How to Start a Business in Oregon in 2022: The Ultimate Step-by-Step Guide

How to Start a Business in Oregon in 2022: The Ultimate Step-by-Step Guide

 

Oregon is home to many national and international companies, including Nike, Daimler Trucks North America, Collins, Precision Castparts, Fred Meyer, Lithia Motors, and Les Schwab Tire Centers, and many more.

 

In fact, Oregon's economy is growing at a rapid pace, and the city of Portland, in particular, is fertile ground for independent businesses, with locals and tourists alike drawn to the expression of its entrepreneurs.

 

 

 

So, if you have been dreaming of starting a business in Oregon, now is the right time. And this article is the ultimate guide you need to get your business rolling.

 

Oregon's laid-back youth culture, an abundance of outdoor activities, and high-tech job opportunities are just a few of the reasons this scenic northwestern state ranks high on lists. national lists of "best places to start a business".

 

 

 

Entrepreneurs in Oregon are driven by the state's pioneering spirit, educated workforce, strong infrastructure, and high quality of life.

 

 

 

However, Oregon's lack of capital, high personal income and capital gains taxes, and strict land use laws hamper the growth of Oregon businesses.

 

But that's not entirely a limitation for you. It's a problem that has a solution and therein lies the solution to starting your business with ease.

 

Follow this step-by-step guide to starting your dream business in Oregon.

 

Oregon Facts

 

Oregon, founded in 1859, is known for its Wild West past, wacky traditions, and many natural wonders (including the world's largest living organism).

 

It's no surprise that Portland, Oregon has more breweries than any other city in the world. Within the city limits, Portland has more than 60 breweries.

 

 

 

Oregon is also the only state to have an official nut called the hazelnut. Similarly, Oregon produces 99 percent of all cash crop in the United States.

 

That's a huge number here, right?

 

This is just a tip for interesting facts about Oregon.

 

Here are 25 fascinating facts about America's 33rd state.

 

#1. Oregon has the deepest lake in the United States

 

Crater Lake in south-central Oregon is the deepest lake in the United States (and one of the 10 deepest in the world). This crater lake was formed by the collapse of a volcano around 7,700 years ago.

 

The lake is almost 2,000 feet deep and is home to two islands: Wizard Island and Phantom Ship. The crystal clear waters of Crater Lake are known the world over.

 

#2. The largest cheese factory in the world

 

Tillamook Cheese Factory is the largest cheese factory in the world and a popular tourist attraction for all ages.

 

Visitors can see how cheese is made and learn about the cheese-making process on a self-guided tour.

 

 

 

A souvenir shop with a wide variety of items, including cheese and other good food items, is open during opening hours.

 

 

 

Don't forget to try Tillamook's famous ice cream when you visit Oregon.

 

#3. Home of the World's Famous Movies and TV Shows

 

Many movies and television shows have been filmed throughout Oregon.

 

In addition to the popular IFC Portlandia comedy, classic films such as One Flew Over the Cuckoo's Nest (1975) and The Goonies (1985) were shot and filmed in Oregon.

 

Also, there's still the hugely popular Twilight franchise, which is set in Forks, Washington, but was filmed in Washington and Oregon.

 

#4. Has a single flag

 

The Oregon flag is the only state flag in the United States with two unique designs on each side.

 

The front features the state seal crest in blue and gold on the obverse and a gold figure of a beaver on the reverse.

 

#5. The home of the biggest mushroom in the world

 

Oregon is home to the largest mushroom in the world. Stretching about 2.4 miles in Oregon's Blue Mountains, the enormous honey mushroom is believed to be between 1900 and 8650 years old.

 

Therefore, it attracts tourists to Orgon for mushroom hunting. Over the years, mushroom hunting has become a lucrative business in Oregon.

 

 

 

This introduced the Mushroom Festival, which takes place every year in Estacada. The Estacada Mushroom Festival offers mushroom hunting lessons, tastings, mushroom-themed artwork, and mushroom identification lessons.

