Oregon start a business guide

Oregon

Start a

Business

Guide

sos.oregon.gov/Business

Dear Oregon Entrepreneur,

Welcome to The Oregon Start a Business Guide.

Whether you are a current Oregon resident or planning to move to Oregon and open

a business or non-profit from another state or foreign country, this guide will aid in

keeping your business in compliance with Oregon laws and regulations if you plan

to:

• Operate in or open a physical location in Oregon

• Perform on long-term or short-term contracts in Oregon.

• Hire employees who work from their homes in Oregon.

• Have a taxable presence (i.e. nexus) in Oregon.

The Secretary of State, Corporation Division provides s several business information resources,

including the Business Xpress portal Business Information Center, our many web pages, and, of

course, this guide. Many state agencies worked to provide information on government registration

and licensing requirements for businesses. This guide provides basic information and a general

checklist to guide you through the process of starting a business in Oregon. The guide also

highlights business assistance programs that can help you as you begin and continue to operate

your business.

For businesses that hire employees, the Oregon Employer's Guide provides a general checklist to

guide you through government’s requirements for Oregon employers.

Use the guides independently or together, depending on the needs of your business.

Please contact our office for further information:

Secretary of State, Corporation Division

Public Service Building

255 Capitol St. NE, Ste. 151

Salem, OR 97310-1327

(503) 986-2200

CorporationDivis[email protected]

sos.oregon.gov/business

Business.Oregon.gov

III

PUBLICATION LIMITATIONS

The participating government agencies share all information allowed by law and help each other

enforce compliance with the individual programs. If you have any questions about the material

covered in this booklet, please contact the appropriate agency. Phone numbers are listed in each

section, along with material provided by the agency. Information in this publication is not a

complete statement of laws and administrative rules. No information in this guide should be

construed as legal advice.

The State of Oregon has made every effort to ensure accuracy of the information at publication,

but it is impossible to guarantee that the information remains continuously valid.

This publication is updated periodically; assistance with corrections and additions is welcome.

Please email suggestions to the Business Information Center at

CorporationDivis[email protected].

The guide works best when viewed online, as it contains clickable links for easy navigation.

If possible, use a computer and go to sos.oregon.gov/business and Search on start-business-

guide to view and use these pages online.

Secretary of State, Corporation Division

Business Information Center

Public Service Building

255 Capitol St. NE, Suite 151

Salem, OR 97310-1327

(503) 986-2200

CorporationDivis[email protected]gon.gov

sos.oregon.gov/business

Business.Oregon.gov

STARTING A BUSINESS CHECKLIST

Starting a successful business requires a great deal of preparation. The following is a list of recommendations to

help you get your business off to a good start.

This guide works best when viewed online, as it contains clickable links for easy navigation. If possible,

use a computer and go to sos.oregon.gov/business and Search on start-business-guide to view and use

these pages online.

 1. Preparation

o Knowledge and experience

o Research

______________________________________________________________________________________

 2. Planning

o Business plan

o Financing

o Seek professional advice

o Business assistance programs

______________________________________________________________________________________

 3. Select your business name and structure

o Understand business structures

o Check business name for availability

______________________________________________________________________________________

 4. Register your business at SOS.oregon.gov/business

__________________________________________________________________________________________________________

 5. Tax information

o Federal taxes and ID number

o State taxes

o Local taxes

o Property taxes

______________________________________________________________________________________

 6. Licensing

o Learn about licensing with this video

o Check License Directory – Oregon Licenses, Permits, and Registrations

______________________________________________________________________________________

 7. Other requirements, if needed

o Check zoning and environmental rules

o Patents, copyrights, and trademarks

o Comply with ADA requirements

o Get business insurance

______________________________________________________________________________________

 8. Hiring employees

o Review Oregon Employer’s Guide

______________________________________________________________________________________

 9. Ongoing registration requirements

o Renew business registrations, business licenses, and occupational licenses

 
    VI 
TABLE OF CONTENTS 
PUBLICATION LIMITATIONS ................................................................................................................................................... III 
STARTING A BUSINESS CHECKLIST ......................................................................................................................................... IV 
COMPREHENSIVE NEW BUSINESS STEPS ................................................................................................................................. 9 
STEP 1 – PREPARATION ....................................................................................................................................................... 9 
Knowledge................................................................................................................................................................................................... 9 
Experience ................................................................................................................................................................................................... 9 
Research ...................................................................................................................................................................................................... 9 
STEP 2 - PLANNING ........................................................................................................................................................... 10 
Write a Business Plan ................................................................................................................................................................................ 10 
Business Express ........................................................................................................................................................................................ 10 
Seek Professional Advice ........................................................................................................................................................................... 10 
Obtain Financing ....................................................................................................................................................................................... 11 
Business Assistance Programs ................................................................................................................................................................... 11 
MANAGEMENT & TECHNICAL SERVICES ................................................................................................................................................... 11 
Oregon Small Business Development Center (SBDC) Network ............................................................................................................ 11 
SCORE “For the Life of your Business” ................................................................................................................................................. 12 
Oregon Business Development Department ........................................................................................................................................ 12 
Emerging Business Assistance Programs .............................................................................................................................................. 13 
Oregon Association of Minority Entrepreneurs (OAME) ................................................................................................................. 13 
Certification Office for Business Inclusion and Diversity (COBID) ................................................................................................... 13 
     Northwest Native Chamber……………………………………………………………………………………………………………………………………………………..…13 
ONABEN – Our Native American Business Network ........................................................................................................................ 13 
Oregon Main Street ......................................................................................................................................................................... 14 
Business Law Clinic .......................................................................................................................................................................... 14 
Small Business Legal Clinic (SBLC).................................................................................................................................................... 14 
Self-Employment Assistance (SEA) .................................................................................................................................................. 14 
Office of Small Business Assistance (OSBA) .......................................................................................................................................... 14 
Get Help .......................................................................................................................................................................................... 14 
Office of the National Ombudsman (SBA) ............................................................................................................................................ 14 
Office of Advocacy (SBA) ...................................................................................................................................................................... 15 
Office of the Taxpayer Advocate .......................................................................................................................................................... 15 
FINANCIAL RESOURCES ............................................................................................................................................................................ 15 
Local Revolving Loan Funds .................................................................................................................................................................. 15 
Oregon Contacts for Revolving Loan Funds ......................................................................................................................................... 15 
SBA Loan and Loan Guarantee Programs ............................................................................................................................................. 16 
Business Development Assistance ....................................................................................................................................................... 16 
Small Business Support ................................................................................................................................................................... 16 
Access to Capital .............................................................................................................................................................................. 17 
Raising Capital through the Sale of Securities ...................................................................................................................................... 17 
            Common Exempt Offerings for Small Businesses…………………………………………………………………………………..………………………………………..18 
Regulation D - Rule 506 ........................................................................................................................................................................ 18 
Regulation Crowdfunding..................................................................................................................................................................... 18 
Tier 2 - Regulation A. ............................................................................................................................................................................ 18 
Oregon Intrastate Offering Exemption ................................................................................................................................................. 19 
“Accredited Investor” Exemption ......................................................................................................................................................... 19 
“Friends and Family” Exemption .......................................................................................................................................................... 19 
Small Offering Abbreviated Registration (SOAR) for Offerings up to $1,000,000 and the Small Corporate Offering Registration, 
(SCOR) for Offerings up to $5,000,000 ................................................................................................................................................. 19 
Tax Incentives .................................................................................................................................................................................. 20 
Grants .............................................................................................................................................................................................. 20 
Loans .................................................................................................................................................................................................... 20 
MARKETING, GOVERNMENT CONTRACTING & INTERNATIONAL TRADE................................................................................................ 21 
Oregon Buys ......................................................................................................................................................................................... 21 
Industry Codes ..................................................................................................................................................................................... 21 
Business Oregon ................................................................................................................................................................................... 21 
Government Contract Assistance Program .......................................................................................................................................... 21 

 
    VII 
Market Research by Region in Oregon ................................................................................................................................................. 22 
Oregon SBDC Global Trade Center ....................................................................................................................................................... 22 
Agricultural Products Marketing .......................................................................................................................................................... 22 
STEP 3 – SELECT YOUR BUSINESS ORGANIZATION STRUCTURE & NAME ............................................................................ 23 
How To Choose a Business Structure ......................................................................................................................................................... 23 
Business Organization Structure Types ................................................................................................................................................ 24 
Optional Provisions .............................................................................................................................................................................. 24 
Benefit Companies ............................................................................................................................................................................... 25 
Choose a Business Name ........................................................................................................................................................................... 25 
What Names Are “Available”? ............................................................................................................................................................. 26 
Check Internet Domain Name Availability ........................................................................................................................................... 26 
What Are “Real and True” Names? ...................................................................................................................................................... 26 
Assumed Business Names .................................................................................................................................................................... 26 
Protecting and Defending Your Business Name ................................................................................................................................... 27 
STEP 4 – REGISTER YOUR BUSINESS ................................................................................................................................... 28 
BUSINESS REGISTRATION & RENEWAL ...................................................................................................................................................... 28 
Sole Proprietor Registration ................................................................................................................................................................. 28 
General Partnership Registration ......................................................................................................................................................... 28 
Assumed Business Name Registration ................................................................................................................................................. 28 
Limited Liability Company Registration ................................................................................................................................................ 28 
Business Corporation Registration ....................................................................................................................................................... 29 
Nonprofit Corporation Registration ..................................................................................................................................................... 29 
Foreign Business Entity Registration .................................................................................................................................................... 29 
Register a Trade or Service Mark ......................................................................................................................................................... 29 
Report Beneficial Ownership Information (BOI) to FinCEN ........................................................................................................................ 29 
What is reported? ............................................................................................................................................................................ 30 
STEP 5 – UNDERSTANDING TAX OBLIGATIONS .................................................................................................................. 31 
Apply for Federal Employer Identification Number (SS-4) ......................................................................................................................... 31 
Sales Tax Information ................................................................................................................................................................................ 32 
Income Tax Information ............................................................................................................................................................................ 32 
Federal and State Income Taxes .......................................................................................................................................................... 32 
Income Tax for Sole Proprietors ........................................................................................................................................................... 32 
Income Tax for Partnerships ................................................................................................................................................................ 32 
Income Tax for Limited Liability Companies ......................................................................................................................................... 32 
Income & Excise Tax for Oregon Corporations ..................................................................................................................................... 33 
Income & Excise Tax for S Corporations ............................................................................................................................................... 33 
Estimated Income Tax Payments (Individual) ...................................................................................................................................... 33 
Estimated Income Tax Payments (Corporations) ................................................................................................................................. 33 
Personal Property Tax Report.................................................................................................................................................................... 34 
Personal Property ................................................................................................................................................................................. 34 
Other Business Taxes ................................................................................................................................................................................. 35 
Federal Taxes ....................................................................................................................................................................................... 35 
State Taxes ........................................................................................................................................................................................... 35 
Additional State Taxes .......................................................................................................................................................................... 35 
Local Taxes ........................................................................................................................................................................................... 36 
Other Required Contributions .............................................................................................................................................................. 36 
STEP 6 – CHECK LICENSES .................................................................................................................................................. 37 
Check State & Local License Requirements ............................................................................................................................................... 37 
License Requirements .......................................................................................................................................................................... 37 
Construction and Landscape Contractor Licenses ..................................................................................................................................... 37 
Who Should be Licensed with the Construction Contractors Board (CCB) .......................................................................................... 37 
CCB Requirements ........................................................................................................................................................................... 38 
Class of Independent Contractor ..................................................................................................................................................... 38 
Employees or Independent Contractors? ........................................................................................................................................ 38 
Applying for a CCB License .............................................................................................................................................................. 38 
Regional Contractor’s Business License for Portland Metro cities ....................................................................................................... 39 
Who Should be Licensed with the Landscape Contractors Board (LCB) ............................................................................................... 39 
LCB Requirements ........................................................................................................................................................................... 40 
Class of Independent Contractor (Employer Accounts) .................................................................................................................. 40 
Employees or Independent Contractors? ........................................................................................................................................ 40 
Completing the LCB Business Licensing Process .............................................................................................................................. 41 

 
    VIII 
STEP 7 – OTHER REQUIREMENTS ....................................................................................................................................... 42 
Check Zoning for Business Location........................................................................................................................................................... 42 
Dealing with Environmental Permits & Regulations ................................................................................................................................. 42 
Check with Oregon DEQ ....................................................................................................................................................................... 42 
DEQ Information and Technical Assistance .......................................................................................................................................... 43 
DEQ Small Business Assistance ............................................................................................................................................................ 43 
Check with Department of State Lands ................................................................................................................................................ 43 
Check with Oregon State Fire Marshal ................................................................................................................................................. 43 
Comply with the Americans with Disabilities Act ...................................................................................................................................... 44 
Background .......................................................................................................................................................................................... 44 
General Information ............................................................................................................................................................................. 44 
Patents, Copyrights, and Trademarks ....................................................................................................................................................... 45 
U.S. Patents .......................................................................................................................................................................................... 45 
U.S. Copyrights ..................................................................................................................................................................................... 45 
Trade and Service Mark........................................................................................................................................................................ 45 
Oregon Trade and Service Mark Registration.................................................................................................................................. 45 
Federal Trade and Service Mark Registration ................................................................................................................................. 46 
If You Use Music in Your Business ............................................................................................................................................................. 46 
  Consider Insurance for your Business…………………………………………………………………………………………………………………………………………….47 
Complying with Oregon’s Unclaimed Property Law .................................................................................................................................. 47 
Oregon Consumer Information Protection Act .......................................................................................................................................... 48 
STEP 8 – HIRING EMPLOYEES ............................................................................................................................................. 49 
Determine Employer Status ....................................................................................................................................................................... 49 
Who is an Employer?............................................................................................................................................................................ 49 
Who is an Employee? ........................................................................................................................................................................... 49 
Who is an Independent Contractor? .................................................................................................................................................... 49 
Internal Revenue Service (IRS) Independent Contractor Definition ..................................................................................................... 50 
Important Information About Employer Identification Numbers (EIN) ..................................................................................................... 50 
General Information ............................................................................................................................................................................. 50 
Oregon Minimum Wage ............................................................................................................................................................................ 50 
Health Insurance Assistance ...................................................................................................................................................................... 51 
Small-group coverage........................................................................................................................................................................... 51 
Coverage for family members .............................................................................................................................................................. 52 
Don't have employees? ........................................................................................................................................................................ 52 
Health Care Tax Credit ......................................................................................................................................................................... 52 
Get free expert help ............................................................................................................................................................................. 52 
Small Business Guide to Insurance and Worksite Safety ...................................................................................................................... 52 
Labor Market Information......................................................................................................................................................................... 52 
Information on the Internet ................................................................................................................................................................. 53 
OregonSaves……………………………………………………………………………………………………………………………………………………………………………….….53 
STEP 9 – ONGOING REGISTRATION REQUIREMENTS ......................................................................................................... 53 
OREGON COUNTIES MAP ...................................................................................................................................................... 54 

OREGON START A BUSINESS GUIDE

COMPREHENSIVE NEW BUSINESS STEPS

STEP 1 – PREPARATION

Knowledge

You should have experience in and knowledge of the business you plan to enter. If you don’t have either, consider

working in that industry or with a successful owner/operator for at least six months.

