ND General Contractor cheat sheet

North Dakota has no statewide general contractor license; the Secretary of State issues a Contractor's License under N.D.C.C. ch. 43-07 based on a written examination and a surety bond.

A contractor may not bid or contract on a project in North Dakota without first holding a valid license and paying the annual license fee; unlicensed contracting is a class B misdemeanor.

A license is required when the contractor undertakes work on a project where the contract price exceeds $4,000; projects at or below that threshold do not trigger the license requirement.

The license fee is $150 per year for in-state contractors and $200 per year for out-of-state contractors, with a $50 late fee if renewal is not filed by the expiration date.

The license year runs from July 1 through June 30; a license that lapses becomes invalid immediately and must be reinstated before new work begins.

The required surety bond is $25,000 for an in-state contractor and $50,000 for an out-of-state contractor, running to the benefit of the state and persons injured by a license law violation.

A license is not transferable; a change in business structure, ownership, or name requires a new or amended application with the Secretary of State.

Each contractor must designate a qualifying party who passes the examination; loss of the qualifying party requires notice to the Secretary of State and replacement.

An out-of-state contractor must file a consent to service of process with the Secretary of State and appoint an agent for service before the license is issued.

The Secretary of State is the filing office for corporations, limited liability companies, limited partnerships, and trade names in North Dakota; the filing is effective on the date it is received unless a later effective date is stated.

A domestic corporation files articles of incorporation; a foreign corporation files an application for certificate of authority plus a certificate of good standing from its home state.

An LLC is formed by filing articles of organization; a foreign LLC files a foreign registration statement and must maintain a registered agent in North Dakota.

A registered agent must have a physical North Dakota address; a post office box alone is not acceptable, and a change of agent or address requires an amendment filing.

An annual report is due for corporations and LLCs; failure to file can lead to administrative dissolution or revocation of authority to do business in the state.

A trade name may be registered by filing a trade name registration; the registration does not create exclusive statewide rights but provides public notice of use.

A professional corporation or professional LLC must show the licensed profession in its name and may only be owned by persons licensed in that profession.

A nonprofit corporation files articles of incorporation stating nonprofit purpose and must include the required IRS-related language for tax-exempt status.

A mechanic's lien must be filed with the clerk of the district court in the county where the improvement is located within 90 days after the last item of work or materials is furnished.

A person who furnishes labor or materials under a contract with the owner, or a subcontractor, may claim a lien; the lien attaches to the improvement and the owner's interest in the land.

The lien statement must identify the claimant, the owner, the amount claimed, and a description of the property, and must be verified by affidavit.

An action to foreclose a mechanic's lien must be commenced within one year after the lien is filed; failure to do so extinguishes the lien.

A UCC financing statement is filed with the Secretary of State to perfect a security interest in personal property; the filing is effective for five years and may be continued.

A UCC financing statement must identify the debtor by exact legal name and the secured party, and describe the collateral; an error in the debtor's name can make the filing seriously misleading.

A continuation statement must be filed within six months before the five-year lapse date to continue perfection; a lapse allows intervening liens to gain priority.

A construction lien on real property is not a UCC filing; a UCC filing covers personal property such as equipment or accounts receivable, not the real property improvement.

The Secretary of State may investigate a complaint alleging unlicensed contracting or a violation of the contractor licensing law and may hold a hearing.

A complaint must be filed in writing with the Secretary of State and state the facts, the parties, and the relief sought; the contractor is given notice and an opportunity to respond.

The Secretary of State may suspend or revoke a license, impose a civil penalty, or require restitution after a finding of a violation.

A person aggrieved by a final order may appeal to the district court within 30 days after the order is served.

A contractor must maintain records of contracts, change orders, and payments and produce them on request during an investigation.

Advertising or holding out as a licensed contractor without a license is a violation and may be referred for criminal prosecution as a class B misdemeanor.

A contractor must notify the Secretary of State within 30 days of a change in business name, address, ownership, or qualifying party.

A consumer may also pursue a private civil action for damages caused by an unlicensed contractor, in addition to filing an administrative complaint.