How to Incorporate in Oregon

Published: May 23, 2025 β€’ Incorporation
Oregon Corporation Formation Guide | Business & Professional Corporations
🌲 OREGON
Oregon Corporation Formation Guide

Complete guide to forming business corporations, professional corporations, and benefit companies in Oregon – with tax, compliance, and CTA/BOI coverage

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Formation Filing Fee
$100
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Processing Time (Online)
1 Business Day
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Annual Report Fee
$100
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Corporate Tax Rate
6.6% – 7.6%

Oregon Corporation Overview

Statutory Framework

Oregon corporations are governed by:

  • Business corporations: Oregon Business Corporation Act, ORS Chapter 60 (Private Corporations)
  • Professional corporations: ORS Chapter 58 (Professional Corporations), plus Chapter 60 where not inconsistent
  • Benefit companies: ORS 60.750–60.770 (Oregon’s “public benefit” entity option)
  • Nonprofit corporations: ORS Chapter 65 (separate regime)

Common Entity Types

Business Corporation

Best for: Traditional for-profit businesses seeking equity financing, planning to go public, or wanting a well-established corporate structure.

Tax treatment: C-corp (double taxation) or S-corp election (pass-through)

Filing: Articles of Incorporation with Oregon Secretary of State

Professional Corporation (PC)

Best for: Licensed professionals (lawyers, doctors, dentists, accountants, architects, chiropractors, etc.)

Requirements: Must be organized for rendering professional services; ownership/control restricted to licensed professionals

Statute: ORS Chapter 58 + Chapter 60

Benefit Company

Best for: Mission-driven businesses balancing profit and public benefit

Requirements: Purpose of creating general public benefit; annual benefit report required; stakeholder-orientation duties for directors

Election: Check-the-box on Articles of Incorporation

Foreign Corporation

Best for: Out-of-state corporations doing business in Oregon

Requirements: Certificate of Authority from Oregon SoS; appoint Oregon registered agent

Annual fee: $275 (vs $100 for domestic)

Key Advantages of Oregon Corporations

Strengths:
  • No state sales tax: Oregon is one of five states with no sales tax, reducing compliance burden
  • Fast processing: Online filings processed in 1 business day
  • Flexible governance: One-director corporations allowed; no residency requirement
  • Privacy-friendly: SoS explicitly warns about public records and suggests privacy alternatives
  • Benefit company option: Built-in public benefit entity election without needing separate PBC statute

When to Choose a Corporation vs LLC

Factor Corporation LLC
Equity financing / VC βœ… Preferred structure ⚠️ Less common
Going public (IPO) βœ… Required ❌ Must convert first
Tax flexibility C-corp or S-corp Pass-through (can elect C-corp)
Formality burden High (board meetings, resolutions, etc.) Low
Self-employment tax Only on W-2 salary (S-corp) On all active income (unless C-corp elected)
Professional practice PC available PLLC available

Name Requirements

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Business corporation name must contain: “Corporation”, “Company”, “Incorporated”, “Limited”, or abbreviation (Inc., Co., Corp., Ltd.)
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Professional corporation name must contain: “Professional Corporation”, “P.C.”, or “Prof. Corp”
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Name must be in the English alphabet (may include Arabic/Roman numerals and incidental punctuation)
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Name must be distinguishable from existing entities on Oregon SoS records (search at sos.oregon.gov/business)

Registered Agent & Principal Office

Registered Agent Requirements:
  • Must have a physical street address in Oregon (no PO boxes, virtual offices, or commercial mail receiving agencies)
  • Can be an individual Oregon resident or an Oregon business entity
  • Must be available during business hours to receive service of process
Privacy Warning: Oregon SoS warns that all business registration information becomes public record and is searchable by individual name as well as business name. They explicitly suggest avoiding home addresses if privacy is a concern. Consider using a commercial registered agent service if you want to keep your home address private.
Principal Office: May not be a PO box, commercial mail receiving agency, mail forwarding business, or virtual office. Must be a physical address.

Oregon Corporation Formation Steps

Step-by-Step Formation Process

1
Choose and reserve corporate name

Search Oregon SoS business name database. Optional: reserve name for 120 days ($100 fee).

2
Appoint Oregon registered agent

Must have physical street address in Oregon. Can use commercial service or individual/entity willing to serve.

3
Draft & file Articles of Incorporation

Official form: “Articles of Incorporation – Business/Professional Corporation”. File with Oregon Secretary of State. Fee: $100 (non-refundable).

