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A Bureau of Economic Analysis report revealed that the economic growth of Oregon has risen rapidly during the 4th quarter of 2017 and as a result of which the gross domestic product (GDP) grew by 3.7 percent. The industry leading the list of driving factors for economic growth is durable goods manufacturing while the top private sector industries are manufacturing including advanced materials manufacturing, Software and Computer Systems Design, Commercial fisheries, forestry and wood products, and tourism. What industry would you choose for incorporation in Oregon?

Why Choose Oregon for Incorporation?

The Real Gross Domestic Product (GDP) of the “Beaver State” was $212.57 billion in 2017 as compared to $198.3 billion in 2010. There are several sectors contributing to the overall economy although the primary resource centers are still timber, fishing, and agriculture. One of the reasons why a large number of company incorporation in Oregon take place is because of the advantages or benefits both small and medium sized businesses derive.

Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:

• Standard Enterprise Zone Program: The primary aim of the enterprise zones (EZ) is to offer a unique opportunity to small and medium sized enterprises by ensuring promotion of steady growth and expansion. If you set up a company in Oregon enterprise zone, your business will be exempt from local property taxes on new investments. Depending on the specific zone your business is located in, you can derive full exemption from property taxes for a period of three to five years. There are local incentives available in different zones for qualifying businesses. There are also currently 72 enterprise zones in the state. Map of EZ
• Access to Capital: What is the most important thing required by every business especially to ensure proper functioning and operations and post company incorporation in Oregon? It is funds and the state provides several business finance programs that your business can benefit from. Some of the important programs include:
  – Oregon Business Development Fund (OBDF)
  – Small Business Expansion Loan Fund (SBELF)
  – Entrepreneurial Development Loan Fund (EDLF)
  – Credit Enhancement Fund (CEF)
  – Capital Access Program (CAP)
  – Industrial Development Bonds (IDB)

How do you incorporate in Oregon?

What is the process of incorporation in Oregon? What type of documentation is required? These are some of the common questions that you will be confronted with if you are planning to start a new business in the state. The following steps will enable understanding of the entire process:

Business Type

The first step towards incorporation in Oregon is choosing the type of business you want to form. The different types of business structures that you can form in the Beaver State include Business Corporation (C & S Corporation), Professional Corporation, Limited Liability Company (LLC), Limited Partnership (LP), Limited Liability Partnership (LLP), Business Trusts, and Co-operative Corporation among others.

The type of business entity you want to form can either be domestic or foreign. The forms and fee will be different for each type of entity.

Company name

What is the next step towards company incorporation in Oregon? The next step is to identify and reserve a name and this can be done as follows:

1. Naming Requirements: According to 2017 ORS 63.094 for LLC and 2017 ORS 60.094 for corporation, a business name should contain the words “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.”, ”Ltd., ” or similar abbreviation.
2. Business name search: You need to search for a business name that is not in use currently. You can conduct name availability search here.
3. Name Reservation: Once you have identified a business entity name, you can reserve the name pursuant to 2017 ORS 63.097 for LLC and 2017 ORS 60.097 for private corporations. You can reserve the name for a period of 120 days with the office of the Oregon Secretary of State Corporation Division.

Choose a Registered Agent

Whether you form a corporation or an LLC business entity, in order to transact business in the state of Oregon, you will have to maintain a registered agent pursuant to 2017 ORS 63.111 for LLC and 2017 ORS 60.111 for corporations.

We are one of the respected registered agents in Oregon and will be responsible for initiating incorporation in Oregon through processing of your Articles of Organization and Application for Authority for LLCs and Articles of Incorporation and Application for Authority for business corporations.

Articles of Incorporation and Application for Authority

You will be required to file “Articles of Incorporation” pursuant to 2017 ORS 60.047, if your business is a domestic corporation. You will have to file an “Application for Authority” pursuant to 2017 ORS 60.707, if it is a foreign business entity. In order to streamline the process of incorporation in Oregon, we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in Oregon, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with Oregon Incorporation

What would it cost to set up company in Oregon? Check Fees here!

