How to Start an HVAC Business in North Dakota (2026)

Last updated: February 26, 2026

Starting an HVAC business in North Dakota is unique compared to most states: North Dakota has no statewide HVAC technician or contractor license. There is no North Dakota HVAC licensing board. Instead, HVAC contractors who perform jobs valued over $4,000 must register as contractors with the North Dakota Secretary of State, and individual cities – including Bismarck, Fargo, Minot, and Grand Forks – maintain their own journeyman and master HVAC licensing requirements. EPA Section 608 certification is a federal requirement for anyone handling refrigerants and applies regardless of state licensing. WSI workers’ comp registration is mandatory before hiring any employee.

HVAC Business Requirements in North Dakota at a Glance

Requirement	Agency	Cost	Timeline
LLC formation (Articles of Organization)	ND Secretary of State (FirstStop)	$135	1-3 business days
ND Contractor License (for jobs over $4,000)	ND Secretary of State	$100-$450 (by class)	2-4 weeks; renew by March 1
Local HVAC Journeyman license	City license office (varies)	Varies by city	Exam required; varies by city
Local HVAC Master license	City license office (varies)	Varies by city	Experience + exam required
EPA Section 608 certification	EPA-approved certifier (federal)	$20-$50 (exam)	Pass exam; no expiration
Sales and Use Tax Permit	ND State Tax Commissioner	Free	Apply 30 days before opening
WSI workers’ comp (if employees)	Workforce Safety & Insurance	Premium based on payroll	Before day 1 of employment
General liability insurance	Private insurer	$1,000-$3,000+/year	Required for contractor registration

How to Start an HVAC Business in North Dakota (Step by Step)

Step 1: Register Your Business Entity

File Articles of Organization for an LLC with the North Dakota Secretary of State via FirstStop for $135. Pay the $50 annual report fee each November 15. An LLC is the standard entity choice for HVAC contractors – it limits personal liability on contracts and claims.

Step 2: Get EPA Section 608 Certification (Federal Requirement)

Any technician who purchases or handles refrigerants must hold EPA Section 608 certification. This is a federal requirement enforced by the EPA and applies to all HVAC work involving refrigerants regardless of state rules. Choose the appropriate certification type:

• Type I: Small appliances (sealed systems, less than 5 lbs of refrigerant)
• Type II: High-pressure refrigerants (most residential AC systems)
• Type III: Low-pressure refrigerants (centrifugal chillers)
• Universal: All types – recommended for full-service HVAC technicians

Exams are administered by EPA-approved certifying organizations. Fees typically run $20-$50 per exam. Certification does not expire once issued. Find approved test sites at the EPA’s website.

Step 3: Register as a ND Contractor (Jobs Over $4,000)

Any contractor performing work on projects valued over $4,000 must hold a North Dakota Contractor License from the Secretary of State. This applies to HVAC contractors performing equipment installation, system replacement, and commercial HVAC projects.

Apply via FirstStop. License classes and fees:

• Class D: Up to $100,000 per contract – $100 application / $30 annual renewal
• Class C: Up to $300,000 per contract – $225 application / $45 annual renewal
• Class B: Up to $500,000 per contract – $300 application / $60 annual renewal
• Class A: Over $500,000 per contract – $450 application / $90 annual renewal

Required with your application: a certificate of general liability insurance naming the North Dakota Secretary of State as certificate holder, and a WSI certificate of coverage (required if you employ workers in ND). Contractor licenses renew by March 1 annually.

Step 4: Obtain Local HVAC Licenses in Target Cities

This is the most variable part of HVAC licensing in North Dakota. Each major city has its own licensing requirements independent of the state contractor registration. Before performing HVAC work in these cities, contact their building or licensing departments:

• Bismarck: Contact the Bismarck Building Services Division for journeyman and master HVAC license requirements and current exam schedules.
• Fargo: Contact the Fargo Construction Services Department for HVAC technician and contractor licensing.
• Minot: Contact the Minot Building Inspection office for local HVAC licensing requirements.
• Grand Forks: Contact the Grand Forks Building Safety Department for local HVAC licensing.

Typical local HVAC licensing structure (varies by city):

• Journeyman HVAC: Requires approximately 3 years of field experience + passing a journeyman exam. Allows field installation work under a master’s supervision.
• Master HVAC: Requires journeyman license plus additional experience (total 5 years typically) + passing a master exam. Required to pull permits and supervise journeymen. Needed to own/operate an HVAC contracting business in that city.

