Hello, my sister, brother, and I received mineral rights in Williston, ND, about 26 years ago after our mother passed away. We leased to a company about 12 years ago; no one drilled. Then we leased to another company about 7 years ago. We decided at that time to form an incorporation before we leased in the state of Michigan. Then we received a check from that company being in an incorporation and now a new company we have been working with said they do not have any information on our incorporation. Does anyone know where I have to send paper again or what I have to do?
Ask the new company what they require. They may just need a copy of the Incorporation documents that list you and your siblings as owners.
They are the ones that said they could not find anything and said they might have to go all the way back to our mother, and I told them it was in our names first. Then after that contract was up, we decided to do an INC.
You say that minerals belonged to your mother and you and siblings inherited. Did you file probate of her estate and transfer title in deed records of the county where the minerals are located? Or transfer title by other recorded documents? Did an attorney help you file the papers to form the corporation or did you do it yourselves? Have you filed the annual reports with your state for the corporation? To transfer title of the minerals to a corporation, you each had to sign a deed to the corporation and record it in the county where the minerals are located. You need to put together all the paperwork relating to the chain of deeds transferring title out of your mother to the corporation. Then you can send copies to the oil company.
Yes, we inherited them 26 years ago. Her probate was done 25 to 26 years ago. The first time we received bonus income, we all did it on our own and had no problems, and it was done in the state of ND.
The probate was done in the state of IN, which she lived and passed away in, and the state of ND had all that info and we had no problems. The title was in our names the first time.
No attorney but a tax office did, and yes, we have filed a report in our state and also have done tax returns.
We all signed a deed to the corporation in the state of MI where one of us lives. It has not been filed in ND, but when he got another offer after the first one was over, the company that we were doing business with asked for the INC papers and I sent them and had no problems with that, and they are located in ND.
But it has been in our names and we had no issue, only now with another new company.
Minerals are real estate, just like your house. All deeds and title records regarding the minerals must be filed in the county in North Dakota where the minerals are located. It is not effective and does not clear title to file a deed in a different state. First you must satisfy the probate requirements in the State of North Dakota. Texas will accept a filing of the certified probate from another state. Many other states require ancillary probate in one county within that state and then the ancillary probate can be filed in other counties. You need to find out if you have filed the required records in the county in North Dakota where your minerals are located to transfer the title out of your mother and into her children. Second you must all sign a deed from yourselves into the corporation and record it in the proper county in North Dakota. The problem here is that some landman took a lease without requiring clear title. If a well had been drilled, then you would not have received royalties until you cleared the title. I suggest that you consult with your tax advisor and attorney to make sure that a corporation is the best vehicle, rather than a limited liability company or a limited partnership.
Also, if the minerals are in ND, you have to file to claim them every 25 years (it may be 20-been a while since I did it) in order to retain them. Talk to your accountant or attorney. ND has a specific format that is required.
It was filled in 2013
Ok and that time we decided to do a S Corp do you have any suggestions?