Starting a New Business in Oregon – Choice of Entity

When starting a new business in Oregon, it is important that you make an educated decision regarding choice of business entity. Basic options include the following:

  • Sole Proprietorship
  • Partnership
  • LLC
  • S Corporation
  • C Corporation

For many small businesses that are just starting out, a sole proprietorship or partnership may be the best option, particularly if the business is unlikely to be sued. Going this route may limit start up and administrative costs. As the business becomes more profitable, however, it often makes sense to convert to a LLC or S Corp, to take advantage of potential tax savings and partial protection from personal liability.

Many small business owners are uncertain whether to go the LLC or S Corp route. In general, a LLC offers greater flexibility and lower start up costs compared to a S Corp. On the other hand, a S Corp may offer greater tax savings and other benefits for some businesses.

When consulting with a business attorney, a business owner should make sure to ask for a clear estimate of costs and services being provided. My law firm has a growing Hillsboro business law practice that focuses on delivering cost-effective business law services to small business owners.


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