Forming a Non-Profit Business Entity in Oregon

There are many good reasons to organize your business as a non-profit.

Non-profit businesses, or 501(c) 3 companies, are exempt from taxation at the corporate level and are often entitled to certain state tax exemptions as well.

Organizing your business as a non-profit can open up a whole world of grants and donations. Many public grants are earmarked for 501(c) 3 entities. Several major private foundations give donations only to non-profit businesses. Individuals can give tax free contributions to properly organized and federally recognized non-profits.

There are a number of other potential benefits to being a non-profit, including exemption from certain local and real property taxes, to public perception upside, cheaper postal and advertising rates, and many others.

The question of whether a non-profit is the right business entity for your company is a complicated and important one. Your company must consider all of the potential pros and cons, and if you've never done it before, you should consult with an experienced professional on whether it is the right choice for your company and how best to accomplish non-profit status if you go that direction.

Electing to go non-profit is not without its downsides. The most significant limitation, and one with ramifications throughout the life of your company, is the most fundamental one. There is no private ownership of a non-profit. This means no distributions and serious restrictions on end of life options for your company (the company must roll its assets into another non-profit).

The formation requirements of starting a non-profit business can be daunting, and the annual reporting requirements can be confusing. That's what we're here for. The team of non-profit formation attorneys at Slinde Nelson Stanford has experience navigating both the formation and regulatory landscape for 501(c) 3 corporations.

Our 501(c) 3 formation attorneys can help you with every aspect of 501(c) 3 formation and maintenance, including:

  • Analyzing the pros and cons of forming as a non-profit or going through a conversion to a non-profit;
  • Preparing and filing the Articles of Incorporation;
  • Amending and Restating the Articles of Incorporation;
  • Preparing the non-profit's Bylaws;
  • Preparing the non-profit businesses Initial Director Minutes;
  • Preparing the company Conflict of Interest Policy;
  • Obtaining the company EIN;
  • Registration with the Oregon DOJ's Charitable Activities Section;
  • Obtaining local business permits;
  • Risk management and insurance procurement;
  • Preparing the application for tax exempt status (Form 1023); and
  • Registering and filing annual reports with the Oregon Department of Justice.

Slinde Nelson Stanford works with all types of non-profit organizations from public charities to private foundations, clubs, churches and para-church ministries, and many, many more. If your company has made the decision to go non-profit, you should contact a team of well-qualified non-profit transactional attorneys in Portland to help you through the process.

Contact our business lawyers for a free consultation. Call 1.866.601.9440 or contact us online.