Starting a Nonprofit Corporation in North Dakota 2024: Your Step-by-Step Guide

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How to Start a Nonprofit Corporation in North Dakota

Are you passionate about making a difference in your community? Starting a nonprofit organization in North Dakota can be a fantastic way to create lasting change and positively impact the lives of those around you. However, navigating the legal and regulatory requirements of starting a Nonprofit Corporation can be daunting, especially if you are new to the process.

This guide aims to simplify the process of forming a Nonprofit Corporation in North Dakota by providing a step-by-step approach to ensure that your organization is set up for success from the start. At LLCBase, we understand that forming a nonprofit corporation can be an overwhelming experience, so we are here to help you achieve your goals every step of the way.

Start a Nonprofit Corporation

What is a Nonprofit Corporation

A Nonprofit Corporation is a legal entity organized and operated for purposes other than profit-making. The primary goal of a Nonprofit Corporation is to serve the public interest, promote a specific social cause, or support a charitable, religious, educational, scientific, or artistic mission. Unlike traditional for-profit corporations in North Dakota, Nonprofit Corporations do not distribute profits to shareholders or owners. Instead, surplus funds are reinvested into the organization to further its mission and objectives. When starting a nonprofit corporation, consult the best formation service in North Dakota to assist you.

Nonprofit Corporations are granted special tax-exempt status under Section 501(c) of the Internal Revenue Code in the United States, which exempts them from federal income taxes. Nonprofit Corporations may also be eligible for state and local tax exemptions. This tax-exempt status allows Nonprofits to receive tax-deductible donations and grants, making it easier for them to raise funds for their cause.

Some common types of Nonprofit Corporations include charities, foundations, social welfare organizations, trade associations, and religious institutions. These organizations play a vital role in society by addressing various social, environmental, and cultural issues, providing essential services, and enhancing the overall quality of life for communities.

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Steps to Form a North Dakota Nonprofit Corporation

Below is an extensive overview of the steps to initiate a nonprofit corporation in North Dakota:

Step 1. Choose a Name

The first step in starting a Nonprofit Corporation in North Dakota is choosing an appropriate name for your organization. The name must be unique and distinguishable from other businesses registered in the state. You can conduct a preliminary name search on the North Dakota Secretary of State‘s website to check the availability of your desired name. Additionally, the name should not include any prohibited words or phrases, such as “bank” or “insurance.”

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Step 2. Appoint North Dakota Registered Agent

When forming a Nonprofit Corporation in North Dakota, you must appoint Registered Agent in North Dakota. The Registered Agent is responsible for receiving legal documents and correspondence on behalf of your organization. They must have a physical address in North Dakota and be available during regular business hours. You can choose an individual or a professional Registered Agent service to serve in this role.

We have compiled a list of the best registered agent services in North Dakota for your consideration. These services have a reputation for their trustworthiness and professionalism. With assistance from these experienced registered agents, your business in North Dakota can be handled with the utmost confidence and efficiency.

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Step 3. Appoint Board Members and Officers

In North Dakota, a Nonprofit Corporation must have at least three board members responsible for overseeing the management and operations of the organization. The board must also elect officers, such as a president, secretary, and treasurer. It is important to choose individuals who are passionate about your organization’s mission and have the skills to carry out their duties effectively.

Step 4. File Articles of Incorporation

To officially form a Nonprofit Corporation in North Dakota, you must file the Articles of Incorporation with the North Dakota Secretary of State. The filing fee is $100 for online and by mail filing. Your Articles of Incorporation must include the following required provisions:

  • Name of the Nonprofit Corporation
  • Purpose of the organization
  • A statement that the organization is a Nonprofit Public Benefit Corporation
  • Name and address of the Registered Agent
  • Statement of how the organization’s assets will be distributed upon dissolution

Optional provisions that can be included in the Articles of Incorporation are specific limitations or restrictions on the organization’s activities, indemnification of directors and officers, and any additional information that may be relevant to the organization.

Step 5. Apply for EIN

After filing your Articles of Incorporation, you must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This nine-digit number is used to identify your organization for tax purposes and is required when applying for tax-exempt status or opening a bank account. You can apply for an EIN online, by fax, or by mail.