 

Fast facts about Oregon

 

Capital: Salem

Nickname:          beaver state

Language:           Oregon Penutian

Independence:                February 4, 1859; 33rd state

The biggest city:              Portland (The City of Roses)

Abbreviation:    GOLD

Currency:            U.S. Dollars

Popular company:          Cheese

Official State Colors:      Navy blue and gold

Official state fish:            Chinook salmon

Best University:               The University of Oregon

Best place for windsurfing:         Columbia River Gorge

Common sport:               Sailboard

Population (July 2019): 4.218 million

Is Oregon a good place to start a business?

 

Most people understand Oregon for its varied landscapes, mild climate, myriad breweries, and also the original city of Portland.

 

They are not wrong about these facts. I bet you saw that above, right?

 

Additionally, Oregon is home to over 320,000 small businesses and is home to well-known brands such as Nike, Adidas, Precision Castparts, and Columbia Sportswear.

 

Now, this is clear proof that Oregon is a good place if not the best state to start a business in the United States.

 

So what makes Oregon so appealing?

 

Business owners love it for its business-friendly incentives, favorable tax regime, and access to capital.

 

It's also a great place to live, whether you love the outdoors or prefer to live in the city.

 

Here we are going to list the top reasons why Oregon (Beaver State) may be the best place to start your business.

 

6 Great Reasons to Start Your Business in Oregon

 

#1. Favorable business climate

 

Oregon offers several incentives to attract and encourage small businesses. For example, Oregon Investment Advantage is a creative incentive that encourages small and medium businesses to start or locate in certain cities in the state.

 

Additionally, Oregon's Small Business Certification Program gives preference to small businesses in a variety of government procurement opportunities, many of which include city contracts and state contracts.

 

#2. Favorable tax regime

 

Without sales taxes, state-owned business owners are the biggest beneficiaries of Oregon's favorable tax system.

 

In 2019, Oregon ranked seventh in the United States for ease of doing business, according to the Tax Foundation. They have maintained this position since 2014.

 

Additionally, Oregon allows net operating losses of any business to be carried forward for up to 15 years without limit. This greatly reduces the tax liability of any business and allows you to reinvest those savings back into the business.

 

#3. Access to capital

 

According to new data from the National Venture Capital Association and industry analyst firm PitchBook , venture capital investment in Oregon reached $103.5 million in 2017. This represents one-third of the $348 million invested in Oregon startups last year.

 

While this number is relatively low compared to states like California, New York, and Texas, it still shows that venture capitalists are willing to invest in top-notch business ideas.

 

For example, the Portland Seed Fund is one of the top seed investors in the Pacific Northwest and continues to raise funds to support promising startups, especially those with diverse management teams.

 

#4. Highly skilled workforce

 

Oregon's rapid population growth benefits small businesses in many ways. This growing population will not only attract more potential customers, but will also provide a diverse and talented workforce.

 

In fact, each region's workforce of more than one million people is growing six times faster than the national average.

 

Companies focused on technology, manufacturing, and creativity continue to attract highly skilled employees to Beaver State, which means your chances of finding strong teammates to join your company are high.

 

#5. Reduced operating costs

 

Portland is a relatively cheap place to start your business compared to nearby cities of Seattle, San Francisco, and San Diego.

 

The median price per square foot of office space in Portland is 75% lower than San Francisco and 20% lower than Seattle.

 

Additionally, Oregon has lower than average health and energy costs compared to the rest of the country.

 

By saving from this, you can return more money to your business at the end of the day.

 

What is the best business to start in Oregon?

 

Oregon and Portland, in particular, are fast becoming meccas for motivated entrepreneurs.

 

In fact, Portland ranks 10th on Inc's list of America's 50 Best Places to Start a Business.

 

Portland's startup scene spans a variety of industries, from tech companies to start-up food companies and innovative clothing stores.

 

The city offers entrepreneurs and startups a variety of resources, events, training and development programs, and meetings, all to foster startups and collaboration.

 

List of Best Businesses You Can Start in Oregon

 

Here is a list of the best businesses you can start in Oregon:

 

Clothing Manufacturing : Everyone wears clothes and as long as you produce quality clothes, there would be a great demand for our products.

