North Dakota General Contractor License Requirements: The Secretary of State A/B/C/D Classes & the $4,000 Threshold (2026)

If you are planning to run a general contractor business in North Dakota, here’s the good news: the state’s general contractor license is one of the most straightforward in the country. There’s no exam, no financial statement, and no state bond – the license is issued by the Secretary of State (not a traditional licensing board) and is defined simply by the maximum value of the projects you take. You register your business, choose the class that fits your project sizes, provide proof of insurance, and apply online. The main things to get right are picking the correct class and handling North Dakota’s specific workers’ compensation system. This guide walks through all of it under current 2026 rules.

Some states run a rigorous exam-and-financials licensing program; North Dakota keeps its general contractor license simple and value-based. Nationally, the construction field is large and growing. According to the U.S. Bureau of Labor Statistics (Occupational Employment and Wage Statistics, May 2025), there are roughly 380,360 construction managers, 812,210 first-line supervisors of construction trades, 146,720 construction and building inspectors, and about 1,096,780 construction laborers across the country. Employment of construction managers is projected to grow 9% from 2024 to 2034 – much faster than the average for all occupations.

In North Dakota specifically, the BLS reports about 1,450 construction managers (median pay $102,070), 4,350 first-line construction supervisors ($81,370), 180 construction and building inspectors ($78,570), and roughly 5,050 construction laborers ($49,070) – a smaller but high-wage market shaped by energy and infrastructure work in the Bakken region and steady demand in Fargo, Bismarck, and Grand Forks. This guide draws its requirements from the official source: the North Dakota Secretary of State.

Quick Answer: Do You Need a General Contractor License in North Dakota?

Yes – North Dakota requires a state contractor license for any project valued at more than $4,000, issued by the North Dakota Secretary of State under N.D.C.C. Chapter 43-07. Below $4,000, no state license is required (though local rules may apply). Unusually, the license comes from the Secretary of State’s office – not a licensing board – and the process is simple.

The license is defined entirely by maximum project value, in four classes: Class D (up to $100,000), Class C (up to $300,000), Class B (up to $500,000), and Class A (over $500,000, no cap). Notably, North Dakota requires no state exam, no financial statements, and no state surety bond for general contractors. To get licensed, you register your business with the Secretary of State, submit a Contractor’s Application through the FirstStop online portal with a signed statement of your experience and qualifications, and provide a certificate of liability insurance naming the Secretary of State as certificate holder. If you have employees, you’ll also show workers’ compensation coverage through Workforce Safety & Insurance (WSI), the state’s monopolistic workers’ comp fund. Licenses renew annually by March 1.

Who Regulates Contractors in North Dakota?

North Dakota’s general contractor licensing is handled by the Secretary of State, with the trades and workers’ comp handled separately:

• North Dakota Secretary of State (SOS): Issues the general contractor license (Classes A-D) statewide under N.D.C.C. Chapter 43-07, through the FirstStop online portal – it’s an administrative license, not an exam-based board credential
• North Dakota Workforce Safety & Insurance (WSI): The state’s monopolistic workers’ compensation fund – employers secure workers’ comp coverage here
• Separate trade boards: The North Dakota State Electrical Board licenses electricians, and the North Dakota State Board of Plumbing licenses plumbers, each with their own exams and requirements
• Local governments: Many cities require their own local contractor license and, sometimes, a local bond

Key contacts:

• ND Secretary of State – Contractor Licensing: sos.nd.gov; the license and the FirstStop portal (600 E Boulevard Ave., Dept 108, Bismarck)
• ND Workforce Safety & Insurance (WSI): workers’ compensation (701-328-3800)
• Local city licensing offices: Fargo, Bismarck, Grand Forks, and others

Because North Dakota licenses general contractors through the Secretary of State with a simple, administrative process, one state license works statewide – though local city licensing and permits may still apply.

The $4,000 Threshold & License Classes

North Dakota’s licensing requirement is triggered by a low dollar figure: under N.D.C.C. Chapter 43-07, any contractor performing work valued at more than $4,000 must hold a state contractor license. This applies broadly to construction, repair, alteration, and demolition work. Below $4,000, no state license is required – which exempts many small residential jobs – but local rules can still apply.

