How to Start a Business in Oregon

Starting a business in Oregon involves several key steps, including selecting a business structure, registering with the state, and obtaining necessary licenses and permits. Entrepreneurs must also consider market research and business planning to ensure a successful launch.

Oregon Economy Trends

Small Business Statistics: Oregon is home to approximately 410,000 small businesses, which employ about 53.5% of the state's workforce. Notable industries include technology, manufacturing, and agriculture. For more detailed statistics, visit the U.S. Small Business Administration.

New Business Application Statistics: In Oregon, there were 55,820 new business applications. For more information, see the Census Bureau's visualization.

Exports and GDP: Oregon's economy is bolstered by significant exports, including electronics and agricultural products. The state's GDP reflects a robust growth pattern, supported by diverse industries. For recent data, refer to the U.S. Census Bureau.

Economic Highlights: Major employers in Oregon include Intel and Nike, with Portland serving as a key industry hub. The state offers a favorable tax climate for businesses, as detailed by the Oregon Business Development Department.

• Step 1: Perform Market Research
• Step 2: Write a Business Plan
• Step 3: Get Licenses and Permits
• Step 4: Acquire Funding
• Step 5: Choose a Business Entity
• Step 6: Select a Business Location
• Step 7: Register the Company

Step 1: What Kind of Business Should I Start in Oregon

Selecting a business type in Oregon depends on factors such as personal interests, market demand, and regional economic strengths. Prominent sectors in Oregon include:

• Technology
• Manufacturing
• Agriculture

For more information, visit the Oregon Business Development Department.

How to Do Market Research in Oregon

Market research in Oregon involves gathering data to understand consumer demographics, buying behavior, and market gaps. Primary research methods include surveys and interviews, while secondary research involves analyzing existing data. Competitive analysis is crucial for understanding other businesses in the area. This research helps entrepreneurs make data-driven decisions when launching a new business in Oregon.

Step 2: How to Write a Business Plan in Oregon

A business plan is essential for clarifying goals, attracting investors, securing funding, organizing operations, and evaluating progress. It is valuable for both new and scaling businesses and can evolve over time.

Executive Summary: This section provides a snapshot of the business, including its mission statement and key objectives.

Company Description: Details about the business, including its legal structure, ownership, and the market needs it addresses.

Market Analysis: An examination of industry trends, target market demographics, and competitive landscape.

Organization and Management: Information on the business's organizational structure, including details about the management team.

Product/Service Line: Description of the products or services offered, including their benefits and lifecycle.

Marketing Plan: Strategies for reaching the target market, including pricing, promotion, and distribution plans.

Financial Plan: Financial projections, including income statements, cash flow statements, and balance sheets.

Appendix: Additional documents that support the business plan, such as resumes, permits, and legal documents.

Step 3: Do I Need a Business License in Oregon?

Yes, in most cases, businesses in Oregon need a license. However, there is no universal business license issued at the state level. Licensing depends on factors such as the type of business, its physical location, and whether it is regulated. Common types of licenses include sales and use tax permits, local city or county business licenses, and regulatory or professional licenses. Business owners can determine applicable licenses by using state government licensing search tools or portals, such as the Oregon Secretary of State's website.

How Much Does a Business License Cost in Oregon?

Business license costs in Oregon vary depending on the business type, jurisdiction, and type of license or permit required. Some registrations, like sales tax permits, may be free. General business licenses typically range from $15 to $100. Certain groups, such as veterans or nonprofits, may qualify for exemptions or fee waivers. Business owners should check with the appropriate issuing agency for exact fee amounts and payment policies.

How to Register for a Seller’s Permit in Oregon

In Oregon, a seller’s permit is referred to as a Business Identification Number (BIN). It authorizes the sale of taxable goods or services. The permit is issued by the Oregon Department of Revenue. Applications can be submitted online through the Revenue Online portal or by mail using Form 150-211-055. Required information includes the business's EIN, start date, address, and ownership details. There is no cost for the permit, but annual renewals may be required. For assistance, contact the Department of Revenue.

Mailing Address: Oregon Department of Revenue
PO Box 14780
Salem, OR 97309-0469

Step 4: How Much Does it Cost to Start a Business in Oregon?

The cost of starting a business in Oregon varies based on factors such as business type, industry, location, and scale of operation. According to the U.S. Small Business Administration, startup costs can range from a few thousand dollars for home-based businesses to significantly more for larger operations. Common expenses include registration and incorporation fees, licensing and permits, equipment, insurance, professional services, and marketing. Filing fees for LLC formation and corporation registration are typical expenses.