4
Adopt bylaws

ORS 60.061 requires incorporators or board to adopt initial bylaws. Not filed with state; kept in corporate records.

5
Hold organizational meeting

Adopt bylaws, elect directors/officers, authorize share issuance, approve initial resolutions.

6
Issue stock certificates

Issue shares to founders/initial shareholders with proper documentation (stock purchase agreements, board resolutions).

7
File 83(b) election (if applicable)

If founders receive restricted stock subject to vesting, file IRS Form 83(b) within 30 days to avoid future tax surprises.

8
Obtain EIN from IRS

Apply online at IRS.gov (free). Required for bank accounts, payroll, tax filings.

9
Register for Oregon taxes

Register with Oregon Department of Revenue for corporate excise/income tax and Corporate Activity Tax (CAT) if applicable.

10
Comply with licensing requirements

Obtain business licenses, professional licenses, and permits as required by city/county and regulatory boards.

Articles of Incorporation – Required Content

Field Requirement
Corporate Name With proper suffix (Inc., Corp., P.C., etc.)
Principal Office Address Physical address (no PO box)
Registered Agent Name Individual or entity name
Registered Agent Address Physical Oregon street address
Number of Authorized Shares Total authorized (no par value required in Oregon)
Professional Corporation? Check box if PC; specify profession
Incorporator(s) Name and address of incorporator(s)
Initial President & Secretary Names and addresses
Director / Controlling Shareholder Name and address of at least one
Benefit Company Election Check box if electing benefit company status (optional)

Optional Provisions (May Include in Articles)

  • Preemptive rights: Shareholders have right to purchase pro-rata share of new issuances
  • Cumulative voting: Allows minority shareholders to aggregate votes for director elections
  • Director liability limitations: Limits under ORS 60.047 (cannot eliminate liability for bad faith, intentional misconduct, unlawful distributions)
  • Supermajority voting: Require >50% vote for specific corporate actions
  • Classes/series of stock: Preferred stock with liquidation preferences, voting rights, etc.
  • Indemnification provisions: Broader indemnification of directors/officers than statute

Filing Mechanics

Method Processing Time Fee
Online (sos.oregon.gov/business) β‰ˆ 1 business day $100
In-person / Courier β‰ˆ 1 business day $100
Fax 1–2 business days $100
Mail 7–10 business days $100
Filing Address (Mail):
Oregon Secretary of State
Corporations Division
255 Capitol St NE, Suite 151
Salem, OR 97310
Important: All filing fees are non-refundable, even if the filing is rejected or you abandon the entity later.

First 90 Days: Post-Formation Checklist

Timing Action Notes
Within 7 days Organizational meeting & bylaws Elect directors/officers, adopt bylaws, approve stock issuance
Within 14 days Issue stock & document cap table Stock certificates, purchase agreements, founder vesting if applicable
Within 30 days 83(b) election (if restricted stock) CRITICAL: IRS deadline is 30 days from grant; cannot extend
Within 30 days Obtain EIN from IRS Free online; needed for bank account and taxes
Within 45 days Open corporate bank account Requires EIN, Articles, and corporate resolution
Within 60 days Register with Oregon DOR Corporate excise/income tax and CAT registration
Within 90 days Business licenses & permits City/county business licenses, professional licenses if PC
Ongoing Maintain corporate formalities Board meetings, minutes, resolutions – preserve limited liability

Oregon Professional Corporations (PCs)

Statutory Framework

Oregon professional corporations are governed by ORS Chapter 58 (Professional Corporations) plus ORS Chapter 60 (Business Corporation Act) where not inconsistent.

Definition: A “professional corporation” means a corporation organized under Chapter 58 for the specific purpose of rendering professional services and its ancillary services.

Who Must Use a Professional Corporation

Oregon law and regulatory board rules require or permit PCs for licensed professionals, including:

Legal Professionals

  • Attorneys (may also use LLP or LLC – see Oregon State Bar PLF guidance)

Medical / Health Care

  • Physicians (MD, DO)
  • Dentists
  • Chiropractors
  • Optometrists
  • Veterinarians
  • Pharmacists
  • Nurse practitioners

Accounting & Financial

  • Certified Public Accountants (CPAs)
  • Public accountants

Design & Engineering

  • Architects
  • Engineers
  • Land surveyors
  • Landscape architects
Check Your Licensing Board: Each profession’s regulatory board (Oregon State Bar, Oregon Medical Board, Board of Chiropractic Examiners, etc.) may have specific rules on entity ownership, control, and permitted business forms. Always verify with your board before formation.