Business Consulting: You can offer customer relationship management, business planning and budgeting, sales and marketing strategies to business owners.

Business Grant Writer: A grant proposal writer helps business owners and NGOs write proposal letters to seek funding. You can put your writing skills and business knowledge together to start a grant proposal writing business.

Amongst others:

 

Advice on foreign markets

Dog grooming

Pet accommodation

Restaurant catering delivery

Artisan granola

mobile karaoke

Motorhome rental

sports coaching

Freelance writing

skin care products

The Best Places to Start a Business in Oregon

 

Oregon does not rank among the top 15 places to start a business. However, NerdWallet says five of the top-ranked cities in the state have access to beaches, mountains, and other attractions.

 

I bet you know what it means for a city to have places for sightseeing, right? This means that the state can generate revenue for the state.

 

Also, it opens up potential business opportunities for residents.

 

So here are the best places to start a business in Oregon:

 

Portland

Wilsonville

Hood River

West Haven-Sylvan

Tualatin

Lake Oswego

What are the best startups that started in Oregon?

 

Despite having a population of 2.4 million, Oregon, a metropolitan area, is home to only one large business organization with annual transactions of over $3 billion. We mean Nike in Beaverton.

 

The flood of educated young adults has helped economies by $157 billion, with family wages up 4% each year since 2011 and unemployment below 4% from a peak of 11.3% in 2009.

 

According to Experian, Portland currently has the 10th most notable convergence of exceptionally well-taught recent college graduates.

 

A strong financial outlook has pushed Portland to the top position in FORBES' 19th annual  ranking of Best Places for Business and Careers.

 

He even got a grade of fifth last year.

 

The City of Roses performed exceptionally well in all cases, finishing in the top quartile for 12 of the 14 measures we estimated (business and living expenses were the only outliers).

 

Organizations with a huge presence nearby in Metro Portland like Nike , Intel , Daimler , and Boeing benefit from the 36 colleges and 150,000 undergraduate students within 50 miles of downtown.

 

STEM (Science, Innovation, Design and Mathematics) fields account for 7.2% of all jobs in the metropolitan area, well above the public norm of 5.8%.

 

Google opened its first office in Portland a year ago, joining other tech stalwarts like Hewlett-Packard , eBay, and Salesforce .

 

New companies are also springing up, offering ride to the moniker “ Silicon Forest .”

 

Businesses and workers in Portland are enjoying considerably more moderate conditions than in the Bay Area.

 

In addition to the amazing companies mentioned above, here are some other startups in Oregon:

 

Waterfall Foot and Ankle Specialists – Portland, Oregon

Pizza Cibelli – Redmond, Oregon

Clean by Amy & Company – Portland, Oregon

Erickson's Automotive - Lake Oswego, Oregon

Fat Milo's Home Kitchen - Sherwood, Oregon

Grace Place Learning Center – Mcminnville, Oregon

Heitman Analytics – Eugene, Oregon

Hillsdale Veterinary Hospital – Portland, Oregon

Do you need a business license in Oregon?

 

The state of Oregon does not have a general business license. However, many professions and business practices require unique licenses, permits, or certifications from state bureaus or boards.

 

Urban communities and regions may require a license for organizations working in their jurisdictions. If your business is within the city limits, check the city offices to see if they require a local business license.

 

If there is no specific listing for business licenses in your directory, the town hall information number is an appropriate first contact.

 

The licensing offices for the following cities are:

 

Portland Licensing Office | 503-823-5157

111 SW Columbia St., Ste. 600

Portland, OR 97201-5840

www.pdxbl.org

 

Salem Permit Application Center | 503-588-6256

555 Liberty Street SE, Room 320

Salem, OR 97301

 

Eugene Building and Permitting Services | 541-682-5379

99 10th Ave West, Suite 240

Eugene, OR 97401

 

City of Medford Finance Department | 541-774-2030

411 W 8th St

Medford, OR 97501

 

To check county-level business license requirements, contact your county administrative offices. The county planning department or county commissioner's office is a good first contact.

 

Make sure they zone the location you choose for your business activity. Other factors to consider include regulations on commercial signs and on-site parking.

