Our free guide provides you with all of the information you'll need to form your nonprofit corporation in Oregon. Bookmark this page as a reference so you can return easily as you complete each step of the process.
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Forming a nonprofit corporation provides liability protection for any type of business, and should be among the first steps you take as a new business owner. Starting a nonprofit corporation can help you protect your personal assets while adding legitimacy to your company. Follow our step by step guide or let us handle the paperwork on your behalf, ensuring your business is filed quickly and accurately.
Form a Oregon Nonprofit for just $99 + state fees
or scroll down to our guideIn the state of Oregon, there are three types of nonprofit corporations. You may register as a mutual benefit corporation, public benefit corporation, or religious corporation, depending on the offerings you are providing to the community. The Oregon Secretary of State has an entire FAQ section dedicated to the ins and outs of Oregon nonprofit corporations, ranging from obtaining tax-exemption to corporation requirements. Let's take a look at how to get started with the incorporation process.
MyCorporation® can help you file all of the necessary documents to form your
nonprofit corporation in Oregon.Our free guide provides you with all of the information you'll need to form your nonprofit corporation in Oregon. Bookmark this page as a reference so you can return easily as you complete each step of the process.
Use Our Free GuideOur filing experts can get you up and running quickly and accurately, completing the required filings on your behalf.
Are you looking for another entity type? We offer several other guides for the state of Oregon.
A nonprofit corporation is a business formed with the purpose of furthering a particular social cause or advocating for a specific point of view. Rather than earning a profit, a nonprofit corporation reinvests its revenue to achieve its objective instead of distributing that income to its shareholders.
Nonprofit corporations, at their core, are a variation of a traditional C corporation formed to provide public benefit. While much of the structure and set-up process is similar between the two entities, setting up a nonprofit properly has a few additional caveats to be aware of including applying for federal and state tax exemptions.
Nonprofits are most popularly known for being tax exempt. This means they do not pay income tax on the money they receive on their income. If your business plans to operate only for scientific, research, educational, religious, or charitable reasons, a nonprofit would be your best entity fit.
Entity Type
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Liability
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Taxation
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Maintenance
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Limited Liability Company | Combines limited liability protection with a pass-through tax structure. | IRS rules allow LLCs to choose between being taxed as partnership or corporation. | The easiest entity to maintain with the least amount of formal annual requirements. |
Corporation | Owners / shareholders have limited personal liability for business related debts. | Separate taxable entity, corporate profits among owners and corporation. | Meetings are required to maintain corporate status. Stock may be sold to raise capital. |
Non-Profit Corporation | A corporation formed for a charitable, educational, religious, literary, or scientific purpose. | Contributions to charitable corporation are tax deductible. Can get tax exempt status with the IRS. | Annual reports, minutes, meetings are required to maintain nonprofit / tax exempt status. |
Now that you have decided to start a nonprofit, you need to determine the charitable mission and purpose for the business. In order to comply with IRS regulations, it's important that your business is organized for an exempt purpose. Your business may not engage in political activities and must not overcompensate its members.
You can learn more about how to choose and register a business name and other important statutory information through the Oregon Secretary of State.
Most states require that you designate a registered agent for your business, and Oregon is no exception. A registered agent acts as the state's means to communicate with a business and is responsible for receiving legal and official documents related to the business.
In the state of Oregon, most entities on record with the Secretary of State must maintain a registered agent and address in Oregon. A P.O. Box is not accepted as a registered agent address. A member of the LLC can act as the registered agent if desired, or you may also use a third-party registered agent service like MyCorporation.
It should be noted that registered agent information is made publicly available. This can cause privacy concerns for business owners who do not wish to list their personal contact information on the internet for everyone to see. It is also common for the registered agent to become a target of spam or robocalls since this private information is relatively easy to obtain.
Another issue that may arise is that in the case of a lawsuit, these documents would be hand delivered directly to the registered agent. In the case that you used your business location for this purpose, this could occur in front of your customers. This is why many business owners opt for a third-party registered agent service Opens in a new window such as MyCorporation to act as a registered agent on behalf of their business.
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Start a BusinessThe state of Oregon requires you to file Articles of Incorporation for a Nonprofit Corporation Opens in a new window to form a nonprofit corporation. Please keep in mind that the filing fees differ whether you're filing as a for-profit corporation or nonprofit corporation.