Experience

Having prior experience in management of people and finances is critical to increasing your chances of business

success, since most businesses fail due to poor or inexperienced management. If you feel you could use help in this

area, Oregon’s Small Business Development Centers are an excellent resource for training and assistance to help your

business succeed. See “Small Business Development Centers” in this guide for more information or go online to

OregonSBDC.org.

Research

Do your homework. Hours spent studying your proposed business idea can save you money in the long run and give

you the information to make sound business decisions. Here are valuable resources to help you plan.

▪ Oregon’s Small Business Development Centers (SBDC) provide services to Oregon’s small businesses. Find

the SBDC in your area at OregonSBDC.org/Centers.

▪ Visit the Oregon Business Xpress portal at Business.Oregon.gov. Explore the wealth of resources there or find

the Startup Toolkit with six essential steps.

▪ Connect with the US Small Business Administration at sba.gov.

▪ Consult with a counselor at score.org.

▪ Consult with the Small Business Legal Clinic (SBLC) at Lewis & Clark Law School. The SBLC provides

affordable legal services to low-income small and emerging businesses, including contract review and

drafting, entity selection and formation, intellectual property guidance, and employment law advising. Cost is

on a sliding scale basis.

▪ University of Oregon’s Business Law Clinic provides free legal services to small and start-up business on a

waiting list basis. It also prepares law students to represent business clients through a clinical program in

which students are trained in representing small businesses. All client work is performed by law students who

are closely overseen by supervising attorneys.

▪ 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 you develop a sound relationship with your banker, and a good record of payment 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 comparisons of both suggested coverages

and premiums.

▪ Visit your local library. A librarian can help you find information and ideas on starting, running, and

marketing your business.

OREGON START A BUSINESS GUIDE

▪ Check with relevant trade associations and your local Chamber of Commerce to learn about networking

opportunities and other resources.

▪ The Employment Department administers a federal tax credit called the Work Opportunity Tax

Credit (WOTC). WOTC is designed to incentivize employers to hire individuals who face barriers

to employment. Potentially qualifying individuals include but are not limited to military veterans,

TANF assistance recipients, those recently released from incarceration, and those who simply have

been unemployed for an extended period.

STEP 2 - PLANNING

Write a Business Plan

Whether you are just starting out or already own a small business, completing a basic business plan will help you

succeed. Do you need help writing a business plan? The Small Business Administration (SBA) offers a step-by-step

tool to Build Your Business Plan. Answering a few essential questions will help you clarify and organize what you

already know – or need to know – about your business operations. Completing a business plan provides you with a

better understanding of the financial needs and profit potential of your business.

Oregon’s Business License Directory allows you to search to see if your type of business is regulated. You may also

get valuable planning advice from your licensing board or agency.

Business Express

Business Xpress provides a wealth of information. Find many links and resources there that can help you with your

planning or provide avenues for further exploration.

Seek Professional Advice

Consider consulting at least two professionals:

▪ An attorney – Consider getting advice on any legal questions pertinent to your business such as contracts,

agreements, tax law, liability issues, raising capital through the sales of securities, and 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, the Oregon State Bar can refer you to one. You can obtain a referral by contacting them toll-free at

800-452-7636, or online at https://www.osbar.org/public/ris/.

▪ An accountant – A certified public accountant or a licensed tax advisor can advise you and probably 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 provide up to date financial information. If you do not have an accountant,

you may call the Oregon Association of Independent Accountants at 503-282-7247 or visit oaia.net. You may

also contact the Oregon Society of Certified Public Accountants at 503-641-7200 or visit orcpa.org.

    OREGON START A BUSINESS GUIDE 
    11 
11 
Obtain Financing 
New businesses often underestimate how much capital it will take to start a business and how difficult it will be 
to raise it. As a general principle, a new business should have enough capital to cover their business’ initial 
costs and cash-flow requirements, plus an additional reserve. 
Businesses can raise capital in a number of ways, including by obtaining a loan or through the sale of securities. 
For information on raising capital through state loan programs (and other tools), check the funding sections of 
Business Oregon and Raising Capital from the Division of Financial Regulation (DFR). For more information on 
raising capital through the sale of securities, check out the Oregon Department of Consumer and Business Services, 
Division of Financial Regulation’s website here: 
https://dfr.oregon.gov/business/licensing/financial/securities/Pages/index.aspx or the United States Securities and 
Exchange Commission’s website here: https://www.sec.gov/smallbusiness.  
Income-qualified individuals may be able to participate in an Individual Development Account (IDA) to save money to 
open a business. IDAs are matched savings accounts that allow participants to get up to five dollars for every dollar 
they save. Find an IDA provider online. 
Business Assistance Programs 
Business assistance programs listed in this guide are divided into three broad categories: management and technical 
services, financial resources, and marketing and international trade assistance. However, some of the programs provide 
help in more than one area. Note: This is not a complete list of resources available in Oregon; this list is intended to 
give you some initial contacts for assistance in these areas. 
MANAGEMENT & TECHNICAL SERVICES 
Business Xpress provides a wide variety of information to help you grow your business. Here are some of the best and 
most frequently used resources.  
Oregon Small Business Development Center (SBDC) Network 
The Oregon Small Business Development Center Network provides a variety of services to the business community. 
Services include business advising, training, referrals, and information on capital and global trade for both new and 
ongoing businesses. These services are delivered through Small Business Development Centers (SBDCs) located 
throughout the state. 
SBDCs have a variety of classes from starting up, to growing a business, to exiting a business. SBDCs also offer tools 
and other resources that can be helpful. Additional assistance is available in the areas of access to capital, international 
trade, and technology transfer. 
For more information on the services offered, contact the SBDC Network Office or the SBDC in your area. There is an 
SBDC at each of Oregon’s community colleges and at two other regional universities.  
Oregon SBDC Network Office 
1445 Willamette St. Suite# 5, Eugene, OR 97401 
541-463-5250, 541-345-6006 (fax) 
OregonSBDC.org 
Albany 
Bend 
Clackamas 
Coos Bay 
Columbia County 
Columbia Gorge 
 
Grants Pass 
Gresham 
Klamath Falls 
La Grande 
Lincoln City 
Medford 
Ontario 
Pendleton 
Portland 
Roseburg 
Salem 
Seaside 
The Dalles 
Tillamook 
 
Global Trade Center

OREGON START A BUSINESS GUIDE

SCORE “For the Life of your Business”

If you want individual counseling, go to SCORE.org and select “request a mentor”, or contact the closest SCORE

chapter address listed below. Online counseling is available. When calling by telephone, please ask for “SCORE

counseling.”

SCORE, Portland

12600 Crescent St., Suite 160 Beaverton, OR

97005 Email:scorepdx@scorevolunteer.org

Web: https://www.score.org/portlandor

SCORE, Central Oregon

Chapter #701

PO Box 6416

Bend, OR 97708

(541) 316-0662

Email:info.centraloregon@scorevolunteer.org

Web:www.score.org/centraloregon

Oregon Business Development Department

The Oregon Business Development Department (Business Oregon) is the economic development agency for the state

of Oregon. Business Oregon works with both communities and businesses, and it uses its programs and expertise to

help businesses grow, so they in turn can add jobs, diversify the economy, and increase Oregon prosperity. In

partnership with the private sector, Business Oregon provides direct services such as access to capital, lean

manufacturing consulting, assistance with international markets, business recruitment, and more.

Much like the community bank down the street, Business Oregon can work with you to deliver small business loans in

the form of debt financing at favorable terms. If there’s not a good fit with one of its direct loan programs, Business

Oregon can also work with those banks and credit unions down the street to provide loan guarantees and loan-loss

reserve accounts to help free up capital to those “almost bankable” business applicants. Those interested in doing

business in Oregon should investigate private sources of assistance as well.

Business Oregon

775 Summer Street NE, Suite 200

Salem, OR 97301-1280

503-986-0123

1-800-735-2900 (TTY)

oregon.gov/biz

OREGON START A BUSINESS GUIDE

Contact Business Oregon’s Regional Development Officers

Business Oregon’s Regional Development Officers serve as a gateway to the full suite of the agency’s programs and

services. If you aren’t sure where to start, you can reach out to your region’s staff person by selecting the map marker

online at:https://www.oregon.gov/biz/aboutus/contactus/Pages/default.aspx

Or use the link on the “Contact Us” web page:

https://www.oregon.gov/biz/aboutus/contactus/Pages/default.aspx

Business Recruitment………………………………………………………………….971-375-7511; 503-551-0997

Business Finance……………………………………………………………………………………….503-986-0172

Global Trade/Exporting……………………………………………………………………………….503-505-4968

Broadband Development………………………………………………………………………………503-877-7006

Emerging Business Assistance Programs

There are a number of organizations that provide resources for technical assistance and promote targeted economic

opportunities to small businesses, including minority-, women-, and disabled veteran-owned businesses around the

state.

Oregon Association of Minority Entrepreneurs (OAME)

The Oregon Association of Minority Entrepreneurs (OAME) is a non-profit organization that promotes and develops

entrepreneurship and economic development. OAME is a statewide organization with core services that include

business counseling, microloans, business incubation (office space and conference rooms available), business

opportunities, and networking events (where “everybody’s IN, nobody’s OUT”). For more information, contact

OAME, 731 N. Hayden Meadows Drive, Portland, OR 97217, 503-249-7744, or visit oame.org.

Certification Office for Business Inclusion and Diversity (COBID)

The Certification Office for Business Inclusion and Diversity administers the Airport Concessionaire Disadvantaged

Business Enterprise, Disadvantaged Business Enterprise, Minority and Women Business Enterprise, Veteran Business

Enterprise, and Emerging Small Business Certification programs. As the sole certification authority in Oregon, COBID

provides “one-stop” certification services. These certification programs create a level playing field as certification

provides businesses the opportunity to bid on goal-oriented public projects and connect with government contracting

entities, encouraging diversity and inclusion in the procurement process. Certification is free in Oregon. COBID, a unit

within Business Oregon, is located at 775 Summer Street NE, Ste. 200, Salem, OR 97301-1280. Contact COBID at

503-986-0075 or visit www.orcobid.com.

Northwest Native Chamber

NWNC Business Assistance provides resources connecting you to specialists and professionals in all areas of business

development, including financial management, legal support, marketing, and much more. For more information, visit

https://nwnc.org/.

ONABEN – Our Native American Business Network

ONABEN, (Our Native American Business Network), founded in 1991, is a national non-profit organization that

serves entrepreneurs and tribes throughout most of the United States. ONABEN can be found online at

https://onaben.org/.

OREGON START A BUSINESS GUIDE

Oregon Main Street

Oregon Main Street (OMS) is part of Heritage Programs in the Oregon Parks and Recreation Department. OMS is

designed to assist with the revitalization of traditional downtowns and historic commercial districts, promote economic

development, and encourage historic preservation. The program uses an approach that advocates a return to

community self-reliance, local empowerment, and the rebuilding of central business districts based on their assets,

unique architecture, personal service, local ownership and entrepreneurship, and sense of community. For additional

information, please go to oregonmainstreet.org or contact 503-986-0670.

Business Law Clinic

University of Oregon’s Business Law Clinic provides free legal services to small and start-up businesses on a waiting

list basis. It also prepares law students to represent business clients through a clinical program in which students are

trained in representing small businesses. All client work is performed by law students who are closely overseen by

supervising attorneys. For more information visit https://law.uoregon.edu/become-practice-ready/clinics/bizlaw.

Small Business Legal Clinic (SBLC)

The Small Business Legal Clinic (SBLC), located at Lewis & Clark Law School, provides business transactional legal

services to low-income small and emerging businesses, primarily those owned by women, minorities, or recent

immigrants. As part of Lewis & Clark Law School, the SBLC provides valuable hands-on training to future business

attorneys, while providing a service to those who need it most. Clients placed in the SBLC Intern Program work with

upper-division law students who are closely supervised by a clinical law professor. For more information, visit

https://law.lclark.edu/centers/small_business_legal_clinic/

Self-Employment Assistance (SEA)

The Self Employment Assistance (SEA) program allows qualified unemployment insurance claimants to start or

expand a business while receiving unemployment benefits. Approved participants then work full-time on their self-

employment venture instead of looking for work. The income earned from your approved SEA business while on SEA

will not reduce your weekly benefit amount. SEA is a program for unemployment claimants who are likely to exhaust

their unemployment benefits before they can find work in their regular occupation. When you apply for SEA, your

business idea is evaluated, and you must continue to seek work until you are approved for the program in writing. To

find out more, please visit the SEA program website or contact the Employment Department’s Special Programs

Center 800-436-6191.

Office of Small Business Assistance (OSBA)

The Office of Small Business Assistance serves as an independent voice for small businesses within state

government. The Office’s Small Business Ombudsman team helps entrepreneurs by investigating and helping to

resolve complaints and questions from businesses about state and local government. For more information visit

oregon.gov/smallbusiness

Get Help

If you feel your business has been unfairly or unreasonably treated by state or local government and you’ve tried to

resolve the issue without success, request help online, via email, or contact an Ombudsman toll-free at 844-469-5512.

Office of the National Ombudsman (SBA)

The National Ombudsman’s mission is to assist small businesses when they experience excessive or unfair federal

regulatory enforcement actions, such as repetitive audits or investigations, excessive fines, penalties, threats,

retaliation, or other unfair enforcement action by a federal agency.

Learn more about the Office of the National Ombudsman or file a complaint online.

Office of the National Ombudsman

409 3

Street, SW, Suite 7125

OREGON START A BUSINESS GUIDE

Washington, DC 20416

Toll-free 888-734-3247

TTY 800-877-8339

Office of Advocacy (SBA)

The Office of Advocacy is an independent voice for small businesses within the federal government, the watchdog for

the Regulatory Flexibility Act (RFA), and the source of small business statistics. The Office of Advocacy advances the

views and concerns of small business before Congress, the White House, the federal agencies, the federal courts, and

state policy makers.

Region 10 Web page

https://advocacy.sba.gov/tag/region-10/

Office of the Taxpayer Advocate

The Taxpayer Advocate, whose office was created in 2021 and is housed in the Oregon Department of Revenue, is a voice

and a resource for taxpayers. The Advocate will serve taxpayers whose problems are not resolved through ordinary

channels; receive and evaluate complaints of improper, abusive, or inefficient service by agency employees; promote

taxpayer issues and concerns to department policymakers and state legislators; and problem-solve and suggest options

to taxpayer dilemmas through normal channels of which the taxpayer may not have been aware. For more information

visit the Office website at https://www.oregon.gov/dor/Pages/Taxpayer-Advocate.aspx.

FINANCIAL RESOURCES

Federal, state, and local governments provide some financial assistance to small businesses in the form of loan

programs. These loan programs generally do not provide funds for more than 30 to 50 percent of a business proposal

and the loan applicants must demonstrate that they have sufficient capital, in addition to the loan, to fund the business.

Loan applicants should demonstrate repayment ability, sufficient management expertise, and commitment to operate

the business successfully. Businesses can also raise money from investors through the sale of securities.

Many Oregon cities and counties have economic development programs, which include financial assistance. A

business should contact the city and county in which they are located, or are interested in locating, for details of their

programs.

The following is a list of some financial resources available to small businesses. Contact your local Small Business

Development Center or local economic development agencies for additional information on financial assistance in

your area.

Local Revolving Loan Funds

There are many revolving loan funds for small business financing administered by local governments and development

groups. In most cases, funding has been provided by the Department of Housing and Urban Development through the

State of Oregon, or by the federal Economic Development Administration. For additional information, contact the U.S.

