As used in this chapter, unless the context otherwise requires:

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Terms Used In North Dakota Code 10-31-01

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Organization: includes a foreign or domestic association, business trust, corporation, enterprise, estate, joint venture, limited liability company, limited liability partnership, limited partnership, partnership, trust, or any legal or commercial entity. See North Dakota Code 1-01-49
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Partnership: includes a limited liability partnership registered under chapter 45-22. See North Dakota Code 1-01-49
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49

1.    “Create” means to form an organization by:

a.    Incorporating a professional corporation; b.    Organizing a professional limited liability company; or c.    Registering a professional limited liability partnership.

2.    “Executive” means an officer or a director of a professional corporation, a manager or a governor of a professional limited liability company, or a partner of a professional limited liability partnership.

3.    “Foreign limited liability partnership” has the meaning set forth in section 45-22-01.

4.    “Foreign professional organization” means a professional organization that is created under laws other than the laws of this state for purposes for which a professional organization may be created under this chapter.

5.    “Minority owner” means an owner of a professional organization:

a.    Who is not licensed or otherwise legally authorized within this state to render the same professional service as the organization; b.    Who provides a service to the organization which is ancillary to the organization’s professional service; c.    Who does not provide that owner’s service to the public through the organization; and d.    Who is expressly authorized under subsection 3 of section 10-31-04.

6.    “Owner” means a shareholder of a professional corporation, a member of a professional limited liability company, or a partner of a limited liability partnership.

7.    “Professional corporation” or “corporation” means a corporation that is incorporated under this chapter for the purpose of rendering professional service and which has as its shareholders only:

a.    Individuals who themselves are licensed or otherwise legally authorized within this state to render the same professional service as the corporation; b.    Nonlicensed employees as provided in section 10-31-07.1; and

c.    Minority owners.

8.    “Professional limited liability company” or “limited liability company” means a limited liability company that is organized under this chapter for the purpose of rendering professional service and which has as its members only:

a.    Individuals who themselves are licensed or otherwise legally authorized within this state to render the same professional service as the limited liability company; b.    Nonlicensed employees as provided in section 10-31-07.2; and c.    Minority owners.

9.    “Professional limited liability partnership” or “limited liability partnership” means a limited liability partnership that is registered under this chapter for the purpose of rendering professional service, is not a foreign limited liability partnership, and has as its partners only:

a.    Individuals who are licensed or otherwise legally authorized within this state to render the same professional service as the limited liability partnership; b.    Nonlicensed employees as provided in section 10-31-07.1; and c.    Minority owners.

10.    “Professional organization” or “organization” means:

a.    A professional corporation that is incorporated under this chapter; b.    A professional limited liability company that is organized under this chapter; or c.    A professional limited liability partnership that is registered under this chapter.

11.    “Professional service” means the personal service to the public which requires a license as a condition precedent to the rendering of such service and which requires as a condition of licensure an undergraduate or advanced college degree in the specific field.