An Oregon Limited Liability Company legal entity has some disadvantages to operating as a sole proprietorship. Some of the disadvantages include:

  1. cost – there are costs involved in the initial and annual registration, setting up the legal documentation, and record keeping.
  2. separate records – there are additional needs to maintain records.
  3. taxes – the owner pays for unemployment tax.
  4. banking – there are different standards for business banking, such as checks to an LLC cannot be cashed.

 

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