Formation of a Professional Corporation

PC formation uses the same Articles of Incorporation – Business/Professional Corporation form, but:

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Check “Professional Corporation” box on the Articles form
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Corporate name must include: “Professional Corporation”, “P.C.”, or “Prof. Corp”
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Specify the profession (e.g., “to practice law,” “to practice medicine”)
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All shareholders, directors, and officers must be licensed (unless board rules permit laypeople in specific roles)
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Comply with Chapter 58 restrictions on ownership, share transfer, and disqualification upon license loss

Ownership & Control Restrictions

Key PC Rule: Generally, only licensed professionals in the same field may own shares, serve as directors, or be officers. Some boards allow limited exceptions (e.g., non-licensed business managers as officers, or interdisciplinary practice for related professions).

Example (Chiropractic Board): Majority ownership and control must be held by Oregon-licensed chiropractors if the entity is organized to practice chiropractic. Similar “majority ownership” rules exist in many health-care regulatory regimes.

Share Redemption & Disqualification (ORS 58.185, 58.300, 58.385–58.389)

Oregon PC statute includes special provisions for:

  • Disqualification: If a shareholder loses their license (suspension, revocation, or voluntary surrender), they typically must dispose of their shares or the corporation must redeem them.
  • Redemption mechanics: Articles or bylaws should specify valuation method and timing for repurchase of disqualified shareholder’s stock.
  • Transfer restrictions: Shares generally may only be transferred to other licensed professionals in the same field (unless board rules allow exceptions).

Liability for Professional Services

No Shield for Malpractice: The PC does not shield individual professionals from personal liability for their own malpractice or negligence. The PC limits liability for other professionals’ malpractice (no vicarious liability) and for general business debts, but each professional remains liable for their own acts.

Annual Reports & Ongoing Compliance

  • PCs file Annual Reports with Oregon SoS same as regular corporations ($100/year, due on anniversary of formation).
  • PCs must maintain professional liability insurance (if required by licensing board).
  • PCs must comply with continuing education, ethics rules, and all professional regulations.

PC vs LLP vs LLC for Professional Practice

For law firms: Oregon State Bar’s Professional Liability Fund has published a detailed guide: “Choice of Entity for Legal Practice in Oregon” comparing PC, LLP, and LLC structures. Key takeaway: LLPs and LLCs offer similar liability protection with less formality; PCs are more traditional but require stricter corporate governance.
Factor PC PLLC LLP
Formality High (board, officers, bylaws, etc.) Medium Low
Liability shield Yes (except own malpractice) Yes (except own malpractice) Yes (except own malpractice)
Tax default C-corp (can elect S-corp) Pass-through Pass-through
Annual report fee $100 $100 $100

Oregon Benefit Companies

What is an Oregon Benefit Company?

Oregon does not use the Delaware “PBC” (public benefit corporation) label. Instead, Oregon offers “benefit company” status under ORS 60.750–60.770, which can be elected by both corporations and LLCs.

Key Concept: A benefit company is a for-profit entity with a legal obligation to create general public benefit (a material positive impact on society and the environment) and to consider the interests of stakeholders beyond shareholders.

How to Elect Benefit Company Status

1
At formation: Check the “benefit company” box on the Articles of Incorporation (or Articles of Organization for LLC)
2
Post-formation: Amend Articles to add benefit company election (requires shareholder approval)
3
Include purpose statement: Articles must state the company’s purpose of creating general public benefit (and may identify one or more specific public benefits)

Benefit Company Requirements (ORS 60.750–60.770)

1. General Public Benefit Purpose

The company’s purpose must be to create general public benefit, defined as a material positive impact on society and the environment, assessed against a third-party standard, through activities that promote some combination of specific public benefits.

2. Stakeholder Consideration Duty

Directors and officers must consider the effects of decisions on:

  • Shareholders
  • Employees
  • Customers
  • Community and societal factors
  • Local and global environment
  • Long-term interests of the company

3. Annual Benefit Report

Must prepare an annual benefit report evaluating the company’s overall social and environmental performance against an independent third-party standard (e.g., B Lab’s B Impact Assessment, GRI, others).

Report must be made publicly available on the company’s website (with limited redaction rights for trade secrets).

4. Third-Party Standard

The benefit report must assess performance against a comprehensive, credible, independent, and transparent third-party standard developed by an entity not controlled by the benefit company.

Common standards: B Lab (B Corp certification), Global Reporting Initiative (GRI), others.