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Step 6. Draft Bylaws and Policy

Bylaws are the internal rules and procedures that govern the operation of your Nonprofit Corporation. They should outline the roles and responsibilities of board members and officers and the process for holding meetings and making decisions. Additionally, your organization should adopt a conflict of interest policy to properly address potential conflicts involving board members or officers.

Step 7. Hold an Organizational Meeting

Once you have drafted your bylaws and conflict of interest policy, you should hold an organizational meeting with your board members and officers. During this meeting, you will adopt the bylaws and conflict of interest policy, elect officers, and make any other initial decisions necessary for the operation of your Nonprofit Corporation.

Step 8. Obtain Licenses and Permits

Depending on the nature of your organization, you may be required to obtain business licenses and permits in North Dakota to operate legally. This can include local business licenses, zoning permits, and any specific licenses required for your organization’s activities. Consult your North Dakota Secretary of State for more information.

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Step 9. Register for North Dakota State Taxation

While many Nonprofit Corporations are exempt from federal income tax, they may still be subject to North Dakota state taxes. You must register with the North Dakota Office of State Tax Commissioner and may be required to file annual tax returns.

Step 10. Register for Charitable Solicitation

If your Nonprofit Corporation plans to solicit donations from the public, you must register with the North Dakota Office of the Attorney General. This registration is required before legally soliciting charitable contributions in North Dakota.

Fee Schedule for Starting a North Dakota Nonprofit Corporation

Here are the fees associated when starting a corporation in North Dakota:

  • Articles of Incorporation Filing Fee: $100 for online and by mail filing
  • Employer Identification Number (EIN) Application: Free
  • Form 1023 (Application for Recognition of Exemption) User Fee: $600 (for most organizations)
  • Form 1023-EZ (Streamlined Application for Recognition of Exemption) User Fee: $275
  • Statement of Information Filing Fee: $25 if domestic, $40 if foreign

Please note that these fees are subject to change, and additional fees may be applicable depending on the specific requirements of your nonprofit organization, such as obtaining licenses and permits. Always consult the respective agency websites and experts for the most up-to-date information.

Apply for 501(c)(3) Tax-Exempt Status

Once you have successfully formed your North Dakota Nonprofit Corporation, the next crucial step is to apply for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. This status allows your organization to be exempt from federal income taxes and is essential for receiving tax-deductible donations and grants.

  1. Prepare IRS Form 1023 or 1023-EZ: The first step in applying for 501(c)(3) tax-exempt status is selecting the correct application form. Most organizations will use IRS Form 1023, the Application for Recognition of Exemption. However, smaller organizations may be eligible to use the shorter Form 1023-EZ. This streamlined application is only available to organizations with annual gross receipts of $50,000 or less and total assets of $250,000 or less. Review the eligibility requirements on the IRS website to determine which form is most appropriate for your Nonprofit Corporation in North Dakota.
  2. Submit the Application: After completing the appropriate application form, submit it with the required user fee to the IRS. The fee will depend on your organization’s size and financial status, so consult the IRS website for the most up-to-date information.Keep in mind that the IRS review process can take several months. During this time, maintain good records and continue to operate your North Dakota Nonprofit Corporation in compliance with state and federal regulations. If your application is approved, you will receive a Determination Letter from the IRS confirming your tax-exempt status.
North Dakota State Tax Exemption

In addition to federal tax exemption, your North Dakota Nonprofit Corporation may also qualify for state tax exemption. To apply, submit Form Form ST-101, Exemption Application, to the North Dakota Office of State Tax Commissioner and the required supporting documentation. If approved, your organization will be exempt from North Dakota state income tax and may qualify for exemption from other state taxes.

Ongoing Compliance

After successfully forming your North Dakota Nonprofit Corporation and obtaining tax-exempt status, it’s essential to maintain compliance with state and federal regulations. This includes filing annual reports, paying state and federal taxes, and maintaining good records.

