Minnesota Contractor License Bond

In Minnesota, contractors must be licensed with the state and as part of that process, they must secure a Minnesota Contractor License Bond. In Minnesota, contractors are required to be bonded by both their specialty and local jurisdiction. For example, there is an electrical contractor bond that all electrical contractors must get, and there is a City of Alexandria that contractors in Alexandria has to get. If you are an electrical contractor within the city of Alexandria, Minnesota, then you will need to acquire both bonds. The bond exists to guarantee that contractors working in Minnesota will perform work in an adequate manner when carrying out their responsibilities.

Example contractor at work

How Much is a Minnesota Contractor License Bond?

Here is a pricing table for various Minnesota Contractor License bond types. We include the bond amount and starting prices:

Bond Type Bond Amount + Pricing
Department of Labor and Industry Electrical Contractor Bond $25,000, starting at $198
Department of Labor and Industry High-Pressure Pipefitting Contractor Bond $15,000, starting at $225
Department of Labor and Industry Mechanical Contractor Bond $25,000, starting at $198
Department of Labor and Industry Plumbing Contractor Bond $25,000, starting at $113
Department of Labor and Industry Residential Roofer Contractor Bond $15,000, starting at $158
Department of Labor and Industry Satellite System Contractor Bond $25,000, starting at $113
Department of Labor and Industry Sign Contractor Bond $8,000, starting at $158
Department of Labor and Industry Technology System Contractor Bond $25,000, starting at $113
City of Alexandria Contractor License Bond $500, starting at $90
City of Brainerd Contractor Bond $5,000, starting at $90
City of Champlin Contractor Bond $5,000, starting at $90
City of Columbia Heights Contractor Bond $3,000, starting at $90
City of Fergus Falls Contractor Bond Excavator, Paving Contractor (Sidewalk) $1,000, starting at $90
City of Fergus Falls Contractor Bond Sign Hanger $2,000, starting at $90
City of Fergus Falls Contractor Bond Junk Dealer $5,000, starting at $90
City of Lino Lakes Contractor Bond $5,000, starting at $90
City of Minneapolis Sidewalk Contractor Bond $15,000, starting at $290
City of Rochester Sewer and Drain Contractor $10,000, starting at $90
City of Rochester Sidewalk and Driveway Contractor Bond $10,000, starting at $90
City of Rochester Sign Contractor Bond $1,000, starting at $90
City of St. Paul Building Contractor Bond $2,500, starting at $90
City of St. Paul Sidewalk Contractor Bond $5,000, starting at $90

 

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FAQs

Who Regulates Licensing for Contractors in Minnesota?

Contractor licensing in Minnesota is regulated by the Minnesota Department of Labor and Industry (DLI). The DLI oversees all contractor licensing within the state to ensure contractors meet the required qualifications and comply with applicable laws and rules in Minnesota. 

The DLI has separate phone lines and emails for handling different concerns related to contractors. 

For licensing, bonds, and continuing education inquiries, call 651-284-5034 or email at dli.license@state.mn.us.

For licensing exam related questions, you can contact DLI via email at dli.exam@state.mn.us.

If you wish to file a complaint against a contractor, please email dli.contractor@state.mn.us or call 651-284-5069.

How can I Obtain a General Contractor License in Minnesota?

There are two types of licenses one can apply as a general contractor in Minnesota:

  • Residential remodeler contractor license: Restricts individuals to work exclusively on existing structures; it does not grant permission to construct new homes or detached garages.
  • ‍Residential building contractor license: Allows individuals to undertake all tasks authorized for residential remodelers, with the added capability to construct new structures.

The initial step is completing a pre-license examination to obtain a general contractor license. The applicant must pass this examination before an applicant can proceed with submitting the necessary application documents to the DLI. The pre-license exam serves as a means to assess the knowledge, competence, and understanding of the contractor's work.

After the applicant completes the pre-license examination, they are prepared to proceed with all the necessary steps for the Minnesota contractor application process. Here's a concise overview of the actions the applicant needs to take to apply:

Step 1 - Start Your Business in Minnesota: Before applying for a new license, choose a business structure for your entity. You can either register a business as a sole proprietorship, LLC, partnership or corporation. Each has their pros and cons. Sole proprietorships are suitable for solo contractors looking to get started quick. LLCs and corporations are more heavy corporate structures suitable for contractors looking to build a company with employees or raise outside funding. Either way, regardless of what type of business you decide to register, you need to register it with the Minnesota Secretary of State. All it takes is an online application and paying the filing fees.

Step 2 - Obtain a Tax ID & Employment Insurance (For LLCs, partnerships & corporations): If you're not a sole proprietor, you will need to obtain Federal Employer Identification Number (FEIN) for tax filing purposes. Sole proprietors can use their social security number for filing taxes.

