MN non-resident contractor bonds.
From $100. Enter your amount.

When an out-of-state contractor does Minnesota construction work over $50,000, the hiring party normally withholds 8% of payments for taxes under Minn. Stat. 290.9705. Filing a surety bond on Form SDB with the Department of Revenue waives that withholding. We price it at 2% of your bond amount, $100 minimum — your exact price appears at the application, soft pull only.

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Waives the 8% withholding under Minn. Stat. 290.9705 on out-of-state construction contracts over $50,000

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Filed on Form SDB with the Department of Revenue — guarantees your Minnesota tax obligations

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A quick soft credit check may apply — never a hard inquiry, no impact on your score, and the price is 2% of your bond amount, $100 minimum

A-ratedA.M. Best carriersSoft pullnever a hard inquiry2% rate$100 minimum, by bond amount

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How it works

Three steps to filed.

The hiring party is about to withhold 8% of your pay. Here's the entire process to stop that:

TODAY · ONLINE

Apply online

Your business details, the bond amount, your Minnesota tax ID, the project, and the contract figures — that is the application, plus a one-time consent to a soft credit pull.

USUALLY 1–2 DAYS

Reviewed & approved

The soft credit pull never affects your score and informs approval, not price. An underwriter reaches out fast if anything else is needed for a larger contract.

FILE WITH REVENUE

E-sign & file Form SDB

Receive the executed bond on Form SDB, ready to file with the Minnesota Department of Revenue so the hiring party can stop withholding. Wet-ink originals mailed on request.

About this bond

What it is and who needs it.

What the non-Minnesota contractor bond does

Under Minn. Stat. 290.9705, anyone hiring an out-of-state contractor (a non-resident person, or a company organized outside Minnesota) for construction work in Minnesota must withhold 8% of payments when the contract value exceeds $50,000 — held against the contractor's Minnesota income, franchise, withholding, and sales/use taxes.

The statute lets the commissioner waive that withholding if the contractor posts a cash deposit or a surety bond. The bond is conditioned on the contractor complying with Minnesota's tax laws (Chapter 290 and Chapter 297A), so the state still has a guarantee without tying up 8% of every payment.

You file the bond on the Department of Revenue's Form SDB, Non-Minnesota Contractor's Bond. The amount is generally 8% of the contract value — the same figure the withholding would otherwise cover. Enter that figure and we issue the bond from $100, soft pull only.

Minn. Stat. 290.9705 (Form SDB)Under Minn. Stat. 290.9705, a person hiring an out-of-state contractor for Minnesota construction work over $50,000 must withhold 8% of payments as surety for the contractor's Minnesota income, franchise, withholding, and sales/use taxes. The commissioner may waive the withholding if the contractor files a cash deposit or a surety bond (Form SDB, Non-Minnesota Contractor's Bond) conditioned on compliance with Chapters 290 and 297A. The bond amount is generally 8% of the contract value — confirm the exact figure with the Department of Revenue.

You need this bond if you are

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An out-of-state construction contractor doing a Minnesota project over $50,000

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Facing 8% withholding that you would rather replace with a bond

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Organized outside Minnesota — a non-resident person, corporation, or cooperative

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Bidding Minnesota work and want to keep your full payments instead of a 8% holdback

One application, issued instantly.

These are the actual underwriting fields, including the project details and a one-time consent to a soft credit pull. Submit once and the executed Form SDB is ready to file with Revenue.

Start the application →

FAQ

Common questions.

What does this bond do?It waives the 8% tax withholding on your Minnesota construction pay. Without a bond, the hiring party withholds 8% of payments under Minn. Stat. 290.9705 when the contract exceeds $50,000; filing a surety bond on Form SDB lets the Department of Revenue release that requirement.

How much is it, and how big is the bond?The bond is priced at 2% of your bond amount, $100 minimum. The bond amount is generally 8% of the contract value — the same figure the withholding would otherwise cover. Enter that amount and your exact price appears at the application.

Is there a credit check?A quick soft credit check may apply — never a hard inquiry, no impact on your score. It informs approval, not price — your rate is 2% of the bond amount, $100 minimum.

When is withholding required?When you are a non-resident or out-of-state company doing Minnesota construction work and the contract value exceeds $50,000. Below $50,000, no withholding (and no bond) is required under Minn. Stat. 290.9705.

Where do I file it?With the Minnesota Department of Revenue, on Form SDB (Non-Minnesota Contractor's Bond). We issue the executed bond ready to submit so the hiring party can stop withholding.

Related bonds

Other Minnesota bonds.

Keep your full payments, not 92% of them.

Pricing from $100, soft pull only. Enter your amount and file Form SDB the same week.

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