Benefit Company FAQ

What is a benefit company?  

The Oregon benefit company is a new corporate status for companies that aim to make a positive impact on society and the environment in addition to earning a profit. Some 30 states and the District of Columbia have enacted similar legislation for business corporations only. Oregon's law includes corporations and limited liability companies. ​​​​​

How do people know it’s a benefit company? 

Reviewing a company's articles of incorporation or organization is the only sure way to tel​l if a company qualifies. We'll update the list of Oregon benefit companies on our website as new ones are filed.  

What if my benefit company isn't on the list?  

The list is updated monthly. Your busine​ss won't show up on the list immediately after being filed. If it's been more than a month since your filing date, please contact us and we'll research your filing and update our website. 

Does benefit company designation affect tax status?  

No. Benefit company status only affects requirements of corporate purpose, accountability and transparency. Everything else remains the same.  

How do I register a foreign benefit corporation in Oregon?

Benefit companies organized in other states as a benefit corporation, benefit ​limited liability company, social purpose corporation (Washington) or flexible purpose corporation (California) can apply for foreign authority to transact business in Oregon as either a foreign business corporation or a foreign limited liability company.

I filed as a benefit company. What else do I need to do?  

The business:

  • May designate at least one “bene​fit governor” on its board.
  • Must choose a third-party standard to follow.
  • Must publish an annual report on its website that shows how the business met the standards that year.
  • Should assess the extent the benefit company provided a general public benefit against the third-party standard. 

How do I prepare an annual benefit report?  

The benefit company should:

  • ​Use a qualified third-party standard as the basis for its annual benefit report. View a list of standards.
  • Use the results of that assessment to create a benefit report. The benefit report does not need to be audited or certified by the third-party standard.​
    • Include in a narrative description:
      • Extent to which the benefit company provided a general public benefit and the actions and methods used.
      • Extent to which the benefit company provided a specific public benefit identified in the company’s articles of incorporation or organization, and the actions or methods used.
      • Any circumstances that have hindered the pursuit of creating general public benefit or specific benefit.
      • Ways in which the company pursued a public benefit that amounted to a general public benefit.
      • Ways in which the company pursued a specific benefit.
    • Assess the extent to which the benefit company met or exceeded the third-party standard used and identified in the benefit report.
    • Describe the process and rationale for selecting or changing third-party standard. 
    • Share the finished annual benefit report with each shareholder or owner (must be done within 120 days after end of the fiscal year, or at the same time that the benefit corporation delivers any other annual report to its shareholders).
      • Make the benefit report public by posting it on the company website or have copies available to send it free of charge to people who request it. Director compensation can be removed from publicly available documents.

Are the name availability rules different for a benefit company?  

No, but "benefit corporation" and "benefit company" are not entity identifiers. Contact us if you have questions about your proposed name.

Where can I find more information about benefit companies?  

You can review the statute ORS 60.750 - ORS 60.770​. ​​​​​​​​​​