Oregon Secretary of State Corporation Division OFFICIAL Government website

How to Start a Business in Oregon Table of Contents

Step 1 - Preparation
Step 2 - Planning
Step 3 - Select Your Business Name and Structure
Step 4 - Register Your Business
Step 5 - Understand Tax Obligations
Step 6 - Check Licenses
Step 7 - Other Requirements
Step 8 - Ongoing Registration Requirements

STEP 1 - Preparation

Knowledge
Have experience in and knowledge of the business you plan to enter. If you don’t have either, consider working in the industry or with a successful owner/operator for at least six months.

Experience
Have experience in management people and finances. This is extremely helpful since the majority of businesses fail due to poor or inexperienced management. Oregon's Small Business Development Centers are an excellent resource for training and assistance.Research
Do your homework. Hours spent studying your proposed business idea can save you money in the long run by giving you the proper information to avoid unsound business decisions.

Visit your local library. The librarian can help you find the information you need.
Check with relevant trade associations, the local Chamber of Commerce, and the Small Business Development Center (SBDC) in your area, www.sba.gov/or. For futher information, see SCORE.
Your banker knows a great deal about your area, including average income, level of competition, real estate, and rental values. Bankers can be of great assistance if you take the initiative. Establishing a credit line with your bank can help develop a sound relationship with your banker, and a good record of repayment is an advantage when applying for business loans.
Contact insurance brokers about coverage needed for your business activity and for approximate premiums. Since insurance is a competitive business, contact several agents for a comparison of both suggested coverage and premiums.

STEP 2 - Planning

Business Wizard
A new feature of the Business Information Center is the Business Wizard. Users answer a few brief questions and are provided with a customized referral list of:

Government Licensing Contacts
Registration Information Contacts
Regulatory Contacts
Organization Contacts
City Contacts
County Contacts

This referral list contains phone numbers for key agency contacts and Internet links to appropriate forms, publications and information about requirements for doing business in Oregon. The referral list can also be saved to the computer desktop for future use and reference. The Business Wizard is available at: www.filinginoregon.com/businesswizard.

Business Plan
Whether you are just starting out or already own a small business, completing a basic business plan will help you succeed. Oregon's Small Business Development Centers can offer Biz Plan Basics guiding you step by step through the fundamentals of the "Who," "What," "Why," and "How" of your business. Answering a few basic questions will help you clarify and organize what you already know - or need to know - about your business operations. A clear picture of the fundamentals of your business will create a strong foundation to build new ideas, markets, and strategies on. Completing this plan will also provide you with a better understanding of the financial needs and profit potential of your business.

Seek Professional Advice
Consult two professional people:

An attorney. Consider having an attorney examine the papers you sign. Get advice on any legal questions pertinent to your business such as labor laws if you plan to hire employees or landlord-tenant laws if you plan to lease your place of business. If you do not have an attorney, you may call the Oregon State Bar toll-free at 1-800-452-7636 for referrals, www.osbar.org.
An accountant. A CPA, a public accountant or a licensed tax consultant can advise you and possibly save you money on taxes if you are buying or starting a business. Your accountant can review tax forms with you, help you fill out the proper reports and give you prompt financial information. If you do not have an accountant, the Oregon Association of Independent Accountants at 503-282-7247, www.oaia.net, the Oregon Society of Certified Public Accountants at 503-641-7200, www.orcpa.org, can make referrals.

Financing
Identify how you will finance your business. New businesses often underestimate the amount of money it takes to get a business started. An entrepreneur needs to identify both the start-up capital costs and the cash-flow requirements for a business. The total of the two, plus a reserve, is the capital recommended for starting a business. Obtain information on state loan programs from the Business Finance Section, Oregon Economic & Community Development Department, 503-986-0160, www.econ.state.or.us.

Business Assistance Programs
Oregon has many programs available to assist businesses refer to Business Assistance Programs for further information.

Management & Technical Services
Oregon’s Economic & Community Development Department provides reports and services for and about Oregon businesses. They also publish the guide Doing Business in Oregon that offers information about where to look for help with your business. This guide is available at www.econ.state.or.us/dbiotext.htm.