Step 3 - Obtain liability insurance and workers comp: All general contractors in Minnesota are required to have valid general liability insurance and workers comp. Most commercial insurance brokers will be able to help with us. Personally we recommend Next Insurance. 

Step 4 - Gather Required Information for the License Application: Ensure you have the necessary information for completing the new license application. You will need the following information: 

  • Business information: A copy of your certificate of incorporation or certificate or some sort of business registration proof
  • Insurance Information: Proof of general liability insurance and workers comp

Step 5 - Submit the application and pay the Licensing Fee: The next step is to fill in application for general contractor and submit it to the DLI. The licensing fee that goes along with the application depends on your anticipated gross annual receipts:

  • Less than $1 million: $440.00
  • $1 million to $5 million: $540.00
  • More than $5 million: $640.00

The application must be mailed to the following address:

PO Box 64217 
St. Paul, MN 55164-0217

Keep in mind that the license needs to be renewed every two years once it's obtained in Minnesota.

How can I Obtain a Specialty Contractor License in Minnesota?

If you do any of the following, you are considered a specialty contractor in Minnesota:

  • Excavation
  • Masonry/concrete
  • Carpentry
  • Interior and/or exterior finishing
  • Drywall and plaster
  • General installation

A specialty contractor who provides services in multiple skill areas mentioned above must be licensed in Minnesota. Specialty contractors with only one skill are not required to have a Minnesota state contractor license. To get a specialty contractor license in Minnesota, one must apply through the iMS online application.

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How can I Obtain an Electrical Contractor License in Minnesota?

In Minnesota, electrical work encompasses installing, modifying, repairing, designing, or arranging electrical wiring, devices, or equipment used for lighting, heating, power supply, technology circuits, systems, or other functions. To be an electrical contractor in Minnesota, the individual must:

Step 1 - Qualify:

  • Hold an active master electrician license.
  • Be an owner, officer, or member of the business applying for the license, or a W-2 employee actively involved in the company's electrical work and not employed by another contractor.
  • Cannot act as the responsible licensed individual for any other electrical contractor or employer.
  • Take responsibility for all electrical work performed by the company's employees.

Step 2 - Insurance Proof:

  • Provide proof of general liability and workers' compensation insurance.
  • Liability insurance must have a minimum coverage of $100,000 per occurrence, $300,000 aggregate, and $50,000 property damage coverage.
  • Workers' compensation insurance proof should be submitted on a DLI-approved form. You can upload this form during the online license application or email it to dli.license@state.mn.us.

Step 3 - Minnesota Contractor License Bond:

  • Obtain a $25,000 Minnesota Electrical Contractor license bond using a DLI-approved form.

Step 4 - Disclosure of Business Information:

  • Complete a disclosure form for business owners, partners, officers, and members using a DLI-approved form

Step 5 - License Application:

  • Start the license application process through iMS 
  • Pay the license application fee of $128.

How can I Obtain a Plumbing Contractor License in Minnesota?

A plumbing contractor license is required for plumbing work in Minnesota communities with a population over 5,000. To become a licensed plumbing contractor in the state of Minnesota, the process closely resembles obtaining an electrical contractor license, and the individual must:

Step 1 - Qualify:

  • Hold an active master plumbers license.
  • Be an owner, officer, or member of the business applying for the license, or a W-2 employee actively involved in the company's electrical work and not employed by another contractor.
  • Cannot act as the responsible licensed individual for any other electrical contractor or employer.
  • Take responsibility for all electrical work performed by the company's employees.

Step 2 - Insurance Proof:

  • Provide proof of general liability and workers' compensation insurance.
  • Liability insurance must have a minimum coverage of $50,000 per person, $100,000 per occurence, and $100,000 property damage coverage.
  • Workers' compensation insurance proof should be submitted on a DLI-approved form. You can upload this form during the online license application or email it to dli.license@state.mn.us.

Step 3 - Minnesota Contractor License Bond:

  • Obtain a $25,000 Minnesota Plumbing Contractor license bond using a DLI-approved form.

Step 4 - Disclosure of Business Information:

  • Complete a disclosure form for business owners, partners, officers, and members using a DLI-approved form

Step 5 - License Application:

  • Start the license application process through iMS 
  • Pay the license application fee of $128.

What if I don’t get the required contractor license in Minnesota?

You must obtain the necessary contractor license in Minnesota to be eligible to perform contracting work within the state. Contracting activities without the required license in Minnesota are subject to criminal charges, including fines, penalties, and potential legal action. It is crucial to comply with Minnesota's licensing requirements to operate as a contractor legally and avoid potential legal issues.

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