Step 5: Register for State Taxes

Register for a Sales and Use Tax Permit via ND TAP at least 30 days before beginning work. In North Dakota, HVAC services may involve both taxable and non-taxable transactions depending on the work type. Generally:

• HVAC equipment and parts sold are subject to sales tax
• Installation labor for existing structures may be taxable as a service
• New construction may have different tax treatment

Contact the Tax Commissioner at (701) 328-1246 or tax.nd.gov for guidance specific to your work type.

Step 6: Register with WSI Before Hiring Technicians

Before any employee’s first day, register with Workforce Safety & Insurance (WSI) at workforcesafety.com/employers. HVAC work is classified as a high-risk occupation, and WSI premiums for HVAC workers reflect the physical risks involved. Key points:

• North Dakota prohibits private workers’ comp insurance – WSI is the only option
• WSI policies do NOT include employer’s liability coverage (stop-gap). Purchase this separately from a private carrier if desired.
• Penalties for non-compliance: $10,000 plus $100/day for each day uninsured

Cost to Start an HVAC Business in North Dakota

Item	Cost	Notes
LLC formation	$135	One-time via FirstStop
Annual LLC report	$50/year	Due November 15
ND Contractor License (Class D)	$100 initial + $30/year renewal	Up to $100K per contract; most HVAC residential work
ND Contractor License (Class B)	$300 initial + $60/year renewal	Up to $500K per contract; commercial HVAC
Local HVAC journeyman/master license	Varies by city (typically $50-$200)	Required in Bismarck, Fargo, Minot, Grand Forks
EPA Section 608 certification (per tech)	$20-$50 exam fee	Federal requirement; no expiration once issued
General liability insurance	$1,000-$3,000+/year	Required for contractor registration; name SOS as certificate holder
WSI workers’ comp (per employee)	Payroll-based premium	HVAC class codes carry higher rates due to occupational risk
HVAC tools and equipment	$5,000-$20,000+	Manifold gauges, recovery equipment, testing tools, refrigerant

Estimated startup cost (licensing and insurance): $1,500 to $5,000+

Related North Dakota Business Guides

• How to Start a Cleaning Service in North Dakota
• How to Start a Food Truck in North Dakota
• How to Start a Daycare in North Dakota
• How to Start a Hair Salon in North Dakota
• How to Start a Landscaping Business in North Dakota
• How to Become a Private Investigator in North Dakota

← Back to all North Dakota business guides

Frequently Asked Questions

Does North Dakota require an HVAC contractor license?

North Dakota has no statewide HVAC contractor or technician license. There is no state HVAC licensing board. However, contractors performing projects valued over $4,000 must register as contractors with the North Dakota Secretary of State (Class D-A, fees $100-$450). Additionally, most major cities – including Bismarck, Fargo, Minot, and Grand Forks – have their own local HVAC journeyman and master license requirements. Check with each city where you plan to work.

What is EPA Section 608 certification and do I need it in North Dakota?

EPA Section 608 certification is a federal requirement for any technician who purchases, handles, or recovers refrigerants. It applies in all 50 states regardless of state licensing requirements. Types include Type I (small appliances), Type II (high-pressure systems like most residential AC), Type III (low-pressure), and Universal (all types). Exams are administered by EPA-approved organizations for $20-$50. Certification does not expire. All HVAC technicians working with refrigerants in North Dakota must be certified.

Do I need separate HVAC licenses for Fargo, Bismarck, and other ND cities?

Yes. North Dakota’s major cities maintain their own HVAC licensing requirements independent of state law. If you plan to perform HVAC work in Fargo, Bismarck, Minot, or Grand Forks, you must contact each city’s building or licensing department to learn the local journeyman and master license requirements, including experience, exams, and fees. A state contractor registration does not substitute for local city HVAC licenses.

How does North Dakota’s monopolistic workers’ comp affect HVAC businesses?

HVAC businesses in North Dakota must purchase all workers’ comp coverage from Workforce Safety & Insurance (WSI) – the state-run monopolistic fund. Private workers’ comp insurance is illegal in North Dakota. You must register with WSI before hiring any employees. HVAC technicians are assigned occupational class codes that carry higher-than-average premiums due to the physical nature of the work (rooftop units, confined spaces, heavy equipment). Register at workforcesafety.com.

What classes of contractor license does North Dakota offer?

The North Dakota Secretary of State issues four contractor license classes: Class D (up to $100K per contract, $100 application); Class C (up to $300K, $225); Class B (up to $500K, $300); and Class A (over $500K, $450). Renewals are due March 1 annually at $30, $45, $60, or $90 respectively. You must submit proof of general liability insurance (naming the ND Secretary of State as certificate holder) and WSI coverage with your application. Apply via FirstStop.