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Why should you register your business name in Oregon?

On Behalf of | Jul 21, 2021 | Business Law |

You don’t need to register your business name to operate a business. However, there are a lot of good reasons to register your business name with the state and with the IRS.

What are some of the benefits to registering your business name?

Most small businesses that are owned by one person or operate more as a side hustle don’t need to register with the federal government. Businesses can even be considered their own legal entity as long as they have a federal tax ID.

Registering with the government can still have multiple benefits. The biggest benefit is protection from personal liability issues as well as other business law matters like legal and tax benefits.

Once your business is registered with your state or federal government, it’s treated as its own entity separate from you. This gives added protection for business owners if the business is ever sued or has to end.

When should you register with the federal government?

Businesses should look into getting a federal tax ID if they want to be considered their own legal entity. This gives business owners liability protection and allows the business to enter its own contracts.

Business that are looking to file trademarks just need to register with the United States Patent and Trademark office once the business has been formed. Nonprofits need to file with the IRS in order to be a tax-exempt agency.

When should you register with state agencies?

Your business will need to register with the state if it’s a limited liability company, corporation, partnership or nonprofit corporation. There are different rules that might impact when you should and how you can register your business in any given state. If you’re at all confused, reach out to a lawyer to work through the process.