Those interested in starting a nonprofit in Oregon should know about all of the requirements. This step-by-step guide will help even the most novice entrepreneurs get their bearings.
Setting up a nonprofit organization in Oregon requires a strong commitment and a lot of work over a long period. For those who are successful in doing so, it can be a very rewarding enterprise. Nonprofit organizations may be able to get tax exemptions for the work they do that benefit the communities they are ensconced in. This guide will cover the basics of setting up a nonprofit in Oregon and demonstrate more specific points through the example of setting up a charity.
Requirements to set up a nonprofit in Oregon
All corporations that hire employees need to set up unemployment insurance. Furthermore, workers’ compensation insurance is a necessity. Those who need help setting up workers’ compensation insurance can contact the Small Business Ombudsman. It is also important to contact the relevant licensing and permitting board to identify any particular insurances the state may require for a specific business type.
Setting up tax infrastructure is another essential piece of setting up a nonprofit, even for those who wish to apply for tax-exempt status through the IRS. Those based in Lan County Transit District or the Tri-County Metropolitan Transportation District will need to file and pay for transportation taxes. For more specific information about tax registration and to identify the right tax ID numbers, call the Oregon Department of Revenue.
When choosing the name of a nonprofit, entrepreneurs can use the Oregon Secretary of State’s Business Name Search Tool to determine if a prospective name is available or taken. Once a name is decided, the corporation still needs to be registered at both local and state levels. Most registrations can be filed online with the Secretary of State. An optional step is to craft a succession plan in case something happens to the CEO.
How to set up a charity in Oregon
A charity is a type of nonprofit that raises funds for a cause that benefits the community. While some charities are set up as associations or trusts, the type of charity in this example is going to be set up as a nonprofit public benefit corporation. After choosing a name and a business structure, a charity would:
- File its articles of incorporation with the Oregon Secretary of State.
- Charities have the option of filing their taxes as tax-exempt 501(c)(3) organizations. Once obtaining their EIN from the IRS, the business owner would file for tax-exempt status.
- Last, a charity must register with the Charitable Activities Section of the Oregon DOJ.
Setting up a nonprofit organization creates many possibilities, including the ability to accept tax-exempt donations. Anyone who hits a snag in this sometimes complicated process, or who just has questions about setting up their own business, may want to speak with an attorney in the local area who practices business and commercial law.