STEP 3 - Select Your Business Name and Structure

Choose a business name. Every business must have a legal name. A sole proprietor may conduct business under their own name or they may choose to use an Assumed Business Name. When you are ready to select a business name or assumed business name for your business, check the Business Registry Database for name availability, www.FilingInOregon.com/businessnamesearch.

Choose a business structure. Select a business entity type from the following list for a brief overview of the principal types of legal business structures available in Oregon. A legal representative and accountant should be consulted before making a determination as to the type of business entity to form. www.Business.gov has a great online tool for Choosing a Legal Structure.Please refer to Select Your Business Name and Structure in this guide for further information on business names and structures.

STEP 4 - Register Your Business

The Oregon Secretary of State's, Corporation Division is the place to register your Corporation, Nonprofit Corporation, Assumed Business Name, Limited Liability Company, Limited Liability Partnership, Oregon Trademark or Service Mark. Forms can be downloaded at www.FilingInOregon.com/forms/business or by calling (503) 986-2200.

STEP 5 - Understand Tax Obligations

Understanding your tax obligations is an important consideration for any business. You may wish to consult with a professional tax advisor or an accountant to help you understand your tax obligations.

Learn about requirements to report personal property to your county assessor's office. You will also want to check on other taxes that may apply to your business.

Most businesses will need to apply to the Internal Revenue Service for a federal employer identification number (EIN).

Depending on your situation, such as hiring employees, you may also need a Business Identification Number (Oregon Tax Identification Number). This can be obtained by completing a Combined Employers Reporting form available from the Oregon Department of Revenue. Please refer to the separate publication "Employer's Guide for doing business in Oregon".

All businesses are required to file a personal property report with the county assessor’s office each year. The report should include all personal property on the business premises on the assessment date. If your business has personal property in more than one county, you must submit a separate return in each county. See personal property report for more information.

STEP 6 - Check Licenses

Many occupations and business activities require special licenses, permits, or certifications from state agencies or boards. The State of Oregon now offers searchable online License Directory, a comprehensive directory of over 1,100 licenses, permits, and certifications at http://licenseinfo.oregon.gov/. The Business Information Center also provides information on state license requirements at www.FilingInOregon.com. Construction and landscape contractors need to register with the Construction and Landscape Contractors Board.

For further information on registering with either the Construction or Landscape Contractors Board.

Cities and counties may also require businesses to have a license or permit in order to operate. Please check with your city and county government to determine the license, permit, or zoning requirements for your area. Check Local Licenses Requirements for further information.

STEP 7 - Other Requirements

Check with the Department of Environmental Quality. Some business activities will require you to contact the Department of Environmental Quality.

Determine if you comply with the Americans with Disabilities Act (ADA). Many businesses are subject to this federal law that prohibits discrimination against disabled persons.

Learn about registering Patents, Copyrights, Trademarks, and Service Marks with the State of Oregon and the federal government.

STEP 8 - Ongoing Registration Requirements

Now that you've established your business and fulfilled the initial requirements, you will want to make sure that you keep your reporting and registration obligations current. Businesses registered with the Secretary of State Corporation Division must file annual reports and renew their registration information. Payment coupons are mailed approximately 45 days prior to renewal due date. Check Business Registry & Renewal for more information at www.FilingInOregon.com/business. Renewal payments can also be made on-line at www.FilingInOregon.com/renew. Nonprofit organizations that engage in charitable activities need to file annual reports with the Oregon Department of Justice (DOJ), Charitable Activities Section, and the Internal Revenue Service. Check information for Nonprofit Organizations at www.FilingInOregon.com/business/nonprofit_information.htm.

Many occupational or business licenses require annual renewal. Please check with the specific licensing agency for specific requirements. The Referral List provides contact information for government agencies arranged by subject or topic. You may access the Referral List at www.FilingInOregon.com/irl or by calling the Business Information Center at (503) 986-2200.