Class D, C, B & A

The license is defined by the maximum value of any single project you’ll undertake, in four classes:

• Class D – projects up to $100,000
• Class C – projects up to $300,000
• Class B – projects up to $500,000
• Class A – projects over $500,000 (no upper limit)

You choose the class that matches the largest contract you intend to take. The class determines your filing fee (higher classes cost more), but the requirements are otherwise the same across classes – there’s no additional exam or financial test for a higher class.

Which Class Do You Need?

Pick the class that covers the largest single project you plan to bid. If you’ll do a $250,000 remodel, you need at least Class C; a $600,000 custom home requires Class A. It’s generally wise to license at the class that fits your realistic ceiling, since taking a project above your class limit is a violation. If your business grows into larger projects, you can move up a class at renewal (or by amending your license) – and because there’s no exam, upgrading is simply a matter of the higher fee and updated application, not re-testing.

North Dakota Contractor License Requirements

Here’s what the Secretary of State requires – and it’s refreshingly short.

Application & Statement of Experience

To get licensed, you:

• Register your business entity with the North Dakota Secretary of State (the license must use the exact registered business name)
• Complete the Contractor’s Application (SFN 12012) through the FirstStop online portal
• Sign a statement of your experience and qualifications as a contractor – signed under oath (you must be at least 18 and have a valid SSN or ITIN; there’s no residency requirement)
• Pay the filing fee for your chosen class

That’s the core of it – there’s no exam to schedule, no financial statement to prepare, and no bond to post at the state level.

Insurance & Workers’ Comp (WSI)

The insurance requirements are where most of the substance lies:

• General liability insurance: A certificate of liability insurance is required, using the exact name of the license applicant and naming the North Dakota Secretary of State as certificate holder (600 E Boulevard Ave., Dept 108, Bismarck). Typical coverage runs $500,000 to $1,000,000 per occurrence
• Workers’ compensation: If you have employees in North Dakota, you must secure workers’ comp through Workforce Safety & Insurance (WSI) – North Dakota is a monopolistic state, meaning coverage must come from the state fund, not a private carrier. Contractors with no employees provide a letter of good standing from WSI instead
• Commercial auto insurance may be required if you use vehicles for work (minimum limits reported at $25,000 per person / $50,000 per accident / $25,000 property damage)

No Exam, No Financials, No Bond

It’s worth emphasizing what North Dakota does not require for the general contractor license:

• No state exam – unlike most states, there’s no trade or business-and-law test
• No financial statements – you don’t document net worth or working capital
• No state surety bond – all contractor bond requirements were repealed by state law in 1995 (though cities may require local bonds)
• No background check at the state level, and no continuing education for renewal

This makes North Dakota one of the lowest-barrier state licenses in the country – the emphasis is on registration, insurance, and workers’ comp compliance rather than testing competency.

North Dakota Contractor Requirements at a Glance

Requirement	Detail
State license	Yes – via Secretary of State (N.D.C.C. Ch. 43-07)
Threshold	Projects over $4,000
License classes	D (up to $100K), C (up to $300K), B (up to $500K), A (over $500K)
Exam	None
Financial statement	None
State surety bond	None (repealed 1995; local bonds may apply)
Application	FirstStop portal + signed statement of experience
General liability insurance	Required (SOS as certificate holder; typically $500K-$1M)
Workers’ compensation	Through WSI (monopolistic state) if you have employees
Age	18+ with valid SSN/ITIN; no residency requirement
Renewal	Annual by March 1 ($30-$90 by class; $50 late penalty until June 1)
Reciprocity	Not applicable (no exam to reciprocate)

How to Get a North Dakota Contractor License: Step by Step

Here’s the practical path to a North Dakota contractor license.

Step 1 – Register Your Business

Register your business entity with the North Dakota Secretary of State and obtain a federal EIN. Your contractor license must use the exact registered business name.