 

If you intend to work in a home business, decide if there are limitations on home businesses in your general neighborhood. Your local city or county planning office can provide this information.

 

How much does it cost to start a business in Oregon?

 

Having the idea of ​​starting a business in Oregon is already a big project.

 

However, before your business can officially take off, you'll need to do a bit of speculation.

 

Also, we do not plan to rent offices or only pay workers. Before selling a solitary item, there are start-up costs associated with starting an LLC in Oregon.

 

Be sure to consider each of the potential expenses involved with starting an LLC. To help you, we've compiled Oregon's most well-known start-up costs here.

 

Minimum Cost to Start an LLC in Oregon

 

Option : LLC Name Reservation Fee

 

$50 for online or paper submissions

Optional:  LLC training service

 

$39 for an LLC service like ZenBusiness and $99 for LegalZoom

Required : Statutes Organization Fee

 

$100 for online or paper submissions

Lawyer's fees are also to be taken into account. A few lawyers offer free lectures (normally 30 hours) but will charge continuously thereafter.

 

All things considered, business lawyers charge between $150 and $350 per hour. Some will offer a flat fee for setting up an LLC, which can range from $500 to -$2000.

 

Varieties of costs depend on the experience and area of ​​legal counsel.

 

Despite the fact that there are a ton of qualified and experienced business legal advisors out there, you just need to choose one.

 

When deciding on this intense choice, check out a site like Avvo , which provides access to a database of Oregon attorneys, so you can research, analyze, differentiate, and research the best fit for your LLC.

 

How to Start a Business in Oregon

 

Starting a business in Oregon is easy. All you have to do is file a form with the Oregon Secretary of State and start running our business.

 

However, starting a business takes research, self-confidence and determination. And you get there if you don't have the right information, you have to start.

 

This page of this article re-evaluates the right approach to building the business of your dreams.

 

We've compiled the essential steps for starting a business, including how to create a business plan, how to get financing, structure and name your business, and more.

 

What do you need to start a business in Oregon?

 

#1. Choose a business idea

 

Set aside efforts to investigate and explore ideas for your business.

 

At this point, think about your own advantages, abilities, strengths, accessibility, and why you need to start a business.

 

You should also consider the likelihood of progress based on the interests and needs of your area.

 

After selecting an idea, consider writing a business plan to assess your chances of benefiting from it.

 

By the time you make a plan, you'll have a clearer idea of ​​start-up costs, your opposition, and procedures for making money with your business.

 

Normally, investors and lenders will request an audit of your strategy before granting financial assistance.

 

#2. Select a name

 

For LLCs and corporations, you must ensure that your name is different from the names of other business items actually on the document with the Oregon Secretary of State (SOS).

 

You can check accessible names by doing a business name search on the SOS site. There are certain name requirements for LLCs and partnerships (such as including a word, for example, "LLC" for LLCs or "Organization" for corporations).

 

Sole proprietorships and partnerships in Oregon must register an accepted name with the Oregon SOS if they use a business name unique to the name of the entrepreneur (for sole proprietorship) or individual accomplices (for an organization).

 

To document, you can use the SOS Oregon Business Registry.

 

If you plan to work on an online business, you may need to register your business name as a domain name.

 

Additionally, to maintain a strategic distance from brand encroachment issues, you should perform government and state brand verification to ensure that the name you are to use is not equivalent or excessively similar to a name actually used.

 

Check-out: What is a trade name for a company? Registration, Procedures

 

#3. Choose a commercial location and check the zoning

 

You will need to choose a domain for your business and check the writing guidelines nearby.

 

Before you zero in on one area, try to calculate the expenses of keeping your business in the ideal location, including rent and utilities.

You can refer to your strategy to assess whether you can afford the cost of your sweet spot for the first few months of your organization.

 

Confirm that the location is zoned for your type of business. You can discover drafting guidelines for your city by checking your local laws and contacting your city's drafting or organizing division.

 

One option that presents itself as an alternative to starting your business in another region is to run your business from your home.

 

If you choose to run a business from home, double check your local zoning laws.

