How to Start a Home Inspection Business in North Dakota: SOS Registration, $200 Fee, $50 Renewal by June 30 and $100,000 E&O Insurance

If you plan to inspect homes for pay in North Dakota, you must be registered before your first paid inspection. People searching for a home inspector license in North Dakota or a North Dakota home inspection license are looking for this requirement, although the state calls it a registration. The Secretary of State registers each inspector as an individual under North Dakota Century Code Chapter 43-54. The paperwork is straightforward, but the requirements are specific, and a lapse in insurance or a missed deadline can cost you your registration.

This guide explains how to become a home inspector in North Dakota, what each filing costs, what insurance you need, and how to set up the business around your registration. It is informational content, not legal or tax advice. Confirm current forms and procedures with the agency named in each step.

What You Need Before You Start

Gather these items before you file. Missing one of them is the most common reason applications stall.

• Proof of age. You must be at least 18 years old.
• A certificate showing you passed an exam from one of four organizations: ASHI, InterNACHI, the Examination Board of Professional Home Inspectors, or the International Code Council.
• An errors and omissions (E&O) insurance policy with at least $100,000 in coverage for all home inspection activities.
• The $200 registration fee.
• A decision on how you will own the business: sole proprietorship, LLC, or corporation.
• A North Dakota registered agent, if you form an LLC or corporation.
• A business bank account, and a federal Employer Identification Number (EIN) from the IRS if your structure or hiring plans require one.
• Your inspection tools, report software, and a template for your inspection agreement.

Step-by-Step: How to Become a Home Inspector in North Dakota

Step 1: Confirm That You Need to Register

North Dakota requires registration to inspect residential buildings for compensation. The registration covers residential buildings of up to four dwelling units. Inspecting for pay without registration is a class B misdemeanor under NDCC 43-54-01 and 43-54-02, so do not start taking paid jobs while you wait for approval.

Three groups are exempt under NDCC 43-54-04: code enforcement officials, individuals licensed under Title 43 who act within the scope of that license, and insurance adjusters. If you believe an exemption applies to you, confirm it with the Secretary of State before you inspect. If your situation is unusual, talk to an attorney first.

Step 2: Meet the Personal Requirements

The statute requires you to be 18 or older and to show proof that you passed an exam from one of the four approved organizations. Choose the exam that fits the training you already have, and keep the original certificate or a certified copy in your records. Each provider sets its own exam schedule, format, and fees, so check its website directly for those details.

Step 3: Buy E&O Insurance Before You Apply

Registration requires errors and omissions insurance of $100,000 or more covering all home inspection activities. Request written quotes from at least two insurers or brokers that write home inspector policies. Ask each one whether the policy covers every service you plan to offer. A policy that excludes a service you actually perform leaves that work uncovered, even though you are technically insured.

Save the certificate of insurance with your application file. Premiums vary by insurer and by your experience, so use the quotes you receive rather than a figure from another article. You will need the insurance again at every renewal, so choose a carrier you expect to keep.

Step 4: Submit Your Registration and the $200 Fee

File your application with the North Dakota Secretary of State. Check the home inspectors page at sos.nd.gov for the current application form and whether you must file online or on paper. The registration fee is $200. Registration is personal, so your name goes on the application even if you later operate through an LLC.

When approval arrives, keep the confirmation with your insurance certificate and exam certificate in one folder. Your registration expires June 30 each year, so put that date on your calendar as soon as you are registered.

Step 5: Choose and File Your Business Structure

The registration attaches to you, but the business that bills clients can be a separate legal entity. The Secretary of State's business pages and the FirstStop portal handle entity filings. Your three main options are below.

Sole proprietorship. Sole proprietors do not file formation documents with the Secretary of State. If you operate under a name other than your legal name, you must register a trade name. Trade name registration costs $25, amendments cost $25, and renewals cost $25. Registrations must be renewed every 5 years. A registered trade name gives you the exclusive right to that name within North Dakota only.

LLC. You form an LLC by filing Articles of Organization under NDCC Chapter 10-32.1 through FirstStop for $135. Several naming rules apply:

• The name must include “limited liability company,” “LLC,” or “L.L.C.” It may not include “corporation,” “incorporated,” or the other restricted terms listed in NDCC 10-32.1-11.
• The name must be distinguishable in Secretary of State records from every other registered entity, reserved name, and registered trade name.
• You can reserve a name for 12 months for $10 while you prepare your filing.

An LLC must maintain a North Dakota registered agent with a physical address in the state. The agent can be an individual who lives in North Dakota, or a registered North Dakota or out-of-state business with a North Dakota office. The LLC cannot serve as its own agent, and you must get the agent's approval before you name them.

Corporation. A corporation files Articles of Incorporation under NDCC Chapter 10-19.1 through FirstStop for $100. It also needs a North Dakota registered agent. Its annual report is $25 and is due August 1 each year. Corporations and LLCs can be taxed differently, so ask a CPA which structure fits your plans before you file.