Step 2 – Get Insurance & WSI Coverage

Obtain a certificate of general liability insurance (naming the ND Secretary of State as certificate holder), and set up workers’ compensation through Workforce Safety & Insurance (WSI) if you have employees – or obtain a WSI letter of good standing if you don’t.

Step 3 – Choose Your License Class

Select the class that covers the largest single project you’ll take: Class D (up to $100,000), C (up to $300,000), B (up to $500,000), or A (over $500,000). This determines your filing fee.

Step 4 – Apply Through FirstStop

Complete the Contractor’s Application (SFN 12012) through the Secretary of State’s FirstStop online portal, sign the statement of your experience and qualifications under oath, attach your insurance certificate and WSI verification, and pay the class-based filing fee.

Step 5 – Maintain & Renew by March 1

Once issued, your license is valid statewide. Renew every year by March 1, keep your insurance and WSI coverage current, and upgrade your class if you take on larger projects.

How Much Does a North Dakota Contractor License Cost?

Cost Item	Amount
Class D license (up to $100,000)	$100 initial / $30 annual renewal
Class C license (up to $300,000)	$225 initial / $45 annual renewal
Class B license (up to $500,000)	$300 initial / $60 annual renewal
Class A license (over $500,000)	$450 initial / $90 annual renewal
General liability insurance	Premium – varies ($500K-$1M coverage)
Workers’ compensation (WSI)	Premium – varies (if you have employees)

North Dakota’s license fees are set by statute (N.D.C.C. §43-07-07) and scale directly with your class – and renewal fees are much lower than the initial application fee. The initial license fees are $100 (Class D), $225 (Class C), $300 (Class B), and $450 (Class A), while the annual renewal fees are $30, $45, $60, and $90 respectively. Because there’s no exam fee, no financial-statement cost, and no state bond premium, the license itself is inexpensive. Your real costs are general liability insurance and, if you have employees, workers’ compensation through WSI. Confirm the current fee schedule with the North Dakota Secretary of State, since fees can change.

License Renewal

North Dakota contractor licenses must be renewed annually by March 1. To renew, you confirm your information, keep your certificate of liability insurance current (with the Secretary of State still listed as certificate holder), and maintain your WSI workers’ comp coverage if you have employees. There’s no continuing education requirement for renewal, which keeps the process simple.

A couple of practical notes: the fixed March 1 renewal date applies to all licensees regardless of when you first licensed, so calendar it. Renewal (N.D.C.C. §43-07-10) also requires you to list each North Dakota project, contract, or subcontract from the preceding calendar year over $50,000 – which the registrar forwards to the state tax commissioner – and to certify that your payroll taxes, WSI premiums, and unemployment insurance are paid in full. If you miss the March 1 deadline, your license is no longer in good standing; you then have until June 1 to renew by paying a $50 penalty fee plus the renewal fee, after which you’d have to reapply. If your project sizes have grown, renewal is a natural time to move up a class (for example, from Class C to Class B) – since there’s no exam, upgrading is just the higher fee and updated application. Keep your insurance continuously active, and handle renewals through the FirstStop portal.

Does North Dakota Have Contractor License Reciprocity?

Reciprocity doesn’t really apply to North Dakota’s general contractor license in the traditional sense – because there’s no state exam to waive, an out-of-state contractor simply completes the same simple North Dakota licensing process as any resident. You register your business, provide insurance, handle WSI, and apply through FirstStop, regardless of where you’re based (there’s no residency requirement). So while North Dakota doesn’t have formal “reciprocity agreements” for the general license, the low-barrier process means there’s little for an out-of-state contractor to transfer or re-earn.

For the licensed trades – electrical and plumbing – the relevant North Dakota boards set their own licensing and any reciprocity or endorsement rules, which typically still involve meeting North Dakota’s experience and exam requirements. If you hold a trade license from another state, contact the appropriate North Dakota board. For general contracting itself, just complete the Secretary of State process directly.