Economic Development Administration at 503-326-3078.

Oregon Contacts for Revolving Loan Funds

Prosper Portland

1900 SW Fourth Ave Suite 100

Portland, OR 97201

503-823-3201

CCD Business Development Corporation

744 SE Rose Street

Roseburg, OR 97470

541-672-6728

Cascade Capital Funding

Southern Oregon Regional Economic Development Inc.

OREGON START A BUSINESS GUIDE

698 12

Street SE, Ste. 210

Salem, OR 97301

503-990-6868

100 E. Main St., Ste. A

Medford, OR 97501

541-773-8946

Mid-Columbia Economic Development District

515 East Second Street

The Dalles, OR 97058

541-296-2266

Central Oregon Intergovernmental Council

334 NE Hawthorne Avenue

Bend OR 97701

phone 541-548-8163

Oregon Cascades West Council of Governments

1400 Queen Ave SE Ste 201

Albany, OR 97322

541-967-8720

Mid-Willamette Valley Council of Governments

100 High St. NE

Suite 200

Salem, OR 97301

503-588-6177

NE Oregon Economic Development District

101 NE First St Suite 100

Enterprise, OR 97828

541-426-3598

1-800-645-9454

SBA Loan and Loan Guarantee Programs

The U.S. Small Business Administration (SBA) is a federal agency created by Congress to help small businesses. The

SBA offers small firms financial assistance through guaranteed loan programs. To obtain information on the loan

programs, contact the U.S. Small Business Administration, 419 SW 11

Ave, Ste. 310, Portland, OR 97205, call 503-

326-2682, or visit SBA online at https://www.sba.gov/district/portland.

The SBA also sponsors programs that provide business counseling and assistance with business development,

international trade, and obtaining federal government contracts. In addition, the SBA furnishes assistance for women

and minorities in business.

Business Development Assistance

Business Oregon focuses on creating opportunities for Oregon companies. These opportunities pave the way for

businesses to expand production, enter new global markets, and compete and win in the global economy. Through its

own programs and expertise, or by matching clients with specialized partners, Business Oregon’s job is to support

Oregon business. Business Oregon has regional development officers located across the state to work closely with

businesses and local officials. Business Oregon helps businesses access capital, find industrial property, export to

global markets, and identify available business incentives. Staff have a wealth of experience to do all this and help

identify what programs or assistance are best suited to help grow Oregon’s industries. For more information, call 503-

986-0123 or visit https://www.oregon.gov/biz.

Small Business Support

Business Oregon works with businesses in Oregon to increase their potential for success. The department coordinates

with venture funds, entrepreneurial organizations, and service providers by helping them to access different sources of

equity capital. It facilitates improved communications and linkages among various providers of services, including

small business development centers, government contracts, marketing, minority business, and other small business

organizations. For information, call 503-986-0123, or visit oregon.gov/biz. You may also contact their Regional

Development Officers directly.

OREGON START A BUSINESS GUIDE

Access to Capital

Business Oregon has a team of professionals to assist businesses with financing needs by packaging loan programs or

by matching a partner service provider with a business. For more information or to get started, contact an agency

Regional Development Officer: https://www.oregon.gov/biz/aboutus/contactus/Pages/default.aspx

Business Oregon offers the following business finance programs, including direct loan and loan guarantees.

• Oregon Business Development Fund (OBDF) provides direct loans that leverage private capital and provides

incentives for businesses to expand or locate in Oregon.

• Oregon Royalty Fund (ORF) provides direct loans to help early stage (post R & D and prototyping), scalable, and

high-margin small businesses obtain short-term working capital to support rapid growth.

• Entrepreneurial Development Loan Fund (EDLF) offers direct loans to help start-ups, micro-enterprises and

small businesses expand or become established in Oregon.

• Credit Enhancement Fund (CEF) provides loan guarantees to financial institutions, to increase capital availability

to small businesses.

Raising Capital through the Sale of Securities

Businesses can also raise capital through the sale of securities, such as by selling an equity interest in their

company, or by issuing a promissory note. (Note: Generally, a “security” is involved any time a person

invests money in a business and depends on the business owner’s expertise and management to generate a

profit or return on that investment. It can involve instruments--such as stocks or notes--that one commonly

thinks are securities, and instruments that one does not.) When raising capital in this manner, it is important

to keep in mind that the offer and sale of securities are subject to a highly complex system of federal and

state regulation and that you must comply with both sets of laws.

Securities must be registered in each state in which they are offered and sold and under federal law before

the offer is made. The federal and state securities laws also exempt certain types of securities and securities

transactions from the securities registration requirements depending, among other things, on the size of the

offering, the types of purchasers, and how the securities are being sold. Because the registration process

can be time-consuming and expensive, you should be familiar with the various types of exemptions to

determine whether you can rely on them.

CAUTION: It is an issuer’s obligation to ensure that any securities transaction complies with state and

federal law, and the penalties for violating the securities laws can be severe. A business should always seek

the assistance of an attorney with expertise in securities law before it raises capital through the sale of

securities. A qualified attorney should be able to give your business the proper guidance regarding whether

the transaction involves a security, whether you are offering or selling a security in Oregon, any security

registration requirements (and any possible exemptions), and any disclosure requirements.

The United States Securities and Exchange Commission (SEC) administers and enforces the federal

securities laws, and Oregon’s Division of Financial Regulation within the Department of Consumer &

Business Services (DCBS) administers and enforces the Oregon Securities Law. To learn more about

opportunities for raising capital under federal law, please visit the SEC’s website here:

https://www.sec.gov/smallbusiness. To learn more about opportunities for raising capital under the

Oregon Securities Law, please visit DCBS’ website here:

https://dfr.oregon.gov/business/resources/capital/Pages/raising-capital.aspx.

The following is a brief summary of some of the types of exemptions and methods of registrations under the federal

and Oregon securities law that are available to small businesses.

OREGON START A BUSINESS GUIDE

Common Exempt Offerings for Small Businesses

Regulation D - Rule 506

Rule 506 under Regulation D is an exemption to the securities registration requirements under the federal securities

law. (Note: Persons selling securities in reliance on Rule 506 in Oregon must file notice of the offering with DCBS

and pay a fee 15-days after the first sale of the security in Oregon.)

There are two options for selling securities under Rule 506. Rule 506(b) allows businesses to raise an unlimited

amount of money from an unlimited number of “accredited investors” (and no more than 35 sophisticated non-

accredited investors) so long as there is no general advertising or general solicitation. Under federal law, an

“accredited investor” includes any natural person whose earned income in each of the prior two years exceeded

$200,000 (or $300,000 together with the investor’s spouse or partner), and reasonably expects the same for the current

year; or who has a net worth (excluding the value of the person’s primary residence) over $1 million, either alone or

together with the investor’s spouse or partner; or who holds a Series 7, 65 or 82 license in good standing. A more

detailed discussion regarding the specific requirements under Rule 506(b) can be found on the SEC’s website here:

https://www.sec.gov/smallbusiness/exemptofferings/rule506b.

As an alternative, Rule 506(c) allows businesses to solicit and advertise an offering so long as:1) all of the purchasers

in the offering are “accredited investors”; 2) the business takes reasonable steps to verify each purchaser’s status as an

“accredited investor”; and 3) all other conditions in Regulation D are satisfied. A more detailed discussion regarding

the specific requirements under Rule 506(c) can be found on the SEC’s website here:

https://www.sec.gov/smallbusiness/exemptofferings/rule506c.

Regulation Crowdfunding

Regulation Crowdfunding is an exemption to the securities registration requirements under the federal

securities law that allows companies to raise a maximum aggregate amount of $5 million through

crowdfunding offerings in a 12-month period. (Note: A business whose principal place of business is in Oregon,

or that sells 50% or greater of the aggregate amount of the offering to residents of Oregon in reliance on Regulation

Crowdfunding, must make a filing with DCBS and pay a fee.)

Regulation crowdfunding among other things: 1) requires that all transactions take place online through an SEC-

registered intermediary (either a broker-dealer or a funding portal); 2) limits the amount individual non-accredited

investors can invest across all crowdfunding offerings in a 12-month period; and 3) requires disclosure of information

in filings with the SEC and to investors and the intermediary facilitating the offering. Securities purchased in a

crowdfunding transaction generally cannot be resold for one year. A more detailed discussion regarding regulation

crowdfunding can be found on the SEC’s website here:

https://www.sec.gov/smallbusiness/exemptofferings/regcrowdfunding

Tier 2 - Regulation A.

Tier 2 under Regulation A is an exemption to the securities registration requirements under the federal

securities law that allows companies to raise up to $75 million in a 12- month period provided that the

company meets certain eligibility requirements, bad actor disqualification provisions, disclosure, and other

matters. (Note: Persons selling securities in reliance on Tier 2 – Regulation A in Oregon must file notice with

DCBS prior to selling their securities in Oregon and pay a fee.)

Tier 2 under Regulation A places limits on the amount of money a non-accredited investor may invest in an offering, and

requires audited financial statements and the filing of ongoing reports with the SEC. A more detailed discussion regarding

Tier 2 – Regulation A can be found on the SEC’s website here: https://www.sec.gov/smallbusiness/exemptofferings/rega.

OREGON START A BUSINESS GUIDE

Oregon Intrastate Offering Exemption

The Oregon Intrastate Offering (OIO) is an exemption to the securities registration requirements under the Oregon

Securities Law that exempts from the Oregon securities registration requirements the offer and sale of stock or notes

by certain Oregon businesses with 50 or fewer employees to Oregon residents. Businesses can raise $250,000 per year

in reliance on this exemption and $500,000 in total. Oregon residents can invest up to $2,500 per OIO and certain

Oregon residents may also invest up to $10,000 depending on their income and net worth or businesses can offer and

sell their securities either directly to investors, or through a third-party platform. (

Note

: Securities validly sold in

reliance on the OIO are also exempt from the federal securities registration requirements).

More information regarding how to use the OIO to raise capital for your business can be found on DCBS’ website

here: https://dfr.oregon.gov/business/resources/capital/Pages/crowdfunding-faqs.aspx.

“Accredited Investor” Exemption

The Oregon Securities Law also exempts from its securities registration requirements sales to “accredited investors” so

long as there is no general advertising or general solicitation. Similar to the federal definition, the Oregon Securities

Law defines an “accredited investor” to include any natural person whose earned income in each of the prior two years

exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent), and reasonably expects the same for

the current year; or has a net worth over $1 million, either alone or together with a spouse or spousal equivalent

(excluding the value of the person’s primary residence).

Unlike securities sold in reliance on Rule 506(b), businesses do not have to make a filing with or pay a fee to DCBS to

rely on this exemption. A business would need to prove that it satisfied the conditions of the exemption in a court or

administrative proceeding should that become necessary. A business would also need to ensure that the offering is

registered or exempt under federal securities law.

“Friends and Family” Exemption

The Oregon Securities Law also exempts from its securities registration requirements the sale of securities by a

business to 10 or fewer Oregon residents (not including “accredited investors”) during a 12-month period so long as

the offering does not involve commissions and/or general advertising or general solicitation. Because this exemption is

limited to a small number of purchasers, it is sometimes known as the “friends and family” or “limited offering”

exemption.

As with the “accredited investor” exemption, a business does not have to make a filing with DCBS or pay a fee to rely

on this exemption. A business would need to prove that it satisfied the conditions of the exemption in a court or

administrative proceeding. A business would need to ensure that the offering is registered or exempt under federal law.

Common Registered Offerings for Small Businesses

Small Offering Abbreviated Registration (SOAR) for Offerings up to $1,000,000 and the

Small Corporate Offering Registration, (SCOR) for Offerings up to $5,000,000

Oregon’s Small Corporate Offering Registration (SCOR) and Small Offering Abbreviated Registration

(SOAR) are streamlined processes for registering offerings up to $5,000,000 and $1,000,000 respectively,

within a 12-month period. SCOR offerings, with certain restrictions, can be advertised and sold to many types

of Oregon investors, but require businesses to submit audited financial statements as part of the registration

application if the offering amount exceeds $1,000,000. Audited financial statements are not required to be

submitted as part of an application to register a SOAR offering, but there are greater limits on how the

securities can be offered and sold. You can learn more about the SCOR offering process by visiting the North

OREGON START A BUSINESS GUIDE

American Securities Administrators Association’s website here: Small Company Offering Registration

(SCOR) - NASAA.

Unlike securities that are sold in reliance on an exemption, a SCOR and SOAR offering must be reviewed and

registered by DCBS before the securities can be offered and sold. If the securities are going to be offered and

sold in more than one state, the review of a SCOR and SOAR offering can be coordinated with other states.

You can learn more about that coordinated review process here: https://www.coordinatedreview.org/.

Securities that are registered as a SCOR or SOAR offering in Oregon must also comply with the securities registration

requirements under federal law. The SCOR and SOAR registrations were designed for persons that intend to rely on

the exemption to the federal securities registration requirements under Rule 504 under Regulation D. You can learn

more about the requirements under Rule 504 on the SEC’s website here: SEC.gov | Exemption for limited offerings not

exceeding $10 million—Rule 504 of Regulation D.

For more information about these requirements and resources, contact DCBS:

Department of Consumer & Business Services

Division of Financial Regulation

350 Winter Street NE, Room 410

Salem, OR 97301-3881

503-378-4140 (voice/TTY)

866-814-9710 (Toll-free)\

Email: Securities.Registrat[email protected]on.gov

Website: dfr.oregon.gov

Tax Incentives

Oregon has diverse tax incentive programs that move projects forward while benefiting both business and community.

The most widely used programs are Enterprise Zones, which eliminate taxes on new property and equipment for 3 to 5

years in the standard program, and up to 15 years in the rural program. We have other property tax abatements like the

Strategic Investment Program, and variances on the Enterprise Zone program. In addition to property tax, the Oregon

Investment Advantage can provide abatement to Oregon's already-low taxes on corporate income.

For more information on business tax incentives, visit

https://www.oregon.gov/biz/programs/homeareas/fundbusiness/Pages/default.aspx#tax

Grants

Business Oregon does have some limited grant funding for businesses in several targeted programs. One is a matching

grant to help small businesses export goods to markets outside Oregon:

https://www.oregon.gov/biz/programs/homeareas/overseas/Pages/default.aspx

There is also a targeted program for startups already receiving federal SBIR/STTR funds:

https://www.oregon.gov/biz/programs/SBIR-STTR/Pages/default.aspx

For more information call 503-986-0172 or visit

https://www.oregon.gov/biz/programs/homeareas/fundbusiness/Pages/default.aspx#grants

Loans

Fixed asset and working capital loans are available through regional and local economic development organizations,

the Small Business Administration, and state agencies. For more information, please call:

▪

Small Business Administration loan guarantees: 503-326-2682.

Oregon SBDCs offer assistance for access to capital throughout the state. Visit the Capital Access Team

OREGON START A BUSINESS GUIDE

MARKETING, GOVERNMENT CONTRACTING & INTERNATIONAL TRADE

Oregon Buys

Several state agencies in Oregon post purchase and bidding opportunities on OregonBuys, the state’s eProcurement

system. Creating an account in OregonBuys is free and allows users to view the goods and services sought by Oregon

agencies. Visit www.oregonbuys.gov to create an account and learn more.

Industry Codes

Some government agencies require information about what a business does. There are several systems for obtaining

such information, usually in the form of a specific number or code to classify an industry.

