A corporation is a legal entity created under Oregon statute by submitting articles of incorporation with Business Registry. A corporation is owned by its shareholders, in whose names the shares are registered in the records of the corporation. The articles of incorporation must state how many shares the corporation has authority to issue.
A corporation acts as a single entity. It exists separately from its owners and continues to exist even though the shareholders may change. As a separate entity, a corporation must file its tax returns. It may own property, sue and be sued.
A corporation is managed by a board of directors. Except for the initial board, the shareholders generally select the directors. The number of directors is determined by the articles of incorporation or bylaws. The directors must elect the president and secretary and adopt bylaws. The board can elect or appoint other officers, or the bylaws can prescribe how other officers are selected. The same person can hold two or more offices.
A corporation must have a registered agent in Oregon whose street address is the registered office. When a corporation is sued, the legal papers are served on the registered agent. Thus, the registered office must have an actual street address. A registered agent can be an individual or a legal entity.
The three common types of corporations filed in Oregon are business corporations, nonprofit corporations and professional corporations.
-
Business and professional corporations are for-profit corporations.
-
A nonprofit corporation is formed for any lawful purpose except for financial profit.
-
A professional corporation is a for-profit corporation formed for the purpose of providing one or more specific types of professional service.
- All the shareholders of the professional corporation must be licensed to render one of the professional services.
Corporations formed under Oregon statute are "domestic" corporations. Those formed under the laws of other states, but doing business in Oregon, are "foreign" corporations.