- September 21, 2017Read more
Bend Business Registrations Dip Again in August
New business registrations in Bend fell by 12.5% in August from July totals. That’s according to today’s edition of the monthly Bend Entrepreneur Report from Bend business attorneys EagerLaw PC.
August saw 204 new business registrations in Bend in August. The July tally was 233 – a 12.5% decrease.
“Between the eclipse and the smoke, August was a weird month in Bend,” explained EagerLaw PC founder and Bend business attorney Jeff Eager. “August also being the last month of summer break may have led to entrepreneurs delaying business startup plans until after the kiddos are back in school. We’ll see.”
Statewide, new business registrations dipped by 7%. Among large cities in Oregon, Bend had the third highest number of new registrations per 100,000 population, behind Lake Oswego and Keizer. Bend’s new registrations per 100,000 people continues to be double the statewide average. Throughout Central Oregon, Redmond and Prineville registrations increased slightly, while Madras numbers fell.
Because this is the first year of the Bend Entrepreneur Report, it’s difficult to distinguish between seasonal trends and other effects, like the eclipse. Beginning in January, we’ll provide year-to-year comparisons, which will provide more context for the data.
Each month, EagerLaw carefully analyzes Oregon Secretary of State’s business registration data to prepare the Bend Entrepreneur Report. The Report is released monthly to local media and on the EagerLaw PC Facebook page, where the firm also spotlights local business achievements and provides information of use to Bend businesses.
- August 25, 2017Read more
New Bend Business Registrations Dipped 6% from June
Following a slow June, Central Oregon business registrations slowed a bit further in July, with Bend’s figure dropping by 6%. That’s according to today’s edition of the monthly Bend Entrepreneur Report from Bend business attorneys at EagerLaw PC.
June saw 249 new business registrations in Bend. The July tally was 233 – a 6% decrease.
Statewide Registrations Slowed slightly in June; Regional Numbers Mixed
Statewide, new business registrations dipped by 3%. Despite its decline in registrations in July, Bend (the seventh-largest city in the state by population) regained its second-place position for total number of new registrations, second only to Portland. Throughout Central Oregon, Redmond logged 42 new registrations in July, versus 42 in June. Prineville dipped from 18 in June to 14 in July. La Pine remained relatively consistent, with 13 in July versus 14 in June.
Bend Stabilizing Registrations
After a 21% drop from May to June, Bend’s numbers stabilized somewhat for July. As 2017 is the first year of the Bend Entrepreneur Report, it remains to be seen whether this is a typical summer slow-down or something else. The August figures will be interesting due to the disruption and/or opportunities presented by the eclipse.
- July 26, 2017Read more
What Happens to My Business if I Get Divorced?
There’s nothing simple about getting a divorce, and the complications are magnified when one or both of the separating spouses is a business owner. If you’re a business owner facing a divorce, you may be asking yourself, what happens to my business if I get divorced?
A spouse’s ownership interest (shares, units, partnership percentage, depending on what kind of entity the business is) is an asset. Depending on the laws of your state, the ownership interest therefore may be considered part of the marital estate, to be split between the former spouses according to agreement or court order.
Will My Business Ownership Be Split if I Get Divorced?
With a small business, “splitting” the ownership is often difficult or impossible. If you’re a business owner and getting a divorce, it is critical that you and your divorce attorney understand the legal and practical ramifications of, and limitations on, transferring ownership interest in your business. Unlike other assets, such as a house or a car, or even stock in a publicly traded corporation, ownership interest in a closely held business is often not easily liquidated in order to apportion the asset between the former spouses.
There are obvious practical reasons why a business should not be sold or receive new ownership in a divorce. Imagine Sally and Mike are getting a divorce. Sally owns a yoga studio with Jane. Sally teaches all of the classes at the studio. Mike hates yoga.
Sally’s ownership interest has some value, but it is probably useless in anyone’s hands but hers. She likely cannot transfer her ownership interest in the studio to Mike for a couple reasons:
- First, as a practical matter, the value of Sally’s ownership would plummet if she were not teaching the classes. The studio would need to hire an employee, and that would cost money. Plus, many of the studio’s customers probably patronize the studio because they like Sally’s approach: Lose Sally, and the business dries up.
- Second, as a legal matter, Sally would likely be precluded from transferring her interest to Mike (or to any third party) without Jane’s approval. Most limited liability company (LLC) and corporate documents contain buy/sell provisions which preclude transfers except in rare occasions. These provisions exist to protect Jane from being forced to go into business with someone with no interest in yoga.
Getting Divorced? First, Ask Your Attorney What Happens to Your Business
What is the solution to this conundrum? Your divorce lawyer can explain your options in your situation, but the first and most important step is to determine what you can legally and practically do with your business in your divorce. Your divorce attorney may be able to review your business documents, or you may ask your business attorney to do it. The important thing is to figure this out early on, so that the transferability (or lack thereof) of your ownership interest is factored into negotiations or court proceedings.
