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Choose a Business Structure

While there are many different business organization structures you may choose for your business, this guide will focus primarily on the five most common types used in Oregon - Sole Proprietor, General Partnership, Limited Liability Company, Business Corporation, and Nonprofit Corporation.

Ownership, liability, management control, and taxation are just a few of the primary considerations when selecting a business organization structure. Each type has its own advantages and disadvantages. If you have questions on which form is best for your particular situation, please consider consulting:

  • An attorney;
  • A certified public accountant;
  • One of Oregon’s Small Business Development Centers;
  • If business is in a regulated industry, contact the appropriate State licensing or regulatory agency.


One of the primary considerations in selecting an organizational structure for a business is protection of a business owner from liability. Other considerations are the transferability of ownership rights, the ability to continue as a business in the event of the death or withdrawal of one or more of the owners, the capital needs of the business, and tax liabilities.



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