How to Start a Business in Oregon
Oregon Business Facts
Oregon’s laid-back youth culture, abundance of outdoor activities and high-tech employment opportunities are just a few of the reasons this scenic state of the American Northwest ranks highly on national “Best Places” lists. Oregon’s economy is growing at a healthy pace and the city of Portland in particular is a breeding ground for independent businesses with both locals and tourists drawn to the self-expression of its entrepreneurs.
Major Companies Headquartered in Oregon
Oregon is the headquarters of Nike, Kettle Foods and Papa Murphy’s Pizza.
Oregon Startup Environment
Oregon entrepreneurs get a boost from the state’s pioneer spirit, educated workforce, strong infrastructure and high quality of life. However, Oregon’s lack of capital, high personal income and capital gains taxes and restricted land use laws inhibit the growth of Oregon businesses.
Step 1: Decide on a Business Structure
There are 3 basic options: a Corporation, LLC or DBA. Click here to learn more about business entities.
- A Corporation is a separate entity (provides liability protection to the owners) with a structure that includes shareholders, directors and officers. It’s more complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity and provides very easy management (doesn’t require directors or officers) and taxation. The LLC has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
Step 2: Choose a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Oregon, but we highly recommend you do the following before searching Oregon state databases:
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself. Tip: search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
- Make sure your company name choice is available by searching the Oregon Business Entity Database. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).
Restrictions on Oregon Business Name & Business Purpose
- Oregon LLCs must end with “Limited Liability Company” or an abbreviation.
- Corporations must contain an entity identifier such as “corporation”, “company”, “incorporated”, “limited” or any abbreviation or derivation thereof.
- Restricted words need approval from institutions, such as departments of banking, insurance, education, as well as professional organizations. Prohibited words are not allowed.
Step 3: Register the Business
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Oregon.
How to form an LLC in Oregon
- File the “Articles of Organization” with the Oregon Secretary of State.
- Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
How to Incorporate in Oregon
- Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
- Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.
TIP: Check our order form to see how long Oregon is currently taking to process regular and expedited orders.
How to File a DBA in Oregon
Optional considerations when registering an Oregon business
- Hire a professional Registered Agent for your Oregon business. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).
Ready to register a business in Oregon?
- We specialize in registering businesses in Oregon.
Step 4: Obtain your Federal Employer Identification Number (FEIN or “EIN”)
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, it’s required). However, if you are a DBA and don’t obtain an EIN you will be required to use your Social Security Number on many documents so it’s highly recommended that you obtain the EIN to prevent identity theft. You can apply online with the IRS or via IRS Form SS-4.
TIP: We can obtain your EIN for you if you we form your company.
Step 5: Open Company Accounts: Bank and Credit Cards
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork b) your EIN c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Obtain Business Licenses and Permits
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We can help you identify the necessary forms to obtain your business license.
Step 7: Annual and Ongoing Requirements
DBA: Your assumed business name must be renewed every two years.
LLC: Oregon LLCs must file an annual report every year by the filing anniversary date.
Corporation: Corporations in Oregon need to file an annual report every year by the filing anniversary date. LLCs and Corporations will pay a filing cost of $100.
Ready to start a business in Oregon?
- Our Oregon filing services will help you get started as quickly as possible.
Important Oregon Contacts
Oregon Secretary of State
Corporation Division Services (for Corporation and LLC filings)
Public Service Building
255 Capitol St. NE, Suite 151
Salem, OR 97310
Phone: 503-986-2200
Oregon Taxation Departments
Oregon Labor and Employment Departments
Oregon Startup Resources
1. Small Business Administration (SBA) Oregon
2. SCORE Oregon
- Portland SCORE is part of a nationwide nonprofit organization dedicated to the formation, growth and success of small businesses.
- The Central Oregon SCORE chapter has 17 volunteers and staff that provide small business entrepreneurs free and confidential business counseling services throughout the area.
- Salem SCORE has been helping new and existing businesses in Oregon for over 30 years.
3. Oregon Legal Statutes
4. Oregon Chambers of Commerce
5. Business Xpress
- Business Xpress – a “One Stop Shop for Business” online portal to provide resources for starting, expanding and operating a business in Oregon or relocating a business within or to Oregon.
6. Angel.co Oregon Startups
- A list of all Oregon Startups and Oregon angel investors registered with Angel.co.
7. Oregon Business News
8. Business Oregon
9. Oregon Small Business Development Center
10. Oregon Green Business