Two extra points apply specifically to out-of-state (nonresident) contractors, though. First, North Dakota’s contractor license expressly covers nonresident contractors, and out-of-state contractors have additional tax obligations – North Dakota law provides for reporting construction contracts to the state tax commissioner (to ensure state income and sales/use tax compliance), so confirm the current nonresident tax-reporting and any tax-bond requirements with the ND Office of State Tax Commissioner before starting work. Second, because North Dakota’s workers’ comp is monopolistic, a private out-of-state workers’ comp policy is not recognized in North Dakota – an out-of-state contractor bringing employees into the state must open a North Dakota WSI account and pay premiums on payroll allocated to North Dakota work (unless WSI approves an extraterritorial arrangement).

Local & City Licensing

While the North Dakota general contractor license is statewide, many cities require their own local contractor license on top of the state credential – and, unlike the state, some municipalities require a local surety bond. Cities like Fargo, Bismarck, Grand Forks, Minot, and West Fargo commonly have their own registration or licensing, local fees, and sometimes bonding requirements meant to protect the public against a contractor’s unlawful or unethical actions.

So a contractor’s full compliance in North Dakota often has two layers: the state license (Secretary of State) and any local city license where you work. Building permits are also handled locally. Because local requirements vary – and some cities require bonds the state doesn’t – always confirm the licensing, bonding, and permit rules with the specific city or county where you’ll work before starting a project.

Specialty Trade Licenses in North Dakota

While the general contractor license is simple and exam-free, North Dakota’s skilled trades are genuinely licensed with exams and experience requirements, through separate boards. A general contractor coordinates these licensed trade contractors.

Electricians

Electrical work requires a state license through the North Dakota State Electrical Board – a separate board from the Secretary of State, with real requirements. A journeyman electrician, for example, needs about 8,000 hours of experience (at least three years), apprentice registration, approved training, and a passing exam. A general contractor engages a licensed electrical contractor license holder for electrical scope rather than self-performing it.

Plumbers

Plumbing requires a state license through the North Dakota State Board of Plumbing, with apprentice, journeyman, and master classifications requiring experience and exams. A general contractor uses a licensed plumber for plumbing work and verifies the plumbing license through the board before contracting.

HVAC

HVAC contracting in North Dakota is generally handled under the state contractor license and local requirements rather than a dedicated statewide HVAC license, though gas and mechanical work can overlap with licensed trades. Any technician handling refrigerant also needs federal EPA Section 608 certification. A general contractor coordinating HVAC should confirm the HVAC license or trade requirements that apply.

Unlike the general contractor license, electrical and plumbing require genuine state exams and experience. Engage properly licensed tradespeople and verify their licenses through the relevant North Dakota board before contracting.

Penalties for Unlicensed Contracting in North Dakota

North Dakota’s general contractor license is easy to obtain – so the penalties for skipping it are hard to justify:

• Class A misdemeanor – Operating as a contractor on work valued over $4,000 without the appropriate license is a Class A misdemeanor under North Dakota law, potentially leading to fines or imprisonment
• Working above your class – Even a licensed contractor who takes a project above their license class limit is in violation
• Inability to enforce contracts – Unlicensed contractors can face difficulty enforcing contracts or collecting payment for work requiring a license
• Local enforcement – Working without a required local city license can bring additional municipal penalties and permit denial

You can verify any North Dakota contractor license – including class and status – through the Secretary of State’s public license search in about two minutes. Because the license is inexpensive and exam-free, and unlicensed work over $4,000 is a criminal misdemeanor, the practical rule is simple: register, insure, choose the right class, and license before doing any covered work.

How Much Does a General Contractor Make in North Dakota?

General contractor earnings in North Dakota are strong, supported by energy and infrastructure work in the Bakken oil region and steady construction demand in Fargo, Bismarck, and Grand Forks. As a general reference point for the broader construction workforce, the U.S. Bureau of Labor Statistics tracks construction managers and related occupations, and self-employed general contractors’ income depends heavily on their work mix, project size, and how many jobs they run. For a closer look at how pay scales with role, experience, and region, this contractor and construction manager salary guide breaks the numbers down.

