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Choosing an Entity in Oregon

Written by: Andrew N Harris

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Posted about 3 years ago. Applies to Oregon, 0 helpful votes, 0 comments

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Choosing Your Entity -- General Background

Choosing an entity should be one of the first decisions you’ll make when starting up your new business. It may seem easy to skip this step, and instead forge ahead as a sole proprietor, but this rarely makes sense. An entity protects your personal assets from your company’s creditors, and your company’s assets from your personal creditors. Moreover, creating an entity allows you to establish an independent credit history for your new business, and protect your new business’s property (including intellectual property). There are a handful of entities that exist, most of which are variations of partnerships or corporations; the other type is the LLC. There are corporate and tax advantages and disadvantages to each. These days the vast majority of new businesses choose to go with either a corporation or an LLC. I’ll mostly discuss those, but first I will touch on partnerships.