• The North American Industry Classification System (NAICS) is nationally used and is administered by the US

Census Bureau. Search for NAICS codes at https://www.census.gov/naics/.

• National Institute of Government Purchasing (NIGP) codes are used by several Oregon agencies who post

bidding information on the OregonBuys platform. Once logged in to OregonBuys, users can select the best

NIGP code for their business. The Government Contract Assistance Program (www.gcap.org) may help

businesses identify the most precise codes for a business.

• The National Council on Compensation Insurance (NCCI) is a rating and statistical organization that is

responsible for creating a classification system that categorizes occupations to use in pricing of workers

compensation insurance. There are over 600 classifications, each with a unique 4-digit code and rate, covering

occupations from clerical to roofing. Light hazard occupations typically have a lower rate than high hazard

occupations. To learn more, contact the Small Business Ombudsman for Workers’ Compensation at

https://www.oregon.gov/DCBS/SBO/Pages/index.aspx.

Business Oregon

Business Oregon’s global trade strategists and overseas representatives can open the door for Oregon companies to

market their goods and services internationally. Oregon businesses have access to a wide variety of tools and resources

to remain profitable in an increasingly competitive and technologically complex global economy. Global strategies

experts help Oregon companies access international markets by providing one-on-one business counseling, market

research, market entry strategies, and grants to help companies appear at international trade shows.

For more information, visit https://www.oregon.gov/biz/programs/homeareas/overseas/

Government Contract Assistance Program

Assistance from the Government Contracting Assistance Program (GCAP) has resulted in hundreds of millions of

dollars in contract awards in Oregon. A program of the Organization for Economic Initiatives (OEI), GCAP provides

technical assistance to small businesses in obtaining contracts with the federal government.

GCAP provides 1) free counseling on every aspect of government contracting, 2) training workshops and conferences,

and 3) a computer matching service that automatically matches a business with related federal, state, and local bidding

opportunities, and emails the leads daily. GCAP offers the bid match service free for a 60-day trial and then, after the

trial, it charges an annual subscription fee.

GCAP provides training for your business on many topics, including registrations and certification, market assessment,

solicitations, bids, proposals, and the potential of getting your business on a federal GSA schedule.

For more

information. contact GCAP, 1144 Gateway Loop, Suite 203, Springfield, OR 97477; visit the website at gcap.org; or

call 541-736-1088 or 1-800-497-7551.

OREGON START A BUSINESS GUIDE

Market Research by Region in Oregon

The Oregon Employment Department’s qualityinfo.org website provides free market research for small businesses.

Use the Regional Info tab to find contact information for people who will talk with you about what kinds of

information would be useful to you.

Oregon SBDC Global Trade Center

Oregon Small Business Development Centers offer assistance in international trade and export resources through the

Oregon SBDC Global Trade Center at the Portland Community College SBDC. Visit the website at

https://oregonsbdc.org/global-trade-center/.

Agricultural Products Marketing

The Oregon Department of Agriculture works to promote, develop, and expand domestic and international markets for

Oregon’s agricultural and food products. The staff works with producers, cooperatives, and processors, organizes trade

missions, hosts incoming foreign business delegates, and connects producers with prospective buyers. For more

information, contact them at:

Oregon Department of Agriculture

Agricultural Development and Marketing Program

635 Capitol Street NE

Salem, OR 97301

503-986-4620

Ag.Market@oda.oregon.gov.

The Oregon Department of Agriculture produces the Oregon Agricultural Statistics & Directory, which includes

Oregon agriculture data and resources. Visit online to view the Oregon Agricultural Statistics & Directory. ODA has

also developed a website that curates resources for new, small, and growing food and beverage businesses:

https://www.oregon.gov/odaroadmap/pages/default.aspx.

U.S. Small Business Administration offers:

▪ Research and counseling on identifying methods, strategies and programs.

▪ SBA loan application information to finance export sales of small business exporters.

▪ Loan packaging services for SBA’s Export Working Capital Program applications.

▪ Information on export credit insurance programs and brokers’ contact list.

Portland District Office

419 SW 11

Ave, Ste. 310

Portland, OR 97205

Phone: 503-326-2682

Fax: 503-326-2808

OREGON START A BUSINESS GUIDE

STEP 3 – SELECT YOUR BUSINESS ORGANIZATION STRUCTURE & NAME

Consider many factors when choosing the best form or structure of business ownership. The choice you make can have

an impact on multiple aspects of your business and personal life, including taxes and liability.

How To Choose a Business Structure

While there are many different structures you may choose for your business, this guide will focus primarily on the five

most common types used in Oregon: Sole Proprietor, General Partnership, Limited Liability Company, Business

Corporation, and Nonprofit Corporation.

Ownership, liability, management control, and taxation are just a few of the primary considerations when selecting a

business organization structure. Each type has its own advantages and disadvantages. If you have questions on which

structure is best for your particular situation, please consider consulting:

• An attorney.

• A certified public accountant.

• One of Oregon’s Small Business Development Centers.

• If your business is in a regulated industry, contact the appropriate State licensing or regulatory agency.

OREGON START A BUSINESS GUIDE

Business Organization Structure Types

SOLE

PROPRIETOR

GENERAL

PARTNERSHIP

LIMITED

LIABILITY

COMPANY

BUSINESS

CORPORATION

NONPROFIT

CORPORATION

REGISTRATION

REQUIRED

Not required, except

for Assumed

Business Name

Not required,

except for

Assumed Business

Name

Yes, File Articles

of Organization &

annual reports

Yes, File Articles

of Incorporation &

annual reports

Yes, File Articles

of Incorporation &

annual reports

GOVERNING

DOCUMENT

A business plan is

recommended

Partnership

agreement

Operating

agreement

Bylaws

OWNERSHIP

One owner

Two or more

partners (owners)

One or more

members (owners)

One or more

shareholders

(owners)

No owners.

Assets must be

given to another

nonprofit upon

dissolution

LIABILITY

Unlimited personal

liability for debts of

the business and

yourself

Unlimited personal

liability for debts

of the business

including your

partners actions

Members (owners)

have limited

liability for debts

of the LLC

Shareholder

liability limited to

loss of their paid-

in investment

Operators are not

personally liable

for debts of the

business

MANAGEMENT

CONTROL

Owner makes

decisions

Partner control and

decision-making

responsibility set

out in partnership

agreement

Member managed,

or owners may

appoint a manager

per the Articles of

Organization

Shareholders elect

directors to

oversee policies

and appoint

officers

May have members

who may elect

directors; Must

have directors to

oversee policies

and appoint

officers

TAXATION

Owner reports and

pays taxes on

personal tax return

Each partner

reports and pays

share of taxes, on

personal tax returns

Taxed like a sole

proprietor or

partnership

depending upon

number of

members. May

elect to be taxed as

a corporation.

Corporation pays

taxes on income;

shareholders pay

taxes on dividends

Nonprofit pays

taxes on income,

unless tax exempt

Optional Provisions

An Oregon Business Corporation, Professional Corporation, or Limited Liability Company upon creation is given the

choice of two optional provisions: Benefit Company or Indemnification.

Assumed business name registration required when owner’s “real and true name” is not part of the business name (Note: A

corporation or limited liability company name is the “real and true name” of the business entity).

Governing documents are internal to the business, they are not filed with the Corporation Division.

Limited liability protection may be forfeited by the courts in cases of fraud or misconduct.

Charities (public benefit nonprofit corporations) must have at least three directors.

Additional business, payroll and property taxes may also apply.

OREGON START A BUSINESS GUIDE

Indemnification is a way to provide limited liability protection to the people whose role is to actively manage, operate,

or oversee a company. A structure such as a corporation or limited liability company provides the shareholders or

owners with limited liability protection from debts that exceed their investment in the company.

Because those limited liability protections may not automatically extend to people filling the roles of directors,

officers, managers, or employees, many companies choose to adopt an indemnification provision in the articles of

incorporation or articles of organization to shield themselves from liability. In many cases, the shareholders or owners

fill these roles, and may benefit from the additional protections provided by an indemnification provision.

Get Professional Advice

The Secretary of State recommends consulting an attorney for legal advice when setting up a new company or looking

at options to protect your business from risk and liability.

Benefit Companies

An Oregon Business Corporation, Professional Corporation or Limited Liability Company can also elect to become a

Benefit Company.

An Oregon Benefit Company is a type of corporation or limited liability company (LLC) that in addition to profit,

wants to consider making a positive impact on society and the environment through the business’ decision-making

process. Benefit companies differ from traditional corporations and LLCs by adopting a third-party standard, such as

those set by B Lab, Benefit Corporations for Good, Green America, or the Global Reporting Initiative (GRI), and by

adopting the benefit company status in their articles of incorporation or articles of organization.

The purpose of a benefit company is to create public benefit, which is defined as “a material positive impact on society

and the environment, taken as a whole, from the business and operations of the company.” Third-party benefit

company standards generally assess a company’s business practices for sustainability, social responsibility, and

environmental performance. The benefit company status allows directors and governors to consider social and

environmental factors in addition to corporate value and profit.

An Oregon Business Corporation, Professional Corporation, or Limited Liability Company that would like to be a

benefit company must:

• Include a statement (usually in the optional provisions) in the Articles of Incorporation or Organization that

says, “The Corporation (or Limited Liability Company) is a benefit company subject to ORS 60.750 – ORS

60.770.”

• Adopt a third-party standard against which to assess performance, and

• Annually prepare a benefit report identifying the actions and methods used to provide a general or specific

public benefit, any circumstances that hindered or prevented a benefit, and assessing how well the benefit

company met or exceeded the third-party standard.

• For more information on becoming an Oregon Benefit Company, visit the Secretary of State’s website at “File

to Become a Benefit Company”.

Choose a Business Name

Choosing a business name is separate but related to choosing your structure because when you register your name, you

choose your entity type. A sole proprietorship or partnership achieves name recognition by simply registering an

Assumed Business Name. But when you register an LLC, corporation, or nonprofit, you are forming a distinct business

entity when you register with the Oregon Business Registry.

No matter what name you register with the Secretary of State’s Corporation Division, you will protect against someone

else registering that name in Oregon. But this process is separate from obtaining an internet domain name, and the

OREGON START A BUSINESS GUIDE

legal rights to a name are another matter. Also, setting up your name for taxes with the IRS and the Oregon

Department of Revenue are separate steps.

What Names Are “Available”?

Your selected business name must be available for registration purposes, meaning no other business with exactly the

same name has an active registration on the Corporation Division’s database. If the name is not already taken by an

active registration on the database, it is available for you to register in the public record. Just because a name is

“available” does not mean that registering the name is advisable. See the section on “Protecting and Defending Your

Name” for more information.

A business name is “distinguishable” if it does not exactly copy a name already on record. One word, the order of key

words, addition of numbers, creative spelling, or even a letter’s difference in a name is often enough to tell it apart

from another name in the database and make it distinguishable. The Business Name Availability web page provides

more details.

You can check a name for availability prior to submitting an application. A name availability check does not guarantee

the name will still be available by the time the Corporation Division processes the application.

Check Internet Domain Name Availability

One factor to consider when choosing a business name, that goes beyond its use in Oregon, is the availability of an

internet domain name for your business website. Consider using a domain search tool available through a reputable

domain registrar (such as GoDaddy, Namecheap, Google Domains, and Bluehost). If the domain you want is available,

you may want to secure it early. Once registered with the State of Oregon it will become public record, and it could be

claimed by someone else who might want to profit by reselling it to you.

What Are “Real and True” Names?

A “real and true name” means the first name or initial, middle name or initial, and last name of each business owner.

For corporations, limited liability companies, and other business entities, the business name registered with the

Corporation Division is the real and true name of the business.

Assumed Business Names

A business name must be registered with the Corporation Division as an assumed business name if the “real and true”

name of each person who is carrying on the business is not disclosed in the business name. See above for a definition

of real and true name. Also, if there are words that suggest additional owners, such as “company” or “associates”, the

business name must be registered.

Engaging in business activities under an unregistered assumed business name can result in a lack of legal standing in

court for pursuing or defending legal actions. This action may also cause problems with various aspects of business,

including obtaining licenses, establishing bank accounts, and entering into contracts.

Since an assumed business name is registered by county, there may be identical names in the database associated with

different counties. An Assumed Business Name may be registered for all Oregon counties at no extra charge.

OREGON START A BUSINESS GUIDE

Examples of Assumed Business Names

Real and True Name

Doing Business As

Don’t Need to Register ABN

Need to Register ABN

Tom Sorenson Construction, Inc.

Tom Sorenson Construction

Tom Sorenson Homes

TSC Homes

Jane Jean Jones

Jane Jean Jones Enterprises

Jane J. Jones Enterprises

Jane Jones Enterprises

Jane’s Enterprises

Jones Enterprises

Jane J. Jones & Company

Jane Jones & Associates

Michael Leonard Jones

John Jay Smith

Michael L. Jones & John Jay Smith

Michael Leonard Jones & John J Smith

Michael L Jones & John J Smith

Michael L. Jones & John J. Smith

Enterprises

Michael Jones & John Smith

Mike Jones & John Smith

M. Jones & J. Jay Smith

M. Jones & J. Smith

Jones & Smith

M & J Enterprises

• Sole Proprietor - If the name of the business does not include the “real and true” name of the business owner,

registration of an assumed business name is required. See the previous section on assumed business names for

more information.

• General Partnership - If the name of the business does not include the “real and true” name of each business

owner, registration of an assumed business name is required. See the previous section on assumed business

names for more information.

• Limited Liability Company - The name of the limited liability company must contain the words “limited

liability company” or the abbreviation “L.L.C.” or “LLC” as the entity type designation at the end of the name.

• Corporation - The name of the corporation must contain the words “incorporated,” “corporation,”

“company,” “limited,” or their abbreviation as the entity type designation at the end of the name.

Protecting and Defending Your Business Name

Registering your name does not give you the right to use it.

The law requires business owners to register a public record of assumed business names and entities such as

corporations, but the authority to use the name comes only through asserting those rights through use and sometimes

legal action.

Registering your name does not mean you can legally use it. If someone else has trademarked the name, or it is well

known as a similar name, you may be infringing on their rights. For example, you might be able to register “Starbucks

Coffee and Tea” with the Corporation Division, but the real Starbucks could still sue you. In addition, someone may

name.

Your right to your business name is established by using the name over time in business, and possibly with a

trademark. It can be enforced as a civil matter by legal action – but not by the Secretary of State’s Corporation

Division.

If you find yourself in this situation, it is very important to get the advice of an attorney. Consider what the loss of

business and reputation will cost you if you do not get proper advice. If you weigh the time and expense it will take to

OREGON START A BUSINESS GUIDE

straighten out mix-ups with the other business against a visit or two to a lawyer, you will have a better idea of just how

valuable a consultation might be.

To find a business attorney, check the Oregon Bar Association’s free referral service at 1-800-452-7636, or ask other

business owners whom they recommend.

It may also be helpful to do a national trademark search at uspto.gov (click on the Search Mark button). You can find

more information on trademarks in the back of this guide.

STEP 4 – REGISTER YOUR BUSINESS

The Oregon Secretary of State’s Corporation Division is the place to register your Business Corporation, Nonprofit

Corporation, Limited Liability Company, Assumed Business Name, or other entity.

BUSINESS REGISTRATION & RENEWAL

Renew Online For the fastest and most convenient way to renew a business in Oregon, renew online. You

must keep your business registry active while you are doing business in Oregon. Most entities

are renewed every year. The Assumed Business Name is renewed every two years.

