SB 2144 Summary

• Allows professional organizations (corporations, LLCs, and partnerships) in North Dakota to have minority owners who are not licensed to practice the organization's profession, provided they supply ancillary services and do not provide their services to the public through the organization.

• Requires professional organizations with minority owners to file certificates identifying the minority owners and the express law authorizing their ownership when registering articles of incorporation or organization.

• Exempts issuance or transfer of shares and membership interests to minority owners from standard certificate filing requirements, but prohibits minority owners from holding majority ownership in the organization.

• Requires annual reports to include statements verifying that all nonminority owners are licensed, minority owners provide only ancillary services, and minority owners do not hold a majority interest.

• Imposes an additional $1,000 fee to the Secretary of State for articles of incorporation, organization, or amendment related to organizations with minority owners, deposited in the general services operating fund.