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One of the important aspects of Oregon’s economy is that it is driven by various traded sector industry categories or clusters. There are 5 major categories or clusters and they are Natural Resource Industries, High Tech Industries, Active wear and Outdoor Gear Industries, Advanced Manufacturing Industries, and Green/Clean Technology Industries. You can form an Oregon business in any of these industry clusters to enjoy maximum growth and industry benefits. Some of the companies based in Oregon include Daimler Trucks North America, The Greenbrier Companies, Lithia Motors, Columbia Sportswear, Mentor Graphics, Tektronix, and NORPAC Foods among others.

How can you form an LLC business or Corporation in Oregon? We as one of the top Oregon registered agents can assist you with the successful registration of your business entity in this state.

Oregon LLC Registration and Formation

LLC company formation in Oregon is governed by 2017 Oregon Revised Statutes, Chapter 63 Limited Liability Companies Act. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

If you are planning to form a Limited Liability Company in Oregon then you will be required to continuously maintain a registered agent in the state pursuant to 2017 Oregon Revised Statutes 63.111. This law is applicable to domestic limited liability companies as well as foreign limited liability companies.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Oregon. We can assist you to form an LLC business in Oregon.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in Oregon is identifying a name for your business entity. The process is as follows:

1. Identify a unique name for your business entity
2. According to 2017 ORS 63.094, the name should contain the phrase or words “limited liability Company” or the abbreviations “L.L.C.”, or “LLC”.
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
4. Apply for reservation of name pursuant to the provisions of 2017 ORS 63.097
5. Submit the form through mail or online with the Office of the Secretary of State of Oregon along with the applicable fee. An LLC can reserve its name for a period of 120 days.

Step#3: Articles of Organization and Application for Authority

If you are planning to form an Oregon business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will be required to file “Articles of Organization” governed by 2017 Oregon Revised Statutes 63.047.
• If your business entity is a foreign LLC then you will be required to file “Application for Authority” for a Foreign Limited Liability Company pursuant to 2017 ORS 63.707.
• The Articles of Organization and Application for Authority for domestic and foreign LLC can be filed with the Secretary of State – Corporation Division, through mail or by hand.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form an Oregon business, feel free to call us on 702-871-8678.

Oregon Corporation Registration and Formation

If you are planning to form a Corporation in Oregon then the procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

If you are planning to form a business or professional corporation in Oregon then you will be required to continuously maintain a registered agent in the state pursuant to 2017 Oregon Revised Statutes 60.111. This law is applicable to domestic as well as foreign corporations.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Oregon. We can assist you to form a business in Oregon as we are in compliance with all regulations in the State of Oregon.

Step#2: Corporate Name Reservation

In order to form a corporation in Oregon, one of the key steps is identifying a name for your business entity. The process is as follows:

1. Identify a name for your business entity
2. According to 2017 Oregon Revised Statutes 60.094, a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or any other corporation
4. Apply for reservation of name pursuant to 2017 Oregon Revised Statutes 60.097.
5. Submit the form through mail with the Secretary of State of Oregon along with the applicable fee. A business corporation can reserve its name for a period of 120 days.

Step#3: Articles of Incorporation and Application for Authority

If you are planning to form a corporation in Oregon, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:

• If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to 2017 Oregon Revised Statutes 60.047.
• If your business entity is a foreign corporation then you will be required to file an “Application for Authority” to transact business in the state pursuant to 2017 Oregon Revised Statutes § 60.707.
• The application or documentation for registration of a corporation can be filed with the Secretary of State – Corporation Division, through mail or by hand.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding Oregon incorporation or LLC formation, you can simply visit the Oregon Business formation page.

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The Beaver state as it is usually called requires every new business registering in Oregon to obtain a general business license from the state, city or county in order to become operational. It is also important to note that certain regulated industries and occupations require specialized licenses, and in some cases, permits and certifications. An exhaustive list of 1,100 specialized licenses, permits, and certifications are issued by the state. Some of the categories for which licenses or permits are issued by the state include:

• Agriculture
• Business
• Charitable organisations
• Education
• Environment
• Financial institutions
• Food/Beverage industries
• Health/Medical
• Professional/Occupational
• Recreational
• Safety
• Structures/Equipment

The different types company licenses or permits in Oregon are mostly issued by different state agencies.

