12 Jun Oregon LLC Benefit Company
Oregon LLC Benefit Company
A majority of U.S. states have adopted benefit corporation statutes. These statutes allow founders to create a corporation and (legally) prioritize other corporate objectives besides shareholder profit. Many corporations have taken advantage of these new laws to prioritize objectives such as improving their community, empowering their workforce, and protecting the environment.
Oregon is one of only a few states that has adopted a broader version of the benefit corporation law that allows founders to form benefit LLCs. In order to form a benefit LLC, a founder needs to make a check-the-box election on the company’s Articles of Organization. An existing LLC can opt into benefit company status by amending its Articles of Organization. In order to operate as a benefit LLC, the company must also:
- adopt a third party standard to judge its efforts to accomplish a public benefit (such as the B Labs Impact Statement); and
- each year, prepare a benefit report detailing the company’s efforts and success or failure in achieving its public benefit and distribute the report to its owners and through its website.
Electing to become an Oregon benefit company does not change the underlying entity type of the business and does not affect the business’s tax status. More information can be found in the Oregon Secretary of State’s Benefit Company FAQ.
Author: Zac Padgett
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If you have further questions about how to form an Oregon LLC benefit company, please contact us and we will get back to you as quickly as possible.