Business Xpress Startup Toolkit Step 1 - Name & Structure

Summary

The Oregon Secretary of State's Start a Business video series guides entrepreneurs through the initial steps of business formation in Oregon. It emphasizes the importance of selecting a unique business name using the provided search tool and choosing an appropriate legal structure such as sole proprietorship, partnership, LLC, or corporation. The video also highlights the benefits of LLCs and corporations in terms of asset protection and the simplicity of sole proprietorships and partnerships. It suggests consulting an attorney for personalized business structuring advice.

Takeaways

• 📝 The video series is a guide for starting a business in Oregon, complementing the Business Xpress Startup Toolkit.
• 🔍 The first step is to choose a business name and structure, ensuring the name’s availability through an online search tool.
• 🚫 If the desired business name is taken or conflicts exist, the system will notify the user to try a different name.
• 📜 A business name must be distinguishable according to Oregon administrative rules.
• 🏢 Understanding different legal structures is crucial for making an informed decision on what is best for the business.
• 👤 Sole proprietorships and general partnerships are simpler forms with personal liability.
• 🔒 Limited liability companies (LLCs) and corporations offer asset protection, with business assets at risk before personal assets.
• 📑 Both LLCs and corporations can register an assumed business name or DBA, which is a fictitious business name.
• 🤝 LLCs are organized with member or owner interest, while corporations are owned by shareholders.
• 👩‍⚖️ For those unsure about the business structure, consulting an attorney for organization advice is recommended.
• 📚 The video encourages viewers to watch more Start a Business videos for additional information.

Q & A

What is the purpose of the Start a Business video series produced by the Oregon Secretary of State Corporation Division?

The video series is designed to guide individuals starting a business in Oregon through the steps involved and to complement the Business Xpress Startup Toolkit found online.

What is the first step in starting a business according to the video?

The first step is to choose a name and structure for the business.

How can one ensure that the chosen business name is not already taken in Oregon?

Use the business name search tool and click the 'Business Name Availability Check' radio button, then type the desired name and click search.

What does the system do if the business name is not available or there's a conflict?

The system will notify the user, and they should go back and type in a different name to check for availability.

What criteria must a business name meet according to Oregon administrative rule?

A business name must be distinguishable on the record as defined in Oregon administrative rule.

What are some common legal structures for businesses in Oregon?

Some common legal entities include sole proprietorships, general partnerships, limited liability companies (LLCs), and corporations.

What is an assumed business name, also known as a DBA or fictitious business name?

An assumed business name or DBA is a name under which a business operates that is different from its legal name and can be registered by any type of business.

What structural layer of asset protection do LLCs and corporations offer to business owners and principals?

LLCs and corporations offer a structural layer of asset protection where the assets of the LLC are at risk before the personal assets of its members or managers in case the business is sued.

What are the characteristics of a sole proprietorship or general partnership?

Sole proprietorships and general partnerships are the simplest forms of business where one or more individuals conduct all aspects of the business and personally take on all associated liability.

How are LLCs organized in terms of member or owner interest?

LLCs are organized through the interest of members or owners in the organization, which influences the management and operations of the LLC.

What is the relationship between shareholders and the structure of a corporation?

In a corporation, the business is owned by shareholders who act as a single entity, and there may be a board of directors, a president, and other officers or principals to manage the business.

What advice does the video give to someone unsure about which business entity to choose?

The video suggests talking to an attorney for guidance on how to organize the business if one is unsure about the best entity to choose.

Outlines

00:00

📝 Starting a Business in Oregon: Introduction and Naming

This introductory paragraph sets the stage for the Start a Business video series by the Oregon Secretary of State Corporation Division. It emphasizes the importance of choosing a unique business name and structure for those looking to start a business in Oregon. The video series is designed to guide viewers through the process, complementing the Business Xpress Startup Toolkit. The paragraph instructs viewers to use the business name search tool to ensure their desired business name is available, and explains the process of checking for conflicts and selecting an alternative if necessary. It also touches on the necessity of a distinguishable business name as per Oregon administrative rule.

Keywords

💡Business Name

A 'Business Name' is the title under which a company operates and is known to the public. It is crucial for branding and legal identification. In the video, it is the first step to starting a business in Oregon, where the script instructs viewers to use a business name search tool to ensure the chosen name is not already taken, highlighting its importance in the business registration process.

💡Business Name Availability Check

This refers to the process of verifying whether a proposed business name is already in use or not. The video script instructs viewers to click a radio button for a 'Business Name Availability Check' and type their desired name into a search field to find out if it's available. It is a critical step to avoid conflicts with existing businesses.

💡Legal Structure

The 'Legal Structure' of a business refers to the organizational framework that defines its ownership, operations, and legal liabilities. The video emphasizes the importance of understanding different structures like sole proprietorships, partnerships, LLCs, and corporations, and choosing the one that best fits the business's needs.

