2024 Legislative Session Adjourns
The Oregon Legislative Assembly adjourned on March 7. Each year, when the state legislature convenes, the Office of Small Business Assistance tracks bills pertaining to a variety of issues relevant to small business: occupational and professional licensing; employment and labor law; business and withholding taxes; industry regulations; public contracting and procurement; administrative rulemaking; and good government (namely, public meetings and public records laws).
During this year’s short legislative session that spanned five weeks, we tracked 34 bills affecting small business. The legislature passed 15 of those bills. Based on the types of questions our office receives, and the kinds of small businesses that often turn to us for help, we want to call attention to three new laws enacted this year:
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House Bill (HB) 4006: Requires state agencies to accept surety bonds from contractors who perform construction work for the state, instead of holding onto some of the money the agencies owe for the work, to make sure the work is done correctly.
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HB 4004: Increases the civil penalties for violating laws that govern the employment of minors.
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Senate Bill (SB) 1580: Makes it a Class A misdemeanor if an employer knowingly submits a false payroll report to decrease the employer’s workers’ compensation premium.
Step-by-Step Guide to Starting a Nonprofit in Oregon
By Rob Routhieaux, IMPACT Beaverton
Edited for statewide use by Trevor Leahy, Office of Small Business Assistance
- Choose a name for your nonprofit – Conduct a name search at Secretary of State and via online search engine to make sure name is unique to your organization (be sure to search locally and nationally)
- Register your domain name as a nonprofit (.org)
- Create your initial Board of Directors (minimum of 2, preferably 3)
- File your Articles of Incorporation for a Nonprofit Corporation with the Secretary of State
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Obtain an Employer Identification Number (EIN) from the IRS
- Draft your initial bylaws, outlining key governance and decision making
- Host initial Board meeting to clarify financial controls and authority
- Open a bank account for the nonprofit (need steps 5, 6, and 7 to do so)
- Choose the location for your business – check with zoning laws as needed
- Obtain a local business license from your city or county – check with the city if you’re within city limits or the county if you’re outside city limits
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Create an initial website for your business – and a Google Business Profile
- Decide how you will get payment for goods and services (merchant processing) and how you will track donations and transactions (CRM system)
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Complete the Combined Employer’s Registration Form (registers for employment taxes at Federal, State, and Local levels). This will establish your Oregon Business Identification Number (BIN).
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Familiarize yourself with Payroll and Withholding Tax obligations
- Interview and select a payroll processing service / platform (if desired)
- Purchase all necessary insurance – including workers' compensation, liability, and business asset protection
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Obtain any final permits or licenses needed to operate your nonprofit – you can search for these through the Oregon Business Xpress License Directory
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Decide between Fiscal Sponsorship or 501(c)(3) designation, or another type of tax exemption
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If applicable, register your charity with the Oregon Department of Justice Charitable Activities Section
- Open your organization and start serving the community!
NOTE: For some, starting out with a Fiscal Sponsor is the easiest way to begin. Over time, most nonprofits will benefit from getting designation with the IRS as a charitable 501(c)(3) organization.
Remember: operating a nonprofit requires levels of transparency and disclosure. Study the Oregon Revised Statutes (ORS) chapter 65 to learn about the general provisions and requirements for nonprofits in Oregon.
Still need more information about what it takes to launch a nonprofit? The Nonprofit Association of Oregon (NAO) offers self-guided tools for starting a nonprofit.
Oregon Resale Certificate
The Office of Small Business Assistance frequently hears from customers who want to know how to get a seller’s permit in Oregon. It’s important to know that Oregon doesn’t issue a seller’s permit. Instead, the state provides the Oregon Business Registry Resale Certificate, which is available from the Oregon Department of Revenue.
A seller may require this certificate when you buy wholesale items from out of state to resell in Oregon. Keep in mind that the seller may not always accept the certificate and might ask for additional information or have other requirements.
The Oregon Business Registry Resale Certificate is free and can be found on the Department of Revenue website. Once you’ve completed the form, just present it to the seller. You don’t need to return it to the Department of Revenue or any other government agency.
OSBA Quarterly Report
The Office of Small Business Assistance worked with 460 customers in the first quarter of 2024.
406 of those customers were seeking information, and 22 had complaints. The complaints involved 12 agencies or units of local government.
Notable agencies our customers contacted us about included: the Secretary of State’s Corporation Division, the Department of Revenue, the Construction Contractors Board, and 25 cases involving the US Department of Treasury (due to the implementation of the Corporate Transparency Act).
78 customers contacted us about starting a business, and 12 contacted us about closing or selling a business.
So far this year, OSBA staff have attended 22 outreach events in 5 counties.
We look forward to including additional data about the work we do in future issues of Minding Your Business, and welcome feedback and questions about our work.
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