- July 11, 2017Read more
New Bend Business Registrations Dipped 21% from May
Following a strong May, Central Oregon business registrations slowed in June, with Bend’s figure dropping by 21%. That’s according to today’s edition of the monthly Bend Entrepreneur Report from Bend business attorneys EagerLaw PC.
May saw 314 new business registrations in Bend. The June tally was 249 – a 21% decrease.
Statewide Registrations Slowed in June; Regional Numbers Mixed
Statewide, new business registrations dipped by 10%. For only the second time since the Entrepreneur Report began in January, Bend lost its second-place ranking statewide for total business registrations to Eugene, which has a far larger population. Throughout Central Oregon, Redmond nearly met its May total of 50, logging 49 in June. Prineville dipped from 24 in May to 18 in June. La Pine remained relatively consistent, with 15 in May and 14 in June.
Bend Volatility Not Unusual
This is not the first time this year we’ve seen Bend’s numbers drop significantly – in April there was a 20% drop from the previous month.
There are many reasons why Bend’s numbers may have dropped in June, including family vacations with the end of the school year, a shorter month, and generally nice weather that may have had entrepreneurs delaying business moves to enjoy the sun.
We’ll keep track of the July figures and update you next month.
- June 30, 2017Read more
Which Business Entity is Right for Me?
I’ve helped many dozens of business owners get their start. A common question is, which business entity is right for me? The answer: the one that lets you start making money as quickly as possible.
The most common reason small businesses fail is lack of capital. In other words, they run out of money. The more time and energy an entrepreneur spends trying to create a complex business entity, the less time she has to talk to customers and sell her product or service.
Is a C Corporation the Right Business Entity?
Some entrepreneurs, particularly entrepreneurs in the technology industry, have heard that they need to set up a C Corporation in order to attract investors. Sometimes they even want a C Corporation set up in Delaware or Nevada, even though they’re doing business in another state.
While it’s true that many investors require or desire a C Corporation in order to invest, there are at least two reasons why it doesn’t make sense for most early stage businesses to worry about this.
First, no matter how cool your business idea, you’re almost certainly not going to get funding from professional investors. Less than one percent (1%) of startups receive angel funding, and only .05% receive venture capital funding (link: https://www.entrepreneur.com/article/230011).
Second, setting up and operating C Corporations, particularly in another state, is the most complicated and costly choice you can make when choosing a business entity. Attorney and CPA fees are higher for these relatively complicated entities, and the meeting and reporting requirements are significant.
LLC or S-Corporation: A Better Choice for New Businesses
For almost all new businesses, a simple LLC or S-Corporation will do the job quite nicely. Both of these entities provide the owners some degree of liability protection, provide a format for governing decisionmaking and owner exit, and they’re far less expensive to create and operate.
What’s more, if your business does end up being the next Uber, you can relatively easily convert your LLC into a C Corporation to take advantage of real, and not just pie in the sky, investment opportunities.
Spending a little money to form your business entity the right way is a really good idea. But when you go in to meet your attorney, focus on the simpler and cheaper, rather than the more complex and expensive.
So, don’t over-complicate the entity selection process, and instead spend that time, energy and money on making money for your business.
- June 13, 2017Read more
New Bend Business Registrations Topped 300
If you’ve followed the Bend Entrepreneur Report posts here at EagerLaw PC, you know new Bend business registrations (and new Oregon business registrations as a whole) fell off by more than 20% in April. The May numbers are in, and we’re pleased to report Central Oregon showed encouraging gains in May.
In April we reported 260 new business registrations in Bend, but in May, that number increased to 314, which is fairly typical of what we saw with new business registrations each month during the first quarter of the year. Even with the dip, April’s new Bend business registrations were impressive compared to the average throughout Oregon that month—but those numbers came back up fairly dramatically in May.
Bend Business Registrations Double State Average for May
In fact, Bend more than doubled the rate of new business registrations in Oregon as a whole. Nearly all of Oregon’s largest cities saw gains in May over April’s new business registration numbers, but Bend’s rate of nearly 345 new business registrations per 100,000 population eclipsed the statewide rate of just under 138 new business registrations per 100,000 population. And, as usual, Bend was second only to Portland in number of business registrations. This has been true four out of the last five months.
New Business Registrations Strong Across Central Oregon
That held true for Central Oregon as a whole: From Sisters to Prineville and Madras to Sunriver, new business registrations were higher in May than in April. The two notable exceptions were Redmond and La Pine, which saw 50 and 15 new business registrations in May, respectively. For prospective business owners eyeing those two cities, that could signal opportunity, particularly since the average rate of new business registrations per 100,000 population in both Redmond and La Pine last month were well above the state average.
While statewide new business registrations climbed 12% in May over April’s numbers, they still aren’t back up to the levels we saw in the first quarter of 2017. Central Oregon, by contrast, is generally looking strong. Bottom line: Our region continues to be an attractive location to entrepreneurs looking to start new businesses or relocate businesses from out of state.