  • File Annual Reports: Your North Dakota Nonprofit Corporation must file an annual report with the North Dakota Secretary of State each year. This report, known as the Statement of Information, is due yearly within a specific time frame based on your organization’s registration date. Failure to file the report on time may result in penalties and suspending your organization’s corporate status.
  • State Taxes: Even with tax-exempt status, your North Dakota Nonprofit Corporation may still be responsible for certain state taxes, such as sales tax permits on goods and services sold by your organization. Consult the North Dakota Office of State Tax Commissioner’s website for more information on state tax requirements.
  • Federal Taxes: While your organization may be exempt from federal income tax, you must still file an annual information return with the IRS. This is typically Form 990, 990-EZ, or 990-N, depending on your organization’s size and financial activity. Consult the IRS website for more information on which form your North Dakota Nonprofit Corporation should file.
  • Maintain Good Records: Keeping accurate and up-to-date records is essential for maintaining your Nonprofit Corporation’s compliance with state and federal regulations. This includes financial records, meeting minutes, and other organizational documents. Strong recordkeeping practices will help you stay compliant and provide a solid foundation for your organization’s growth and success.

FAQs

What is a nonprofit corporation?
A nonprofit corporation is an organization that exists to pursue a mission and make an impact that benefits the public interest, rather than solely for profit.
What are the benefits of starting a nonprofit corporation?
Starting a nonprofit corporation can give you a way to pursue social or community causes in a formal and structured manner, while enjoying tax-exempt status and other benefits.
What are the basic requirements for starting a nonprofit corporation in North Dakota?
In North Dakota, the basic requirements for starting a nonprofit corporation include filing articles of incorporation with the North Dakota Secretary of State, appointing a registered agent, establishing a board of directors, and obtaining necessary licenses and permits.
How do I get started with filing the articles of incorporation for a North Dakota nonprofit corporation?
You can obtain a template for the articles of incorporation and instructions for filing from the North Dakota Secretary of State’s website.
How much does it cost to file the articles of incorporation for a North Dakota nonprofit corporation?
The current fee for filing the articles of incorporation with the North Dakota Secretary of State is $25.
How long does it take for the North Dakota Secretary of State to approve the articles of incorporation?
Normally, the approval process takes around 10-20 business days after the filing, depending upon processing delays and requirements.
What do I need to include in the articles of incorporation for a North Dakota nonprofit corporation?
Some of the key details you should include in the articles of incorporation for a North Dakota nonprofit corporation include a name for the organization, its purpose or mission statement, its registered agent and principal address, and the name and contact details of its initial board of directors.
How many directors do I need for a North Dakota nonprofit corporation?
According to the North Dakota Century Code, you must have at least three directors for a nonprofit corporation in North Dakota.
Can I be a director and register agent of the corporation themselves?
Yes, you can serve as both the registered agent and a director in a North Dakota nonprofit corporation. But your role as the registered agent needs to only accept mail correspondence working during business hours.
Are there any specific qualifications required to serve as director of a North Dakota nonprofit corporation?
There are no specific qualifications required by law in North Dakota; anyone who meets the legal requirements is eligible to serve as a director in a nonprofit corporation.
What is a registered agent, and why do I need one?
A registered agent is a person or entity you designate to receive legal notices, government notices critical documents on behalf of your nonprofit corporation that might be sending mail as correspondence across busy hours or codes you are unfamiliar with. You need a registered agent in order to ensure that your corporation can be reached in legal processes like lawsuits.
What documents do I need to request an employer identification number (EIN) from the IRS for a North Dakota nonprofit corporation?
You will need to submit a completed application to the IRS, such as via online Application process (till date over remote emails due to COVID 19) to get Employer Identification Number (EIN). Once IRS verifies the information, you should receive an EIN.
How can I register my North Dakota nonprofit corporation with the Department of Charitable Organizations serving the region and nation?
In North Dakota, you need to complete annual tax reporting and registration requirements if your North Dakota nonprofit corporation plans to solicit support/donations, working as a tax-exempt organization serving as charitable intentions for the public. To file North Dakota charitable organization registrations, contact the North Dakota Secretary of State’s website, that can also include SOS compliance Business-to-Government electronic filing systems provided local/annual-state requirements.
How many documents ought to be kept at all times by North Dakota nonprofits?
North Dakota widely recommends nonprofit corporations maintain and regularly update various important documents during their lifetime. Recordkeeping shouldn’t comprise bylaws, articles of incorporation, board member meetings/minutes (at minimum before they consent for something specific), financial reports, and tax filings documents regarding solicitation.