Specific Public Benefit Examples (Optional)

In addition to general public benefit, a benefit company may identify one or more specific public benefits in its Articles, such as:

  • Providing low-income or underserved individuals with beneficial products or services
  • Promoting economic opportunity beyond job creation
  • Protecting or restoring the environment
  • Improving human health
  • Promoting the arts, sciences, or advancement of knowledge
  • Increasing the flow of capital to entities with a public benefit purpose
  • Conferring any other particular benefit on society or the environment

Enforcement & Accountability

Benefit Enforcement Proceeding: Oregon law allows a “benefit enforcement proceeding” – a claim that a director or officer failed to discharge their duties in accordance with the benefit company requirements. Only shareholders (and in some cases directors) may bring such a proceeding; general public or stakeholders do not have standing.

Benefit Company vs B Corp Certification

Aspect Benefit Company (Legal Status) B Corp Certification (Voluntary)
What is it? Legal entity type under Oregon law Third-party certification by B Lab (nonprofit)
Requirement Mandatory stakeholder duties, annual benefit report Score β‰₯80 on B Impact Assessment; recertify every 3 years
Who can verify? Shareholders can enforce via benefit enforcement proceeding B Lab audits performance
Can you do both? βœ… Yes – many companies elect benefit company status AND pursue B Corp certification

Tax Treatment

No special tax treatment: Benefit companies are taxed identically to regular corporations (C-corp or S-corp election). The benefit company election does not confer nonprofit or tax-exempt status.

When to Choose Benefit Company Status

βœ… Good fit if:
  • Mission-driven business with measurable social/environmental impact goals
  • Want legal protection for directors to prioritize stakeholder interests over short-term profit maximization
  • Seeking impact investors who require benefit company or B Corp status
  • Want to signal commitment to stakeholders and community (marketing/brand benefit)
⚠️ Consider carefully if:
  • Seeking traditional VC funding (some VCs hesitate due to stakeholder duties that may conflict with shareholder primacy)
  • Annual benefit report preparation is too burdensome for current stage
  • Not ready to commit to transparent public reporting of social/environmental impact

Corporate Governance & Records

Bylaws

ORS 60.061: “The incorporators or board of directors of a corporation shall adopt initial bylaws for the corporation.”

Bylaws govern internal affairs: Meetings, notice, quorum, voting, officer titles, issuance of shares, preemptive rights (if any), indemnification, etc. Bylaws are not filed with the state; they are kept in the corporate records book.

Typical Bylaw Provisions

  • Board of directors: Number (fixed or range), election, term, removal, vacancies
  • Officers: Titles (President, Secretary, Treasurer, etc.), appointment, duties, removal
  • Shareholder meetings: Annual meeting timing, special meetings, notice requirements, quorum, voting
  • Board meetings: Regular vs special meetings, notice, quorum, action by written consent
  • Stock issuance: Authorization, certificates, transfer restrictions
  • Indemnification: When corporation indemnifies directors/officers for legal expenses
  • Amendment: How bylaws may be amended (typically by board, or by shareholders)

Directors & Officers

Role Oregon Requirement
Minimum directors At least one director required
Director residency No residency requirement
Director qualifications No requirement to be shareholder (unless bylaws impose)
Officers At least one officer required; one officer must be responsible for maintaining corporate records
Same person multiple roles? βœ… Yes – one person may hold multiple officer titles
Board Authority: Directors exercise “all corporate powers” and manage the business and affairs, with ability to delegate day-to-day management to officers. Directors owe fiduciary duties of care and loyalty to the corporation.

Shareholder Meetings & Consents

  • Annual meeting required: Oregon law requires an annual shareholder meeting (but can be satisfied by written consent if all required votes obtained).
  • Action by written consent: Permitted if the number of consents equals or exceeds the votes required at a meeting (i.e., if action requires majority vote, you need consents from majority of shares).
  • Notice requirements: Bylaws specify notice timing and method for meetings; typically 10–60 days advance notice.

Corporate Records Requirements (ORS 60.771)

Oregon law requires corporations to maintain detailed records. Failure to maintain records can lead to piercing of the corporate veil and personal liability for directors/shareholders.