 

#4. Create a business plan

 

A business plan can make or break a small business. A solid, detailed plan provides a clear roadmap for the future, forces you to think about the validity of a business idea, and can give you a better understanding of business financing and competition.

 

A business plan typically spans three to five years, detailing all of your goals and how you plan to achieve them.

 

If you are applying for a loan or looking for investors, a business plan shows that you are ready and that you have fully validated your business idea.

 

If you don't have a financial forecast that's part of the business plan, it's very difficult to show the bank how you're going to repay the loan.

 

#4. Settling on a legal structure

 

The most widely recognized legitimate constructs for a private enterprise are:

 

sole proprietorship

partnership

limited liability company (SARL) and

corporation.

 

There are also uncommon variations of some of these constructs, such as restricted associations and S corporations.

 

You will need to determine which business entity structure offers the type of liability protection you need and the best tax, financial, and financial advantages for you and your business.

 

#5. Select your business entity

 

Sole proprietorship: To form a sole proprietorship in Oregon, you do not need to register hierarchical records with the state.

 

Partnership: To establish a comprehensive partnership in Oregon, you do not need to register authoritative records with the state.

 

Although not legally required, all partnerships must have a written partnership agreement.

 

The association agreement can be useful if ever there is a question between the accomplices. To form a limited liability company (frequently used by surveyors), you must apply for registration with Oregon SOS.

 

LLC: To create an LLC in Oregon, you must document the Articles of Organization with the Oregon SOS. You will also need to select an Oregon enlisted specialist to administer the cycle.

 

Additionally, although not legally required, you must also establish a Working Consent to set out the basic guidelines for how your LLC operates.

 

The work arrangement is not saved with the report.

 

Corporations: To form a corporation in Oregon, you must file articles of incorporation with Oregon SOS.

 

You will also need to appoint a registered Oregon specialist to administer the interaction.

 

Although not required by law, you should also prepare bylaws to establish your company's internal operating rules. Regulations are not filed with the state.

 

#6. Apply for licenses and permits

 

Tax Registration: If you have workers in Oregon, you must register with the Department of Revenue (DOR) for a state payroll account with respect to paying employer withholding . You can register online through the Oregon Business Registry.

 

EIN: If your business has representatives or is taxed independently of you, you must obtain a government Employer Identification Number (EIN) from the IRS.

 

Whether you don't need to acquire an EIN or not, there are regularly commercial explanations behind doing so.

 

Banks routinely require an EIN to open a file on behalf of the business, and different organizations you work with may require an EIN to handle remittances.

 

You can obtain an EIN by completing an online application. There are no documentation fees.

 

Regulatory licenses and permits: these cover areas, for example;

 

health and safety

the environment

building and construction; and

particular sectors or services.

Vocational and professional licenses: These cover people who work in different fields. Besides the locales referenced only above for administrative licensing, you can also check the licensing portion of the state site for some data regarding relevant licensing.

 

#7. Subscribe to an insurance

 

Business insurance can protect your organization and your own resources against the consequences of unforeseen calamities, such as personal injury claims or common disasters.

 

An insurance specialist can help you investigate the various alternatives for inclusion, for example, general liability protection to protect your business against claims identifying injury or significant property damage.

 

To learn more, check out this article, What Types of Insurance Does Your Small Business Need ?

 

#8. Open a business bank account

 

Regardless of the type of business you are structuring, you should consider creating a different business record to make it easier to track your salary and costs.

 

For certain types of businesses, such as LLCs and corporations, a different financial balance is important to maintain your liability insurance.

 

To learn more, see Opening a business bank account.

 

final thought

 

Before starting a business in Oregon, it is important that you follow these steps here. This ultimate guide is a track that will lead you to run your business without a hitch.

 

References

 

mentalfloss.com - 25 Gorgeous Facts About Oregon

forafinancial.com - Why You Should Start a Business in Oregon

forbes.com - Portland, Oregon, Leads Best Places for Business and Careers

sos.oregon.gov – State Licensing Requirements – Business Information Center

nolo.com – How to Start a Business in Oregon