How to Get a North Dakota Transient Merchant License: $200 Attorney General Fee, $1,000 to $50,000 Bond and Why Out-of-Town Roofers and Tree Crews Need It

If you travel into North Dakota to sell goods or personal services on a temporary basis, the state's transient merchant law probably applies to you. The license is issued by the North Dakota Attorney General under North Dakota Century Code Chapter 51-04. It costs $200, requires a surety bond or cash deposit of $1,000 to $50,000, and is valid in all counties. The statute names tree spraying, trimming and pruning, and painting or repairing buildings or structures, so out-of-town tree and roofing crews should check it before their first job. This guide explains how to start a transient merchant business in North Dakota, step by step, and what to confirm with each agency.

Quick Facts Before You Start

• Issuing agency: North Dakota Attorney General, under NDCC 51-04
• License fee: $200
• Surety bond or cash deposit: $1,000 to $50,000, in the amount the Attorney General approves
• License term: expires one year after it is issued
• Bond timing: the bond cannot end until 2 years after the license expires
• Geographic coverage: valid in all 53 counties
• General business license: North Dakota has none. Licensing is by activity, so this license covers transient sellers only.

Does Your Work Need This License?

Section 51-04-01 covers temporary or transient sellers of goods or personal services. The statute names several activities: spraying, trimming or pruning trees and shrubs; painting or repairing buildings or structures; pest or rodent control; and taking photographs. Livestock and agricultural products are excluded, so a farmer selling their own farm products does not need this license.

Tree crews fit the statute's wording directly when they spray, trim or prune trees and shrubs. Roofing is less direct. Roofing repair falls within the "repairing buildings or structures" language, so roofers working out of state should assume the license applies unless they qualify for an exemption. Ask the Attorney General's office to confirm how it treats your specific type of roofing work, and get that answer in writing if you can.

Exemptions Under NDCC 51-04-08

The chapter does not apply to these sellers:

• Sellers who hold a sales or use tax permit, who also pay North Dakota unemployment contributions and who report to WSI
• Sales made at a home on the occupant's invitation
• Sales by commercial travelers to dealers
• Some order taking for future delivery, where no payment is collected up front

The first exemption is the one most established crews should examine. It is written as three conditions that apply together: a sales or use tax permit, North Dakota unemployment contributions and WSI reporting. A crew that meets only one or two of them should not assume it is exempt. Confirm the exemption with the Attorney General before you rely on it. Separately, NDCC 51-04-08.1 exempts flea markets, craft fairs, fairs, carnivals and circuses run by cities, counties, associations or trade groups from the state license. Whether an exemption also removes a city fee is a question for that city's auditor.

Materials and Information You Need

• Your legal business name, business address and phone number, plus the names of each owner or officer
• The $200 license fee, paid by the method the Attorney General's office currently accepts
• A surety bond from a bonding company, or a cash deposit, in the amount the Attorney General approves between $1,000 and $50,000
• Your sales and use tax permit number, if you make taxable sales
• Your WSI account information, if you have North Dakota employees
• Your trade name registration, if you operate under a name other than your legal name
• A North Dakota contractor license, if any single job exceeds $4,000
• A list of the cities where you plan to work, so you can check each city's rules and fees

Step-by-Step: Getting Your Transient Merchant License

1. Confirm that your services are covered. Read NDCC 51-04-01 and list every service your crew sells. If any item matches the statute, plan on the license. If a service is borderline, such as a specific type of roofing job, put your question to the Attorney General's office in writing before you advertise that service in North Dakota.

2. Check the contractor license threshold. Roofing is construction work. When the cost, value or price of a job exceeds $4,000, the person doing the work must hold a North Dakota contractor license. Class D costs $100 and covers jobs up to $100,000. Class A costs $450 and covers jobs over $500,000. Contractor licenses renew annually by March 1. The Secretary of State issues them, so confirm the current application details on the Secretary of State's website at sos.nd.gov.

3. Decide whether an exemption applies. Compare your operation to the three-part exemption in NDCC 51-04-08. Most out-of-town crews that have not yet set up North Dakota unemployment contributions and WSI reporting will not qualify, and that is the common reason they need the license.

4. Get a sales and use tax permit if you make taxable sales. Apply through ND TAP at tap.tax.nd.gov. Apply about 30 days before you plan to start selling. North Dakota's state sales tax is 5%, and cities and counties may add their own taxes. Confirm with the Office of State Tax Commissioner whether your particular services are taxable. Information is at tax.nd.gov.

5. Set up workers' compensation through WSI. Workers' compensation in North Dakota is a state monopoly administered by WSI (WorkForce Safety & Insurance), so you cannot buy this coverage from a private carrier. If your crew includes North Dakota employees, contact WSI before the first job. Unemployment contributions are handled through Job Service North Dakota, which is also relevant to the exemption above.