Permanent Records (Must Keep Indefinitely):

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Minutes of all shareholder meetings and records of actions taken by shareholders without a meeting
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Minutes of all board of directors meetings and records of actions taken by board or board committees without a meeting
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Appropriate accounting records
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Shareholder list capable of being used to compile names, addresses, classes of shares, and number held by each shareholder

At Principal or Registered Office (Must Keep for Inspection):

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Articles of Incorporation and all amendments currently in effect
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Bylaws and all amendments currently in effect
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Resolutions creating classes/series of shares with rights and preferences (if any such shares outstanding)
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Minutes of all shareholder meetings and written consents for past three years
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All written communications to shareholders generally in past three years (annual reports, financial statements, etc.)
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Current list of directors and officers with business addresses
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Most recent annual report filed with Oregon SoS
Practical Tip: Maintain a corporate records binder (physical or digital) with all of the above. If you’re ever sued and a court finds you failed to maintain corporate formalities, you risk piercing the corporate veil – meaning personal liability for corporate debts.

Annual Meeting & Resolution Calendar (Sample)

Event Frequency Purpose
Annual Shareholder Meeting Once per year Elect directors, approve significant actions, review financials
Board Meetings Quarterly (or as needed) Approve major contracts, capital raises, officer appointments, dividends
Written Consents (alternative) As needed Substitute for in-person meetings if all required votes obtained
Annual Report Filing (Oregon SoS) By anniversary date Update registered agent, officers/directors, addresses

Foreign Corporations Doing Business in Oregon

What is a Foreign Corporation?

A foreign corporation is a corporation formed under the laws of another state or country. If a foreign corporation conducts business in Oregon, it must register for authority to transact business with the Oregon Secretary of State.

When Foreign Qualification is Required

Doing Business in Oregon: Generally includes:
  • Maintaining an office in Oregon
  • Employing workers in Oregon on a regular basis
  • Owning or leasing real property in Oregon for business purposes
  • Regular, ongoing sales or service activities in Oregon beyond occasional transactions

Penalty for non-compliance: Unable to sue in Oregon courts; liable for back fees and penalties; officers/directors may face personal liability.

Safe harbors (typically NOT “doing business”):
  • Maintaining bank accounts in Oregon
  • Holding shareholder/board meetings in Oregon
  • Maintaining passive investments (stocks, bonds) through Oregon brokers
  • Isolated or occasional transactions (single sale, one-time consulting project)
  • Selling through independent contractors/distributors who take title to goods

Application for Authority

File Application for Authority to Transact Business with Oregon SoS. Required information:

  • Corporate name (must be available/distinguishable in Oregon; may need to register alternate name)
  • State/country of incorporation
  • Date of incorporation
  • Oregon registered agent name and street address
  • Principal office address
  • Names and addresses of directors and officers
  • Certificate of Good Standing from home state (sometimes called Certificate of Existence)

Filing fee: Varies; consult current SoS fee schedule. Foreign corporations also pay higher annual report fees ($275 vs $100 for domestic corporations).

Foreign Professional Corporations (ORS 58.129–58.141)

Foreign professional corporations (e.g., law firm incorporated in California doing business in Oregon) must:

  • Comply with ORS 58.129–58.141 (foreign PC provisions)
  • Ensure shareholders, directors, and officers meet Oregon licensing requirements for the profession
  • File application for authority same as any foreign corporation, but designate as a foreign professional corporation
Same rights and obligations: Foreign PCs have the same rights and obligations as domestic Oregon PCs, subject to oversight by the relevant Oregon licensing board.

Annual Reports for Foreign Corporations

Entity Type Annual Report Fee Due Date
Domestic Corporation $100 Anniversary of formation
Foreign Corporation $275 Anniversary of Oregon registration
Failure to file: Leads to administrative revocation of authority to transact business in Oregon. Entity cannot sue in Oregon courts and may face penalties. Reinstatement requires back-filings and fees.

CTA / BOI Reporting for Foreign Corporations

Under FinCEN’s March 21, 2025 Interim Final Rule (IFR):

Major Change: Entities formed under U.S. state law (domestic corporations and LLCs) are no longer BOI “reporting companies” as of the IFR.
Foreign corporations ARE reporting companies: Foreign entities (formed under foreign country law) that register to do business in a U.S. state or Tribal jurisdiction are BOI reporting companies unless they qualify for a statutory exemption (e.g., large operating company, SEC-registered issuer).

BOI Deadlines for Foreign Reporting Companies

Registration Timing BOI Filing Deadline
Already registered before March 21, 2025 IFR 30 days from IFR publication date
Register on or after IFR publication 30 days after registration becomes effective
Exemptions: Foreign corporations may qualify for exemptions if they meet criteria such as:
  • Large operating company: >20 full-time U.S. employees, >$5M gross receipts/sales, physical U.S. office
  • SEC-registered issuer
  • Regulated entities: Banks, credit unions, broker-dealers, investment companies, etc.