Forms to register are also available online. Submit the completed form and the non-refundable processing fee, payable

to the Corporation Division, to:

Corporation Division

Public Service Building

255 Capitol Street NE, Ste. 151

Salem, OR 97310-1327

Several delivery options are available for submitting forms, which cannot be sent by email for security reasons.

Sole Proprietor Registration

A sole proprietor does not have to register with the Corporation Division unless an Assumed Business Name is used.

However, registration may be required by a state agency or by a bank for opening an account.

General Partnership Registration

A general partnership does not have to register with the Corporation Division unless an Assumed Business Name is

used. However, registration may be required by a state agency or by a bank for opening an account.

Assumed Business Name Registration

To register an assumed business name, submit the new registration and its non-refundable processing fee of $50 to the

Corporation Division. The name must be associated with at least one Oregon county, but you can register in all Oregon

counties at no additional charge.

If the name is distinguishable and the application completed according to Oregon law, the Corporation Division

completes the filing and returns an acknowledgment to the customer.

Limited Liability Company Registration

To form a domestic limited liability company in Oregon, submit articles of organization and a non-refundable

processing fee of $100 to the Corporation Division.

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If the name is distinguishable and the articles completed according to Oregon law, the Corporation Division processes

the document and returns an acknowledgment to the customer.

Business Corporation Registration

To form a domestic business corporation in Oregon, submit the articles of incorporation and the non-refundable

processing fee of $100 to the Corporation Division.

If the name is distinguishable and the articles completed according to Oregon law, the Corporation Division completes

the filing and returns an acknowledgment to the customer.

Nonprofit Corporation Registration

To form a domestic nonprofit corporation in Oregon, submit the articles of incorporation-nonprofit and the non-

refundable processing fee of $50 to the Corporation Division.

If the name is distinguishable and the articles completed according to Oregon law, the Corporation Division completes

the filing and returns an acknowledgment to the customer.

Foreign Business Entity Registration

Business entities formed under Oregon law are called domestic business entities, while those formed under the laws of

another state or country are called foreign business entities.

When a foreign entity is “doing business” in Oregon, it must apply for authority to transact business by submitting:

1) an application for authority to transact business,

2) a certificate of existence or similar document, or registry number of the state or country where formed (date

of certificate must be within 60 days of the date of application), and

3) a nonrefundable processing fee of $275 payable to the Corporation Division (except nonprofits, which pay

$50).

If the name is distinguishable and the application completed according to Oregon law, the Corporation Division

processes the document and returns an acknowledgment to the customer.

Registering an Oregon trademark or service mark is another option for protecting your intellectual property at the state

level. A federal trademark creates rights throughout the United States, but it has additional steps and costs. See the

section on Patents, Copyrights and Trademarks in the section below under “Step 7 – Other Requirements” for more

information.

Report Beneficial Ownership Information (BOI) to FinCEN

As of January 1, 2024, most active corporations, LLCs and other businesses formed by filing with a Secretary of State

are required to report information to the U.S. government about who ultimately owns and controls them. Reporting is

done electronically to the Financial Crimes Enforcement Network (FinCEN) via their website: www.fincen.gov/boi.

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A company created or registered after January 1, 2024 must report beneficial ownership within 90 calendar days of

notice of creation or registration. A Beneficial Owner is any individual who either exercises substantial control over a

company or owns or controls at least 25% of the ownership interest. If a business entity owns or controls at least 25%

of a reporting company, then its Beneficial Owner(s) must also be reported.

What is reported?

A reporting company must provide the following information about itself:

•

The legal name of the company.

•

Any assumed business name (DBA or "trade name") used by the company.

•

The current street address of its principal place of business. If the principal place of business is not in

the U.S., then the company must report the address from which it conducts business in the U.S.

•

Taxpayer identification number (TIN or EIN).

A reporting company must provide the following information for each beneficial owner:

•

The individual’s legal name; date of birth and residential street address.

•

A unique identifying number from an acceptable identification document.

•

The name of the state or jurisdiction that issued the acceptable identification document.

•

An image of the acceptable identification document.

Once a business has reported with FinCEN, they must report any changes within 30 days.

To confirm that your company has to report, and to complete the required report, visit https://www.fincen.gov/boi.

For more information, visit: https://www.fincen.gov/boi (Includes a FAQ, small entity compliance guide, brochure and

more)

Email: FRC@fincen.gov or Website contact form: https://www.fincen.gov/contact

Phone: 800-767-2825

OREGON START A BUSINESS GUIDE

STEP 5 – UNDERSTANDING TAX OBLIGATIONS

Understanding your tax obligations is an important consideration for any business. You may wish to seek guidance

from a tax professional tax or a certified public accountant to ensure you meet your tax obligations.

Learn about requirements to report personal property (the physical capital owned by your business) to your county

assessor’s office. You will also want to check on other taxes that may apply to your business, as described below.

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

See the Income Tax section in this guide for more information on federal and state income taxes.

If you plan to hire employees right away, you will also need a Business Identification Number (BIN), which is your

state payroll tax identification number. If you do not plan to hire employees right away, do not get a BIN. Register

online for a BIN using the Revenue Online or by submitting a Combined Employer's Registration form. Please refer to

the separate publication, the Oregon Employer’s Guide for Doing Business in Oregon for more information.

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 the “Personal Property Tax

Report” section below for more information.

As a self-employed individual, you may be subject to federal self-employment taxes if you are a sole proprietor or a

partnership. This includes Medicare and social security taxes. You may wish to consult a professional tax advisor to

determine your personal tax responsibility as a business owner.

Apply for Federal Employer Identification Number (SS-4)

To obtain a Federal Employer Identification Number (sometimes called an EIN or FEIN), you can file online or

complete an SS-4 Form. SS-4 Forms are available at all IRS offices, or by mail by calling the IRS at 1-800-829-3676.

Be sure you include a daytime phone number on the application, in case additional information is required. Filing is

free.

Online: A provisional number will be assigned immediately when the form is submitted online. A

confirmation letter will be mailed two to three weeks after the form is processed, confirming your EIN

number.

Phone: 1-800-829-4933

You will need a completed SS-4 in hand.

Fax: You can fax the completed Form SS-4 (PDF) application to your state fax number (see Where to File –

Business forms and filing Addresses), after ensuring Form SS-4 contains all the required information.

If it is determined the entity needs a new EIN, one will be assigned using the appropriate procedures

for the entity type. If the taxpayer’s fax number is provided, a fax will be sent back with the EIN

within four (4) business days.

Mail: Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax (855)-641-6935

You will receive your EIN by mail in four to five weeks.

OREGON START A BUSINESS GUIDE

Sales Tax Information

Oregon does not have a state sales tax. The Oregon Department of Revenue provides a website for information about

sales tax that refers to a self-authenticating “Resale Certificate” that business owners can complete and send directly to

vendors for wholesale purchases or to claim sales taxes exemptions on goods purchased in another state.

Income Tax Information

Federal and State Income Taxes

All businesses must fulfill their tax obligations to the federal government and the state of Oregon. When you start a

business, it is important to determine what kind of tax obligations you will have, and how and when you will be

required to pay your taxes. It’s a good idea to retain a good Certified Public Accountant (CPA) to help you understand

and meet your tax obligations.

This section identifies federal and state tax forms filed by different types of business entities to meet their income tax

obligations. However, for specific requirements and responsibilities, contact the Internal Revenue Service and the

Oregon Department of Revenue.

For information on federal taxes, contact: For information on Oregon taxes, contact:

Internal Revenue Service Oregon Department of Revenue

1220 SW Third Avenue 955 Center Street NE

Portland, OR 97204 Salem, OR 97301-2555

800-829-4933 503-378-4988

irs.gov 800-356-4222

oregon.gov/DOR

Income Tax for Sole Proprietors

Sole proprietors must file Form 1040 with a Schedule C or Schedule C-EZ to meet their federal income tax obligations

(agricultural businesses may file a Schedule F). A sole proprietor is liable for self-employment tax and Social Security

tax, which is filed on Schedule SE if net profit is $400 or more.

To meet state obligations, a sole proprietor files state Form 40 with an attached copy of the federal Form 1040. A sole

proprietor may be required to make estimated tax payments. A non-resident sole proprietor files state Form 40N with

an attached copy of the federal Form 1040.

Income Tax for Partnerships

Federal tax law requires that a partnership (both general and limited) file Form 1065, and each partner receives a

Schedule K-1 explaining how to place income, expenses, credits, etc., on their personal Form 1040 tax return. To meet

state tax obligations, a partnership files Form 65 with an attached copy of the federal filing.

Individual partners file Form 1040 for federal income taxes and may be liable for self-employment taxes and Social

Security taxes filed on Schedule SE if net income from the partnership is $400 or more. For state income taxes, the

individual partners file state Form 40 with an attached copy of the federal Form 1040. Partners may be required to

make estimated tax payments. Non-resident partners should contact the Department of Revenue for instructions

specific to their need.

Income Tax for Limited Liability Companies

A limited liability company (LLC) files taxes based on their classification. The default classification of a single

member LLC is to be taxed as a sole proprietor would be (see Income Tax for Sole Proprietors above). The default

classification of a multi-member LLC is to be taxed as a partnership (see Income Tax for Partnerships above). Either a

single member or a multi-member LLC may elect to be taxed as a corporation with the IRS and would follow the same

income tax rules as a standard corporation or an S corporation, depending on which election is made (see the Income

and Excise Tax sections for Oregon corporations and S corporations on the next page).

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In Oregon, a couple that owns an LLC together would be treated as a multi-member LLC since Oregon is not a

community property state.

Income & Excise Tax for Oregon Corporations

Corporations file federal taxes using Forms 1120 or 1120A. Corporations doing business in Oregon pay excise tax and

file state Form 20 with an attached copy of their federal tax forms. “Doing business” is defined as being engaged in

any profit-seeking activity in this state that is not protected by federal Public Law 86-272. A taxpayer with one or more

of the following in Oregon is clearly doing business here:

▪ A stock of goods.

▪ An office.

▪ A place of business (other than an office) where affairs of the corporation are regularly conducted.

▪ Employees or representatives providing services to customers as the primary business activity, such as

accounting or personal service, or services incidental to the sale of tangible or intangible personal property,

such as installation of a product or warranty work.

▪ An economic presence through which the taxpayer regularly takes advantage of Oregon’s economy to produce

income.

Generally, if you have an Oregon address, you file Form 20. There is a minimum excise tax as provided in Oregon

Revised Statute (ORS) 317.090.

Corporations not doing business, but having income from an Oregon source, pay income tax and file Form 20-I with a

copy of their federal tax forms. Income is from an Oregon source if it is derived from:

▪ Tangible or intangible property located in Oregon; or

▪ Any activity carried on in Oregon, whether intrastate, interstate, or foreign commerce.

Insurance companies, other than title insurers, file Oregon Form 20-INS. Title Insurers file Oregon Form 20.

For information on state tax credits for corporations, contact the Oregon Department of Revenue online or by phone

503-378-4988 or 1-800-356-4222.

Income & Excise Tax for S Corporations

An S corporation files its federal tax return on Form 1120S. Shareholders receive a Schedule K-1 explaining how to

place income, expenses, credit on their personal return Form 1040. The state tax return is filed on Form 20-S with a

copy of Federal Form 1120S attached. Shareholders of the S corporation should obtain information on their reporting

requirements from the IRS and the Oregon Department of Revenue.

Estimated Income Tax Payments (Individual)

A sole proprietor, partner, limited liability company member, or shareholder may be required to make quarterly

estimated income tax payments. In most cases, if you expect to owe at least $1,000 in federal taxes for the year after

subtracting any withholding and tax credits, you must file Form 1040-ES each quarter with the IRS. Alternatively,

taxes can be paid using the free Electronic Federal Tax Payment System (EFTPS). Generally, if you expect to owe

$1,000 or more on the tax-to-pay line on your Oregon tax return, you are required to file Form 40-ESV each quarter

with the Oregon Department of Revenue. Interest is assessed if payments are not made when they are due. Contact the

IRS and the Oregon Department of Revenue for specific information.

Estimated Income Tax Payments (Corporations)

A corporation that expects to owe tax of $500 or more at the federal level is required to make estimated tax payments

to the IRS. A corporation that expects to owe tax of $500 or more at the state level must make estimated tax payments

to the Oregon Department of Revenue. A taxpayer can make estimated tax payments by Electronic Federal Tax

Payment System (EFTPS). If a corporation is required to use EFTPS to pay its federal estimated tax, it must also use

EFT to pay its Oregon estimated tax. A corporation may pay Oregon estimated tax with

Form 20-V

, if it is not

required to pay by EFT. Interest is assessed if the correct installment of the tax due is not paid by the due date.

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More information about paying corporation estimated income and excise taxes by EFT is available online, or call the

EFT message line at 503-947-2017.

Personal Property Tax Report

Personal Property

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. The

personal property tax form can be found online. The form itself contains more information on what property is

and is not subject to tax and how to file, or you can find information online at

https://www.oregon.gov/DOR/programs/property/Pages/personal-property.aspx.

Examples of taxable personal property include machinery, furniture and equipment, tools of the trade, non-

inventory supplies, leased equipment, and libraries (such as repair manuals, sample books and law books).

Any property not currently used in the business or expensed on your federal income tax business return is

considered taxable personal property and must be reported. Property placed in storage is also taxable and must

be reported.

Before You Buy

Complete due diligence before you buy used business personal property, or risk ending up with a previous

owner’s tax debt.

Due Diligence: 3 Steps in 3 Days

Complete within 3 days of purchase to protect your interests:

1. Ask the seller for a signed and dated disclosure statement printed on the company letterhead. It should

contain the following information. (If the seller doesn’t have this information, they should say so in the

disclosure.)

a. Whether there are tax debt and/or liens associated with the personal property

b. The name of any Oregon county in which the personal property has been assessed other than the

county where purchase is taking place

c. The name and address of any other person who has owned or had possession or control of the

property; and

d. The fact that ORS 311.641, regarding due diligence to achieve bona fide purchaser status, may

apply to the transaction

2. Contact the tax clerk in the Oregon county where the purchase is taking place. Ask if there are tax liens

against the property you want to purchase. If multiple counties are listed in the seller’s disclosure statement,

contact the tax clerk in all listed counties.

3. Search the Oregon Secretary of State’s UCC system with the name of the previous owner(s). Print the

results of your search.

Keep the results of your three-step due diligence process. If you find tax debt associated with the property, you

can 1) opt not to purchase; 2) ask the seller to clear the debt/lien prior to purchase; or 3) discuss alternative

payment arrangements with the county, such as a compromise payment to settle the lien.

Learn More

You can contact your tax professional, county tax assessor or the Secretary of State’s Office of Small Business

Assistance with questions. County tax assessors and the Office of Small Business Assistance cannot provide

legal or financial advice.

OREGON START A BUSINESS GUIDE

Other Business Taxes

Federal Taxes

Some federal taxes apply to specific commodities, products, or services. To determine if there are other federal taxes

that apply to your business activity, check with the Internal Revenue Service at 800-829-4933.

State Taxes

In addition to business income taxes and withholding taxes (paid only by employers), you may have additional tax

obligations.

For information on state withholding taxes, contact the Oregon Department of Revenue by phone at 503-945-8091 or

800-356-4222, by email at payroll.help.dor@dor.oregon.gov, or on the internet.

