How to Become a Contractor in North Dakota

Contractors in North Dakota construct, repair, change, dismantle, or demolish structures like buildings, projects, roads, and more. These contractors are licensed by the North Dakota Secretary of State’s office. 

To get a license, you’ll need to have registered your business or trade name, hold a certificate of insurance, submit a statement of good standing from Workforce Safety & Insurance, complete an application, and pay a fee.  

Do You Need a Contractor’s License in North Dakota?

Contractor licenses are required in North Dakota for any job or contract that exceeds $4,000 in total value. 

The South Dakota Contractor’s License Application

To work as a contractor, you’ll need to:

  • Register your business with the state
  • Complete your application
    • Provide all requested insurance certificates, statements, etc.
  • Obtain any other required licenses (electrical, plumbing, lead abatement, etc.)

Before applying, you should know the general limits of the contracts you plan to take on. ND offers four types of contractor classes depending on this amount. 

  • Class A: over $500,000 per job
  • Class B: up to $500,000 per job
  • Class C: up to $300,000 per job
  • Class D: up to $100,000 per job
  1. Register Your Business

You will need to either register your trade name or your business with the Secretary of State. Sole proprietorships and partnerships register their names, while other entities (corporations, LLCs, etc.) register their business. 

You can learn more about this process here. 

  1. Complete Your Application

Once your business is official, you can complete your contractor’s license application. Create an account to access the application. Be sure to complete the application under the same name as your business.

Within the application, you’ll provide:

  • Your signature under oath attesting to your job experience
  • A certificate of insurance covering any liability
    • This certificate should list the ND Secretary of State as a certificate holder
  • A statement of good standing from Workforce Safety & Insurance (WSI)
    • If you have employees, you’re required to hold Worker’s Compensation Insurance and provide a Certificate of Premium Payment
    • If you don’t have employees, you will need the exemption form from WSI
  • You may need to provide unemployment insurance – File a Report to Determine Liability form to see if this is the case
    • If required, submit your quarterly Employer’s Contribution and Wage Reports
  • If you work on projects worth $50 million or more, you will need to meet certain bonding requirements
  • Payment for your license
    • Class A: $450
    • Class B: $300
    • Class C: $225
    • Class D: $100
  1. Obtain Additional Licenses

Before submitting your application, you may also be required to obtain additional licenses. For example, electrical, plumbing, and lead abatement contractors have separate licenses apart from the contractor’s license.

Alternatively, you may also employ a full-time, licensed individual who can complete this requirement. This person would be your designated Qualifying Party and you would need to list their information on your application. 

Sales tax permits may also be required for certain contractors – see this guide for details.

Out-of-State Contractors

If you’re working in ND temporarily, you’re required to obtain a Transient Merchant’s License from the Attorney General. 

Leave a Comment

Your email address will not be published.

Scroll to Top