Step 6: Register for State Taxes

North Dakota has no franchise tax and no separate LLC privilege tax. For an LLC, the $50 annual report is the only recurring state charge on the entity itself. An LLC taxed as a partnership or disregarded entity passes its income through to the owner, who pays North Dakota individual income tax at 0 percent, 1.95 percent, or 2.50 percent depending on bracket. An LLC that elects federal C corporation treatment pays corporate income tax at 1.41 percent, 3.55 percent, and 4.31 percent by bracket.

The state sales tax rate is 5 percent, plus any city and county taxes. Any business making taxable sales must hold a sales and use tax permit from the Office of State Tax Commissioner. Apply through ND TAP about 30 days before you open. Whether home inspection fees are subject to sales tax is a question for the Tax Commissioner at tax.nd.gov. Do not assume the answer. Confirm it before you start charging clients.

Step 7: Check Whether Any Other License Applies

North Dakota issues no general statewide business license, and no major city issues one either. Licensing is by activity, and counties do not license businesses. Ask yourself whether any work you plan to do needs a separate license:

• Contractor license. If you perform repair or construction work, the Secretary of State requires a contractor license when the cost, value, or price of a job exceeds $4,000. The license costs $100 for Class D (jobs up to $100,000) up to $450 for Class A (over $500,000) and renews annually by March 1. Confirm the class that fits your work with the Secretary of State.
• Workers' compensation. Workers' compensation in North Dakota is provided through WSI (WorkForce Safety & Insurance). If you plan to hire anyone, contact WSI before the first day of work to confirm what coverage you need.
• Other activities. If your services extend beyond inspection into a licensed trade, confirm the requirement with the state board or agency that covers that trade before you offer the service.

Step 8: Build Your Renewal Calendar

Renewal costs $50 and requires proof of continuous E&O insurance. Your registration expires June 30, and the renewal must reach the Secretary of State before July 1. A late registration is cancelled without notice or hearing. If that happens, you must reapply, pay the $200 fee again, and show current insurance. Set a reminder for May, request your renewal insurance certificate before your policy's renewal date, and submit early.

Cost Summary

Item	Cost	Agency or Source	When Due
Home inspector registration	$200	Secretary of State	Before your first paid inspection
Home inspector renewal	$50	Secretary of State	Must reach the SOS before July 1 each year
E&O insurance	Minimum $100,000 coverage; premium varies	Private insurer	Before you apply, and continuously after
Trade name registration	$25	Secretary of State	Before using the name; renew every 5 years
LLC name reservation	$10	Secretary of State	Holds the name for 12 months
LLC Articles of Organization	$135	Secretary of State through FirstStop	At formation
LLC annual report	$50	Secretary of State	November 15 each year, plus a $50 late fee if missed
Corporation Articles of Incorporation	$100	Secretary of State through FirstStop	At formation
Corporation annual report	$25	Secretary of State	August 1 each year
Sales and use tax permit	Confirm on the ND TAP application	Office of State Tax Commissioner	About 30 days before opening, if you make taxable sales

Common Mistakes to Avoid

• Letting insurance lapse. A gap in E&O coverage can cost you your registration, and the cancellation happens without notice. Set your policy's renewal date in your calendar and confirm continuous coverage each year.
• Buying a policy that excludes your services. Ask for the policy's list of covered activities in writing before you buy.
• Working before you are registered. Inspecting for pay without registration is a class B misdemeanor.
• Naming an LLC without the required words. The name must include “limited liability company,” “LLC,” or “L.L.C.”
• Using the business as its own registered agent. North Dakota does not allow it. Name an individual who lives in the state or a qualifying registered business, and get their approval first.
• Using a trade name you have not registered. If you operate as “Prairie Home Inspections” without registering it, you are not protected in that name.
• Missing the LLC annual report. It is due November 15 every year, and the $50 late fee applies after the due date.
• Assuming a city or county license. North Dakota cities license specific activities only, and counties do not license businesses. Confirm each requirement with the agency that covers the activity.
• Ignoring the coverage limit. Your registration covers residential buildings of up to four dwelling units. Confirm with the Secretary of State before taking on work outside that scope.

What to Expect After Registration

Registration gives you the legal authority to inspect residential buildings for pay within the scope of the statute. It does not guarantee clients, referrals, or income. Results depend on local demand, how you market your services, the quality of your reports, and how well you manage your schedule and insurance. Many new inspectors find that real estate agents, property managers, and past clients are their first sources of work, and that a clear, consistent report can help earn repeat business. Your outcomes will depend on your own effort and local conditions.

Where to Get Help

• North Dakota Small Business Development Centers (ND SBDC): Hosted by the University of North Dakota Nistler College of Business and Public Administration. und.edu/ndsbdc
• SBA North Dakota district office: sba.gov/district/north-dakota
• Secretary of State Business Services: (701) 328-2900. Ask for current processing times, since the agency does not publish a guaranteed turnaround for entity filings.
• Office of State Tax Commissioner: tax.nd.gov

Important Notice

This article is informational content, not legal or tax advice. Fees, deadlines, and requirements can change, so confirm each one with the North Dakota Secretary of State, the Office of State Tax Commissioner, or WSI before you act. Choosing a business structure, reviewing insurance terms, and deciding how sales tax applies to your services are decisions that benefit from professional guidance. Consider speaking with a North Dakota attorney about entity formation and contracts, and a CPA about tax treatment for your situation.