Is there any registration requirements required for a nonprofit organization fundraising events in North Dakota?
Any 501 (c) (3) organization oriented for tax benefits serving North Dakota, organizing any fundraising events, have to be registered with CHAR (Consumer Affairs And with Charity Licensing and Registration via recording contributions through charitable registration. It has to apply exceptionally if there’s an active needful seeking contributions of deals/distribution falls beyond the $20,000 threshold or larger exceeding over one or more places. One must find out if you’re eligible for representing target-givers potential the contributions through registration norms.
Are charities inactive after one transaction and fall under state regulation under North Dakota’s non-profit governance model?
According to North Dakota statutes, your nonprofit corporation would require continuous filing and informative disclosure responsibility compared to inactivity/internal affairs documentation in letters As provided earlier, shareholders/stakeholders charter guidance for the latest activity theory under donation and consolidation frequency focusing on donation-letter-related give away applied.
What license proper documentation and permits may be required for opening a stakeholder nonprofit based in Dakota?
Your nonprofit may tend to be likely for opening licenses and regulatory affairs for nature of businesses such as applying for necessary bills, fundraising standards, office terms, etc. For fundraising non-profit run, review contributions before and behold administration-wise affairs.
What are the key challenges for nonprofits seeking state authority status for handling a lengthy name?
Acquiring state name reservation statutes access can impede an organization’s formation, improper last presentation, may lead to raising allegations in pressing cases delaying the procurement- causing legal arguments over the acquisition. One can share ideas among board and legal help/providers.
Can a qualified lobbyist work for non-profit simultaneously?
Yes, with transparent, accurate disclosures, and under broad definitions/actions taken to improve/nature in letters around connection and intent guidance. Open ballot access/team players in collaborations can keep lawful lobbying updates/details accessible transparency within accountability branches.
Is there a serious crime found in relation to volunteering for non-profit services of regulating in Dakota?
Any such criminal proceedings against racketeering, for instance, would comprise an involving risky business element occurrence policy-providers always engaging pro attorney-public advisor guidelines stating enforce the responsibility towards dishonest, abusive, destructive matters, constantly vetting the procedural standards ongoing.
Can an individual still enjoy the same liberty in operating business as a North Dakota nonprofit corporation once registered under government?
Yes, one can follow operating working through diverse processes under common law legacy rights with great transat-term gain qualities in market value-public interest components.
Can North banknotes authority organization support productive nonprofit efforts under genuine lock works?
North Dakota and its federal-state partitions, complementing banks facilitate approaches over stock-market wise align proper documentation, overhead cash investments towards lending loans/management systems/ future investment planning occasions where non-profit companies are given certain defined advantages—progressively recurring rewards one with facilities supporting with charity running activities.
Does authentication of the non-profit registration help acquire the tax reimbursement towards profit gain/gross income?
Several procedural complications, calculations and agency parameters established tax law surveys shares in taxbreak through a statute. Statutes are entitled to protect define regulation to acts dictated by administration authorities in North Dakota, determining tax exemptions and privileges in scale, disposition capital gains and other distinguished maintenance under imposed milestones, improving quality and compliance proper disallow fees issues.
Do experienced officials working with non-profit have specific educational eligibility in North Dakota?
Educational qualification under non-profit designee regime can go beyond the matter of principles towards issues like investment management. Often times compliance/examination administered by internal practices to explicit established CEO board to eliminate/maximize firm’s duties making consistent changes across schedules aligned with plans/ corporate visions transparency and engagement too evolving.
Can a trustee of a non-profit organization resign in North Dakota?
Yes, a trustee of a nonprofit in North Dakota has the elegant rise to be known among legal authorities if they need timing decisions working about resigning-time periods. Resignation might cease inactive association-status due diligence with defying with prospective powers under government, expanding through Board-intervention often-times management processes.
Is Granting often found structured movement-friendly visions in forms of nonprofit dissemination empowerment opportunities?
Open-operating production assignments and grant ventures internal alignments or creating actions over changing working-settlements overall empowerment reshaping. Offer accessible expectations light changes scope flexibility improves overall charity formatting throughput, providing socio-sensitive opportunities for both co-action and reaction-level sustainability throughout statewide coverage reach-frequent.
