How to Start an Electrician Business in North Dakota: State Electrical Board Licenses, $50 Master and $25 Journeyman Annual Fees and the Master of Record Rule

If you want to run an electrical business in North Dakota, the license question comes first. Electrical work is licensed by the State Electrical Board under NDCC Chapter 43-09 and NDAC 24.1-03-01. The license you hold determines what you can sign, what you can bid, and which properties you can work on. Pick the wrong category and the business is stuck before it opens.

This guide walks through the sequence: choosing a license category, meeting the experience requirements, forming the company, carrying the right insurance, and renewing every year. The master electrician license carries a $50 annual fee and the journeyman license carries a $25 annual fee. Those figures were amended effective July 1, 2024.

This article is informational only. It is not legal or tax advice. Licensing rules, fees, and deadlines can change, so confirm each figure with the agency named before you spend money. For complex situations, such as choosing an ownership structure or planning how a master of record company will be organized, talk with a North Dakota attorney and a CPA.

What You Need Before You Start

Gather these items before you file anything with the board or the Secretary of State:

• Experience records. Signed, dated time logs showing hours worked as a journeyman under a contracting master or master of record.
• Exam registration. Exam fees are paid separately to the testing center, not included in the annual fee. Confirm the current exam fee and testing center with the State Electrical Board.
• Application and annual fee for the category you choose: $50 for master, $25 for journeyman, $40 for class B, $50 for power limited, and $10 for apprentice registration.
• Proof of insurance. Contractors must file proof of at least $500,000 in public liability insurance with the board.
• Entity formation documents. For an LLC, Articles of Organization filed through the FirstStop portal.
• Continuing education records. Renewal requires at least 8 hours of continuing education each biennium.

Step 1: Choose Your License Category

The board issues several license types. Application and renewal fees are the same, and each license expires on a fixed date. Plan these as recurring costs in your budget.

License	Application or annual fee	Expires
Master electrician	$50	April 30
Journeyman electrician	$25	March 31
Class B electrician	$40	April 30
Power limited electrician	$50	April 30
Apprentice registration	$10	January 31

Reinstatement after a lapse costs the same as the annual fee for that license. Under the board's rules, only a master or power limited electrician may sign a contract for electrical work. If you plan to bid jobs and sign customer contracts, you will need a master license at the top of the business.

Step 2: Understand the Three Master Categories

North Dakota recognizes three master categories. Your choice affects what the business can do, so read each one carefully before you apply.

• Contracting master. Answers for compliance with North Dakota wiring standards and shows liability insurance. This is the category for a company that takes customer work.
• Master of record. Is responsible for a company and is covered by that company's insurance. A master of record may work only on property the company owns or leases.
• Noncontracting master. Works as a journeyman under a contracting master or master of record.

The Master of Record Rule Explained

The master of record category is the one owner-operators most often misread. It lets a company hold its electrical work under a responsible master, with the company's insurance covering that work. The trade-off is scope. A master of record may work only on property the company owns or leases.

That makes the category a fit for a business that does electrical work on buildings it owns or leases, such as its own shop, warehouse, or rental property. If your plan is to wire homes, farms, or commercial buildings for paying customers on properties you do not own or lease, you need the contracting master route instead. Confirm the scope limits with the State Electrical Board before you commit to a business plan built around this category.

Step 3: Meet the Experience Requirements

Experience is usually the longest part of the timeline. A master applicant needs 2,000 hours as a journeyman under a contracting master or master of record. A journeyman license requires 8,000 hours, and that cannot be completed in under 3 years.

Start by registering as an apprentice for $10, which expires each January 31. Then work toward journeyman status. Keep your time logs signed and dated by the supervising master so they hold up when you apply. Reciprocity with other states is possible under NDCC 43-09-25, so if you already hold an electrical license elsewhere, ask the board whether it can count toward North Dakota licensing.

Step 4: Form the Business Entity

A licensed master can operate through an LLC, a corporation, or another entity. For an LLC, file Articles of Organization under NDCC Chapter 10-32.1 through the FirstStop portal at https://firststop.sos.nd.gov/. The filing fee is $135. The Secretary of State publishes no guaranteed processing time, so call Business Services at (701) 328-2900 for current timing.

• Name reservation. If you need to hold a name while you prepare filings, a reservation costs $10 and lasts 12 months, renewable for successive 12 month periods.
• Name requirements. Under NDCC 10-32.1-11, the name must include 'limited liability company,' 'L.L.C.,' or 'LLC.' It may not contain 'corporation,' 'incorporated,' or related restricted terms, and it must be distinguishable in state records from other registered names.
• Registered agent. An LLC must maintain a North Dakota registered agent with a physical in-state address. The business cannot serve as its own agent, and you must get the agent's approval before naming them.
• Trade name. If the company will operate under a name other than its legal name, register a trade name with the Secretary of State for $25.
• Annual report. The LLC annual report is $50 and is due November 15 every year.

