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Handyman Licenses in North Dakota – Everything you Need to Know

by Kimberly Soukup

Before you offer professional handyman services in North Dakota, it’s smart to know what you can legally do. This will keep you safe from the law, allowing you to earn money confidently.

I’ve pored over pages of difficult-to-understand legal jargon, spoken to state inspectors, and compiled the most critical information. And here’s what I’ve found.

Do you need a license to offer handyman services in North Dakota?

No. If the work delivered is valued at less than $4,000, a license isn’t required. This allows for much of what handyman work consists of:

drywall repair
painting
flooring install
Replacing windows/doors
cabinets/shelving install
caulk/grout application
basic carpentry

If you aim to take on projects that exceed $4K in cost, you’ll need to obtain your Contractor’s License.

Whether you obtain your contractor’s license or not, registering your business is required before any handyman can start working independently. Both contractor licensing and business registration are done through North Dakota’s Secretary of State’s office.

How do I register my handyman business?

Two things need to happen.

You’ll need to obtain:

an EIN (Employee Identification Number) from the IRS
Workers’ Compensation and Unemployment coverage (if you have employees)

Registration begins by following a few simple prompts and creating a login and password here.

What are the steps to attain a Contractor License?

Class D is the most common application handymen seek, allowing for projects with a value of up to $100,000.

Application requirements include:

certificate of liability insurance
certificate of payment, verifying Worker’s Comp coverage
Income tax withholding registration (if you plan to have employees)
signature in the presence of a notary (notarized application)
disclosure of: bankruptcy proceedings, court cases, and license denials/suspensions/revocations*

*While these experiences don’t necessarily preclude an applicant from obtaining a license, they do need to be documented.

Many handymen are pleased to discover that North Dakota doesn’t have an examination requirement.

The procedure for contractor licensing is neatly outlined on the Secretary of State website.

Contractor licensing must be renewed annually, on or before March 1, at a rate of $30.

Limitations for Handymen

One of the beauties of a less-populated state is the access to decision-makers. In a few quick calls, I was able to connect with the Executive Directors of both the electrical and plumbing boards. Unfortunately, they were in unison regarding limitations: North Dakota extends no latitude when it comes to plumbing and electrical projects; both require specialty licensing in their respective field.

While many states allow handymen to swap out old fixtures for new–as long as no new wiring or piping is done–North Dakota isn’t one of them. When pressed, I finally got the Executive Director of the electrical board to cede “phone systems” as the one electrical-related task handymen can take on. And that’s it.

Advertising Restrictions

Like in most states, handymen in North Dakota need to be careful not to “oversell” themselves in their ads, on their websites, or proposals and invoices. Stick with the occupation listed on your registration, and avoid using language like “licensed contractor” unless you hold a valid Contractor’s License.

Once you register your business, include the number in your business communications. It’ll help establish credibility with prospective customers and reassure enforcers.

Insurance Requirements

For handymen who work alone, no insurance is required. Once you have employees — or obtain your Contractor’s license — the requirements change.

Workers’ Compensation coverage is mandated if you have employees. The same applies to those who hold a Contractor’s License.

Contractor’s License holders will also need liability insurance. While handymen without their Contractor License aren’t obligated to carry liability insurance, it’s a wise choice. Just one serious claim can bankrupt your business and personal finances.

Insurance is low-cost if you get it here.

Penalties for Contracting Illegally

Handymen without a Contractor’s License who operate as a contractor (i.e., taking on projects greater than $4K in value), are committing a Class A misdemeanor and can be punished with up to 360 days in jail and $3,000 in fines. Additionally, perpetrators will be blocked from getting their Contractor License until the associated civil fines are paid, and they’ll have no recourse if the customer refuses to pay.

Those who perform plumbing, electrical, or mechanical work without a license face a Class B misdemeanor charge, including $1.5K in fines, and 30 days of incarceration.

Be smart—work within the parameters North Dakota has laid out for handymen, and tread the gray areas carefully. The penalties aren’t worth it.

Is there anything else I need to know to start a Handyman Business in North Dakota?

Naming your business is a crucial step in the business registration process. If you’re hoping to confer a catchy moniker to your business to help it stand out (i.e., “Hal’s Handyman Help”), you’ll want to take the few steps to complete a DBA (“Doing Business As”) application.

The DBA process is so simple, and the price is so modest ($25), that most handymen opt to take this step.

One exception to the trade name process applies to businesses that incorporate the owner’s surname. Referencing the example above, if you choose to name your company “Hal Higgins’ Handyman Help,” the DBA registration isn’t needed, since your last name (Higgins) is part of the business name.

Additional clarification on DBAs and trade names can be found here, under Step 2: Choose a Name for your Business.

Conclusion

North Dakota is a great place to start a handyman business.

Once handymen take the few steps to register their business, they’re allowed to earn up to $4,000 per project without a license.

Additionally, no education, training, or examination is required to provide services.

And for those handymen who don’t want their aspirations capped, high-yield work — up to $100,000 —is available once they obtain their Contractor License.