Check FinCEN’s full exemption list at fincen.gov.

Withdrawal of Authority

When a foreign corporation ceases doing business in Oregon, it should file Application for Withdrawal with Oregon SoS to formally terminate its authority. This avoids continued annual report obligations and fees.

Oregon Tax & Compliance

Oregon Corporate Excise / Income Tax

Oregon imposes two separate corporate-level taxes:

Corporate Excise Tax

Applies to: Corporations doing business in Oregon (regular, ongoing commercial activity)

Tax base: Oregon taxable income (federal taxable income with Oregon modifications)

Corporate Income Tax

Applies to: Corporations with Oregon-source income but not doing business in Oregon (e.g., occasional sales, passive income)

Tax base: Oregon-source income

Oregon Corporate Tax Rates

Taxable Income Rate
Up to $1,000,000 6.6%
Over $1,000,000 7.6%

S-Corporation Tax Treatment in Oregon

Oregon S-corps must file: Even if the corporation has elected federal S-corporation status, it must file an Oregon S-corporation return and pay a minimum excise tax of $150 annually.

S-corporation income passes through to shareholders, who pay Oregon personal income tax on their distributive share (Oregon has no separate S-corp entity-level tax beyond the $150 minimum).

Oregon Corporate Activity Tax (CAT)

In addition to corporate excise/income tax, Oregon levies a Corporate Activity Tax (CAT) on businesses with significant commercial activity in the state.

CAT Threshold: Applies to businesses with more than $1 million of Oregon commercial activity in a calendar year.

CAT Rate Structure

Tax: $250 plus 0.57% of Oregon taxable commercial activity above $1 million (subject to a subtraction for certain labor costs and cost inputs).

Example:

  • Oregon commercial activity: $3,000,000
  • Taxable commercial activity (after subtractions): $2,500,000
  • CAT = $250 + (0.57% Γ— [$2,500,000 βˆ’ $1,000,000]) = $250 + $8,550 = $8,800
Double tax burden: C-corps and S-corps that exceed the $1M threshold will owe both corporate excise/income tax and CAT. These are separate taxes with different bases and rates.

No State Sales Tax

βœ… Oregon has no state sales tax: This simplifies compliance for businesses selling goods/services. You do not need to collect, remit, or file sales tax returns in Oregon (though you may still owe use tax on out-of-state purchases if you use the items in Oregon).

Oregon Personal Income Tax (Pass-Through Impact)

For S-corps and LLCs taxed as partnerships, income passes through to individual shareholders/members, who pay Oregon personal income tax.

Oregon Personal Income Tax Rates (2024+)

Taxable Income (Single) Rate
Up to $4,050 4.75%
$4,050 – $10,200 6.75%
$10,200 – $125,000 8.75%
Over $125,000 9.9%

Tax Comparison: C-Corp vs S-Corp vs LLC

Tax C-Corp S-Corp LLC (default)
Corporate excise/income tax 6.6% – 7.6% $150 minimum N/A (pass-through)
Personal income tax (on distributions) Up to 9.9% (dividends) Up to 9.9% (pass-through) Up to 9.9% (pass-through)
CAT (if >$1M activity) $250 + 0.57% $250 + 0.57% $250 + 0.57%
Double taxation? βœ… Yes (corporate + dividend) ❌ No (pass-through) ❌ No (pass-through)

Employer Taxes & Payroll

If you have employees in Oregon:

  • Payroll withholding: Must withhold Oregon personal income tax from employee wages and remit to Oregon DOR
  • Unemployment insurance: Register with Oregon Employment Department; pay state unemployment tax (rates vary by industry and experience)
  • Workers’ compensation: Required if you have employees (obtain through private insurer or state fund)
  • Paid Leave Oregon: State-run paid family and medical leave program; contributions required starting 2023

Annual Report Filing (Oregon SoS)

πŸ“…
Due date: Anniversary of formation (or registration for foreign corps)
πŸ’°
Fee: $100 (domestic), $275 (foreign)
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Content: Update registered agent, principal office, directors/officers, contact info
⚠️
Failure to file: Administrative dissolution or revocation; reinstatement requires back fees

CTA / BOI Reporting (Beneficial Ownership Information)

Under FinCEN’s March 21, 2025 Interim Final Rule:

βœ… Domestic Oregon corporations: No longer BOI reporting companies as of the IFR. Domestic U.S. entities (corporations and LLCs formed in Oregon or any other U.S. state) are exempt from BOI reporting under the current rule.
⚠️ Foreign corporations registered in Oregon: ARE BOI reporting companies (unless they qualify for a statutory exemption). Foreign entities formed under foreign country law that register to do business in Oregon must file BOI reports with FinCEN within 30 days of registration.