What are the requirements to start a nonprofit corporation in North Dakota?
To start a nonprofit corporation in North Dakota, you will need to file articles of incorporation with the North Dakota Secretary of State, obtain tax-exempt status from the IRS, and comply with state and federal regulations for nonprofit organizations.
How much does it cost to start a nonprofit corporation in North Dakota?
The filing fee for articles of incorporation in North Dakota is $20.
How long does it take to start a nonprofit corporation in North Dakota?
The turnaround time for processing articles of incorporation in North Dakota is typically 5-7 business days.
How do I choose a name for my nonprofit corporation in North Dakota?
Your nonprofit corporation’s name must be unique and cannot be the same as any other business entity in North Dakota.
How can I search for available nonprofit corporation names in North Dakota?
You can search for available nonprofit corporation names in North Dakota using the Business Services search tool on the North Dakota Secretary of State website.
Do I need a registered agent for my nonprofit corporation in North Dakota?
Yes, your nonprofit corporation must have a registered agent who is available during regular business hours to receive legal notices and documents.
Can I be my nonprofit corporation’s registered agent in North Dakota?
Yes, you can be your nonprofit corporation’s registered agent in North Dakota if you have a physical address in the state and are available during regular business hours.
What is the process for obtaining tax-exempt status from the IRS for my nonprofit corporation in North Dakota?
To obtain tax-exempt status from the IRS for your nonprofit corporation, you will need to file Form 1023 or Form 1023-EZ.
How long does it take to obtain tax-exempt status from the IRS for my nonprofit corporation in North Dakota?
The processing time for exempt status applications varies depending on the complexity of your organization and the efficiency of your application process. It typically takes between 3 and 12 months to obtain tax-exempt status.
Can my nonprofit corporation engage in political activity in North Dakota?
No, your nonprofit corporation cannot engage in political activity or endorse candidates for political office in North Dakota.
Is there an annual report requirement for nonprofit corporations in North Dakota?
Yes, nonprofit corporations in North Dakota must file an annual report with the Secretary of State in order to maintain their good standing with the state.
What information is included in the annual report for nonprofit corporations in North Dakota?
The annual report for nonprofit corporations in North Dakota includes updated information about the organization’s address, registered agent, and other key details.
Can I pay for the annual report fee for my nonprofit corporation in North Dakota online?
Yes, you can pay for the annual report fee for your nonprofit corporation in North Dakota online through the Business Services portal on the North Dakota Secretary of State website.
How do I change the name of my nonprofit corporation in North Dakota?
To change the name of your nonprofit corporation in North Dakota, you will need to file an amendment to the articles of incorporation with the Secretary of State.
Can I dissolve my nonprofit corporation in North Dakota?
Yes, you can dissolve your nonprofit corporation in North Dakota by filing articles of dissolution with the Secretary of State.
How do I obtain a copy of my nonprofit corporation’s articles of incorporation in North Dakota?
You can obtain a copy of your nonprofit corporation’s articles of incorporation in North Dakota by contacting the Secretary of State.
Can I change the purpose of my nonprofit corporation in North Dakota?
Yes, you can change the purpose of your nonprofit corporation in North Dakota by filing an amendment to the articles of incorporation.
Is there a deadline for annual report filings for nonprofit corporations in North Dakota?
Yes, annual reports for nonprofit corporations in North Dakota are due by November 15th of each year.
How do I update the address of my nonprofit corporation in North Dakota?
To update the address of your nonprofit corporation in North Dakota, you will need to file a change of registered agent form with the Secretary of State.
What is the penalty for not filing an annual report for my nonprofit corporation in North Dakota?
Failure to file an annual report for your nonprofit corporation in North Dakota can result in your organization being administratively dissolved or losing its good standing with the state.
Does North Dakota offer any tax incentives for donors to nonprofit organizations?
Yes, North Dakota offers tax incentives for donors to nonprofit organizations, including a state income tax credit and property tax exemptions.
Can nonprofit corporations in North Dakota hire employees?
Yes, nonprofit corporations in North Dakota can hire employees.
Do nonprofit corporations in North Dakota need to withhold taxes from employee salaries?
Yes, nonprofit corporations in North Dakota need to withhold taxes from employee salaries.
Is it necessary to have a board of directors for nonprofit corporations in North Dakota?
Yes, nonprofit corporations in North Dakota must have a board of directors.
How many board members are required for a nonprofit corporation in North Dakota?
North Dakota requires that nonprofit corporations have at least three board members.
What are the requirements for board members of nonprofit corporations in North Dakota?
Board members of nonprofit corporations in North Dakota must be at least 18 years old and must not have any conflicts of interest.
Can I operate a for-profit business under a nonprofit corporation in North Dakota?
No, a nonprofit corporation is not permitted to operate a for-profit business in North Dakota.

