How to Syndicate an Apartment Deal in North Dakota

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What is the North Dakota Rule 506 notice filing?
How do you form the deal LLC in North Dakota?
What North Dakota landlord and tenant rules should a sponsor know?
How does North Dakota property tax work for an apartment building?
Does North Dakota tax the deal LLC or its investors?
How DoorRaise fits in
FAQ

To syndicate an apartment deal in North Dakota, you form the deal LLC (or register an outside LLC with the North Dakota Secretary of State), raise under Rule 506(b) or 506(c), and file a Form D notice with a $100 fee through NASAA's EFD; DoorRaise's state data lists a $250 late fee for a late notice. North Dakota's constitution bars a tax on deeds, so there is no real estate transfer tax at closing.

This is the North Dakota version of our general syndication guide. It covers what changes when the building, the investors or both are in North Dakota. It is general information, not legal advice.

What is the North Dakota Rule 506 notice filing?

North Dakota treats Rule 506 interests as federal covered securities and asks for a notice: a copy of the SEC Form D and the fee, filed through the NASAA Electronic Filing Depository (EFD) for the North Dakota Securities Department. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $100, and a $250 late fee for a late notice. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.

How do you form the deal LLC in North Dakota?

A North Dakota LLC is formed by filing Articles of Organization with the North Dakota Secretary of State; the published fee is $135. Each year the LLC files an annual report, with a $50 fee, by November 15. An LLC formed elsewhere that will own North Dakota property registers as a foreign LLC. Confirm fees with the Secretary of State before you file. See forming an LLC for a syndication and keeping the LLC in good standing.

North Dakota's rules are in NDCC chapter 47-16. A security deposit generally cannot exceed one month's rent, with limited exceptions such as pets, and the landlord returns it, with interest and an itemized list of deductions, within 30 days after the tenancy ends (NDCC 47-16-07.1). Evictions run through a short eviction action under NDCC chapter 47-32 after the written notice the statute requires. Your property manager should use North Dakota forms.

How does North Dakota property tax work for an apartment building?

North Dakota assessors value property at true and full value each year. Residential property, which includes apartment buildings, is assessed at 50% of that value, and 9% of the assessed value is taxable, so the tax rate applies to 4.5% of market value. A sale is strong evidence of value. Underwrite taxes from your price times 4.5% and the local mill levy. See property tax reassessment in apartment underwriting.

Does North Dakota tax the deal LLC or its investors?

North Dakota taxes income earned in the state at low rates, and a pass through entity may have to withhold for nonresident owners or file a composite return. Ask your CPA early; the investor side is in state tax returns for nonresident syndication investors.

How DoorRaise fits in

DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), and verifies that every investor is accredited before they sign. Investors fund by wire into the deal's escrow account at Enterprise Bank & Trust. By default DoorRaise files the notice in the property's state; the first investor from another state pays that state's filing fee by card when they sign, later investors from that state pay nothing, and the sponsor never fronts it. Sponsors pay a $1,500 setup fee (non-refundable) and a flat $5,000 a year administration fee; see pricing or how it works.

FAQ

How much is the North Dakota Rule 506 notice fee?

$100, per NASAA's fee schedule. EFD shows the final amount before you pay.

Is there a North Dakota late fee?

DoorRaise's data lists a $250 late fee for a late notice.

Does North Dakota have a transfer tax?

No. Its constitution bars a tax on deeds.

How is a North Dakota apartment building taxed?

On 4.5% of market value, times the local mill levy.

Sources

This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.