💡Sole Proprietorship

A 'Sole Proprietorship' is a type of business owned and run by one individual who is personally responsible for all aspects and liabilities of the business. The script mentions it as one of the common legal entities in Oregon, illustrating the simplicity of this structure where one person is in complete control.

💡General Partnership

A 'General Partnership' is a business structure where two or more individuals share ownership and control, and are equally liable for the business's debts and obligations. The video script includes it among the common legal entities, indicating a shared responsibility model in business operations.

💡Limited Liability Company (LLC)

An 'LLC' is a legal form of business organization that combines the pass-through taxation of a partnership with the limited liability of a corporation. The script explains that in the event of a lawsuit, the assets of the LLC are at risk before the personal assets of its members, providing a protective layer for business owners.

💡Corporation

A 'Corporation' is a legal entity owned by shareholders, which is considered as a separate entity from its owners. The video script describes corporations as businesses with a board of directors and officers, highlighting the separation between the business and personal assets of the individuals involved.

💡Assumed Business Name

An 'Assumed Business Name', also known as a 'DBA' or 'Doing Business As', is a name under which a business operates that is different from its legal name. The script mentions that all types of businesses in Oregon may register an assumed name, allowing for flexibility in how a business is presented to the public.

💡Asset Protection

'Asset Protection' refers to the safeguarding of a business's or individual's assets from potential liabilities. The video script explains that LLCs and corporations offer structural layers of asset protection, which is significant for business owners to protect their personal assets from business-related lawsuits.

💡Oregon Administrative Rule

The 'Oregon Administrative Rule' is a set of regulations governing business operations within the state of Oregon. The script specifies that a business name must be distinguishable according to these rules, underlining the legal requirements for business naming in Oregon.

💡Business Xpress Startup Toolkit

The 'Business Xpress Startup Toolkit' is an online resource mentioned in the video script designed to supplement the information provided in the video series. It is intended to assist individuals in the process of starting a business, offering additional tools and guidance beyond what is covered in the video.

Highlights

Introduction to the Start a Business video series by the Oregon Secretary of State Corporation Division.

The series is designed to guide individuals through the process of starting a business in Oregon.

The importance of choosing a business name and structure as the first step.

Using the business name search tool to check for name availability.

Instructions on how to perform a business name availability check.

The system will notify if the chosen business name is not available or conflicts with existing names.

The necessity of a business name being distinguishable as per Oregon administrative rule.

The process of selecting a legal structure for the business.

Education on different legal structures to make an informed decision.

Overview of common legal entities and their features in Oregon.

The option to register an assumed business name or DBA for all business types.

Asset protection offered by LLCs and corporations in case of lawsuits.

The simplicity and personal liability associated with sole proprietorships and general partnerships.

LLCs are organized based on member or owner interest in the organization.

Corporations are owned by shareholders and may have a board of directors and officers.

The responsibility of the business owner to decide on the business structure.

Recommendation to consult an attorney for guidance on business organization.

Closing remarks and invitation to watch more Start a Business videos for further information.

Transcripts

Welcome to the Start a Business video series produced by the Oregon Secretary of State Corporation Division.

This video series is designed to help those starting a business in Oregon understand the steps involved, and

supplements the Business Xpress Startup Toolkit found online.

The first step in starting a business is to choose a name and structure.

Most people starting a business already have an idea about what they want to call their business.

To make sure that the name you selected isn't already taken, use the business name search tool.

Click the radio button that says "Business Name Availability Check",

type your name in the business name field and click search.

If your name is not available or there's a conflict, the system will tell you so.

Go back,

type in a different name,

and click the "Search for a Business Name" button,

and you can see the system will tell you if the name appears to be available.

They'll make that final determination about whether your name is available at the time you register.

A business name must be

distinguishable on the record as defined in Oregon administrative rule.

When it comes to choosing a legal structure,

it's best to educate yourself about each of the structures and make a decision

about what works best for you and your business.

Some of the most common legal entities are shown here with select features displayed.

The most common choices for businesses in Oregon are sole proprietorships

and general partnerships, limited liability companies, and corporations.

Any of these types of businesses may also register an assumed business name,

which is also called a DBA or a fictitious business name.

LLCs and corporations offer a structural layer of asset protection for business owners and principals in

that should the business be sued, the assets of the LLC are at stake before the personal assets of the LLC's

members or managers.

Assumed business names or DBAs,

sole proprietors, and general partnerships are the simplest form of business in which one or more

individuals conduct all aspects of the business and

personally take on all associated liability.

LLCs are organized through member or owner interest in the organization.

Corporations are businesses owned by shareholders who act as a single entity

even though there may be a board of directors, a president and other officers or principals.

As the business owner only you can make the decision about how you want your business structured.

If you aren't sure which entity to go with, consider talking to an attorney about how to organize your business.

Thanks for watching, and check out our other Start a Business videos for more information