Oregon: Benefit Companies

At the start of the year, the state of Oregon began allowing the creation of (or conversion into) benefit companies, wherein an entity can incorporate social causes into its bylaws. In order for a corporation of limited liability company to become a benefit company in the state it must:

  • ​Include a statement in the articles of incorporation or organization that says the corporation or LLC is a benefit company subject to sections 1 to 11 of Ch. 269 Oregon Laws 2013​.
  • Adopt a third-party standard to ensure it’s creating a positive impact.
  • Prepare an annual benefit report identifying:
    • The actions and methods used to provide a general or specific public benefit.
    • Any circumstances that hindered or prevented a benefit.
    • How well the benefit company met or exceeded the third-party standard.
  • ​Distribute the annual benefit report to the owners and post it on the company’s website.

According to the Oregon Secretary of State’s website, there are currently 29 benefit companies operating within the state. A number that will surely grow as the year progresses.

For a complete list of states where benefit corporation legislation has passed, go here. For more information on how to become a benefit company in Oregon, go here.

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