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$199
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Agent fee
Registered Address
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$499
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Includes everything in basic package
Comprehensive name check
Preparation of Articles of Incorporation
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Federal Tax ID (EIN) Obtainment Service
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01 day processing
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Key Points of Oregon LLCs
No Statewide Sales Tax
Oregon does not impose a general state sales tax, which can lower overhead for businesses selling goods or services that would otherwise be taxed in many states.
Pass‑Through Income Tax Treatment
By default, Oregon LLCs are treated as pass‑through entities. Profits (or losses) flow through to members, who report them on their individual state income tax returns.
Annual Reporting & Moderate Fees
Oregon requires LLCs to file an Annual Report every year, with a fee (currently about $100), and has modest formation and ongoing costs compared to many states.
Understanding Oregon LLCs
An Oregon LLC combines the liability protection of a corporation with the flexibility of a partnership, making it a strong option for business owners seeking both protection and simplicity. It’s known for its favorable tax structure, no state sales tax, and manageable regulatory burdens.
What is an Oregon LLC?
An Oregon LLC provides limited liability protection to its members, shielding personal assets from business liabilities. It allows either member‑managed or manager‑managed governance depending on how it’s structured.
An Oregon LLC offers several benefits, including:
Pass‑through taxation, modest state fees, no sales tax, and clear annual compliance requirements. LLC owners get protection, flexibility, and a business environment with fewer state‑level burdens.
Why Choose an LLC in Oregon?
Choosing an LLC in Oregon offers you personal asset protection, tax efficiency, and a business environment with no sales tax plus clear rules. It’s a good choice for entrepreneurs who want solid protection and predictable costs.
Key Benefits Include:
Privacy Protection
Predictable Taxes
No Double Taxation
Legal Environment
Business Credibility
Clear Guidelines
Pros and Cons of an LLC in Oregon
Starting an Oregon LLC: Benefits
An Oregon LLC protects personal assets from business liabilities, offers flexible management structures, includes pass‑through taxation by default, and benefits from low formation and annual costs compared to many states.
Taxation of an Oregon LLC
Oregon LLCs enjoy pass‑through tax treatment (members report income or loss on their personal returns). There is no state sales tax. LLCs treated as corporations (if elected) are subject to Oregon corporate or excise taxes under relevant rules, and there is a small minimum excise tax for certain entity types.
Starting an Oregon LLC: Drawbacks
You must file an Annual Report and pay a yearly fee. Registered agent and business address become public record. If you elect to have the LLC taxed as a corporation, you’ll face corporate tax and more complexity. Also, local permits/licensing may be required depending on business type and location.
Who Can Form an LLC in Oregon?
Any individual or business entity can form an LLC in Oregon, including sole proprietors, partnerships, corporations, and foreign entities wishing to do business in Oregon. You must designate a registered agent with a physical street address in Oregon, not a P.O. Box.
Types of LLCs in Oregon
Domestic LLC (Oregon‑based LLC)
A domestic LLC is formed under Oregon law and operates within the state, offering limited liability protection and pass‑through taxation.
Foreign LLC (Out‑of‑state LLC registering in Oregon)
A foreign LLC is one formed in another state or country but doing business in Oregon. It must file an Application for Authority, appoint an Oregon registered agent, and comply with Oregon’s reporting and tax obligations.
Professional LLC (PLLC)
Oregon allows professionals (e.g. licensed professionals) to form LLCs, but if a business’s activities are regulated by specific licensing boards (e.g. medical, legal), those boards’ requirements must be met. There is no distinct statutory “PLLC” type with separate rules in all cases.
How to Start an LLC in Oregon
Choose a Business Name
Select a unique name that includes "LLC" or "L.L.C." and ensure it’s distinguishable from existing entities in Oregon . Use the Secretary of State’s name search tool to verify availability.
Appoint a Registered Agent
Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in Oregon .
File the Articles of Organization
Submit Form Articles of Organization (domestic LLC) to the Oregon Secretary of State, providing LLC name, principal office address, and registered agent details.
Create an Operating Agreement
Though not required, it’s recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.
Oregon LLC Application
To start an LLC in Oregon, the key step is filing the Articles of Organization with the Oregon Secretary of State. This officially forms your business as a legal entity.
Required Information
- LLC name (including “Limited Liability Company,” “LLC,” or “L.L.C.”),
- Registered agent’s name and physical Oregon street address,
- Principal office address (street address; not a P.O. Box),
- Organizer’s name and address,
- Management structure: whether the LLC will be member‑managed or manager‑managed,
- Optional: effective date and duration if the LLC is not perpetual.
The Articles of Organization must include:
Filing Options
- Online: File through the Oregon Secretary of State’s Business Registry portal.
- By Mail / Paper: Submit the Articles of Organization by mail.
Filing Fees
- The fee to file the Articles of Organization is $100.
- Annual Report: All LLCs must file an Annual Report with Oregon’s Secretary of State by the LLC’s formation anniversary date each year.
- Operating Agreement: Not required to be filed with the state, but strongly recommended to define governance, ownership, profit distribution, and internal policies.
- Foreign LLCs: Out‑of‑state LLCs must file an Application for Authority, appoint an Oregon registered agent, and satisfy Oregon’s registration and tax obligations.
Post‑Filing Requirements:
Oregon LLC Taxation
State Income / Excise Taxes
By default, Oregon LLCs are taxed as pass‑through entities: income or loss flows to members’ personal Oregon tax returns. If an LLC elects corporate tax treatment, it will be subject to Oregon corporate or excise taxes.
No Sales Tax
Oregon does not impose a statewide sales tax, so LLCs are not required to collect sales tax on goods or services except for local or industry‑specific taxes if applicable (rare in Oregon).
Employer & Payroll Taxes
If the LLC has employees, it must withhold state income tax from wages, register for and pay state unemployment insurance, and comply with other required payroll tax obligations under Oregon law.
Oregon LLC Annual Filing (Annual Report)
What to File
The Annual Report requires LLC name, principal office address, registered agent details, and any changes in members/managers or contact information.
Filing Deadlines
The annual report must be filed every year by the LLC’s formation anniversary date.
Fees & Consequences
The filing fee for the Annual Report is $100. Failure to file on time may result in your LLC becoming inactive or being administratively dissolved after a grace period.
Expanding Your Oregon LLC
As your company grows, you may want to expand your Oregon LLC to operate in other states. This section covers the procedures for doing so, including registering your Oregon LLC as a foreign entity in another state and welcoming out-of-state LLCs into Oregon.
Registering a Foreign LLC in Oregon
If your LLC was formed in another state but you will do business in Oregon, you must file an Application for Authority, appoint an Oregon registered agent, and provide a Certificate of Good Standing or equivalent from your home state.
Doing Business in Other States
To expand your Oregon LLC into other states, register as a foreign LLC in each state where you operate. That includes filing required foreign entity registration documents, appointing local registered agents, and complying with each state’s tax, licensing, and regulatory requirements.
Find The Right State To
Form An LLC
Every state has different rules, costs, and considerations for LLC formation.
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Doing Business in Oregon
Frequently Asked Questions
Yes, most states require you to have a registered agent to handle legal documents and notices during business hours.
While not always required by law, having an operating agreement is a smart move to outline your LLC’s rules and avoid disputes down the road.
An EIN is a federal tax ID; most LLCs need one to open a business bank account, file taxes, or hire employees.