A common business structure, particularly for small enterprises, is the sole proprietorship. However, many business owners ponder if they must file a sole proprietorship registration with the state of Oregon. Generally speaking, no, but there are a few exceptions.
In Oregon, sole proprietors are exempt from having to register their company with the government. Sole proprietorships are exempt from submitting formation paperwork to the Oregon Secretary of State’s office, unlike corporations or LLCs. However, the sole proprietor must register that name with the state if they are conducting business under a name other than their own. A “doing business as” registration, sometimes known as a DBA, is what this is.
You might also need to apply for a business license if you are a lone owner in Portland, Oregon. All companies operating inside the boundaries of the City of Portland are required to hold a business license. All sole proprietors fall under this. In Portland, obtaining a business license is a rather simple process. Online and in-person applications for licenses are both accepted at the Revenue Division office. Depending on the type of business and revenue, the license price varies.
It is crucial to remember that although though sole proprietors are exempt from state registration requirements, they must still abide by other rules and laws. For instance, they have to pay state taxes and apply for a state tax ID number. They must also abide by the land use and zoning regulations in the area. Additionally, the sole proprietor must abide by all local, state, and federal employment rules if they recruit staff.
In conclusion, sole proprietors in Oregon are exempt from state registration requirements, but if they are using a name other than their own, they may need to file for a DBA name. Portland, Oregon requires sole owners to apply for a business license with the city. It is crucial to abide by all other applicable laws and regulations, such as those governing employment and taxation. When in doubt, it is best to seek advice from a lawyer or accountant.