For information on the Workers’ Benefit Fund assessment, contact the Department of Consumer and Business Services

by phone at 503-378-2372, by email at wbf.assessmen[email protected].gov, or on the internet.

Additional State Taxes

Transit District Self-Employment tax– paid by non-employer businesses in TriMet or Lane County Transit

Districts. Visit the Oregon Department of Revenue.

Transit District Payroll Taxes for Employers – paid by employers doing business in the TriMet or Lane County

Transit Districts. Visit the Oregon Department of Revenue.

Statewide Transit tax – employers and payers must start withholding tax from employees effective July 1, 2018.

Visit the Oregon Department of Revenue or call (503) 945-8100.

Petroleum load fee – paid by sellers of petroleum products from Oregon bulk facilities and importers of petroleum

products into Oregon. Visit the Oregon Department of Revenue or call 503-945-8247.

Amusement device tax – paid by owners of establishments with Oregon Lottery video poker machines. Contact the

Oregon Department of Revenue at 503-945-8247 or oregon.gov/dor/programs/businesses/Pages/Amusement-

Device-Tax.aspx

Alcoholic beverages – contact the Oregon Liquor and Cannabis Commission at 503-872-5166 or toll-free in

Oregon at 800-452-6522.

Bicycle excise tax – collected by retailer sellers, paid by customers. Visit

oregon.gov/DOR/programs/businesses/Pages/Bicycle-excise-tax.aspx or call 503-945-8120

Cigarette tax and tobacco products tax – paid by distributors, manufacturers, and consumers of cigarettes and

tobacco products in Oregon. Get more information online:

Cigarette Tax or call 503-945-8120

Tobacco Tax or call 503-945-8120

Dry cleaning fee – paid by owners of dry-cleaning businesses and “dry” stores. Contact DEQ at 800-452-4011.

10)

Dry cleaning solvent tax – paid by owners of dry cleaning businesses and distributors of dry cleaning solvents.

Contact DEQ at 503-229-6240.

11)

Emergency communications (9-1-1) tax – telecommunication service providers and retailers who sell prepaid

wireless telecommunication services with access to the Oregon 9-1-1 Emergency Reporting System collect this tax

from their customers. Visit the Oregon Department of Revenue or call 503-945-8247.

    OREGON START A BUSINESS GUIDE 
    36 
36 
12)
 
Coordinated Crisis Service (9-8-8) tax – telecommunications service providers and retailers must collect and remit 
payment for the Oregon 988 Coordinated Crisis Service tax from wireless telecommunications service customers. 
Visit the Oregon Department of Revenue or call 503-945-8120. 
13)
 
Forest products harvest tax – paid on timber cut from any land in Oregon. Visit the Oregon Department of 
Revenue. 
14)
 
Gasoline taxes – paid by persons licensed to operate as motor vehicle fuel dealers in Oregon. Contact the Oregon 
Department of Transportation, Fuels Tax Group at 503-378-8150. 
15)
 
Hazardous substance fee – paid by possessors of non-petroleum hazardous substances. Visit the Oregon State Fire 
Marshal website. 
16)
 
Recreational Marijuana tax – paid by individuals or firms selling recreational marijuana. Contact the Oregon 
Department of Revenue at (503) 947-2597. 
17)
 
Timber privilege tax – paid by timber owners on harvested timber’s value. Visit the Oregon Department of 
Revenue . 
18)
 
State lodging tax – collected by lodging providers and third parties who collect payments on behalf of providers, 
paid by guests. Visit the Oregon Department of Revenue or call 503-945-8247.  
19)
 
Vehicle use tax – imposed on Oregon residents and businesses who purchase vehicles from dealers outside of 
Oregon. Visit online or call 503-945-8120. 
20)
 
Vehicle privilege tax – imposed on Oregon dealers for the privilege of selling vehicles in Oregon. Visit online or 
call 503-945-8120 
21)
 
Public utilities, owned by investors and operating within Oregon, contact the Public Utility Commission at 503-
378-6600 about the annual fee.  
22)
 
Weight-mile taxes paid by for-hire and private motor carriers operating into, within, and through the state of 
Oregon – contact the Oregon Department of Transportation, Motor Carrier Transportation Program at 503-378-
5849. 
Local Taxes 
Local governments in Oregon may collect other specific taxes, such as a hotel-motel tax. Contact the city and county 
in which your business is located for complete information on local taxes. 
 
Other Required Contributions 
For information on Unemployment Insurance contributions, contact the Employment Department by phone at 503-
947-1488, by email at OED_TAX_STATUS@employ.oregon.gov, through Frances Online, or by visiting the  
Employment Department’s website. 
For information on Paid Leave Oregon contributions (effective January 1, 2023), contact the Employment 
Department’s Paid Leave Oregon program by submitting a request online, by email at Paidleave@oregon.gov or by 
phone at 833-854-0166, or by visiting the employer page on the Paid Leave Oregon website. Employment 
Department, please visit https://public.govdelivery.com/accounts/OREMPDEPT/subscriber/new. 
 
 
 
 
 
 
 

OREGON START A BUSINESS GUIDE

STEP 6 – CHECK LICENSES

Many occupations and business activities require special licenses, permits, registrations, or certifications from state

agencies or boards.

Check State & Local License Requirements

License Requirements

The State of Oregon does not issue a general business license other than the business registration with the

Secretary of State. However, many occupations and business activities require special licenses, permits, or

certifications from state agencies or boards. The State of Oregon offers a searchable online License Directory

containing information on how to acquire a license, registration, certification, or permit. This is a

comprehensive directory of over 1,500 licenses, permits, registrations, and certifications. It includes some city

licenses, but not all. If your initial search yields an overwhelming number of results, the “Filter your results”

tool can help narrow them down. A general internet search can be helpful too but specify “Oregon” and/or

your city.

License Directory

Cities and counties may require a license for businesses operating within their jurisdiction. If your business is located

or operates within the city limits, check with your city offices to see if a local business license is required. Their

website is a good place to start (see the Oregon Blue Book’s list of cities). If there is nothing specific about business

licenses, you may call the city hall information number.

To check on business license requirements at the county level, contact your county administrative offices. The county

planning department or county commissioner’s office is an appropriate first contact. If you aren’t sure if a license is

required, contact the Office of Small Business Assistance.

Construction and Landscape Contractor Licenses

Who Should be Licensed with the Construction Contractors Board (CCB)

Oregon’s Construction Contractor License Act, ORS chapter 701, requires you to become licensed with the Oregon

Construction Contractors Board if you are engaged for compensation in any construction activity involving

improvements to real estate.

Licensing is required for any individual or business entity that advertises, offers, bids, arranges to do, or does any

construction, alteration, remodeling, or repair involving residential, commercial, industrial, or public works

improvements. Inspection, tree service, and chimney sweep businesses are also required to be licensed. Violations can

result in civil penalties of up to $5,000 per offense.

Some categories of construction work are exempt from the license, according to ORS 701.010. If you have any

questions about whether you must be licensed, contact:

Construction Contractors Board (CCB)

201 High St. SE, Ste. 600

P.O. Box 14140 (for mail)

Salem, OR 97309

503-378-4621

oregon.gov/ccb

OREGON START A BUSINESS GUIDE

CCB Requirements

• Contractors are required to have a surety bond and liability insurance.

• Before becoming licensed, most contractors must complete a 16-hour education course. All must pass a state

test. There are also continuing education requirements for license renewal.

• Some work performed by contractors requires a specialty license. These include:

o Residential home inspections

o Locksmith work

o Home energy assessment

o Energy Efficiency and Sustainable Technologies (EEAST)

• Contractors performing lead-based paint activities or individuals working for contractors on lead-based paint

must also be certified by the Oregon Health Authority (OHA) and hold a current lead-based paint license

through CCB. OHA may be reached at 971-0673-0440 or toll free 877-290-6767.

• Contractors must also determine their independent contractor class.

Class of Independent Contractor

▪ Nonexempt sole proprietorships have employees. Nonexempt partnerships have employees, or have more than

two individual partners, or have partners who are not family members. Nonexempt corporations and limited

liability companies have employees and/or more than two working corporate officers or LLC members.

▪ Exempt sole proprietorships have no employees. Exempt partnerships have no employees, or they have two

individual partners, or they have only family members as partners. Exempt corporations and limited liability

companies have no employees with two or fewer working corporate officers, who qualify as non-subject

workers under ORS 656.027(9), or who have no employees and all corporate officers are members of the same

family (related by blood, marriage, or adoption).

▪ Contractors who are licensed as exempt and hire one or more employees, must immediately notify the CCB to

change their independent contractor class, and supply the appropriate employer workers’ compensation

account numbers. Contractors who wish to change from nonexempt to exempt must immediately notify the

CCB. Commercially endorsed contractors who are exempt are required by law to carry personal election

coverage. (ORS 701.035(5)).

Employees or Independent Contractors?

All contractors licensed with the Construction Contractors Board have certified independent contractor status stating

they are independent businesses and not employees, as defined by statute. By operating their businesses according to

the standards, they are recognized as independent businesses by the Department of Revenue, the Employment

Department, and the Workers’ Compensation Division at the Department of Consumer and Business Services, as well

as the Construction Contractors Board.

The standards for independent contractor certification and operation are provided in ORS 670.600. Contractors need to

be aware that hiring someone licensed as an independent contractor with the Construction Contractors Board does not

automatically free them from paying taxes and workers’ compensation insurance on those individuals. Contractors can

only avoid these responsibilities if the subcontractor meets the independent contractor definition.

A business with employees must check with some additional agencies to determine its obligations as an employer.

Since the definition of “employee” may differ among Oregon state agencies, read the section under each agency and

under each type of tax carefully to determine if you are considered an employer for that agency or tax. If you have any

questions about whether you are considered an employer, contact the Construction Contractors Board at 503-378-4621.

For additional information about whether you are considered an employer, please refer to the Employer’s Guide for

Doing Business in Oregon.

Applying for a CCB License

To become licensed, apply for licensure by mail, or come in person to the Construction Contractors Board’s Salem

office.

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The Construction Contractors Board must have all the following items before licensing can be completed:

• Completed application form

• U.S. Government issued identification

• Payment of the correct fee

• A surety bond

• A Certificate of General Liability Insurance

• Completion of any required education and passage of a state test

Regional Contractor’s Business License for Portland Metro cities

Generally, individual cities may each require their own licenses for contractors operating in their jurisdiction, but

Portland’s Metro area government has set up a single Regional contractor’s business license that allows work in any of

the 20 cities surrounding Portland (just not Portland itself). Visit their website for the application and more

information.

Who Should be Licensed with the Landscape Contractors Board (LCB)

TWO licenses are required to do landscaping work in Oregon: the individual landscape construction professional

license and the landscape contracting business license.

The individual landscape construction professional (LCP) license is granted to the person that supervises all

landscaping work performed by a landscape contracting business. The LCP license is obtained after passing an exam

showing minimum competency required to perform and supervise landscaping work in Oregon.

The landscape contracting business license is granted to an entity that is licensed to contract for landscape work in

Oregon. The business carries the bond, liability insurance, and workers’ compensation (if applicable), and enters into

the contract with the consumer. The landscape contracting business must either be owned by or must employ a

licensed LCP to supervise the landscape activities of the business, as well as any unlicensed employees.

Oregon law, ORS chapter 671, requires all businesses engaged in work as a landscape contracting business to be

actively licensed with the LCB during all times the business performs landscape contracting work. Work as a

landscape contracting business is defined by statute (ORS 671.520).

Licensing is required for any business entity that advertises, offers bids, and arranges to do, or does any landscaping

work. Landscaping work includes the planning or the installation of lawns, trees, shrubs, vines, and nursery stock;

preparation of the property on which they are to be installed; the installation, maintenance or repair of ornamental

water features, drainage systems or irrigation systems; and the installation of artificial turf, unless used for a sports

field totaling more than 30,000 square feet. The license or CCB license is also required for the installation,

maintenance or repair of fences, decks, arbors, driveways, walkways, patios, landscape edging and retaining walls.

Businesses that conduct landscape maintenance functions only, i.e. mowing, weeding and/or the upkeep of an already-

installed landscape project, are not required to be licensed with the LCB and are not restricted in the amount of

landscape maintenance they perform. However, they may only perform $500 of “casual, minor or inconsequential”

landscaping work per calendar year on property where they already perform landscape maintenance work. “Casual,

minor or inconsequential work” is defined in OAR 808-002-0200.

To inquire about licensing requirements, check the LCB website or you can contact the LCB:

Landscape Contractors Board (LCB) Phone: 503-967-6291 ext. 221

2111 Front Street NE Ste 2-101 Fax: 503-967-6298

Salem, Oregon 97301 Email: lcb.info@lcb.oregon.gov

If the landscape contracting business changes owners, the business must apply for a new license and pay a new license

fee, after which a new license number is assigned. In a corporation, stockholders are not considered owners for this

requirement.

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LCB Requirements

Landscape contracting businesses are required to have a surety bond and liability insurance and carry workers’

compensation insurance if they have employees. The business must also employ at least one licensed landscape

construction professional or have an owner who is a licensed landscape construction professional. To be a licensed

landscape construction professional, the person must pass a multi-section examination that qualifies them for the phase

of licensure and work they are allowed to perform.

If a person who is not a licensed landscape construction professional desires to start a landscape contracting business,

and does not want to designate the role of managing owner/employee to the landscape construction professional

employed by the business, they (or another designated person who is an employee of this business) must:

1. Take the Owner/Managing Employee course through a board approved provider,

2. Pass the Business, Laws, and Rules section of the examination, and

3. Meet all the other license requirements before the business is licensed.

Class of Independent Contractor (Employer Accounts)

Landscape contracting businesses must choose either the nonexempt or exempt class of contractor license.

▪ Nonexempt applies to sole proprietorships that have employees and partnerships that have employees, have

more than two individual partners, or have partners who are not family members. Nonexempt corporations and

limited liability companies have employees and/or have more than two working corporate officers or LLC

members.

▪ Exempt applies to sole proprietorships that have no employees and partnerships that have no employees, or

that have only two partners that are family members. Exempt corporations and limited liability companies

have no employees with two or fewer working corporate officers who qualify as non-subject workers under

ORS 656.027(9), or they have no employees, and all corporate officers are members of the same family

(related by blood, marriage, or adoption).

If the business is licensed as exempt and then hires one or more employees, the business must immediately notify

the LCB and supply the appropriate workers’ compensation documentation.

Employees or Independent Contractors?

Oregon Law, ORS 671.525, requires a business to qualify as an independent contractor under ORS 670.600 to be

licensed with the LCB. All landscape contracting businesses licensed with the LCB have signed an independent

contractor certificate stating they are independent businesses and are not under the direction and control of another

entity as defined by ORS 670.600. By operating their businesses according to these statutory standards, the business is

recognized as an independent contractor by the Department of Revenue, the Employment Department, and the

Workers’ Compensation Division at the Department of Consumer and Business Services, as well as the LCB.

The standards for independent contractor certification and operation are found in ORS 670.600 and OAR 808-003-

0260. See the definition of independent contractor to determine what standards an individual or business entity must

meet before it is recognized as an independent contractor. Landscape contracting businesses need to be aware that

contracting with another licensed landscape contracting business that qualified as an independent contractor with the

LCB does not automatically free them from paying payroll taxes and workers’ compensation insurance on the

individuals performing the landscape work. Landscape contracting businesses can only avoid these responsibilities if

the subcontractor meets the independent contractor definition at the time the work is being performed.

