A 16-Step Checklist for Starting a Business in Oregon

1) Write a Business Plan

Jumping into this endeavor without goals, directives, or a sense of direction can lead to a scattered, unproductive business.

A business plan lays the groundwork for your future success. It helps you analyze key elements of your business and forge pathways to achieve your goals. Here are a few things you should consider including in your business plan:

• Executive Summary (a separate document that gives a complete overview of your business’ purpose, plans, goals, competition, opportunities, etc.)
• Company description
• Market Analysis (opportunities, competition, etc.)
• Managerial or organizational structure
• Products and/or services
• Marketing strategies
• Funding goals
• Financial projections

Business plans aren’t just great for internal operations, but they give your business legitimacy in front of potential investors, customers, partners, and more. Need help? Check out this guide from the U.S. Small Business Administration.

2) Decide on a Business Name

You might’ve come up with the perfect name right away. If so, consider yourself lucky.

Sometimes, deciding on a business can be difficult, requiring brainstorming meetings and late-night rap sessions. That’s because your name is your business’ identity and reputation. It should be something that’s unique and memorable but also defines your business purpose.

Each business structure (see step 3) comes with its own set of naming requirements. You can find a full list of LLC name restrictions in ORS 63.094 and a full list of corporation name restrictions in ORS 60.094.

But even if you carefully follow all of the state’s naming requirements, you won’t be able to use a particular name unless it’s distinguishable from every existing Oregon business name. Search for your desired name to see if any other business is currently using it. If not, just reserve it or use it on your formation documents and it’s all yours.

3) Decide on a Legal Structure

There are only a few types of business structures, but each one dictates some important parts of how your business will run.

The most popular types are the sole proprietorship, general partnership, limited liability company (LLC), S corporation, and C corporation. Most small businesses go with the LLC because of its unique blend of flexibility and personal asset protection.

However, you shouldn’t make this decision without reading up on all of your options. We’ve done plenty of research on each business type and developed side-by-side comparisons. Check out our LLC vs. Corporation and LLC vs. Sole Proprietorship comparison guides for a closer look.

4) Choose a Registered Agent

The Secretary of State needs a point of contact for your business, someone who will be available at your registered office address during typical business hours – 9am to 5pm.

This person is called a registered agent, and they serve as an intermediary with the state, receiving all of your company’s important legal communications and relaying them on to you. The Oregon registered agent ensures that no important state documents, deadlines, or payments fall through the cracks, so you’ll want to choose a person or company you trust.

You can choose either an individual or a business entity as your registered agent in Oregon, but they must:

• Be an individual Oregon resident or a corporation authorized to do business in the state.
• Have a physical address in Oregon.
• Have a mailing address in Oregon (no P.O. boxes allowed).

The registered agent is responsible for maintaining your business compliance, which is no small task. So, good individual agent choices are often people who have experience with business maintenance, like attorneys or managers. That said, you have a lot of options, so friends and family can be viable options as well.

Or, you can choose a registered agent service instead. These companies take care of all your registered agent responsibilities, and some will even handle your business formation and annual reporting as well.

Important: You must continuously maintain a registered agent on file with the Secretary of State. If your agent resigns or you appoint a new one, you’ll need to notify them by filing the appropriate documents.

5) Register Your Business

This is the big one, the step that officially creates your business. No matter which business type you choose, you’ll need to register it with the Secretary of State.

LLCs: Forming a limited liability company in Oregon means filing an Articles of Organization, which puts your business information on record. You can start your LLC online or by submitting a hard copy form. Either method costs $100.

Corporations: If you choose to form a corporation instead, you won’t file an Articles of Organization. Rather, you’ll need to file the corporation-specific Articles of Incorporation, available online or as a paper form.

Sole Proprietorship/General Partnership: There are no official forms or fees to register as a sole proprietor or general partnership. Simply start doing business and that’s it! While this is obviously faster and easier, we recommend incorporating your business because of the personal asset protection LLCs and corporations provide.

Foreign Entities: Businesses formed outside of Oregon that want to do business in the state are considered foreign entities instead of domestic ones. Foreign businesses follow different registration procedures; specifically, they must foreign qualify by filing an Application for Authority. There are separate applications for corporations and LLCs, so make sure you complete the correct one.

6) Get an EIN

The Employer Identification Number (EIN) is your ticket to doing state and federal taxes. It’s a nine-digit number, much like a Social Security Number, that identifies your business on tax documents.

If you’re forming an LLC, it will be considered a “pass-through” entity, so the business itself won’t pay federal income taxes. Instead, you and the other members will report income and losses on your personal tax returns.

But this doesn’t mean you can go without an EIN. If your LLC pays any type of business taxes – like Sales, Use, or Unemployment Taxes – or hires employees, you’ll need to get one.

Unsure if you need one? The IRS provides a useful “Do I need an EIN?” link on this page, where you can also apply for an EIN. If you go through the online application process, you’ll receive your number immediately.

Otherwise, you can submit a Form SS-4 by fax to (855) 641-6935 or by mail to :

Internal Revenue Service Operation

Attn: EIN Operation

Cincinnati, OH 45999

7) Open a Business Bank Account

LLC and corporation owners are required to keep their personal and business finances completely separate, or they risk losing their personal asset protection. To do so, you’ll need a business bank account.

