(800) 931-6557
(800) 931-6557
ASP
  • Home
  • Services
    • Accounting
    • Accounting FAQ
  • Recruiting
    • Services
    • Recruiting Team
    • Our Process
    • Recruiting Podcast
    • Top Candidates
    • Recruiting FAQ
  • Openings
  • Locations
    • Oregon >
      • Oregon Accounting
      • Oregon Bookkeeping
      • Oregon Team
    • Washington >
      • Washington Accounting
      • Washington Bookkeeping
      • Washington Team
    • Colorado >
      • Colorado Accounting
      • Colorado Bookkeeping
      • Colorado Team
    • Texas >
      • Texas Accounting
      • Texas Bookkeeping
      • Texas Team
  • About
    • Clients
    • Testimonials
    • Inclusion at ASP
    • Resources
    • Submit Resume
  • Blog
  • Contact
  • Payments
  • Home
  • Services
    • Accounting
    • Accounting FAQ
  • Recruiting
    • Services
    • Recruiting Team
    • Our Process
    • Recruiting Podcast
    • Top Candidates
    • Recruiting FAQ
  • Openings
  • Locations
    • Oregon >
      • Oregon Accounting
      • Oregon Bookkeeping
      • Oregon Team
    • Washington >
      • Washington Accounting
      • Washington Bookkeeping
      • Washington Team
    • Colorado >
      • Colorado Accounting
      • Colorado Bookkeeping
      • Colorado Team
    • Texas >
      • Texas Accounting
      • Texas Bookkeeping
      • Texas Team
  • About
    • Clients
    • Testimonials
    • Inclusion at ASP
    • Resources
    • Submit Resume
  • Blog
  • Contact
  • Payments

​In Pursuit of Profit

Read our expert article below or sign up to get articles sent to your inbox.​

8/12/2019

Comments

The Pros and Cons of Doing Business in Oregon

 
The Pros and Cons of Doing Business in Oregon
Is Oregon the right place for your business? Many Americans dream of starting a business, and the number of new ventures has continued to reach new heights. If you're thinking about launching a company, where you do so matters.

Entrepreneurs are increasingly choosing to call Oregon their home base. The state's economy is strong, and many local communities are committed to the success of small businesses. 
Oregon is not only a thriving business environment in many respects but also an attractive place to live. Despite its many opportunities, the state also has a few challenges.

​Opportunities for Businesses in Oregon

If Oregon is on your shortlist for a new business venture, there are plenty of reasons to keep it there. Here are some of the pros of doing business in this state.

Healthy Economy

Oregon continues to have one of the strongest economies in the nation. In terms of economic growth since 2001, it ranks six among all U.S. states. Its overall economy has expanded by about 75% over the past two decades.

According to Business Oregon, a state agency, Oregon's GDP growth is some of the highest in the nation. It also ranks high nationally in these other key areas:

  • Employment Growth (3rd)
  • % of Electricity from Renewables (5th)
  • Patents Issued (6th)
  • Lowest Workers' Comp Costs (7th)
  • R&D Spending (8th)
  • Population Growth (9th)

Those stats are impressive, but Oregon is also diverse when it comes to supporting businesses. It's become a tech magnet, has one of the world's largest salmon-fishing industries, and Portland has the largest number of breweries of any city in the world.

Booming Tourism Industry

According to Travel Oregon, the state's thriving tourism industry accounts for $12.3 billion in visitor spending annually, $539 million in state and local tax revenue, and provides 115,400 jobs. And these are all figures that have been steadily increasing over the past decade.

Travel accounts for one of Oregon's top three export-oriented industries in rural counties behind logging/wood products and agriculture/food processing. This sector is represented primarily by service and retail firms, including restaurants, lodging establishments, retail stores, fuel service stations, tour agencies, and other businesses that sell services and products to travelers.

"Buy Local" Movement

One of the biggest benefits of starting and operating a business in Oregon is the overwhelming support that the state's residents give to local businesses. There is a growing trend among consumers to want to know who is growing their food, making their clothing, and providing other critical services.
This gives small businesses in a state like Oregon an edge. For example, Nadeau, a handcrafted furniture store, tries to give each of its locations a local or boutique feel. One recent study found that Portlanders could eat "entirely local" if they wished, which isn't the case for many other cities.

Financial Incentives

Beyond the desire to keep spending close to where you live, Oregon is also home to a myriad of development organizations that promote startups throughout the state. They might offer mentorships as well as financing opportunities for new entrepreneurs. A few examples are Business Oregon and Oregon Entrepreneurs Network.

In addition, there are a growing number of incentives available that benefit startups and small businesses. Some of these include:

  • Enterprise Zones - Businesses receive an exemption from certain taxes in exchange for investing and hiring in an enterprise zone. These incentives can last for multiple years.
  • Strategic Investment Program (SIP) - Available statewide, this program provides a 15-year property tax exemption on portions of large capital investments.
  • Food Processing Machinery and Equipment (M&E) - If certified by the Oregon Department of Agriculture, a business could receive a 5-year tax exemption on newly operational M&E.
  • Oregon Investment Advantage - This program has the potential to nearly eliminate state income taxes for several years for a new business that relocates or opens in certain counties.
  • Business Expansion Programs - Several types of programs like this offer cash-based forgivable loans for small businesses to use for expansion.

You may also be able to achieve additional incentives on the local level. If there is a particular community that you are interested in for your business, approach the appropriate agency to inquire about assistance.

