Surety bond or working capital for a roofing license
Should a North Carolina roofing applicant use a surety bond or show working capital?
The three ways to prove financial responsibility
A limited applicant can show $17,000 of working capital, or $80,000 of net worth, or post a surety bond. The bond stands in for the working capital or net worth test.
Intermediate and unlimited applicants show $75,000 or $150,000 of working capital, or a bond. The Board wants an agreed-upon procedures report or an audited statement to prove either number.
Choose based on what your balance sheet shows today, not on what you expect next year, and read the fee caps that sit beside this proof.
| Limitation | Working capital | Surety bond |
|---|---|---|
| Limited | $17,000 (or $80,000 net worth) | $175,000 |
| Intermediate | $75,000 | $500,000 |
| Unlimited | $150,000 | $1,000,000 |
$17,000Rule 12A .0204 sets working capital at $17,000 limited, $75,000 intermediate and $150,000 unlimited. — North Carolina Licensing Board for General Contractors, 2026 statutes and rules book, retrieved 2026-09-29
What the bond amount means
The bond amounts are $175,000 for a limited license, $500,000 for intermediate and $1,000,000 for unlimited. Those are the penal sums, not the premium you pay.
The premium is set by a surety and depends on your credit and finances. The Board does not publish it, so this site gives no figure. The bond sits behind the license itself, which the license guide explains.
The surety must be authorized in North Carolina and carry an A.M. Best rating of A- or better. The bond must be continuous and stay in place as long as you use it in place of the working capital test. The limitation you choose in the application guide sets which amount applies.
$175,000Required bond amounts are $175,000 for limited, $500,000 for intermediate and $1,000,000 for unlimited licenses. — North Carolina Licensing Board for General Contractors, 2026 statutes and rules book, retrieved 2026-09-29
Who the bond protects and when it can lapse
The bond lists the State of North Carolina as obligee. It benefits any person damaged by the applicant's breach of a construction contract, or by an unlawful act in performing one.
That includes a homeowner and a supplier who is not paid. The bond is in addition to any other bond a contract requires.
If the surety cancels, both the surety and you must tell the Board within 30 days. Without new proof inside 30 days, the license is suspended until you supply it.
30 daysIf a surety cancels, the applicant has 30 days to give written proof of financial responsibility or the license is suspended. — North Carolina Licensing Board for General Contractors, 2026 statutes and rules book, retrieved 2026-09-29
Questions
Does the bond protect me if a job goes wrong?
No. It benefits people damaged by your breach or unlawful act, with the State as obligee. Your own losses and defense costs need insurance, not this bond.
Can I switch from a bond to working capital later?
Yes. The rule says the bond stays in effect until you show the required working capital. Send the Board the qualifying financial statement before you drop the bond.
Where do I find the exact renewal proof required?
Renewal applications must include evidence of continued financial responsibility, and a bond holder must submit proof of the bond with each annual renewal form.