The good news is that opening a business bank account is pretty simple. Just pay a visit to your bank’s local branch and sit down with one of the bankers there. You will need to present your formation documents, an EIN number, and some personal information. Then, you can direct all of your business income and expenses to that account instead of a personal one.

It doesn’t really matter which bank you choose, whether it’s a national giant like Chase or Bank of America or a small, local bank. However, it’s usually easiest to go with the one where you have existing accounts.

8) Handle Any Tax Obligations

Ah, taxes. They’re always part of the picture, especially when you run a business.

Familiarizing yourself with your business’ tax requirements will help you establish a solid financial plan going forward. LLCs don’t need to file a corporate tax return and pay federal income taxes, so you’ll handle these taxes as part of your personal return.

Corporations, on the other hand, will need to file a Corporate Income Tax Return, while sole proprietorships/general partnerships will need to pay self-employment taxes.

Oregon doesn’t have sales taxes, which are commonly necessary for businesses, but there are a few other taxes your business may owe, depending on its activities:

Corporate Activity Tax: Despite the name, every business operating in Oregon may be subject to this tax. However, your business will only need to register for this tax if its commercial activities amount to more than $750,000 per year.

Payroll Taxes: These taxes are necessary if your business hires any employees. They include income withholding, unemployment insurance payments, transit taxes, and the Workers’ Benefit Fund assessment payments.

Other Taxes: There are several, less common business taxes that your business might need to pay depending on its activities. You can find a list of them on the Oregon.gov businesses page.

9) Find an Accountant

Sometimes it’s easier to hand off your financial responsibilities to a professional. Not only will an accountant ensures that your taxes are filed and paid correctly, but they might also find a few ways to save your business money.

Bookkeeping and tax procedures are time-consuming and require some specialized knowledge. Balance sheets, financial reports, cash flow, audits, and much more – an accountant can ensure that your company operates smoothly and streamlines its expenses.

This can be expensive depending on the complexity of your finances, but the benefits an accountant offers can be well worth it.

10) Create an Operating Agreement

An operating agreement constructs a framework of procedures and standards for your business. This is where you can lay out processes for member conduct, asset allocation, compensation policies, voting procedures, dissolution, and much more.

While operating agreements aren’t technically required in Oregon, they are essential to your business’ stability and success. They provide a safety net in legal disputes and legitimacy in front of banks, courts, government agencies, and other businesses.

You can either draft one yourself using an online template, or you can hire an attorney or an incorporation service to take care of it for you.

Once you’ve drafted your agreement, it must be approved by each of your LLC’s members, then filed with the rest of your business documents. You do not need to submit it to the Secretary of State.

11) Acquire the Necessary Licenses

After filing your formation documents, your business is legitimate, but it may still need specific licenses and/or permits before opening its doors in Oregon. You might need several, or you might not need any. It all depends on your specific business activities.

For example, certain occupations must obtain licensure through specific state boards before doing business. Businesses that affect the state’s land, air, or water may require environmental permits and foodservice and healthcare businesses may need permits from health departments. Or, if you plan on building or renovating structures, construction or zoning permits may be in order.

Fortunately, Oregon’s Business Xpress License Directory contains every license or permit that a business might require. Just search for keywords that pertain to your business activities and you’ll find what you need.

Your specific city, county, or municipality might also have its own licensure requirements. Take a look at your local government’s website to find out.

12) Consider Business Insurance

Even though it’s not pleasant to consider, there’s always a chance that unforeseen events might take a toll on your assets.

While forming an LLC or corporation offers some personal asset protection, additional business insurance can also protect your business assets in cases of lawsuits, damages, etc. You can acquire insurance for your business products, vehicles, specific occupations and much more.

If you hire employees, you’ll also need to get workers’ compensation insurance. SBA.gov has a useful guide for determining which forms of insurance your new business might need.

13) Build a Website

Your company’s digital presence is just as important as its physical one. Like it or not, most potential customers will find your business online, and if you don’t exist online, you’re missing out.

But don’t worry, you don’t need to be an HTML or web design expert to build a website. Sites like WordPress and Squarespace make it easy to construct an elegant and responsive website, no coding necessary. But if you’re not comfortable or confident doing it on your own, you can always hire a professional web designer to take care of it for you.

14) Launch Social Media Accounts

Making your mark on the digital landscape doesn’t start and end with your website. Most successful businesses also have a robust social media presence on multiple platforms. Facebook, Twitter, and Instagram are all great ways to connect organically with potential customers and develop your brand voice.

Just don’t forget to publish consistent social media content, or you’ll have trouble building a base of followers.

15) Understand Ongoing Oregon Requirements

After you’ve launched your business, things will likely be moving at 100 miles per hour as you evolve and grow. But in all of the excitement, you can’t forget your state’s ongoing compliance requirements. Every state has its own annual or biennial business requirements.

The state keeps its records updated by requiring every business to file Annual Reports. Each year, your business must file this report by its anniversary date (the date you initially formed it). For domestic entities, the Annual Report fee is $100, while foreign entities must pay $275.

16) Check Out Oregon Small Business Resources

You’re not on this journey alone. There are plenty of free resources available to make starting and growing your business a smoother, easier process.

A little support can go a long way, and there are a ton of resources available to your budding business if you know where to look. SBA.gov can point you in the right direction. Check out Oregon’s district office page, which includes this resource publication, for information on business development centers, loan opportunities, financial advising, networking opportunities, and more. You’re bound to find the right resources to elevate your business.