The Happiness Factor

Even with some of its challenges, which we'll detail below, people who live and work in Oregon seem to be incredibly happy. There are countless stories of businesses that have relocated to Oregon for better conditions or others that refuse to leave for so-called "greener pastures."
Luke Kanies, founder of Puppet Labs, moved his company from Nashville to Portland, stating that the new city, "feels like home." He also indicated that he found top-notch investors and employees in Oregon.

But, other businesses discovered the wonder and benefits of Oregon years ago, and these are highly-recognized names. These include Nike (near Beaverton), Intel (near Portland), Precision Castparts (Portland), and FLIR Systems (Wilsonville).

And let's not forget Columbia Sportswear, which is a company that epitomizes the Oregon experience. CEO Tim Boyle tells a story about attempts to lure the company away from its Portland headquarters.
The mayor of Dallas sent a bouquet of flowers to his assistant and then an iPhone loaded with his personal cell phone number to the CEO. According to Boyle, "We're not ready to move." Why? Boyle states that "the people who work here, love it here."

Challenges Associated With Doing Business in Oregon

While plenty of businesses are flocking to The Beaver State, some have left, and quite a few are vocal about the state's challenges. If you're thinking about doing business in Oregon, here are few of the unwelcome issues that you may need to face.

High Taxes

The biggest gripe among existing businesses in this state relates to its tax environment. While there are no sales taxes in Oregon, its income taxes and property taxes are considered moderately high.
Oregon maintains a two-bracket corporate income tax structure, where corporations pay 6.6% on the first $10 million in income and 7.6% on the remainder (don't forget those incentives we listed above). There are four brackets used for the personal income tax system ranging from 5% to 9.9%.

Property taxes vary by district in Oregon, and there are other considerations. Some taxes impact specifics businesses. For example, there is a state lodging tax, which drops to 1.5% in 2020, which affects the hospitality industry.

Soaring Real Estate Costs

Due to a flood in job growth and a rising population, many parts of Oregon have seen home prices skyrocket in recent years. According to real estate website Zillow, the median home value in Oregon is now $345,800 compared to $547,500 in California.

The state has been struggling with an appropriate response to this, with the goal of "not becoming another California." This is something that the state is going to continue to deal with as it passes things like rent control laws and affordable housing mandates.

Tight Labor Market

A strong economy is excellent news on the one hand, but will you be able to find the skilled help you need for your business? According to Oregon's Office of Public Policy, the state's unemployment rate is at a near-historic low at 4.1%.

But, when you do get those workers on board, the numbers show that you'll be pleased with the results. Worker productivity in Oregon, or economic output per worker, is well above the national average at a rate of 35% vs. 21% nationally.

The state's employment department recommends that employers with hard-to-fill vacancies compete by enhancing benefits, increasing their recruitment intensity, offering additional training, and raising wages.

Strong Environmental Regulations

Oregon has some of the strongest environmental protection laws in the nation. When President Donald Trump took office, he quickly rolled back some of the previous administration's environmental protections.

Several states, including Oregon, have put laws in place that uphold those stronger standards. If you plan to do business in Oregon, you can expect to meet more stringent requirements for things like air quality, clean water, and pollution prevention.

Starting a new business is complicated enough. If you have questions about doing business in Oregon or would like to learn more about outsourcing your accounting and bookkeeping services, please reach out to us!
Comments

    SUBSCRIBE:

    DOWNLOAD:

    The Ultimate New Business Formation Checklist

    DOWNLOAD:

    Accountant Evaluation

    Categories:

    All
    Accountant
    Accounting
    Accounting Systems
    Artificial Intelligence
    Audit
    Bank Reconciliation
    Benefits
    Bookkeeper
    Bookkeeping
    Brand
    Budgeting
    Business Analysis
    Business Trends
    Career
    Cash Flow
    Change Management
    Checklist
    Closing The Books
    Colorado
    Community
    Contracts
    Controller
    Depreciation
    Ecommerce
    Economy
    Finance
    Fraud
    Government
    Hack
    Hiring
    HR
    Infographic
    Internal Controls
    IRS
    Laws
    Leadership
    Legal
    Local Economics
    Manuals
    Market Trends
    News
    Nonprofit
    Online Bookkeeping
    Oregon
    Outsource
    Payroll
    Payroll Taxes
    Planning
    Procedures
    QuickBooks
    Record Keeping
    Recruiting
    Recruiting Market Reports
    Remote Workforce
    Reporting
    Restaurants
    Risk
    Sales Tax
    Scam
    Security
    Small Business
    Social Media
    Software
    Startup
    Statistics
    Strategy
    Taxes
    Technology
    Texas
    Time Management
    Washington State

    Archives:

    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    June 2015
    February 2013
    October 2012
    November 2011
    May 2011



    RSS Feed

Services

Accounting Services
Recruiting Services

​

Company

About
Oregon Team
​Washington Team
Colorado Team
​Texas Team
Clients


Support

Contact
CC
FAQ
​Resources
​Blog
​

ASP

Your resource for accounting & recruiting services. Serving Seattle, Bellevue, Redmond, Kirkland, Portland, Beaverton, Hillsboro, Lake Oswego, Denver, Lakewood, Aurora, Dallas, Frisco, Fort Worth, and more.
Contact us today for a free,
no-obligation consultation:
Toll Free (800) 931-6557
WA (425) 492-1901
OR (503) 473-0122
​CO (720) 572-8211
TX (214) 396-7403

[email protected]
© COPYRIGHT ASP - ALL RIGHTS RESERVED 
 A CFO Selections Company
Privacy Policy
Photos from Pricenfees, Debbieallendale