North Dakota General Contractor Salary by Role

Because “general contractor” isn’t a single wage category, the closest picture comes from the related construction roles the BLS tracks in North Dakota. Construction managers – the role most like a general contractor – earn a median well into six figures:

Role	Median Hourly Wage	Median Annual Wage
Construction Managers (GC-equivalent)	$49.07/hr	$102,070
First-Line Construction Supervisors	$39.12/hr	$81,370
Construction & Building Inspectors	$37.78/hr	$78,570
Construction Laborers	$23.59/hr	$49,070

North Dakota’s construction manager median of about $102,070 is strong for a smaller state, reflecting the high-wage energy-and-infrastructure economy – with top earners above $168,000 a year and even construction laborers earning a $49,070 median. Because the state license is so easy to obtain, the barrier to entry is low, so the path to capturing that earning potential in North Dakota is largely about licensing correctly, carrying solid insurance, handling WSI, and building a strong reputation in a competitive, high-wage market.

Tips for Growing Your Contracting Business in North Dakota

A successful general contracting business is built on reputation, reliable delivery, and strong client and subcontractor relationships. Beyond getting licensed, the contractors who thrive treat the business side – bidding, scheduling, and project management – as seriously as the build. Here are strategies to help you grow your general contracting business in North Dakota’s market:

License at the right class. Choose the class that covers your largest realistic project, and move up as you grow. Because there’s no exam, upgrading is just a fee and application – so don’t let your class cap your bidding.

Handle WSI correctly. North Dakota’s monopolistic workers’ comp system means coverage runs through WSI. Set it up before you hire, and keep a current letter of good standing if you have no employees.

Keep the SOS as your certificate holder. North Dakota requires the Secretary of State to be listed as certificate holder on your liability insurance – a specific requirement that trips up out-of-state contractors. Make sure your certificate is correct.

Don’t overlook local licensing. Many North Dakota cities require their own license and sometimes a local bond. Check each city where you work – the state license alone may not be enough.

Coordinate licensed trade subs. Electrical and plumbing require genuine state exams and licenses. Build a bench of licensed subs and verify each credential to keep projects compliant.

Bid and manage jobs with the right tools. North Dakota’s competitive, high-wage market rewards fast, accurate estimates and tight project management. General contractor software handles estimating, scheduling, invoicing, and client communication in one place – so you spend more time building and less on paperwork. Make it easy for clients to reach and book you with online booking.

Build your reputation online. With such a low licensing barrier, competition is real, and reputation matters. A strong online presence, verifiable license, and clear reviews are among the highest-return investments for winning larger projects.

North Dakota vs. Neighboring States: How Does Licensing Compare?

State	State GC License?	Model	Exam Required
North Dakota	Yes – Secretary of State	State license (by value, no exam)	No
South Dakota	No statewide GC license	Local	Local
Minnesota	Residential license (DLI)	State license (residential)	Yes (PSI)
Montana	Registration only	Workers’ comp registration	No
Wyoming	No statewide GC license	Local	Local

North Dakota occupies a middle ground in the region: it has a genuine statewide license – unlike South Dakota and Wyoming (which leave general contracting local) or Montana (which uses a workers’-comp registration) – but it’s exam-free and value-based, far simpler than Minnesota’s exam-based residential license. What defines North Dakota is this combination of a real state license with a low barrier – four value classes, no exam, no financials, no state bond, just insurance and WSI. For a general contractor, North Dakota is one of the easiest states to get licensed in while still holding a legitimate statewide credential.

Ready to Build Your North Dakota Contracting Business?

North Dakota is one of the easiest states to get a genuine contractor license: register your business, choose the class that fits your largest projects (D, C, B, or A), provide a certificate of liability insurance naming the Secretary of State as certificate holder, handle workers’ comp through WSI if you have employees, and apply through the FirstStop portal – no exam, no financials, no state bond. Renew every year by March 1, upgrade your class as you grow, check for local city licensing, and use genuinely licensed electricians and plumbers for that work. Do these things well, and you can build a strong contracting business in one of the country’s highest-wage construction markets.

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