How to Get Business Funding in Oregon

Startups in Oregon have access to multiple funding options. Business owners should estimate their capital needs and choose suitable funding options based on their goals and eligibility. Common funding sources include self-funding, loans, grants, investors, and crowdfunding.

How to Self-Fund a Business in Oregon

Self-funding, or bootstrapping, involves using personal financial resources to start or run a business. Common methods include using savings, selling assets, earning supplemental income, pre-ordering, or borrowing from friends or family. Advantages include full ownership and control, while risks involve limited capital and personal financial exposure. Entrepreneurs should budget carefully and optimize resources. For assistance, consult the Oregon Chamber of Commerce.

How to Find Investors in Oregon

An investor provides capital and may offer mentorship, networking, or strategic guidance. Compensation often involves equity or dividends. Business owners in Oregon can connect with investors by attending industry events, using local investment networks, contacting state-level organizations, and preparing a compelling pitch. Types of investors include angel investors, venture capitalists, and local private investors.

How to Get a Loan to Start a Business in Oregon

Business loans are a common funding method for new businesses in Oregon. Options include traditional bank loans, SBA-backed loans, and non-traditional options like peer-to-peer lending and microloans. Steps to obtain a loan include choosing the right loan type, meeting eligibility criteria, providing collateral, and preparing documentation such as financial statements and business plans. Required documents typically include:

• Financial statements
• Business plan
• Proof of income
• Tax returns

Consult financial professionals and compare loan offers to find the best terms.

How to Find Oregon Business Grants

Business grants are funding sources that do not require repayment. Each grant program has different eligibility requirements and application processes. In Oregon, grants can be found through the Oregon Business Development Department, local economic development offices, state agencies, and dedicated grant portals. Entrepreneurs should use grant search tools and consult local business support centers for assistance.

Can I Start a Business with No Money in Oregon?

Starting a business with no money in Oregon is not possible, as some capital is required for essentials like registration fees, licenses, equipment, and marketing. However, it is possible to launch a low-cost business by starting from home, choosing a service-based model, using free resources, applying for grants, and networking. Oregon offers free or low-cost business tools, such as online registration portals.

Step 5: Choosing a Business Structure in Oregon

Choosing a business structure in Oregon is important for taxation, liability, management, and registration requirements. Available structures include sole proprietorships, partnerships, LLCs, and corporations. Each structure has implications for taxation, liability, operations, and ownership. Consulting a tax accountant or attorney is recommended. For more information, visit the SBA's website.

How to Start a Sole Proprietorship in Oregon

A sole proprietorship is a business owned and controlled by one person, with no legal separation between the owner and the business. Key features include:

• Full control and ownership
• Pass-through taxation
• Unlimited personal liability

Starting a Sole Proprietorship in Oregon

Step 1: Choose a business name. You may use your legal name or a trade name.

Step 2: File a DBA (“Doing Business As”) if using a trade name. This is filed at the county level.

Step 3: Obtain necessary licenses and permits. Requirements vary by business type and location. An EIN is required if hiring employees.

Sole proprietorships do not need to be formally registered with the Secretary of State in Oregon.

How to Start a Corporation in Oregon

A corporation is a legal entity separate from its owners, providing limited liability protection. Types include C-Corp, S-Corp, and nonprofit, with varying tax treatments. Core features include:

• Legal separation of owners and business
• Limited liability for shareholders
• Centralized management
• Transferable ownership through stock
• Taxation of profits

Steps to Form a Corporation in Oregon

Step 1: Choose a Corporation Name. Ensure it includes words like “Corporation” or “Inc.” and is unique.

Step 2: Appoint a Registered Agent and Registered Office. This can be an individual or company with a physical address in Oregon.

Step 3: File the Articles of Incorporation with the Oregon Secretary of State. Include the corporation's name, shares, incorporators, address, and agent. Filing can be done online or by mail, with fees applicable.

Step 4 (Optional): Foreign Corporations must file a Certificate of Good Standing and a Statement of Foreign Corporation.

Step 5 (Optional): For S-Corp election, file IRS Form 2553 after formation.

How to Start an LLC in Oregon

An LLC (Limited Liability Company) combines elements of corporations and partnerships, offering limited liability, pass-through taxation, and flexible management.

Steps to Form an LLC in Oregon

Step 1: Name Search/Selection. Use the Oregon Secretary of State's portal to search for or reserve a business name. Fees may apply.

Step 2: File Articles of Organization with the Secretary of State. Filing can be done online or by mail, with applicable fees.

Further steps, such as appointing a registered agent or obtaining an EIN, may be required.

