Starting a service business in North Dakota

Form your business in North Dakota

North Dakota LLCs are created when the Secretary of State accepts your articles of organization, filed online in FirstStop. Registration of a domestic LLC is $135 as listed by the Secretary of State in October 2026. The office does not publish a processing time on its LLC page, so file a couple of weeks before you need the LLC on contracts, your bank account or your contractor license application.

Ongoing state filings

Every North Dakota LLC files an annual report. The fee is $50 as listed by the Secretary of State in October 2026, due November 15 for business LLCs (farming and ranching LLCs file by April 15). The contractor license law ties into this: the Secretary of State can mark your contractor license not in good standing if your LLC falls out of good standing (N.D.C.C. 43-07-04), so a missed annual report can follow you onto job sites.

Using a business name (DBA)

If you operate under a name that does not include your LLC's true name, or your own first name and surname as a sole proprietor, you register it as a trade name with the Secretary of State through FirstStop. Registration is $25 as listed by the Secretary of State in October 2026, and it must be renewed every 5 years. A lapsed trade name registration is another item that can put a contractor license out of good standing.

Not sure whether you need an LLC at all? Read LLC vs sole proprietor for contractors, then get your free EIN from the IRS.

Licensing for service trades

North Dakota requires a state contractor license from the Secretary of State when the cost, value or price of a job exceeds $4,000 (N.D.C.C. 43-07-02); working unlicensed above that line is a class A misdemeanor. Licenses come in four classes by the largest single project you may take on: Class D up to $100,000, Class C up to $300,000, Class B up to $500,000, and Class A with no limit. The application must include a certificate of liability insurance, plus a Workforce Safety and Insurance statement if you have employees in North Dakota. Licenses run on a contractor year that ends March 1, so renewal comes every spring. Electrical work is licensed by the State Electrical Board, and only master or power limited electricians may contract for it in most cases. Plumbing in any location with a public water or sewer system requires a license from the State Plumbing Board. Applying pesticides for hire, weed control on lawns included, requires commercial applicator certification, administered through the NDSU Extension Pesticide Certification and Training Program under the Department of Agriculture's rules. Cities set their own permit rules and may license other trades, including heating and air conditioning, so call the building office in each city you work.

• North Dakota Secretary of State, Contractor Licensing: Contractor license for any job over $4,000 (Class A to D)
• North Dakota State Electrical Board: Electricians and electrical contractors
• North Dakota State Plumbing Board: Master and journeyman plumbers, water conditioning and sewer and water contractors
• North Dakota Department of Agriculture, Pesticide and Fertilizer Division: Commercial pesticide applicator certification (training through NDSU Extension)

Workers' compensation

North Dakota is a monopolistic state fund state. Workforce Safety and Insurance (WSI) says it is the sole provider of workers' compensation in North Dakota and that state law does not allow private insurers to write it. WSI requires all employers to insure all employees, including part-time, seasonal and occasional workers, before they begin working; there is no minimum headcount. Owners, partners, corporate officers and their spouses are exempt from mandatory coverage but may elect it. Workers are presumed to be employees unless they meet the independent contractor test, so treat a seasonal helper on your mowing or snow route as an employee unless you can show otherwise. Because you cannot shop private carriers, your general liability policy and your WSI account are two separate purchases.

More on coverage: business insurance for contractors.

Sales tax on services

North Dakota's sales tax is 5% for most retail sales, and the Office of State Tax Commissioner says most services are not taxed. For contractors it states that repair service labor is not taxable, but the parts and materials sold or used in a repair are: on a furnace motor replacement, the labor is untaxed and the contractor pays sales or use tax on the motor. A 2017 Tax Commissioner newsletter says mowing, thatching and aerating lawns is a service that is generally not taxable, while the products and equipment you buy to do it are taxed. If you sell taxable goods, apply for a sales and use tax permit in ND TAP; the Tax Commissioner suggests applying 30 days before you open. We could not find an official statement of a fee for a new permit, so ask the Tax Commissioner when you apply.

Recording business calls in North Dakota

North Dakota follows one-party consent. N.D.C.C. 12.1-15-02 makes interception a felony, but it is a defense that the person was a party to the communication or one party gave prior consent, as long as the recording was not made to commit a crime or other unlawful harm. You may record calls you are on. For out-of-state callers, a recorded notice is the safe habit; see our guide to recording business calls.

See our guide to recording business calls before you turn on call recording or an AI receptionist.

How the seasons shape the work

North Dakota's season is short and hard. Lawn, exterior painting, power washing and construction work compress into roughly May through October, and long subzero winters make snow removal, furnace repair and frozen-pipe calls the backbone of a year-round business. Spring flooding along the Red River and other river valleys brings sump pump, basement and cleanup work in some years. Plan cash flow for the slow shoulder months and line up winter contracts before the first snow.

Warranty notice on home improvements over $2,000

Under N.D.C.C. 43-07-26, before a homeowner can sue over a defect in an improvement worth more than $2,000 to a dwelling, they must give the contractor written notice and a chance to inspect and respond. The contractor must give the owner written notice of these requirements when the job is completed. Add that notice to your completion paperwork.

One account ties your license together

Your contractor license stays in good standing only while your liability insurance, your LLC and your trade name registration all stay current (N.D.C.C. 43-07-04). Put the November 15 annual report, the March 1 license renewal and your 5-year trade name renewal on one calendar.

Then set up the back end that gets you hired

The paperwork makes you legal. Customers still have to find you, reach you and pay you. Before your first job, set up a business phone number, email on your own domain, a Google Business Profile, a simple website, and a way to send quotes and take card payments. The launch checklist lays out the order.

North Dakota questions