This document includes basic information about the Oregon nonprofit corporation such as:
A filing fee of $50 is also required when submitting nonprofit Articles of Incorporation. Make the check or money order payable to "Corporation Division."
Bylaws are the detailed set of rules agreed upon and adopted by the board of directors of the nonprofit. Think of these as an instruction manual to run the business. They include rules and procedures related to meetings you will hold, and notes on the ways you will elect officers and directors of the business. While bylaws are not required for nonprofit corporations in the state of Oregon, it is recommended that nonprofit corporations still maintain and keep a record handy.
If you are not sure how to create corporate bylaws, you can purchase MyCorporation's customized Minutes and Bylaws package. Inside our package you will find internal documents required to fulfill your corporate formalities and properly operate your business after it has been incorporated.
The first board meeting for your business is often referred to as the organizational meeting of the board. During this meeting, the initial directors of the business will adopt the corporate bylaws, set the fiscal year, and appoint corporate officers.
This meeting and all future meetings of the board of directors must be recorded in corporate minutes. Minutes are documents that detail what was discussed and any decisions the business makes during meetings. They are kept with the corporate records.
Corporate minutes are required for all Oregon nonprofit corporations by law. Falling behind on this critical task can cause your business to fall out of good standing, and even jeopardize its tax-exempt status. It is important to maintain a corporate minute book. Inside you may keep originals or copies of all the signed and approved minutes or Actions by Unanimous Consent from any special or annual meetings of the corporation's shareholders and directors.
An EIN (also referred to as a Federal Tax ID) is a nine-digit number that is issued by the IRS and used to uniquely identify your business for tax purposes. Think of it as a Social Security Number (SSN) for your business, except an EIN is less sensitive. Like an SSN, an EIN allows you to:
You will only need a few pieces of information to file, including your mailing address and legal business name. You can apply online Opens in a new window with the IRS by downloading IRS IRS Form SS-4 (PDF)(116 KB), or work alongside a third party organization like MyCorporation to complete an EIN application.
Your nonprofit corporation is not automatically tax exempt. In order to become tax exempt, you will need to take certain steps to obtain this status. First, you will need to file for exempt status with the Internal Revenue Service using either Form 1023 (PDF)(866 KB) or Form 1024 (PDF)(360 KB), depending on the classification of your organization. In some cases, you may be eligible to file Form 1023-EZ Opens in a new window, a streamlined version of the application for recognition of tax exemption. You can avoid a $25 fee if you file for federal tax exemption before filing with the state.
Once your filing with the IRS is complete, they will send you a Determination Letter that officially recognizes your nonprofit's tax exempt status. To gain the same exemptions at the state level, fill out Form CT-247 (PDF)(191 KB): Application for Exemption from Corporation Franchise Taxes by a Not-for-Profit Organization with the New York State Department of Taxation and Finance. There is no fee for this form.
You can learn more about the process directly from Publication 557 from the IRS (PDF)(2.1 MB).
All businesses are required to file for a general business license (sometimes referred to as a business tax certificate) in the state of Oregon. If you plan on operating your nonprofit in multiple cities, you will need to apply for a business license in each location. Additional permits may be required along with a general business license and are to be filed with the county or state. You can find out about the specific licenses applicable to your business by checking with the city offices where you will conduct business, or by using MyCorporation's business license compliance package. Our team of skilled professionals will identify the licenses required by your nonprofit and provide you with all the information you need to file.
nonprofit corporation Formation Packages
Save money and simplify the process of starting your business by bundling the services you need
with our business formation packages.If you choose to register a nonprofit corporation online it may take as little as a day or two to start a nonprofit corporation in Oregon. You may register online through the Oregon Secretary of State portal.
In order to keep your nonprofit in good standing, there are reoccurring requirements that must be met.
In order to form a nonprofit corporation in Oregon, you will be required to pay various fees and taxes. The breakdown of the required fees is as follows:
In total, expect to set aside at least $60 to form a nonprofit corporation in Colorado.
According to the Oregon Secretary of State, foreign entities that wish to transact business in Oregon must first obtain a certificate of authority. Remember that when filing a certificate of authority, you must also include an original certificate of existence/good standing that is dated no more than 60 days prior to filing in Oregon.