Form a Oregon Corporation
Forming a Oregon corporation is easy with the Oregon incorporation experts at LawInc.com. Form an Oregon corporation easily by clicking on “Order Now.” Please feel free to call us, anytime, with any questions. Incorporate Oregon today.
Incorporate in Oregon
Incorporating a Oregon corporation can be vital to businesses based of Oregon. At LawInc, we prepare your Oregon corporation Articles of Incorporation, bylaws, stock certificates, stock ledger and more. We can even obtain your Oregon corporation Tax ID number and file your Oregon S corporation election with the IRS.
Oregon Incorporation Information
The following Oregon incorporation information will likely be helpful when deciding to incorporate in Oregon.
Oregon Corporation Name
The first step in forming a Oregon corporation is selecting the business name. Oregon corporation names:
- Must contain “Corporation”, “Incorporated”, “Company”, “Limited”, “Corp.”, “Inc.”, “Co.” or “Ltd.”.
- Must be distinguishable upon the records of the Oregon Secretary of State from any other formally organized entity registered with the Oregon Secretary of State’s office, such as corporations, limited liability companies, limited partnerships, and limited liability partnerships.
An available Oregon corporation name may be reserved with the Oregon Secretary of State for a 120 day period.
LawInc.com permits you to choose up to three names and will conduct a name search for your Oregon corporation, prior to filing. Create a Oregon corporation with confidence that your Oregon corporation name is available.
Oregon Corporation Formation
Oregon Filing Procedure: To incorporate in Oregon, you must file Oregon Articles of Incorporation with the Oregon Secretary of State.
Oregon Corporation Articles of Incorporation: The Oregon Articles of Incorporation should include:
- Name of the Oregon corporation.
- Name and address of Oregon registered agent.
- Oregon corporation’s mailing address.
- Number of shares the Oregon corporation is authorized to issue.
- Name and address of the incorporator.
Oregon Filing Fee: The filing fee in Oregon is $100.
Oregon Corporation Incorporator: Minimum number of incorporators is one (1) (a natural person over 18 years of age) and there is no requirement that the incorporator be a resident of Oregon.
Oregon Corporation Directors: The minimum number of Oregon directors is one (1).
Oregon Corporation 1244 Stock: Election to have stock classified as IRC Section 1244 stock allows for a substantially larger application of the deduction from business losses to ordinary income than regular stock. With regular stock, you can only offset $3,000 against ordinary income. With the issuance of Section 1244 Stock, the corporation can claim an ordinary loss deduction of as much $100,000.
Oregon Registered Agent: When you incorporate in Oregon, a Oregon corporation must maintain a registered agent and office to receive service of process in Oregon. The Oregon registered agent should be available, at a Oregon physical address, during normal business hours to accept important legal and tax documents on behalf of the Oregon corporation. The registered agent can either be (1) an individual with a physical Oregon address or (2) a corporation authorized to serve as registered agent.
Oregon Corporation Post-Filing Requirements
Oregon Corporation Annual Report: Oregon corporations are responsible for filing an annual report each calendar year by the Oregon corporation formation anniversary date. The Oregon fee is $100. To file online, visit http://egov.sos.state.or.us/br/pkg_br1_web_rnewl.login.
Oregon Corporate Minutes: Oregon corporations should hold and document annual shareholder and director meetings.
Oregon Corporation Taxes
Oregon Corporation Taxes: For information on Oregon income tax ,visit: http://www.oregon.gov/dor/
Oregon C Corporation: When incorporating in Oregon, all Oregon corporations formed by default are “C” corporations. A Oregon C corporation is a Oregon corporation that has not made an election to be an “S” corporation. The term C corporation is specifically used because the entity is taxed under subsection C of the IRS code. Oregon C corporations are taxed at two levels (“double taxation”). This means that the corporation itself pays its own tax when it makes money (the first tax). The owners or shareholders are then taxed again when they are paid a salary or dividend by the corporation (the second tax). Despite double taxation, Oregon C corporations offer many planning and benefit opportunities.
Oregon S Corporation: A Oregon S corporation is a corporation that has made an election with the IRS to be treated for tax purposes as a “pass-through entity.” This means that corporate profits and losses are passed through to the shareholders (owners) who report them on their own personal tax returns and pay the tax at the individual level. The corporation pays no federal income tax at the corporate level. Oregon S corporations are not subject to the double taxation C corporations encounter. The State of Oregon recognizes federal S corporation status.
These are the 3 main advantages of forming a Oregon S corporation:
- No double taxation: One of the main advantages of Oregon S corporation status is that it avoids the double taxation that occurs with a regular Oregon C corporation. In a Oregon C corporation, the corporation pays income tax on its profits and, if those profits are distributed to shareholders, the shareholders pay income tax on the distribution.
- Loss deductions: The availability of losses. Shareholders of a Oregon S corporation generally may deduct their share of the corporation’s net operating loss on their individual tax returns in the year the loss occurs. Losses of a Oregon C corporation, however, may offset only the corporation’s earnings.
- Self-employment tax savings: By electing S corporation status, only the earnings actually paid out to you as salary are subject to payroll taxes; money left in the business is not subject to payroll taxes or self-employment tax. All income passes through, but its tax status depends on whether it is classified as salary or ordinary income.
Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. When incorporating in Oregon, Oregon corporations should obtain an EIN.
Oregon Incorporation Summary
Oregon Incorporation Summary: If you have any questions regarding forming an Oregon corporation, please call us anytime.