Use the guide below to form a 501(c)(3) nonprofit in North Dakota. Keep in mind that the process requires forming a nonprofit corporation and getting tax-exempt status with the IRS.
Since the overall process is extremely complex, we highly recommend consulting with an attorney or using a service like Harbor Compliance for personalized top-to-bottom nonprofit formation and obtaining IRS 501(c)(3) status.
First thing’s first, you need to verify that the name you would like for your nonprofit is available and acceptable under state law, and then reserve it if needed. Here’s the 1-2-3 of it:
Filing Fee: $10
Nonprofits, like businesses are required to designate and maintain a North Dakota Registered Agent (legal appointee, statutory agent, etc.) to receive and help process documents and critical paperwork on behalf of the organization. Based on state requirements, an entity or an organization cannot serve as its own agent, thus, the need to hire a 3rd party.
They must be a resident of the state, have an office or physical address and must be available during all regular M-F business hours. Costs can run $160 every year, or you can get a qualified/dependable agent free of charge when you incorporate through services like Harbor Compliance (see details).
An incorporator, and there can be more than one, is responsible for “executing” the Articles of Incorporation with the state in Step 5. Pretty simple and the only real requirement is that they be over 18 year of age. Directors on the other hand have far more responsibility. For now you’ll be recruiting at least one temporary director to oversee the organization until in Step 7, you vote in the official directors of the board.
This is where the process can get complex, legal-heavy with corporate formalities, so it’s a good idea to work with either a nonprofit lawyer or an incorporation service who can help guide you and your team through this part of the process and explain the finer details.
Truth be told, “bylaws” is really just a fancy word for rules, or regulations. These are the rules you write for how your nonprofit will be governed and managed along with the many stipulations that come along with having a board of directors vs a nonprofit that’s run expressly by members or volunteers. Common bylaws cover topics like:
If this is all new to you, use a savvy Corporate Bylaws Template which you can customize for your nonprofit and get an idea of the paperwork-side of bylaws.
First, it would be a good idea to print out and ND Guide to “Begin and Maintain a Nonprofit Corporation” so that you know you have all your bases covered before filing your Nonprofit Articles of Incorporation. This officially forms the organization under the law and before the public record.
Filing Fee: $40
If you aren’t already familiar, a nonprofit records book is where you keep physical copies of the most important paperwork – Articles of Incorporation, Bylaws, Meeting Minutes, 501.c.3 IRS Approval Letter, licenses & permits, current board members list, your annual and biannual reports, etc. Not mandatory, but very common and highly advised.
You can pick one up at pretty much any office supply store or online through Amazon of course, but we’re huge fans of savvy-sleek Corporate Kits which include gorgeous records books, binders, blank certificates and more which you can brand for as little as $99.
Don’t worry if you don’t have an MBA or any formal experience with conducting official corporate or nonprofit meetings. It’s essentially where you gather your board of directors and upper management/officers, record “minutes of meeting” and take care of foundational topics like:
An EIN, or Employer Identification Number, is required by both state and federal governments for essentially the same reasons individuals are required to have a SSN. It’s a 9-digit number that’s used to track business/nonprofit financial activity and makes it possible to open a business bank account, hire paid-employees if needed, and so on.
Almost every transaction your nonprofit engages in will require an EIN. That said, you can get one quickly, easily and free of charge by applying online through the IRS Website.
Now’s the point to ensure your nonprofit is 100% compliant in terms of not only licenses/permits, but state and federal taxes. You should be able to apply for tax exempt status now that the corporation is established.
A couple other sites to bookmark would be the Fargo district office of the Small Business Administration and the state’s Small Biz Development Center because they’re going to have tons of helpful information and access to great services your nonprofit can leverage.
Take some time to shop around and see which bank/credit union has the most convenience and perks to offer your organization. Don’t assume where you or any of your directors bank personally is the ideal choice. How’s their online banking? What are their free deposit/withdrawal limits? How high are their monthly fees? What kinds of incentives do they specifically offer nonprofits?
Where you choose to bank is important so don’t take it lightly. If this will be your first time setting up shop, a) check out this quick breakdown of Nonprofit Accounts, and b) make sure to keep this account completely separate from all other accounts. Don’t muddy the pristine water of your financials.
If you’d like help forming a 501(c)(3) Nonprofit In North Dakota, we highly recommend looking into Harbor Compliance for personalized top-to-bottom nonprofit formation and obtaining IRS 501(c)(3) status.