No, all shareholders must be related individuals or one of the following:
- A trust for the benefit of an individual or a class of individuals who are related to every shareholder of the corporation within specified degrees of kinship.
- An estate of a decedent who was related to every shareholder of the corporation within specified degrees of kinship.
The shareholders must be related within one of the following degrees of kinship:
- First cousin; or
- The spouse of a person so related.
No, but at least one shareholder must be actively engaged in farming or ranching.
No, but at least one shareholder must reside on or be actively engaged in farming or ranching.
Only shareholders who are actively engaged in farming can serve as officers or directors of a farm corporation.
No, a farm corporation must be actively engaged in farming.
Yes, however 65% of the gross income over a period of five years, or every year of its existence, must be derived from farming. The income from nonfarm rent, nonfarm royalties, dividends, interest, and annuities cannot exceed 20% of the gross income of the corporation.
Yes, the corporation can be maintained if an amendment is filed to convert the farm corporation to a business corporation after the land and livestock have been divested.
Yes, however, the farm corporation must divest of all livestock and owned or leased land since a business corporation cannot own or lease land used for farming or production of livestock.
Yes, however, 65% of the gross income of the surviving farm corporation must be derived from farming.
No, a farm corporation may be incorporated in another state as long as appropriate documents are filed with this office and North Dakota requirements such as those relating to the number and kinship of shareholders; residency on, or operation of, the farm or ranch; and percent of income derived from farming or ranching are met.