A business with employees must check with some additional agencies to determine its obligations as an employer.

Since the definition of “employee” differs among Oregon state agencies, carefully read the employment section for

each agency and under each type of tax to determine if you are considered an employer for that agency or tax. If you

have any questions about whether you are considered an employer, call the LCB at 503-967-6291.

For additional information about whether you are considered an employer, please refer to the Employer’s Guide for

Doing Business in Oregon.

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Completing the LCB Business Licensing Process

Requirements for a Landscape Contracting Business License

• Completed application form (https://www.oregon.gov/lcb/Pages/Apply-License.aspx )

• Application Fee

• License Fee

• Business name registered with the State Corporation Division

• List of all owners

• Managing employee if the owner is NOT an LCP

• Tax identification numbers including the state payroll tax (BIN) and IRS (FEIN) numbers

• Certificate of liability insurance for a minimum of $500,000

• Surety bond ($3,000, $10,000, $15,000 or $20,000, depending on the job charges)

• Workers’ compensation, if applicable

• Independent contractor certification

• Licensing and litigation history

• Criminal background

• Employee verification form

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STEP 7 – OTHER REQUIREMENTS

Check with the Oregon Department of Environmental Quality and the Oregon State Fire Marshal, if your business will

handle hazardous wastes. See “Dealing with and substances. Environmental Permits & Regulations” in this guide.

Determine if you comply with the Americans with Disabilities Act (ADA). Many businesses are subject to federal law

that prohibits discrimination against disabled persons. See “Comply with Americans with Disabilities Act” in this

guide.

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

government. See “Patents, Copyrights & Trademarks” in this guide.

Check Zoning for Business Location

Be sure the location you choose for your business is properly zoned for your business activity. Other factors to

consider include regulations on business signs and parking at the location.

If you are planning to operate a business from your home, you will need to determine if there are restrictions on home-

based businesses in your area. Your local city or county planning offices will be able to provide you with this

information.

Dealing with Environmental Permits & Regulations

Check with Oregon DEQ

Contact the Oregon Department of Environmental Quality (DEQ) for information on permits, certification, licensing,

or regulations if your business activity involves any of the following:

▪ Putting wastewater into rivers and streams

▪ Disposing of wastes on land or into the ground

▪ Stormwater runoff associated with clearing, grading, excavation, or construction activities

▪ Stormwater runoff from industrial activity

▪ Emitting air pollutants, including potential nuisance odors

▪ Removing or disturbing asbestos-containing material; see DEQ Asbestos Information

▪ Operating a landfill or other solid waste disposal site, transfer station, incinerator, material recovery

facility, solid waste treatment facility, energy recovery facility, composting facility, or septic lagoon for

non-hazardous wastes

▪ Storing, using, or transporting waste tires

▪ Owning an underground storage tank, either in use or out of use

▪ Contracting to work on an underground storage tank, including testing or cleaning up of petroleum-

contaminated soil, requires a license from DEQ

▪ Creating, storing, treating, or disposing of hazardous wastes

For spills or emergency response, state statute requires that when you have a release (spill) or a threat of release of oil

hazardous materials, you must call the Oregon Emergency Response System at 800-452-0311, not DEQ.

For information about handling or storage of petroleum products, visit the Oregon State Fire Marshal website or call

503-378-3473, not DEQ.

OREGON START A BUSINESS GUIDE

DEQ Information and Technical Assistance

Please visit the DEQ website for more complete information on environmental permits and regulations.

For air quality permitting and licensing resources, solid waste permit information, underground storage tank

information and water quality permitting information, visit the DEQ website.

For more information on dealing with hazardous waste, see DEQ’s Small Quantity Hazardous Waste Generator

Handbook.

To file a pollution complaint, see https://www.oregon.gov/deq/Get-Involved/Pages/File-Pollution-Complaint.aspx.

For other hazardous waste technical assistance, visit the Oregon Department of Environmental Quality.

Oregon Department of Environmental Quality 503-229-5696 (in Portland)

700 NE Multnomah St., Ste. 600 800-452-4011 (toll-free in Oregon)

Portland, OR 97232 503-229-6993 (TDD)

DEQ Small Business Assistance

The Oregon DEQ Air Quality Small Business Assistance Program provides technical assistance to address and prevent

air quality violations at unpermitted or small sources. The program helps small businesses understand what permitting

requirements apply to their industry sector and find practical, cost-effective solutions to their environmental concerns.

The Small Business Coordinator works with trade associations, interest groups, suppliers, and business owners with

100 or fewer employees. The program also represents the needs of small business in regulations across industry sectors

and ensures that small business interests are represented during DEQ's rulemaking. For more information visit the

DEQ Small Business Assistance Program at https://www.oregon.gov/deq/aq/aqPermits/Pages/BAP.aspx.

Check with Department of State Lands

The Oregon Department of State Lands (DSL) implements the state’s removal-fill law, which requires property owners

to get a permit from DSL if they plan to fill or remove material from Oregon wetlands and waterways. The law applies

to private and public land.

More information about removal-fill permits is on the DSL website. Other resources include the fact sheet on

identifying wetlands and the removal-fill brochure.

Department of State Lands

775 Summer St. NE

Suite 100

Salem, OR 97301-1279

503-986-5200

Check with Oregon State Fire Marshal

The Oregon Community Right to Know and Protection Act directs the Oregon State Fire Marshal (OSFM) to develop

and distribute the annual Hazardous Substance Information Survey.

Facilities in Oregon with reportable quantities of hazardous substances are required to report those substances

annually on the survey. In addition, facilities that receive the survey for the first time are also required to complete

and submit the survey. Failing to complete and submit the survey as required may result in civil penalties.

A hazardous substance is defined in Oregon Administrative Rule, 837-085-0040, as a substance required to have a

Safety Data Sheet (SDS) pursuant to Oregon Occupational Safety and Health Administration (Oregon OSHA) or

any substance designated as hazardous by the Office of the State Fire Marshal. This includes substances produced

on site, waste substances, solutions, and refrigeration system gases.

OREGON START A BUSINESS GUIDE

A reportable quantity is any hazardous substance that is on site at any time, that meets or exceeds the following

amounts:

Liquids - 500 gallons or more

Gases - 500 cubic feet or more

Solids - 500 pounds or more

Lower reporting quantities apply to poisons and explosives. If a poison or explosive is on site at one time and

meets or exceeds the following quantities, it must be reported.

Liquids - 5 gallons or more

Solids - 10 pounds or more

Gases - 20 cubic feet or more

In addition, any quantity of radioactive substances (except sealed sources) is reportable, including radioactive

wastes.

A separate survey is required to be submitted for each site address in Oregon that has a reportable quantity of any

hazardous substance.

Reports can be submitted in the CHS Manager located here.

For more information on the Oregon State Fire Marshal requirements, visit the website or call the Hazardous

Substance Information Hotline at (503) 378-6835 or (800) 454-6125 in Oregon between the hours of 8:00am to

5:00pm, Monday through Friday, excluding state holidays.

Comply with the Americans with Disabilities Act

Background

The Americans with Disabilities Act (ADA) is a federal law that prohibits discrimination against disabled persons in

the areas of employment, public accommodation, and public services. The State of Oregon also has anti-discrimination

laws that affect business owners. Check the resources below for more information.

General Information

For general information on the ADA, contact:

Oregon Department of Agriculture Food Safety Program – Pets in Stores Poster

635 Capitol St. NE

Salem, OR 97301

503-986-4720

Northwest ADA & Information

Technology Center, CDRC/OHSU

PO Box 574

Portland, OR 97207

800-949-4232 (Voice and TDD)

For information on Title III of the ADA (public accommodation issues), contact:

Office on ADA, Civil Rights Division

U.S. Department of Justice

950 Pennsylvania Ave. NW

Disability Rights Section--NYAV

Washington, DC 20530

ada.gov

800-514-0301 (Voice)

800-514-0383 (TTY)

OREGON START A BUSINESS GUIDE

For additional information on Title I of the ADA (private employment issues), contact:

ADA.gov Information & Technical Assistance

U.S. Department of Justice

950 Pennsylvania Ave. NW

Washington, DC 20530

800-514-0301 (voice)

800-512-0383 (TTY)

Patents, Copyrights, and Trademarks

Some businesses begin with a new idea, invention, innovative concept, or new process. If your business is dependent

on such intellectual property, you may want to protect it by applying for a patent or copyright. If you use a trade or

service mark to identify goods or services that you provide, you may choose to register the trade or service mark.

U.S. Patents

A patent is an exclusive property right to an invention and is issued by the U.S. Patents and Trademark Office, in the

Department of Commerce. A patent gives an inventor the right to exclude others from making, using, or selling the

invention in the United States, its territories, and possessions.

The U.S. Patents and Trademark Office has a patent search tool online that you can use for a preliminary patent search.

If you decide to apply for a patent, professional assistance from a patent attorney or patent agent is recommended,

because the patent procedures are detailed and technical.

U.S. patent information, the application process, and forms for applying for a patent, are available online from the

United States Patent and Trademark Office.

U.S. Copyrights

A copyright protects literary, dramatic, musical, artistic, or other intellectual creations from unauthorized copying or

exploitation. Items such as written materials, works of art, musical compositions, and computer programs are protected

by copyright. No publication, registration, or other action in the Copyright Office is required to secure a copyright; the

are definite advantages to registering a copyright. Copyrights are registered with the U.S. Library of Congress. To

obtain information on copyrights and copyright application forms, contact:

Library of Congress

U.S. Copyright Office

101 Independence Ave. SE

Washington, DC 20559-6000

(202) 707-3000 or 877-476-0778 (toll free) general information

Trade and Service Mark

A trade or service mark identifies goods or services made or sold by a person to distinguish them from goods or

services made or sold by others. It can consist of words, names, symbols, devices, or any combination of these. The

mark must be in use before it can be registered. The registration is optional.

The trade or service mark registration advises the public that the registrant believes he or she is the only person who

has a right to use the mark in connection with those goods or services. It prevents the registration of an identical or

similar mark and helps prove the date of first use.

Oregon Trade and Service Mark Registration

It is the use of a trade or service mark in Oregon, rather than registration, which creates ownership. A trademark has

been used in Oregon when goods are sold or distributed in the state and the mark is placed in any manner on the goods,

containers, tags, labels, or displays associated with those goods. A service mark has been used in Oregon when the

mark is used or displayed in the sale or advertising of services rendered in this state. Research Oregon Trademarks

online.

OREGON START A BUSINESS GUIDE

The Oregon trade and service mark registration form is available online. There is a non-refundable processing fee of

$50 for filing a trade or service mark application, and the mark is renewable.

Please allow three to five weeks for processing documents submitted by mail.

Note: Businesses are encouraged to check for conflicts with federally registered trade or service marks before

registering a trade or service mark in Oregon. Since trade and service mark rights arise from the use of the mark, a

current federal registration may indicate prior use of the mark by another person. Federal trademark information is

available at the United States Patent and Trademark Depository Library, located at Paul L. Boley Law Library,

Northwestern School of Law at Lewis and Clark College, in Portland, Oregon. The library receives periodic updates on

both current and pending federal trademark registrations. For further information, call 503-768-6676. Be sure to call

ahead for library hours.

Federal Trade and Service Mark Registration

A Trade or Service Mark may be registered with the U.S. Patent and Trademark Office if the mark has been used on

goods or associated with services that have been rendered in commerce. An applicant who has not yet used the mark

may apply based on a bona fide intention to use the mark in commerce. The term of federal trademark registration is

10 years, with 10-year renewal terms. However, the registrant must submit an affidavit stating that the mark is

currently in use between the fifth and sixth year after registration, or the registration is cancelled. Trademark rights can

last indefinitely if the owner continues to use the mark to identify the goods or services.

Federal Trade or Service Mark Registration information is also available online. Information on the application process

and forms for registering a Trade or Service Mark is available online.

If You Use Music in Your Business

U.S. Copyright Law gives copyright owners the exclusive right to publicly perform or authorize performance of their

works. Most music is protected by copyright. The proprietor of a business in which copyrighted music is performed is

liable for infringement of copyrighted music in his or her place of business. If you use music in your business in any

way, including as background music or on your phone system, you should be aware of your liability for using the

music.

Three organizations license performance rights for most of the music copyright holders in the United States. You can

obtain more information on how to comply with copyright law regarding music use by contacting an attorney or one of

these organizations.

American Society of Composers

Authors and Publishers (ASCAP)

One Lincoln Plaza

New York, NY 10023

(212) 621-6000

ascap.com

Broadcast Music Inc. (BMI)

10 Music Square East

Nashville, TN 37203

(615) 401-2000 or 1-800-925-8451

bmi.com

SESAC Inc.

55 Music Square East

Nashville, TN 37203

(615) 320-0055 or 1-800-826-9996

sesac.com

OREGON START A BUSINESS GUIDE

Consider Insurance for your Business

There are many types of insurance designed to cover the unique risks of operating a business.

Common insurance needs include:

• Commercial liability insurance – for claims of injury or damage caused by your business

• Property insurance – to protect your business from damage to your physical space or equipment

• Business interruption insurance – to cover fixed costs when you can’t operate due to unforeseen events

• Commercial auto insurance – to cover delivery or transport services or vehicles not covered by personal auto

insurance policies

• Workers’ Compensation – protection for workers injured on the job

• Health insurance for employees – an expectation for employers

o See STEP 8, HIRING EMPLOYEES, in the section below: “Employee Health Insurance Assistance.”

Oregon’s Division of Financial Regulation provides a business insurance website, and the US Small Business

Administration’s Get Business Insurance page has an overview and “Four steps to buy business insurance.”

Finding the right insurance for your business can start with an insurance agent you know, but you may require referrals

and more research. As with other tasks, you can find guidance through business advisors like your local Small

Business Development Center or SCORE.org.

Complying with Oregon’s Unclaimed Property Law

Oregon’s Unclaimed Property Program has protected consumer rights in Oregon and reunited people with their

forgotten assets for over 60 years. The statewide program, which was transferred to the Oregon State Treasury

from the Department of State Lands in 2021, helps safeguard individual’s unclaimed funds until they can be

claimed by their rightful owner.

Common types of unclaimed property include:

•

Uncashed checks, including payroll checks

•

Refunds and other deposits

•

Accounts receivable – credit balances

•

Stocks and securities

Property becomes unclaimed when organizations that hold funds for someone else lose contact with the owners.

Every year Oregon governments, businesses, and nonprofits make attempts to connect individuals with their

property. When their efforts are unsuccessful, these organizations are legally required by ORS 098 to report any

unclaimed funds to the state. Oregon’s annual unclaimed property reporting window runs from October 1 to

November 1. All Oregon businesses— no matter their size — are required by law to report unclaimed funds to

the state during this period. The same goes for state agencies, local governments, and nonprofits that hold

unclaimed property.

Learning how to report unclaimed property is easy. The Unclaimed Property website has information about

reporting requirements, annual summer trainings, holding periods for different types of property, and instructions

for requesting a reporting extension. To connect with our program staff, visit unclaimed.oregon.gov/app/contact-

us.

OREGON START A BUSINESS GUIDE

Oregon Consumer Information Protection Act

Oregon law requires individuals, businesses, and organizations that own, license, maintain, store, manage, collect,

process, acquire, or possess personal information to follow requirements that help protect consumers from identity

theft.

