a current liability certificate. Miss March 1 and you are treated as unlicensed. You can still renew until June 1 by paying a $50 penalty on top of the renewal fee. After June 1 the license is expired.

The project list is easier if you keep job values and completion dates in one place all year. Pulling it from a job cost report in February beats digging through invoices on the last day of the month.

Other North Dakota licenses and the lookup

The Secretary of State contractor license does not cover every trade. Electrical work is licensed by the North Dakota State Electrical Board, plumbing by the North Dakota State Plumbing Board, and asbestos abatement by the Department of Environmental Quality. Transient merchant licenses come from the Attorney General's office.

To verify a contractor, use the FirstStop contractor search at firststop.sos.nd.gov/search/contractor. Check the class against the size of the subcontract you are about to sign. Smart Business Automator tracks license classes, expiration dates, and insurance certificates for your company and every sub; see subcontractor compliance automation.