6. Choose your name and check it. If you will work under a name other than your legal name, register it as a trade name with the Secretary of State for $25. Search the business database at firststop.sos.nd.gov first, because the name must be distinguishable from registered entities and trade names. If you need time, you can reserve a name for $10 for 12 months. A trade name registration must be renewed every 5 years and gives you exclusive use of that name in North Dakota only. Registration is a filing, not a license, so it does not replace the Attorney General's license.

7. Arrange the bond or cash deposit. Ask at least two surety companies for a quote on the bond. The Attorney General sets the amount between $1,000 and $50,000, and the surety company sets the premium, so the state does not publish a bond price. A cash deposit is the alternative. In either case, the bond or deposit cannot end until 2 years after your license expires. Plan your cash flow to cover that period.

8. Apply to the Attorney General and pay the $200 fee. The application must include your appointment of the Attorney General as your agent for service of process under NDCC 51-04-07. That means legal papers can be served on the Attorney General if you cannot be reached. The Attorney General's office does not publish a turnaround in the sources reviewed for this guide, so call before you schedule your first job.

9. Check each city before you work there. Cities may add their own rules and a per-day fee of up to $25 under NDCC 51-04-09. Fees differ from city to city. Williston lists $35 per day per person for door-to-door sales on its finance page. Jamestown's permit form, which is undated, lists $75 per day or $500 per year, and it requires either the state license or a Secretary of State registration. Call each city auditor before you start work in that city, and confirm current figures, because the Williston figure is above the $25 per-day amount described in NDCC 51-04-09.

10. Calendar your renewals. The license expires one year after it is issued. Renew it before the expiration date, and keep your bond in force for 2 years after expiration. If you hold a contractor license, add its March 1 renewal to the same calendar.

Cost Summary

Item	Cost	Agency or Source
Transient merchant license	$200	Attorney General, NDCC 51-04
Surety bond or cash deposit	$1,000 to $50,000 (bond premium set by the surety company)	Amount approved by the Attorney General
City per-day fee	Up to $25 per day under NDCC 51-04-09. Williston lists $35 per day. Jamestown lists $75 per day or $500 per year.	Each city auditor
Trade name registration	$25 to register, $25 to amend, $25 to renew	Secretary of State
Name reservation	$10 for 12 months	Secretary of State
Contractor license	$100 (Class D) to $450 (Class A), renewed by March 1	Secretary of State
Sales and use tax permit	Confirm current fee	Office of State Tax Commissioner

Common Mistakes to Avoid

• Assuming one license covers city fees. The state license is valid in all counties, but cities can charge their own per-day fees and require their own permits.
• Looking for a county or statewide business license. Counties do not license businesses, and North Dakota has no general statewide business license. The Attorney General's license is the activity-based license that applies to you.
• Confusing a trade name registration with a license. Registering a trade name with the Secretary of State is a filing. It does not authorize you to sell door to door.
• Ending the bond on the expiration date. The bond must stay in force for 2 years after the license expires.
• Assuming your crew is exempt. The NDCC 51-04-08 exemption requires all three conditions together. Partial compliance does not qualify.
• Overlooking the contractor threshold. A roofing job above $4,000 requires a contractor license for the person doing the work, separate from the transient merchant license.
• Booking jobs before the sales tax permit is in hand. Apply about 30 days before you start, because permit timing can delay your first taxable sale.
• Misreading the agricultural exclusion. The exclusion covers livestock and agricultural products. It does not cover a tree or roofing crew.

What Results to Expect

Once the paperwork is complete, the license is a single state filing with a fixed $200 fee. The variables that affect your schedule are the bond, the sales tax permit, WSI setup and the Attorney General's processing time. Because the state does not publish a turnaround, plan for a gap between application and your first job. Operators who start the bond quote, permit and WSI steps early may be able to avoid lost bookings, although your results will depend on your specific operation and the agencies' current workloads.

Practical Tips

• Keep copies of your license, bond, sales tax permit, WSI confirmation and city permits in the work truck.
• Get the Attorney General's coverage answer for roofing work in writing before you advertise it.
• Compare bond quotes from several surety companies, since the premium is set by each company.
• Use the North Dakota Small Business Development Centers at und.edu/ndsbdc for free guidance on starting a business in the state.

Disclaimer: This article is informational only. It is not legal or tax advice, and statutes, fees and city rules change. Confirm current requirements with the North Dakota Attorney General, the Office of State Tax Commissioner, the Secretary of State and WSI before you apply. For situations involving entity structure, multi-state payroll or complex tax questions, consult a qualified North Dakota attorney or certified public accountant.