Personal information is a consumer’s name combined with one or more of the following data elements, if the data

elements are not encrypted, redacted, or rendered unusable, or if the data elements are encrypted and the encryption

key has been acquired:

• Social Security Number

• Driver license or state identification card number issued by the Oregon Department of Transportation

• Passport or other identification number issued by the United States

• Financial account, credit card, or debit card number combined with any security code, access code, or

password that would allow access to a consumer’s financial account

• Data from automatic measurements of a consumer’s physical characteristics, such as an image of a fingerprint,

retina, or iris, that are used to authenticate a consumer’s identity

• Health insurance policy or subscriber identification number along with any other unique identifier that a health

insurer uses to identify the consumer

• Information about a consumer’s medical history or mental or physical condition, or about a health care

professional’s medical diagnosis or treatment of the consumer

Any data element or combination of data elements is also personal information even without the consumer’s name, if

the information has not been encrypted, redacted, or rendered unusable and the information would enable a person to

commit identity theft against the consumer.

Finally, a username or other identification method together with any authentication method is also personal

information.

If you handle personal information while conducting your business, you must protect it by developing, implementing,

and maintaining reasonable safeguards, including the proper disposal of personal information. If you are an owner of a

small business (100 or fewer employees), you already comply with the reasonable safeguard requirements if your

information security and disposal program contains the administrative, technical and physical safeguards, and disposal

measures appropriate to the size and complexity of your business, the nature and scope of its activities, and the

sensitivity of the personal information it collects.

Oregon law prohibits the printing of Social Security Numbers (SSNs) on any documents mailed to but not requested by

the consumer. If the consumer requests mailed documents that contain an SSN, you must redact the number. Further,

you cannot print an SSN on a card used by the consumer to access products or services, nor can you publicly display or

post (such as on a website) an SSN unless you redact it.

When disposing of, or transferring to another person for disposal, material or media that display a consumer’s SSN,

you or the person who ultimately disposes of the material or media must make the SSN unreadable or unrecoverable.

If you experience a data security breach, you must notify affected consumers of the breach expeditiously and without

unreasonable delay, but no later than 45 days after discovering or receiving notification of the breach. If the breach

affects over 250 people, you must also notify the Oregon Attorney General in writing or electronically. These

notification requirements, however, do not apply to certain businesses and organizations, including those who are

subject to and comply with regulations under the federal Gramm-Leach-Bliley Act or the Health Insurance Portability

and Accountability Act (HIPAA), though they must still provide the Oregon Attorney General a copy of the notice sent

to consumers or other regulators for breaches affecting over 250 people.

OREGON START A BUSINESS GUIDE

Anyone who violates the OCIPA may incur a civil penalty of up to $1,000 for each violation and up to $500,000 for a

continuing violation. For further information contact:

Department of Consumer and Business Services

Division of Financial Regulation

350 Winter St. NE, Room 410

Salem OR 97301-3881

503-378-4140 888-877-4894 (toll free in Oregon)

For IRS information on Identity Theft and your Federal Tax Records, visit online.

STEP 8 – HIRING EMPLOYEES

The Business Information Center also publishes a separate guide to assist business when hiring employees. The

Oregon Employer’s Guide provides a general checklist, along with contact information on government requirements

for Oregon’s employers.

Determine Employer Status

Who is an Employer?

Are you an employer responsible for filing and paying one or more payroll taxes? If you pay someone to work for you,

oversee how the job is done, and have the right to direct and control the worker, the worker is probably your employee.

Oregon law differs from federal law and from state agency to agency.

An employer may be an individual, corporation, partnership, estate, trust, association, joint venture, or other un-

incorporated organization. Religious, educational, charitable, and social organizations can also be employers, even

though they may be exempt from paying income tax.

If you are an employer, please review the companion publication, Oregon Employer’s Guide and contact the

individual agency programs for further information.

Who is an Employee?

An employee is anyone who performs services for pay for another person or organization under the direction and

control of the person or organization. Even when the employer gives the employee freedom of action, the person

performing the service may still be considered an employee. What really matters is that the employer has the legal

right to control the method and result of the services, even though the employer may not always exercise that right. If

you are unsure whether you need to hire an employee or an independent contractor, go to the Oregon Independent

Contractors website (oregon.gov/ic) for more information.

Corporate officers, whether a C Corporation or an S Corporation, who are paid for working for the corporation are

considered by the Oregon Department of Revenue to be employees of the corporation and are subject to withholding

requirements. (ORS 316.162)

Who is an Independent Contractor?

In Oregon, workers may only be classified as independent contractors if they meet the provisions of laws and court

decisions that define independent contractor and employer-employee relationships. If you are unsure whether you need

to hire an employee or an independent contractor, go to oregon.gov/ic for more information.

OREGON START A BUSINESS GUIDE

For some agencies, independent contractors are defined in ORS 670.600, which includes that an independent

contractor must a) be free from direction and control, and b) be customarily engaged in an “independently established

business” (“3 of 5 test”).

Internal Revenue Service (IRS) Independent Contractor Definition

The Internal Revenue Service (IRS) looks to common law rules to determine whether an individual is an employee or

an independent contractor. IRS Publication 15-A outlines the process for making the proper determination. Please click

here for more information, or call 1-800-829-4933.

Important Information About Employer Identification Numbers (EIN)

General Information

All businesses, except certain sole proprietors, are required to obtain a federal tax employer identification number

(EIN).

• Application for EIN requires identification of responsible party

• Change in Application for Employer Identification Number

• Use of Nominees in the EIN Application Process

• Updating Incorrect Business Entity Information

If you have any questions regarding the federal tax identification number, contact your local IRS office or:

Internal Revenue Service

1220 SW Third Avenue

Portland, OR 97204

1-800-829-4933

irs.gov/

If you plan to hire employees within the coming fiscal quarter, you will also need to apply for an Oregon business

ID number (BIN). You will need to supply your EIN as part of the BIN application process.

NOTE: If you do not plan to hire employees within the coming fiscal quarter, do not get a BIN, because the BIN

creates an obligation to file quarterly reports, with penalties if they are missed.

To obtain a BIN, apply through Revenue Online. Under Quick Links, click “Register and Apply”, then find the BIN

under “Registrations.”

If you have any questions regarding Oregon’s BIN/payroll reference number, contact the Oregon Department of

Revenue.

Oregon Minimum Wage

In 2016, the Oregon Legislature made significant changes to the state minimum wage law. In addition to a new

“standard” state minimum wage rate, the law sets out separate wage rates that apply to employers who employ

employees in an urban growth boundary (UGB) of a metropolitan service district in the state (currently, only the

Portland metropolitan area has such an urban growth boundary), and to employers with employees in specific

“nonurban” counties identified in the law. Minimum wage rates have been established for the three minimum wage

regions, increasing July 1 of each year through June 30, 2022. Effective July 1, 2023, the state “standard” minimum

wage rate will be adjusted annually based on any increase to the U.S. City Average Consumer Price Index for All

Urban Consumers, with the UGB rate set at $1.25 per hour over the standard minimum wage rate, and the “nonurban

county” rate at $1.00 per hour less than the standard minimum wage. The state agency responsible for enforcement of

minimum wage and hour laws in Oregon is the Bureau of Labor and Industries (BOLI). For more information about

Oregon’s current or scheduled minimum wage rates, please visit

https://www.oregon.gov/boli/workers/pages/minimum-wage.aspx.You can reach BOLI by phone at 971-673-0824 or

employer.assist[email protected].gov

OREGON START A BUSINESS GUIDE

Health Insurance Assistance

Through special benefits and reforms, the State of Oregon is making health insurance more available and affordable

for employers, their employees, and employees’ dependents.

The first step to considering whether to offer health coverage to your employees is to understand the health coverage

options available in Oregon:

• Employer-sponsored group coverage

o Small employers with 50 or fewer employees may be eligible for small group coverage.

▪ If you have fewer than 25 FTE (full-time equivalent), you may be eligible for the Small

Business Health Care Tax Credit (see below).

o Large employers with more than 50 FTE must offer employer-sponsored health coverage to their

employees that meets the employer shared responsibility provisions (go.usa.gov/xt335).

• Individual health coverage

o Oregon Health Plan

▪ Individuals and families who work part time may qualify for Oregon's Medicaid program, also

called the Oregon Health Plan, which is free coverage for low-income Oregonians.

▪ To find out more about the Oregon Health Plan visit OHP.Oregon.gov.

o Private health insurance

▪ People who are not offered employer-sponsored health coverage, Oregon Health Plan, or

Medicare can purchase health coverage through a health insurance company or through the

Marketplace.

▪ Financial help is only available through the Marketplace to reduce the monthly premium and

out-of-pocket costs.

▪ American Indians and Alaskan Natives may qualify for additional savings and protections

through the Marketplace.

▪ Oregonians can preview plans and savings available to them at

OregonHealthCare.gov/WindowShop.

o Medicare

▪ Federal health coverage program through Social Security for people who are 65 or older, are

on Social Security Disability for 24 months, or have end-stage renal disease (ESRD).

▪ For assistance with Medicare, contact the Oregon Senior Health Insurance Benefits Assistance

(SHIBA) program at 800-722-4134 (toll-free) or visit SHIBA.Oregon.gov.

• Association health plans

o Association health plans allow many small- to medium-sized companies to come together under one

health plan, potentially reducing costs and increasing benefit options.

o There are regulations around these entities and criteria to participate, but coverage is not regulated or

guaranteed for essential health benefits or pre-existing conditions.

• Health reimbursement arrangements

o HRAs allow employers to contribute pre-tax funds to help employees pay for medical expenses.

Small-group coverage

Small-group coverage is available year-round, unlike individual health insurance, which has a set enrollment window.

If you have at least one employee who receives a W-2, you can purchase coverage for yourself and your workers at

any time. Small businesses with one to 50 employees can purchase a plan from any insurer offering a small-group plan

in Oregon. Employees and family members who are offered employer-sponsored coverage likely are not eligible for

financial assistance through HealthCare.gov.

If you are not currently offering health insurance, but you want to get an estimate of what offering coverage through a

Marketplace-certified plan may cost, use our premium calculator

OREGON START A BUSINESS GUIDE

(https://healthcare.oregon.gov/marketplace/employers/Pages/SHOP-calculator-2024.aspx). You can then use that

information to use the tax credit estimator (https://www.healthcare.gov/shop-calculators-taxcredit/.

If you need help getting more information about these plans or other available options, please contact a licensed agent.

You can find a local agent at OregonHealthCare.gov/GetHelp.

Coverage for family members

Can your organization sponsor health coverage for additional family members? If not, the family may get a better deal

through HealthCare.gov (possibly getting financial assistance) or through the Oregon Health Plan if they are eligible,

rather than being offered full-cost coverage through a family member's employer.

Don't have employees?

An individual can apply for financial help and enroll in individual coverage through HealthCare.gov:

• During open enrollment, Nov. 1 to Jan. 15.

• Year round through the Oregon Health Plan.

• During a special enrollment period. This is a 60-day period that can be triggered by certain life events, such as

getting married, having a baby, or losing other health insurance coverage.

Health Care Tax Credit

Small businesses with fewer than 25 full-time employees may be eligible for the Small Business Health Care Tax

Credit if they choose one of the small-group plans certified by the Oregon Health Insurance Marketplace. If your

business qualifies, the tax credit may cover up to 50 percent of the employer paid premiums.

Tax-exempt nonprofits also qualify for a tax credit up to 35 percent of premiums paid. For nonprofits, the credit is a

refund on quarterly payments made to the IRS for income tax withholdings or Medicare withholdings from employee

wages.

Get free expert help

Health coverage experts are available to assist individuals and employers evaluate their health coverage options, apply

for coverage and financial help, and enroll in health coverage. Find an expert for free help near you at

OregonHealthCare.gov/GetHelp or contact the Oregon Health Insurance Marketplace at 855-268-3767 (toll-free).

Small Business Guide to Insurance and Worksite Safety

The Department of Consumer and Business Services regulates areas ranging from insurance to worksite safety that are

important to small employers. As a business owner, understanding the types of insurance that can protect your

investment and what you can do to promote worksite safety is key to your success. The Oregon Small Business Guide

to Insurance and Worksite Safety provides an overview of these topics, along with contact information so you can

easily obtain more detailed information.

Labor Market Information

The Oregon Employment Department’s Workforce and Economic Research Division has a team of Workforce

Analysts who collect and analyze labor market information for individual businesses, who can then apply the

information to their everyday business decisions. Their focus is to provide information as requested by Oregon

businesses related to the labor market in general, and they can provide specific occupational supply and demand data

or do an analysis of a business’s wage levels relative to the labor market. Workforce Analysts are also available to

create customized reports for specific businesses when the data is available. The division also publishes and distributes

information that has been gathered through surveys sent to employers. Businesses can use this labor market

information to identify challenges and opportunities. Economic development planners, educators and training

OREGON START A BUSINESS GUIDE

providers, job applicants, legislators, and the news media also regularly rely on this information to learn about

workforce issues that affect Oregonians.

Information on the Internet

The Oregon Employment Department maintains a nationally recognized website where employers can find local,

regional, and statewide information. This includes business ownership characteristics, competitive wage rates, inflation

indexes, projected future employment for jobs, and how changes in the economy affect them. The Department’s

Workforce and Economic Research staff are on hand to show businesses how to retrieve such data, and how to apply it

directly to their venture. Visit their website at qualityinfo.org.

OregonSaves

OregonSaves is the state of Oregon’s retirement savings program that provides Oregonians with an easy and

automatic way to save for the future. Employers that do not offer a workplace retirement plan now have an easy

way to help their employees save for retirement, with no employer fees, no fiduciary responsibility, and minimal

ongoing responsibilities (just add employees and submit employee payroll contributions). The program can also

help level the playing field when you compete to attract and retain employees.

Eligible employers of all sizes can register for OregonSaves at any time. All Oregon employers must (1) register, if

they don’t already offer a workplace retirement plan, or (2) certify their exemption, if they already offer a plan or

have no W2 employees.

The registration deadline has passed for all Oregon employers. Don't delay—you can still register today! Visit

www.oregonsaves.com for more information, to register your business, or claim exemption. Call 844-661-1256 for our

customer service center.

OregonSaves is administered by the Oregon Treasury Savings Network (OTSN), which is a division of the Oregon

State Treasury.

STEP 9 – ONGOING REGISTRATION REQUIREMENTS

After you have 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 renewals and when needed, update their registration information while they are doing business in

Oregon.

Many occupational or business licenses require annual renewal or recertification. Check with your licensing agency or

board or visit the Business Xpress License Directory to find yours.

You can sign up to have your business registry renewal notices emailed to you. For more information go to

https://sos.oregon.gov/business/Pages/electronic-renewal-notices.aspx.

Nonprofit charitable organizations need to file annual reports with the Oregon Department of Justice (DOJ) Charitable

Activities Section, and the Internal Revenue Service. Visit these websites for more information.

OREGON START A BUSINESS GUIDE

OREGON COUNTIES MAP

Visit online for a list of county web pages and phone numbers

OREGON START A BUSINESS GUIDE

Corporation Division

Office of the Secretary of State

Public Service Building, Suite 151

255 Capitol Street NE Salem, OR 97310-1327

(503) 986-2200

Oregon Start a Business Guide

Publication No. BICGUI1100

February 2024

2024 ed.