It takes more than a great idea to start a business. It takes paperwork. Thankfully, it’s extremely easy to found a business in Oregon. In fact, you can do it online in about 10 minutes.
Why found an LLC? Limited Liability Companies blend the best elements of partnerships and corporations. They’re a great alternative to Sole Proprietorships (single-person-owned businesses) because they offer legal protection and tax flexibility without the added paperwork of a corporation.
Flexible Tax Structure : LLC’s don’t have to pay taxes—their owners do. Like sole proprietorships or partnerships, LLC’s aren’t considered separate from their owners. Instead of the LLC paying taxes, you’ll pay taxes in your own returns. However, you can opt to have your LLC taxed like a corporation. It’s up to you.
Easy Set-Up: It takes mere minutes to setup an LLC online. Setting up a corporation takes a lot more paperwork—and time.
Less Paperwork: Corporations come with a slew of requirements—roles, reports, meetings, notes. LLCs, on the other hand, don’t have the same requirements. Once you found your LLC, you won’t have to keep tons of additional records or reports.
Limited Liability: LLCs give you a legal shield. If your business goes belly up (bankrupt) or injures or harms someone, you generally won’t be held liable. Courts and creditors won’t be able to take your personal assets in a suit. LLCs keep your business and personal worlds separate.
Now let’s get to it. To found an LLC in Oregon, simply visit the Secretary of State’s website. Click the “File” button and get started. It’s that easy. The site will walk you through the process, from start to finish. Once you’ve filed your paperwork, you’ll need to apply for an Employer Identification Number with the IRS. Again, it’s easy to do online. Pop over to the IRS site, fill out a quick questionnaire and you’ll be set.
With you LLC paperwork and EIN, you’ll be able to open a business checking account with the bank of your choice, pay contractors, and more. Of course, building a profitable business is up to you.
If you aren’t sure if an LLC is right for your business, contact your local business lawyer.