Understanding tax obligations is important for any business. Step 5 of The Oregon Start a Business Guide explains this in detail. For help with business income taxes, you can go directly to the IRS and ​Oregon Department of Revenue.

As your business grows, a tax professional can be one of your most helpful advisors. They can look at your current situation and help you plan for how your taxes might change in the future.​

Changing your federal tax filing status with the IRS often requires no change in business entity type or your registration with Secretary of State. They are separate, and the Corporation Division cannot provide any tax advice.

One advantage of a Limited Liability Company (LLC), as a business entity type, is the options available for tax filing status with the IRS. Once established, an LLC’s change in tax filing status from “sole proprietor” to “partnership” with the IRS is a simple (free) update to the LLC registry to show more than one owner.

Likewise, an “S Corporation” is a tax filing status with some tax advantages as a business grows, but an LLC can elect “S-Corp” tax filing status without any change in the business registry with Secretary of State.  Ask your accountant or tax advisor, or go to the IRS page “When to get a new EIN​” for more information. ​