FinCEN Residential Real Estate Rule (RRE Rule)

Separate from CTA/BOI, FinCEN has issued a Residential Real Estate Rule targeting non-financed (“all-cash”) transfers of residential real estate to legal entities or trusts.

Key points:
  • Final rule issued Aug 29, 2024; reporting requirement postponed to March 1, 2026 via FinCEN exemptive relief
  • Applies when a legal entity or trust purchases residential real estate with cash or private financing (no institutional mortgage)
  • Reporting person (title/settlement agent or attorney) must file a Real Estate Report with detailed beneficial ownership info
  • Direct purchases by individuals are outside the RRE Rule
⚠️ For Oregon corporations buying residential real estate: If your corporation purchases residential property for cash (or private financing), the closing agent will be required to file a Real Estate Report with FinCEN starting March 1, 2026. This is separate from BOI reporting under the CTA.

Common Pitfalls – Law Office Perspective

After handling hundreds of Oregon corporation formations and clean-up projects, I see the same mistakes repeatedly. Avoid these pitfalls:

1. Skipping the 83(b) Election (Founders with Restricted Stock)

The problem: Founders receive stock subject to vesting but fail to file IRS Form 83(b) within 30 days. Result: Massive tax bill when shares vest (even if you haven’t sold anything).

Example: Founder receives 1M shares at $0.001/share FMV ($1,000 total). One year later, 250K shares vest at $1/share FMV = $250K ordinary income, $92.5K tax owed (37% bracket) – in cash, even though you haven’t sold.

Fix: File 83(b) within 30 days of grant. Pay tax on $1,000 upfront (β‰ˆ$370). When shares vest, $0 additional tax. Save $92K+.

2. Failing to Maintain Corporate Formalities (Piercing Risk)

The problem: No board meetings, no minutes, no resolutions, commingling corporate and personal funds, treating corporation as “alter ego.”

Result: When sued, court pierces the corporate veil and holds directors/shareholders personally liable for corporate debts.

Fix: Hold annual shareholder meetings (or document written consents), hold quarterly board meetings (or consents), maintain separate bank accounts, follow ORS 60.771 records requirements, document all major decisions in board resolutions.

3. Ignoring Annual Report Deadlines β†’ Administrative Dissolution

The problem: Forget to file annual report by anniversary date. Oregon SoS administratively dissolves the corporation. You can’t sue in Oregon courts, and reinstatement requires back fees + late penalties.

Fix: Set calendar reminders 30 days before anniversary date. File online at sos.oregon.gov/business (takes <5 minutes). Fee: $100/year (domestic), $275/year (foreign).

4. Electing S-Corp Status Without Understanding Restrictions

The problem: File IRS Form 2553 to elect S-corp tax treatment, then violate S-corp eligibility rules (>100 shareholders, non-U.S. shareholders, corporate/partnership shareholders, multiple classes of stock). Result: IRS terminates S-corp election β†’ retroactive C-corp taxation + penalties.

Fix: Before electing S-corp, ensure:

  • ≀100 shareholders (all individuals, estates, or certain trusts)
  • All shareholders are U.S. citizens/residents
  • Only one class of stock (all shares have identical rights to distributions and liquidation proceeds)

5. Granting Founder Equity Without Vesting

The problem: Co-founders each get 50% of stock upfront with no vesting. One co-founder leaves after 6 months. They keep 50% forever. Remaining founder works for 3 years while departed co-founder gets huge payout at exit for zero work.

Result: VCs won’t fund you (cap table is a disaster), you can’t recruit a replacement CTO without massive dilution, and you resent the departed co-founder forever.

Fix: Standard 4-year vesting with 1-year cliff on all founder stock. Use reverse vesting (founders get shares upfront, but company has repurchase right at nominal price for unvested shares). File 83(b) within 30 days.

6. Using Registered Agent = Founder’s Home Address (Privacy Issue)

The problem: Registered agent address becomes public record, searchable by anyone. If you use your home address, you’ve just published your home address to the world.

Result: Junk mail, unwanted solicitations, privacy invasion. Oregon SoS explicitly warns about this and suggests privacy alternatives.

Fix: Use a commercial registered agent service ($100–$300/year) with a business address. Keep your home address private.

