Six Steps to Sole Proprietorship in Oregon
Ready, Set, Start a Business
I recently started a second business. It’s amazing how much easier it is the second time around. I wish someone had shared this basic information with me when I started, so now I share it with you…in hopes that it will get you on the road to success as fast as possible. Following are 6 steps to get you going:
- Decide on a name.
- Search for name availability.
- Register as a DBA
- Get your EIN (federal tax number)
- Open business bank accounts
- Set up basic advertising
Decide on a name.
When deciding on a name it is ideal to put your business in the name (e.g. Jake the Plumber or Super Speedy SEO). It may not always be doable, attractive, or available but it’s super helpful for clients when they are trying to find you via the Internet.
Search the name for availability.
Of course a name does no good if someone else already has it. This is true for the Internet and for registering a DBA. So you’ll need to do a search of the state’s Business Registry Database http://egov.sos.state.or.us/br/pkg_web_name_srch_inq.login and for available URL/Domain names http://www.networksolutions.com/whois/index.jsp or http://instantdomainsearch.com/
Register the name for ‘Doing Business As’ (DBA): $50
Once you’ve got a name make it official with the State at http://www.filinginoregon.com/
Get your federal tax number (EIN)
Then make it official with the Federal government; get your Employer Identification Number (EIN). If you don’t have employees you can just use your social security number, however the EIN is important to have for many business activities.
http://www.irs.gov/businesses/small/article/0,,id=98350,00.html
Open business bank accounts.
I open 3 accounts to get started: 1) A checking account with a debit/credit card for business transactions, 2) A savings account to put taxes aside in, and 3) a credit card to build credit for the business and to make bigger purchases (both for protection and when I need something I don’t have assets for).
Set up basic advertising.
You’ll need to promote yourself so a website and business cards are key. If you want something special you can hire a graphic and/or web designer. This can take a lot of time and money, and it’s well worth it if you need it. However, if you just want to get up and running there are some basic resources.
Online is the easiest way for people to find you, no matter what you do, and websites are super easy to set up. For less than $100 per year you can get a website host (the company that puts it up on the net), a URL (domain name such as www.mywebsite.com) and a website wizard that lets you enter your important information into nice looking templates. I use www.GoDaddy.com and suggest shopping around.
In addition, business cards can be made easily with basic inexpensive online templates. Check out www.vistaprint.com for an example (not the cheapest, but effective and easy).
With these 6 steps you will be a legal business entity and you will be able to promote yourself so you can go out there and get busy. Once you’re able to start generating income it’s a good idea to fine tune your business and make sure you know all the little details (like the fact that you have to pay 5 different forms of tax in Portland Oregon; federal, state, city, county, and tri-county transportation). The little details can be found by going through the State’s Business Wizard. It’s super helpful and will keep you well informed.
http://www.filinginoregon.com/pages/business_registry/info_center/businesswizard.html
Enjoy your business.
