Starting a small business in Oregon is a fantastic way to make a living doing what you love through entrepreneurship. Small business owners can also greatly contribute to the economic development of their communities. If you’re an Oregon resident looking to start your own business, here is an 8 step guide to follow to find success.
1) Think about the type of business you want to start
If you’ve reflected on your goals and desires and know for sure that pursuing your business idea is right for you, it’s time to decide exactly what type of business you want to have. Do you want a brick-and-mortar or an eCommerce business? Do you want to sell products, services, or a mixture of both? Who is the target market for your business?
In addition to your own business, you should also think about your competitors. Who else has a business similar to yours in your area? What do they do well, and what mistakes have they made? Learn from both their strengths and their weaknesses as you continue to develop your business idea.
2) Set up your legal structure
You’ll need to select one of the following types of business structures to form your business entity and start your business in Oregon.
Sole proprietorship: This is perhaps the most straightforward way to structure your business. Sole proprietorships do not require you to incorporate and they are the easiest in terms of paperwork. However, a sole proprietorship does not offer liability protection. Your personal and professional assets are not separate under this structure. This means that if your company were to get sued or if you were to go into debt, your personal assets would potentially be on the line. The major benefit to this structure is that you reap all the profits yourself. They are not shared with anyone, as you are the only owner and employee in your business. Check more with the help of best small business insurance companies
General Partnership: This structure is similar to a sole proprietorship, but it allows you to go into business with another person. Your personal assets are still liable under this structure, but you and your partner will now share any debt burden equally.
Limited Liability Company (LLC): An LLC is a popular way to structure a business in Oregon. While you still have much of the ease that comes with a partnership or sole proprietorship, your personal assets are now kept separate from your business. Only your business assets will be liable should you get sued or acquire a significant debt burden. You may have a board of directors under this model, but it is not necessary.
Nonprofit: If your business intends to focus specifically on social causes, with money earned primarily through donations rather than purchases, a nonprofit structure may be right for you. Nonprofit organizations receive an exemption from income tax in Oregon under most circumstances as well.
Limited Partnership: A limited partnership differs from a general partnership in that it separates personal and professional assets. A limited partnership also allows each partner to take on a different level of liability and managerial responsibility within the company. Suppose you know you want to go into business with someone, but only one of you is prepared to take on significant financial responsibility in the business. In that case, a limited partnership may be the best option for you.
Limited Liability Partnership (LLP): A combination of a limited partnership and a partnership, an LLP removes your personal assets from the equation but allows each partner to take equal ownership in the business.
tyray9382 