Apportionment may be allowed for business activity performed outside the County. Revenue generated from the Multnomah County Business Income Tax goes to the County General Fund and is used to finance libraries, law enforcement, community corrections, jails, juvenile justice, bridges, social services, and health services.
Everyone doing business in Multnomah County. Within 60 days of starting a business in Multnomah County, you should register online , or using a PDF form to mail or fax.
Please note that this is the same form that is required for the City of Portland. If your business operates inside the City of Portland and Multnomah County, you only need to complete one Registration Form. Generally, you must file and pay the taxes within three and one-half months following the end of your taxable year April 15 th for calendar year taxpayers. You may request a six-month extension to file your return. This extension should be accompanied by a payment of the estimated tax due.
To access the appropriate forms, visit business tax forms. Arts Tax: Business Taxes: Most Popular View Less. Develop and improve products. List of Partners vendors. Entrepreneurs on the West Coast have several incentives to choose Oregon as the home for their small businesses. Oregon's neighbor to the south, California, has a much higher cost of living, as do many of the big cities in Washington, the state's northern neighbor.
Many parts of Oregon, in particular the Portland area, feature growing, thriving, educated populations, along with several reputable universities that turn out new classes of qualified employees each year. Where quality of life is concerned, Oregon may not offer the abundant sunshine and year-round warmth of Southern California, but its residents enjoy less-crowded conditions, lower crime, and lighter traffic, and still reap the benefits of mild winters and temperate summers.
While not a total tax bargain like some of the Sun Belt states, such as Texas and Florida, Oregon confers several tax advantages to small business owners that paint it in a favorable light, especially compared to California.
Business owners in California are frequently assessed hefty taxes on business income and personal income derived from the business. In Oregon, by contrast, business owners pay one or the other. Moreover, personal income taxes in Oregon tend to be lower than in California, especially for high earners. Until when its Corporate Activity Tax took effect , Oregon had only one type of tax on businesses, and for the most part, it is only imposed on corporations and limited liability companies LLCs that elect to be treated as corporations.
Most small businesses are set up as S corporations , LLCs not treated as corporations, partnerships, and sole proprietorships, meaning their business taxes in Oregon, if applicable at all, are minimal. If a small business is set up as a C corporation or as an LLC that elects to be treated as a corporation, Oregon imposes something called a corporation excise tax, which is basically the state's terminology for a corporate tax.
While most small businesses are not C corporations, and few LLCs elect to be treated as corporations, this tax is important to understand since small businesses often grow into traditional corporations over time. The corporate excise tax applies to corporations based in Oregon and is assessed on income from business conducted within the state.
As of , this tax has two marginal rates : 6. Oregon corporations that claim no net income or have net losses must still pay minimum taxes based on total sales. Businesses not set up as corporations are mostly shielded from Oregon's corporation excise tax. This minimum tax applies to S corporations and all LLCs classified as partnerships. C corporations pay the Oregon corporation excise tax described above, which is calculated in one of two ways: based on net income or net sales.
The tax due is the greater of the two calculated amounts. Corporations are separate entities from their owners for tax purposes, and therefore income does not pass through. However, these owners can still be taxed at the state level on certain income they derive from having a stake in the business.
Capital gains and dividends are taxed at the taxpayer's marginal income tax rate, which can be as high as 9. S corporations operate like C corporations in that they set up separate entities that confer to business owners and their personal assets a host of legal and financial protections. The distinction between the two is the S status files with the Internal Revenue Service IRS , which allows income derived from sales to pass through the corporation to its owners.
Because the owners then pay personal income tax on this money, the federal government does not charge the business a corporate tax, considering this to be double taxation. Most states follow this philosophy as well.
This income then passes through to the owners, who pay personal state income tax on it at marginal rates that run from 4. LLCs are pass-through entities that can be classified in different ways. This classification determines an LLC's tax treatment in Oregon. The full extent of how the federal tax law will impact Oregon remains unclear. Posted in Budget , Taxes. More about: corporate income tax , personal income tax. Because ensuring that all Oregonians have a real opportunity to thrive requires public policy grounded in facts.
The Oregon Center for Public Policy researches and analyzes tax, budget, and economic issues. Our goal is to improve decision making and generate more opportunities for all Oregonians. Learn more about the Center.
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