How to Start a Business Partnership in Oregon

A business partnership is owned by two or more individuals. Types include general partnerships, limited partnerships, and limited liability partnerships. Each type has different liability and management structures.

How to Start a Limited Partnership in Oregon

A Limited Partnership (LP) includes at least one general partner with full liability and management control, and one or more limited partners with limited liability. Starting an LP requires filing a Certificate of Limited Partnership with the Oregon Secretary of State. Filing can be done online or by mail.

How to Start a General Partnership in Oregon

A general partnership (GP) is jointly owned and managed by two or more individuals who share profits, losses, and liability. Registration is optional, but a Statement of Partnership Authority or trade name registration may be filed with the county recorder’s office.

How to Start a Nonprofit in Oregon

A nonprofit is a corporation formed for purposes other than profit, such as charity or education. Nonprofits must comply with state-specific incorporation procedures and file with the Oregon Secretary of State. To obtain tax-exempt status, file IRS Form 1023 or 1023-EZ. Filing fees and processing options are available.

Step 6: Choosing a Business Location in Oregon

Choosing a business location is critical for customer-facing businesses. Location impacts success, visibility, operations, and compliance. Common setups in Oregon include brick-and-mortar, online, home-based, and mobile businesses. Key factors to consider are proximity to the target market, accessibility, local competition, cost, zoning laws, and brand visibility. Relevant agencies include zoning boards and safety inspection offices.

What Kind of Business Can I Run From Home in Oregon?

Running a home-based business in Oregon is influenced by local regulations, such as zoning ordinances and homeowner association rules. Some businesses are typically allowed if they do not affect the neighborhood's character, while others may be prohibited due to noise or safety concerns. Always check with local zoning departments and review HOA rules.

How Do I Start a Small Business From Home in Oregon

Home-based businesses in Oregon must comply with legal requirements, including formation, registration, licensing, and zoning compliance. Local governments enforce zoning laws, and a Home Occupation Permit may be required. This permit assesses the business's suitability in a residential setting. Contact local governing agencies for compliance.

Starting a Business Online in Oregon

An online business is conducted over the internet, with the same legal requirements as other businesses in Oregon. Steps include choosing a business name, selecting a legal structure, filing formation documents, obtaining an EIN, and acquiring licenses. Additional regulations may apply, such as consumer protection laws.

Step 7: Legal Requirements for Starting a Business in Oregon

Oregon does not limit who can start a business, but all new businesses must follow state laws and local ordinances. Legal requirements depend on business structure, industry, location, and products or services. Businesses must file formation documents, obtain licenses, comply with tax obligations, and designate a registered agent.

How to Get an EIN Number in Oregon

An EIN (Employer Identification Number) is a unique nine-digit number issued by the IRS for tax identification. It is required for hiring employees, opening bank accounts, and filing taxes. Apply for an EIN through the IRS online, by mail using Form SS-4, or by phone for international applicants. The responsible party must have a valid Taxpayer Identification Number.

How to Get an Oregon Registered Agent

A registered agent receives legal documents on behalf of a business. In Oregon, LLCs, corporations, and limited partnerships must appoint a registered agent. The agent can be an individual with a physical address in Oregon or a business entity authorized to operate in the state. Appointment is made in formation paperwork, with fees applicable.

Patents, Trademarks, and Copyrights in Oregon

Patents, trademarks, and copyrights are forms of intellectual property protection.

Patents: Provide exclusive rights to inventors, governed by the U.S. Patent and Trademark Office under Title 35 of the U.S. Code. Terms last 20 years from the filing date.

Trademarks: Distinguish the source of goods or services, managed federally by the USPTO and at the state level by the Secretary of State. Duration is 10 years, renewable.

Copyrights: Protect original creative works, overseen by the U.S. Copyright Office under Title 17 of the U.S. Code. Duration is the life of the author plus 70 years.

Oregon Business Tax

The Oregon Department of Revenue oversees business taxation. Tax obligations vary by business structure, industry, and activity. Common taxes include:

• Income or Corporate/Franchise Tax: Based on business income.
• Sales and Use Tax: Not applicable in Oregon.
• Employment or Payroll Taxes: For businesses with employees.
• Property Tax: Based on property value.
• Specialty/Excise Taxes: Industry-specific taxes.

Are Business Records Public in Oregon?

Yes, business records in Oregon are generally public under the Public Records Law. They can be inspected or copied by request unless exempted by law. Agencies maintaining records include the Secretary of State, Department of Revenue, and County Recorder. Some information, like Social Security Numbers and trade secrets, is exempt from public access.