How to Get a Business License in Oregon

Where and how do you apply for a business license in Oregon? Does your business fall under the “specialized licenses” category? Does your business entity require multiple permits or licenses? Who is the issuing authority for these licenses or permits? The only way to answer these questions is by understanding the process of business licensing.

Here is a step-by-step approach towards acquiring a business license in the state of Oregon:

Step#1: The Industry or Business Type

How would you know what type of business or professional license is required to operate in Oregon? The type of industry or the activities of a business entity helps in identifying the type of business license required. It is also important to note that some businesses will require only a permit and not a license.

Let’s take a look at some examples to understand this better:

Food Service Licenses

A business license in Oregon is issued by the state for different establishments covering temporary and permanent restaurants, limited service restaurants, bed & breakfasts, mobile units, warehouses, commissaries, and vending machines.

The license is being issued by Oregon Health Authority – Food, Pools and Lodging Health and Safety.

Those planning to set up a Bed & Breakfast will be required to obtain a B&B Tourist License.

The license is renewed every year on December 31.

License Application Form

Alcoholic Beverage

An Oregon company license is required for serving or storage of alcoholic beverage. These types of licenses are mostly annual or multi-year licenses. The fee is different for different categories. For example, the annual fee for a Brewery is $500 while that of Full On Premises-Sales is $400.

If you have a winery then you will require an Oregon Winery license and the fee is $250 but if you plan to sell and ship your wine to an Oregon retail licensee then you will require an additional permit, the fee for this is $100.

These licenses are issued by Oregon Liquor Control Commission.

Check the different types of license.

Debt Management Service Providers

This type of business requires the issuance of an Oregon company license, which is valid for debt settlement, credit repair, debt consolidation, and loan modification services, like education and counselling on how to get out of a debt. The fee is $350 and one has to obtain the license from the Division of Financial Regulation (DFR) – Financial Licenses.

Sample Application Form

Step#2: Licenses issued by City/County

It is important to know that business licenses in Oregon are not always issued by the state agencies; sometimes they are issued by the city or county. At the same time, it is not always that your business may require a license. Sometimes, it may simply require a permit. Let’s look at an example to understand this:

If you were to establish a business in the event and entertainment industry in Portland, OR, and are planning to organize “Special Events”, which are essentially events that are held in the street or on the sidewalk like parades, walks, marathon runs, or even bicycle races. In such a scenario, you will be required to obtain a permit issued under the City of Portland Oregon, Special Events Program. The permit fee is $25 and you can check a sample application here.

On the other hand, if you were to operate “Amusement Rides” as a part of events and entertainment, in Portland then you would have to apply for a “Temporary Business License”. This type of license would be issued by the Office of Management & Finance, Revenue Division – Portland, Oregon. Sample Application

Step#3: Issuance of a Business License

A business license in Oregon will be issued by different state agencies and all you have to do is complete the following process:

1. Identify the type of business or industry
2. Identify whether you need a license or a permit or both
3. Identify whether it will be issued by the state or the city or county

Once you have identified the above, all you need to do is either download the application online or contact the concerned state department or city of clerk office.

It is important to note that a business license or permit will have to be renewed annually unless specific dates have been mentioned, to keep the business operational.

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What is the most important factor to consider before setting up a start-up company Oregon? The business climate! Yes, the business climate is like an economic ecosystem, which consists of several drivers like business incentives, cost of doing business, availability of skilled work force, and transportation infrastructure and cost. Oregon is a state that offers a good business climate or a strong economic ecosystem that is aimed at supporting growth and expansion of businesses including small businesses and start-ups. The beaver state is not only home to a diverse manufacturing base but its innovation culture is also quite impressive. At 3.3%, Oregon provides businesses with the lowest effective tax rate amongst all states.

