North Dakota Contractor License: Required Over $4,000 a Job, Class A $450 to Class D $100, Renew Every March 1, No Exam and No Bond

If you do construction, remodeling or other contract work in North Dakota, the north dakota contractor license question usually comes down to one number: $4,000. Once the cost, value or price of a job goes over $4,000, the person doing the work needs a North Dakota contractor license issued through the Secretary of State. The fees are modest, there is no exam, and there is no bond to post. The real cost of getting it wrong is the penalties, so it is worth doing it right the first time.

This guide covers who needs the license, how the four classes work, what the application requires, how renewal works, what happens if you miss March 1, and which other licenses you may need on top of it. This content is informational only and is not legal or tax advice. Confirm your situation with the North Dakota Secretary of State, and talk to a qualified attorney or CPA if your business structure, contracts or tax picture are complicated.

Who Needs a North Dakota Contractor License

Under NDCC 43-07-02, a contractor license is required when the cost, value or price of a job exceeds $4,000. The requirement applies to general contractors, subcontractors, public contractors and nonresident contractors. If you are based outside North Dakota and take a job inside the state above that threshold, you need the license too.

Because the test is written as cost, value or price, check each job against all three measures rather than only the amount you invoice for labor. If you split one project into phases, or take several smaller jobs for the same customer that together form one project, ask the Secretary of State how the $4,000 threshold applies before you start work.

North Dakota does not issue a general statewide business license. Forming an LLC or corporation and registering a trade name are filings, not licenses. The contractor license is the requirement that catches most new construction businesses, because it applies to the work itself, not to the entity.

The Four Classes and Their Fees

The class you need depends on the size of the largest single project you perform, under NDCC 43-07-07. Pick the class that covers your biggest job, not your average job. A contractor who expects to bid a $600,000 project needs Class A before the bid goes out.

Class	Largest single project	New license fee	Renewal fee
Class A	No limit (shown as over $500,000 on the Secretary of State page)	$450	$90
Class B	Up to $500,000	$300	$60
Class C	Up to $300,000	$225	$45
Class D	Up to $100,000	$100	$30

Two fee types apply. The new license fee is what you pay when you first apply for a class. The renewal fee is what you pay each year to keep the license active. A small remodeler whose biggest job is $80,000 would apply for Class D at $100 and renew at $30 a year. A contractor who takes a $250,000 job would need Class C at $225 new and $45 to renew.

How to Apply Through FirstStop

Applications are filed online through the Secretary of State's FirstStop portal at firststop.sos.nd.gov. Have these items ready before you start, because the application is incomplete without them:

1. A sworn statement of experience and qualifications. This describes your construction background. Be accurate, since it is signed under oath.
2. A certificate of liability insurance in the exact name shown on the license. The certificate must name the North Dakota Secretary of State, 600 E Boulevard Ave, Dept 108, Bismarck ND 58505, as the certificate holder.
3. A WSI certificate of payment. WSI is the state's workers' compensation provider, and workers' compensation in North Dakota is a state monopoly through WSI. If you have no North Dakota resident employees, submit a WSI letter of good standing instead.

Notice what is not on the list. North Dakota contractors do not take a licensing exam, and they do not post a surety bond to get licensed. The section that governed bonding, NDCC 43-07-11, was repealed in 1995. Keep your paperwork organized, because the insurance certificate and WSI documents are the items most likely to delay an application if they do not match the exact license name.

The Secretary of State publishes no guaranteed turnaround time for contractor applications. Call Business Services at (701) 328-2900 for current timing before you schedule a job that depends on the license being issued.

Renewing Every March 1

Contractor licenses run from March 2 through March 1. You must renew on or before March 1 each year. Renewal is not a form you can ignore. It includes three requirements:

• A project list. You list each project over $50,000 that you completed in the prior calendar year.
• Tax and premium certifications. You certify that your payroll taxes, North Dakota income tax withholding, WSI premiums and unemployment premiums are paid.
• The renewal fee for your class, shown in the table above.

Keep a running list of completed projects over $50,000 throughout the year. Reconstructing a year of jobs in February is where most renewal errors happen. Also keep your WSI and payroll tax accounts current, since a delinquent premium can become a renewal problem.

What Happens If You Miss March 1

After March 1, your license is not in good standing, and you are treated as unlicensed until it is reinstated. Under NDCC 43-07-10, you can reinstate it with a $50 penalty plus the renewal fee. That reinstatement is available until June 1.

Date	What it means
On or before March 1	Renew on time. License stays in good standing.
After March 1	Not in good standing. Treated as unlicensed. Bidding or performing covered work is a risk.
Through June 1	Reinstate with the $50 penalty plus the renewal fee.
After June 1	License expires. You must file a new application, not a renewal. Confirm the current fee with the Secretary of State.

Put March 1 on your calendar with a reminder set for early February. Renewing late costs you the $50 penalty, and an expired license costs you the time it takes to go through the new application.

What Unlicensed Contracting Costs

Working on a covered job without the license carries serious consequences, and North Dakota stacks several of them:

• Criminal exposure. Unlicensed contracting is a class A misdemeanor.
• Civil penalties. A civil penalty of up to three times the license fee can be assessed against you.
• No access to North Dakota courts. An unlicensed contractor cannot sue in North Dakota courts over the work. If a customer stops paying, you may have no legal path to collect in state court.

That last point matters most for cash flow. The cost of a $100 Class D license is small next to a $20,000 invoice you cannot collect.

Other Licenses That Are Separate From This One

The contractor license does not replace other licenses your work may require. These are separate:

• Electrical and plumbing licenses, issued by state boards.
• Asbestos abatement licenses, issued through the Department of Environmental Quality (DEQ).
• Transient merchant licenses, issued by the Attorney General.

If your business makes taxable sales, you also need a sales and use tax permit from the Office of State Tax Commissioner. Apply through ND TAP at tap.tax.nd.gov, about 30 days before you open. North Dakota's state sales tax rate is 5%, plus any applicable city and county taxes. Ask the Tax Commissioner whether your specific sales are taxable.

Your Setup Checklist

1. Check each planned job against the $4,000 threshold using cost, value and price.
2. Choose the class that covers your largest single project.
3. Get liability insurance in the exact name of the license, naming the Secretary of State as certificate holder.
4. Obtain your WSI certificate of payment, or a WSI letter of good standing if you have no North Dakota resident employees.
5. Complete the sworn statement of experience and qualifications.
6. File through FirstStop at firststop.sos.nd.gov.
7. Track projects over $50,000 all year, and renew on or before March 1.
8. Confirm any electrical, plumbing, asbestos or other trade license your work requires with the agency that issues it.

Where to Confirm the Details

Fees, deadlines and requirements change, so verify them before you rely on this guide. The main resources are:

• North Dakota Secretary of State: sos.nd.gov, Business Services at (701) 328-2900
• FirstStop filing portal: firststop.sos.nd.gov
• Office of State Tax Commissioner: tax.nd.gov
• North Dakota Small Business Development Centers, hosted by the University of North Dakota: und.edu/ndsbdc

Disclaimer: This guide is informational content, not legal or tax advice. Licensing rules, fees and deadlines can change. For decisions about your contracts, liability, business structure or taxes, consult a qualified North Dakota attorney or CPA.