7. Forgetting to Register for Oregon CAT (>$1M Revenue)

The problem: Hit $1M+ Oregon commercial activity but don’t register for Corporate Activity Tax. Oregon DOR assesses back taxes + penalties + interest.

Fix: If your Oregon commercial activity exceeds $1M in a calendar year, register with Oregon DOR for CAT and file quarterly returns. CAT is separate from corporate excise/income tax – you owe both.

8. Professional Corporation Ownership Violations

The problem: PC shareholders/directors are not licensed in the profession, or lose their license and fail to divest shares. Regulatory board investigates; entity may be forced to dissolve or face fines.

Fix: Ensure all PC shareholders, directors, and officers meet licensing requirements. Include automatic redemption provisions in bylaws/shareholders agreement for disqualified shareholders (ORS 58.185, 58.300, 58.385–58.389).

9. Benefit Company Election Without Annual Report Preparation Plan

The problem: Check the “benefit company” box on Articles, then forget about the annual benefit report requirement. No report = breach of ORS 60.750–60.770; shareholders can bring benefit enforcement proceeding.

Fix: Before electing benefit company status, ensure you have resources to:

  • Assess performance against a third-party standard (B Lab, GRI, etc.)
  • Prepare and publicly post annual benefit report
  • Consider stakeholder interests in major decisions (document in board minutes)

10. Foreign Corporation Operating in Oregon Without Registration

The problem: Delaware/Nevada corporation does business in Oregon (office, employees, sales) but never files for Certificate of Authority. Gets sued; can’t defend in Oregon court because not qualified. Liable for back fees + penalties.

Fix: If you’re doing business in Oregon (not just isolated transactions), file Application for Authority with Oregon SoS before you start. Fee varies; annual report $275/year. Cheaper than penalties and inability to sue/defend.

My Services – Oregon Corporation Formation

I handle Oregon corporation formations as an attorney-led service, not a commodity filing shop. You work directly with meβ€”an experienced business attorneyβ€”through the entire process.

What’s included: State filing fees and a registered agent (state requirement) fee for one year. A company (LLC or Corporation) formed in one of the standard-fee states (DE, CA, WY, SC) at the base price. Formation in premium-fee states (TX, MA, NV, NY, IL, TN) is available with an additional fee to cover higher state costs.

Service Packages

Starter

$500

Best for: Single-owner businesses or simple partnerships using standard templates with basic information inserted.

Delivery Time 14 days
Number of Revisions 0

Includes:

  • EIN (Tax ID Number)
  • Basic Bylaws/Operating Agreement

Standard

$750

Perfect for: Most businesses requiring customized founding documents with professional guidance on entity type, state selection, and taxation.

Delivery Time 5 days
Number of Revisions 2

Includes:

  • EIN (Tax ID Number)
  • Customized Bylaws/Operating Agreement
  • 30min Consultation

Advanced

$850

Ideal for: Complex business structures requiring sophisticated legal frameworks, multiple owners, investors, or specialized provisions.

Delivery Time 3 days
Number of Revisions 5

Includes:

  • EIN (Tax ID Number)
  • Customized Bylaws/Operating Agreement
  • 1hr Consultation
  • Advanced Corporate Structuring & Custom Drafting
    (Ownership transfers, investor terms, multiple share classes, etc.)

Add-On Services

Service Fee
Foreign corporation registration (Certificate of Authority) $800
S-corp election (Form 2553 preparation and filing) $400
Benefit company annual report preparation $600/year
Corporate records clean-up (missing minutes, consents, resolutions) $1,200+
Conversion (LLC to C-corp, or vice versa) $2,000+
Registered agent service (annual) $200/year
Annual report filing service (ongoing compliance) $300/year

Why Work With Me?

  • Attorney-led service: I personally handle your formation, not a paralegal or automated system
  • Oregon expertise: Deep knowledge of Oregon corporate law, tax (CAT overlay), and professional regulatory boards
  • Startup-friendly: I understand venture financing, founder vesting, option pools, and 409A valuations
  • Fixed fees: No surprise bills; all packages are flat-fee with clear scope
  • Long-term relationship: I’m here for amendments, compliance, fundraising docs, and exit planning as you grow

Contact & Booking

Ready to form your Oregon corporation? Let’s discuss your needs and determine the right package.

πŸ“§ Email: owner@terms.law
πŸ“… Schedule a call: Use the Calendly link below to book a 30-minute strategy session.

Schedule Strategy Session

Ready to Form Your Oregon Corporation?

Let’s discuss your entity structure, tax strategy, and compliance roadmap.

Email Me: owner@terms.law Schedule a Call