Business & Incorporation
Skilled Business Law Attorneys in Washington County
With many types of legal entities to choose from, and with so many risks involved with starting a business, it is important to consult a knowledgeable attorney who can guide you through the technical details and protect your interests. At Cornerstone Law Group, our Hillsboro business lawyers work closely with clients to learn more about their vision and long-term goals. There are many easy-to-overlook details in business ownership that can jeopardize the future of your company. Our job is to help you avoid these pitfalls and stay on track to create the business you envision.
What is Considered a Small Business in Oregon?
In Oregon, a business is considered small when it has less than 500 employees.
If you are starting a new business or need help with a legal-related business decision, contact us today at (503) 461-5005.
How do I Know Which Type of Business to Start?
One of the decisions you will have to make when growing your business is deciding what kind of company it is going to be. There should not be any mystery to selecting the right entity, and our goal is to make sure you understand why and how a particular business structure is the right one for you.
Your business entity can take many forms:
- Limited liability Company (LLC) – A popular choice for small business owners who don’t plan on raising investment money. This limits your liability for company debts or wrongdoing. Think of it as a combination of a partnership and corporation.
- Professional Corporation (PC) – A group of professionals in the same, or similar careers who create a business often form PCs. One of the benefits of this model is that it limits personal liability, and instead puts liability on the company, meaning the entity as a whole comes together to protect its members.
- “S” or “C” Corporations – Deciding between an “S” or “C” corporation will affect your taxes. In a C corporation, taxes are filed by the corporation as a whole. In an S corporation, the profits and losses of a business are “passed through” the business itself, and instead reported in the owners’ tax returns.
- Not-for-Profit – These types of businesses generate funds for the business or service itself, not the owners. This is a common model for hospitals and charity organizations whose primary goal is to serve the community.
How Long Does it Take to Form an LLC in Oregon?
In Oregon, it takes about 3 - 5 to file the articles of organization or about 24 hours online.
How are LLCs Taxed in Oregon?
In Oregon, LLCs are taxed by the following ways:
- LLC Owners are taxed through "pass-through" income
- Profits from the business must be reported to federal and Oregon personal tax returns, and that’s where you will pay those taxes.
These are just the basics of entity formation, and by no means the extent of your options. Our Washington County business law attorneys can give you a full assessment of the pros and cons of each entity formation based on the specifics of your company. We are there for our clients anytime they need help making a decision that will affect the future of their business.
We guide clients through the complexities of business formation and management. Call us at (503) 461-5005 to arrange an initial consultation.