Business Entity Formation
There are many types of entities and not every business requires an entity. We work with our clients to find the right level or protection and plan for the future.
LLC: Limited Liability Companies
Limited liability companies, or LLCs, are a common entity choice for many local businesses. A limited liability company may be taxed as a sole proprietorship, a partnership (if more than one owner), or as a corporation (if desired by its members). LLCs provide the owner with liability protection, but only if the company is operated in strict compliance with Oregon law. We work with our clients to draft the LLC’s operating agreement, which governs how the LLC is operated and managed. The operating agreement is critical in setting clear expectations and instructions for the operation of the business and is invaluable when a member wishes to transfer its ownership or if a dispute ever arises.
Corporations
A corporation is an entity that provides the shareholders of the company with liability protection. In Oregon, corporations must follow certain formalities, such as establishing a board of directors and holding annual meetings. If a corporation fails to follow these legal requirements, the owners may not have liability protection from lawsuits or creditors. We help our clients ensure they have a solid legal foundation for their corporations so that the owners can focus on the business itself.