Drivers of Business Growth for Start-ups

In order to take advantage of this economic ecosystem, you need to register a new company in Oregon. You can form different types of companies although the most common are Limited Liability Companies and Corporations. Let’s take a look at some of the advantages of these two business entities:

Advantage#1: The benefits of Incorporation or LLC formation

C or S Corporation

• Oregon Corporation Tax Credits: If you register a new company in Oregon then you will be able to benefit from the variety of tax credits available and these include:
  – Agricultural workforce housing: There is a significant tax credit on loans taken for rehabilitation or construction of agricultural workforce housing in the state.
  – ​Business energy: This type of tax credit is applicable to business facilities that are being used for processing or using renewable energy resources that exceed the regulatory or industry standards by at least 10 percent.
  – Electronic commerce zone investment: This type of tax credit is available for a qualified startup company Oregon that is primarily engaged in e-commerce within an approved enterprise zone.
• Independent life: When you register a new business in Oregon as an S Corporation, it will enjoy an independent life. This means that the incapacitation or death of a stockholder will not have a negative impact on the business operations.
• Federal taxation: If you register a new company in Oregon as an S corporation then the corporation or firm will not pay any income tax. Instead, each shareholder or owners in the company will be liable to pay tax on their personal tax returns.

Limited Liability Company

• Oregon New Markets Tax Credit (NMTC): If you register a new business in Oregon then it can be eligible for several types of tax credits including the highly popular Oregon New Markets Tax Credit (NMTC). The program was earlier known as the “Oregon Low Income Community Jobs Initiative” and its main objective is to promote financial investments by businesses and create new jobs especially in low-income communities. As a part of the program, the tax credits can be realized over a period of seven years. The total tax credit is calculated as 39% of the total qualified investment. The tax credits are available as follows:
  0% in year 1 and 2
  7% in year 3
  8% in years 4, 5, 6 and 7
  NMTC-App-Packet
• Limited Liability: As an owner of a Oregon LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.
• Flexible Profit Distribution: A start-up company in Oregon which is also an LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.

Advantage#2: Oregon Business Incentives

Once you register a new company in Oregon, there are several business incentives and programs that your business entity can benefit from. Let’s take a look at some of the most popular programs:

• Oregon Business Expansion Program (BEP): A start-up company in Oregon as well as individuals can take advantage of the Oregon Business Expansion Program (BEP), which is basically a cash-based incentive program. This program is capitalized using state Lottery Funds. More information
• Oregon Electronic Commerce Zone: Some of the zones in Oregon’s 70 plus enterprise zones have received a special status directed at encouraging electronic commerce investments. One of the important benefits that a business can derive is “Local Property Tax Abatement”. Tax abatements are valid on newly installed personal property including movable equipment and machinery to be used for the purpose of electronic commerce. E-Commerce Designated Zones
• Oregon Investment Advantage: As a part of the “Oregon Investment Advantage Program”, a start-up company in Oregon can enjoy a tax holiday of up to 10 years. One of the requirements for qualifying in this program is enhance creation of a minimum of 5 new full-time jobs. More Information

Are there any Disadvantages of Incorporating in Oregon?

What disadvantages could possibly be there for a start-up company in Oregon? In reality there are none except a few that are common to different types of businesses. For example, the processing of incorporation documents can be time consuming and corporations would require more paperwork while LLC formation has the disadvantage of a limited life. These are small disadvantages compared to the many incentives the Beaver State has to offer.

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Business Information & Rankings

• Oregon ranked 9th in the nation for high-tech exports. (Cybertstates, 2005)
• Oregon ranked 16th both for the number of companies receiving venture capital and for the total dollar amount of venture capital invested. (Venture Economics, 2004)
• Oregon’s share of state and local revenue from individual income taxes is higher than in any other state. (U.S. Census Bureau, 2003)

Cost of living

Crime Rate

Oregon has the 43rd lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Exempt.

Corporate Income Tax
Oregon’s corporate tax structure consists of a flat rate of 6.6% on all corporate income.

Personal Income Tax
Oregon’s personal income tax system consists of three separate brackets with a top rate of 9% starting at an income level of $6,650.

Personal Property Tax
Property subject to taxation includes all privately-owned real property (land, buildings, and fixed machinery and equipment) and personal property used in a business. There is no property tax on household furnishings, personal belongings, automobiles, crops, orchards, or business inventories. Oregon does not tax intangible property such as stocks, bonds, or bank accounts.

State Sales and Use Tax
Base Rate: none
Machinery Rate: none

Unemployment Insurance
Oregon’s new employers’ rate is 3.2% for 3 years.