Also Read

Why You Should Start North Dakota Nonprofit

First and foremost, starting a nonprofit allows you to address a specific issue or cause that you are passionate about. Whether it’s advocating for environmental conservation, providing support for underserved populations, or promoting arts and culture, a nonprofit gives you the platform to create real change in the world. By focusing on a cause that holds personal significance for you, you can channel your energy and resources toward making a difference in your community.

Furthermore, starting a nonprofit can provide a sense of purpose and fulfillment that may be missing in other aspects of your life. Working towards a common goal with like-minded individuals who share your values can be incredibly rewarding and can foster a sense of belonging and camaraderie. The feeling of contributing to something greater than yourself can bring a deep sense of satisfaction and meaning to your life.

In addition to the personal benefits, starting a nonprofit in North Dakota can also have a positive impact on the larger community. Nonprofits play a crucial role in addressing social issues, advocating for change, and providing vital services to those in need. By launching a nonprofit organization, you can help fill gaps in services, raise awareness about important issues, and mobilize resources to support those who need it most.

Moreover, starting a nonprofit in North Dakota can provide a valuable opportunity for networking and collaboration with other individuals and organizations in the nonprofit sector. By working together with other nonprofits, government agencies, businesses, and community members, you can leverage resources, share best practices, and maximize your impact. Building strong relationships and partnerships can help you achieve your goals more effectively and sustainably.

Finally, starting a nonprofit in North Dakota can be a financially and personally rewarding endeavor. While the process of establishing a nonprofit can be challenging and time-consuming, the potential rewards are well worth the effort. Nonprofits can access grant funding, donations, and tax-exempt status, allowing them to raise funds to support their mission and programs. Additionally, the sense of gratification that comes from knowing that you are making a real difference in the world is priceless.

In conclusion, starting a nonprofit in North Dakota is a worthwhile and meaningful pursuit that can benefit both you and your community. By focusing on a cause that you are passionate about, you can make a positive impact, find fulfillment and purpose, and contribute to the greater good. The process of starting a nonprofit may be daunting, but the rewards far outweigh the challenges. So, if you’re considering launching a nonprofit in North Dakota, don’t hesitate to take the leap and make a difference in the world.

Conclusion

Forming a North Dakota Nonprofit Corporation and maintaining compliance with state and federal regulations are crucial to creating a successful organization. By ensuring your organization remains compliant, you can focus on fulfilling your mission and serving your community without worrying about legal or financial setbacks.

While this guide provides an overview of forming a Nonprofit Corporation in North Dakota, it’s important to remember that each organization’s situation is unique. The process of starting a for-profit corporation is different from a nonprofit corporation. Seek the advice of experienced professionals, such as attorneys, accountants, or nonprofit consultants, to ensure your organization is set up for success from the start. Check LLCBase for more guides and resources for starting your business.

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