The "How to Open a Business in Sandy" Guide Step 1
Economic Development Dept: (503) 489-2159 • Planning Dept: (503) 489-2160
Step 1 – What to Do Before Coming to the City
Your business will have the best chance to succeed if you do your homework prior to renting a commercial storefront. Hours spent studying your proposed business idea can save you money in the long run and can give you the proper information to avoid unsound business decisions. We recommend taking the following steps prior to looking for a home for your business.
Create a Business Plan
A business plan serves two primary purposes: it helps a business owner analyze whether or not their great idea can bring in more revenue than it costs to produce, and it explains the business idea in great detail to potential investors or commercial lending institutions (like banks, for instance).
For more information on business plans including locally available resources, click here.
Developing a projected budget allows you to demonstrate your business’ potential profitability to potential lenders or investors. If you plan on taking out a business loan to get started, be aware that a commercial lender will almost certainly want to see your startup budget before loaning you any money.
Most business schools and small business advisers recommend that you put together a projected budget for the first two to five years of your operation, and the farther you can project out, the better. But at an absolute minimum, we suggest a projected budget for your first year so you can measure your startup costs against your projected revenues.
Make sure you’re properly capitalized
Many businesses take out small business loans from banks, credit unions, or other commercial lending institutions to get themselves off of the ground. A general rule of thumb here is to make sure that you have enough operating capital on hand to run your business comfortably for a year assuming you make $0 in your first year.
For more information on commercial lenders available in Sandy, click here.
Register your business with the feds and the state
Registering your business with the federal government and the state of Oregon is required by law. Complete the following tasks:
--> Choose a business organizational structure (i.e. S-Corporation, C-Corporation, Limited Liability Company, Sole Proprietorship, etc.) – The choice you make here can have an impact on multiple aspects of your business, including taxes, liability, ownership succession, and others. For basic information on different business forms, go to the U.S. Small Business Administration's "Choose Your Business Structure" page. We recommend that you consult both legal counsel and an accountant before deciding the type of business entity to form.
--> Check to see if your desired business name is available on the Oregon Business Registry – Go to the Oregon Secretary of State's Business Registry Database webpage and see if your desired business name is registered with the state of Oregon. If it is, you’ll need to choose another name.
--> Register your business with the State of Oregon – Go to the Oregon Secretary of State's "Register, Renew or Reinstate a Business" webpage and register your business with the State of Oregon. This will provide you with an Oregon Tax Identification Number for your business.
--> Register your business with the federal government –Go to http://www.irs.gov/uac/Form-SS-4,-Application-for-Employer-Identification-Number-(EIN). This will provide you with an Employer Identification Number for your business.