No matter what kind of business you will be developing, you will need to address legal structure, tax considerations, record-keeping requirements, licensing requirements, and business registration.
You will want to make sure your business is legal. The first step is to decide what kind of business entity (legal structure) is best for you. For a description of the pros and cons of legal structures, go to forms of business organization.
The most common are:
- Sole Proprietor
- Limited Liability Company (LLC)
Name Your New Venture
Don’t get too attached to the first name you come up with. Instead start making a list of possibilities. Many things can influence your final decision including whether it’s trademarked, whether the domain is available, and even whether someone else in the state of Oregon is already using it. Do your homework before you grow an affinity. One of the places you should check is at Oregon’s Business Portal.
Tax Identification Number (TIN, EIN or FEIN)
Employers with employees, LLC’s, business partnerships, and corporations must obtain an Employer Identification Number (EIN) from the U.S. Internal Revenue Service. Even if you are a sole proprietor and don’t have employees, it is still good practice to obtain an EIN. An EIN may be required for government forms and banks often require it for business accounts and loans. Additionally, it can be used instead of your personal Social Security Number to protect against identify theft.
Apply for an Employer Identification Number (EIN).
Register your business name
Depending upon the name you choose and your business structure, you will likely need to register your business with the State of Oregon.
Secure the correct licenses
The State may require additional license or business registration paperwork to be completed. It is also important to check with city/town & county governments where you intend to do business to determine licensing requirements.
Obtain the necessary tax information
Don’t forget to research the taxes required of your new entity including property and any special industry or local taxes such as the transient room tax.
Identify sources of financing
Learn about employer reporting requirements and responsibilities
If you have employees, you will be responsible for worker’s compensation insurance and it is a good idea to check with your insurance agent for additional employment-related insurance. In order to process and pay your employee related withholdings, you will need appropriate identification numbers.This includes applying for federal and state withholding numbers.