Step 5: Carry the Required Insurance

Contractors must file proof of at least $500,000 in public liability insurance with the State Electrical Board, as required by 43-09-20. A contracting master also shows liability insurance as part of the license. For a master of record company, the company's insurance is what covers the licensed master's work, so the policy must be in the company's name and cover the work you perform. Ask your insurance agent to confirm those terms in writing before you file the proof with the board.

Step 6: Set Up Workers' Compensation, Payroll, and Tax Registration

Workers' compensation in North Dakota is a state monopoly run through WSI (WorkForce Safety & Insurance). If you hire employees, you buy coverage through WSI and cannot use a private carrier for it.

Any business making taxable sales must hold a sales and use tax permit from the Office of State Tax Commissioner. Apply through ND TAP at https://tap.tax.nd.gov/?Link=Application about 30 days before you open. The state sales tax rate is 5%, plus any applicable city and county taxes. Whether your electrical work is subject to sales tax depends on how you bill, so confirm the treatment with the Tax Commissioner at https://www.tax.nd.gov/ before you set prices.

Step 7: Check the Secretary of State Contractor License

A job with a cost, value, or price over $4,000 also requires a North Dakota contractor license from the Secretary of State. Contractor license fees run from $100 for Class D (jobs up to $100,000) to $450 for Class A (jobs over $500,000), and they renew annually by March 1.

The contractor license is a separate requirement. It does not replace the electrical license, and it does not let anyone perform electrical work. Electrical work still requires licensing from the State Electrical Board. Hold both if your business takes jobs above the threshold.

Step 8: Check Local Requirements

North Dakota has no general statewide business license, and no major city issues one. Some cities add their own electrical licensing on top of the state license. As of its current fee sheet, Minot lists $130 for a master electrician. Check the fee sheet of every city where you plan to work, because the figures and requirements can differ from one city to the next.

Step 9: Renew on Time and Keep Your Installations Compliant

Renew each license by its expiration date: master, class B, and power limited on April 30, journeyman on March 31, and apprentice registration on January 31. Renewal requires at least 8 hours of continuing education each biennium under 43-09-15.1, so keep your course certificates organized.

The board inspects electrical installations and can order a disconnection of service under 43-09-22. A poor installation can therefore end a job and cost you a customer, so build inspection readiness into every project rather than treating it as a final step.

Common Mistakes to Avoid

• Treating the contractor license as the electrical license. The Secretary of State contractor license covers jobs over $4,000, but electrical work still requires the State Electrical Board license.
• Using master of record status for customer work. A master of record may work only on property the company owns or leases. Customer jobs on other people's property need the contracting master route.
• Missing different expiration dates. Journeyman licenses expire March 31, while master, class B, and power limited licenses expire April 30. Track each one separately.
• Filing insurance below the minimum. The board requires proof of at least $500,000 in public liability coverage.
• Logging hours without signatures. Unsigned or vague time records can slow your application.
• Forgetting the separate exam fee. The annual fee does not cover exam costs. Budget for them on their own line.
• Missing the LLC annual report. The $50 report is due November 15 each year, and skipping it creates a separate compliance problem.
• Relying on old fee figures. Fees were amended effective July 1, 2024. Confirm current amounts with the board before you pay.

Tips for a Smoother Launch

• Put all four license expiration dates on one shared calendar, with reminders 60 days ahead.
• Decide on the master category before you form the entity, because the category shapes who can sign contracts and where the company may work.
• Ask the State Electrical Board to confirm reciprocity in writing if you are licensed in another state.
• Ask the University of North Dakota's Small Business Development Centers at https://und.edu/ndsbdc/index.html for help with the business plan and filing sequence.

What to Expect

Many applicants find that experience hours, not paperwork, set the pace of the launch. A business owner who already holds journeyman time may be able to move toward a master license more quickly than someone starting from scratch. Timing for the Secretary of State and the board can vary, so build a buffer into your opening date and confirm current processing times with each agency before you commit to a schedule.

Once the license, entity, insurance, and tax registrations are in place, the business is positioned to bid work legally. Results depend on your experience, your category, and the local requirements where you work.

Next Steps

Start with the license category that matches your plan, then work through the entity, insurance, and tax steps in order. Use the official resources listed above, including the North Dakota Secretary of State at https://www.sos.nd.gov/ and the Office of State Tax Commissioner at https://www.tax.nd.gov/, to confirm every fee and deadline before you file.

Reminder: this article is informational content, not legal or tax advice. Consult a qualified North Dakota attorney and a CPA for decisions about entity structure, tax treatment, and liability.