Commonly Used in Tax Schemes; Oregon Law Bans New Filings
With Gov. Kate Brown’s signing Senate Bill 77 (PDF) on June 8, 2015, Oregon law now prevents the filing of new corporations sole. The obscure and obsolete form of religious nonprofit corporation is most commonly used in illegal tax-avoidance schemes.
Existing corporations sole may continue to operate as long as they maintain an active business registration with the Secretary of State Corporation Division.
Because of heightened awareness of liability issues and fiduciary responsibility, most legitimate religious organizations ceased using the corporation sole form, instead electing to organize as traditional non-profit corporations.