Quick answer

Quick Answer

To start an Oregon LLC, you must file Articles of Organization with the Oregon Secretary of State and pay a $100 filing fee. You are legally required to appoint a registered agent with a physical street address in Oregon. Once formed, your LLC must file an Annual Report every year on its formation anniversary, which costs $100. Pass-through LLC profits are subject to Oregon's graduated personal income tax rates, which range from 4.75% to 9.9%. While Oregon has no state sales tax, businesses with over $1 million in gross receipts must pay the Corporate Activity Tax (CAT).

Oregon LLC filing fee

The state filing fee for your Articles of Organization is $100. You can file this document online through the Oregon Secretary of State's Central Business Registry portal. Online filings are generally processed within 1 to 3 business days.

Step 1: Choose a name

Your LLC's name must be entirely unique and distinguishable from other business entities registered in Oregon. State law dictates that the name must include an appropriate LLC designator, such as "Limited Liability Company", "L.L.C.", or "LLC". You can search the Oregon Secretary of State's business registry database to check if your desired name is available.

Step 2: Appoint a registered agent

Every Oregon LLC must designate a registered agent. This is an individual or authorized business entity responsible for receiving service of process, lawsuits, and official state correspondence on behalf of the LLC. The agent must have a physical street address in Oregon (P.O. Boxes are not permitted) and must be available during regular business hours.

Step 3: File formation documents

Your business is officially created when you file the Articles of Organization with the Oregon Secretary of State. You must provide your LLC's name, its principal office address, the name and address of your registered agent, and whether the LLC will be member-managed or manager-managed. The state filing fee is $100.

Step 4: Create an operating agreement

Oregon law does not require you to file an operating agreement with the state. However, drafting an operating agreement is highly recommended. It serves as the internal governing document for your LLC, establishing ownership percentages, voting rights, and how profits are divided. Additionally, almost all banks will require a copy of your operating agreement to open a business bank account.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a free 9-digit tax ID assigned by the IRS. It functions like a social security number for your business. You will need an EIN to hire employees, open a business bank account, and file federal tax returns. You can apply for an EIN online directly through the IRS website.

Step 6: Register for state taxes if needed

Oregon is one of the few states with no state sales tax, which makes compliance very easy for retail and e-commerce businesses. However, if your business's Oregon gross receipts exceed $1 million, you must register for and pay the Corporate Activity Tax (CAT). For income tax, standard LLC profits pass through to your personal return and are taxed at Oregon's relatively high graduated personal income tax rates, ranging from 4.75% to 9.9%.

Step 7: File annual reports and stay compliant

Every Oregon LLC must file an Annual Report to maintain its active status with the state. The report is due every year on the anniversary date of your LLC's formation. The filing fee is $100. If you fail to file within 45 days of the due date, the state will administratively dissolve your LLC.

Oregon LLC Cost

Fee Type Amount
Formation fee $100
Registered agent estimate $39 - $150 / year
Annual report fee $100 / year
Corporate Activity Tax (CAT) $0 (if receipts < $1M)
Publication fee if applicable $0 (None)
WHEN THIS MAY NOT APPLY

If you do not live in Oregon, do not operate from Oregon, and do not have a specific Oregon-related reason for forming there, a Oregon LLC may not be the best default choice. You may still need to register the LLC as a foreign LLC in the state where you actually operate, which can create duplicate filing fees, registered agent costs, and annual compliance requirements.

Oregon currently charges $100 to form a domestic LLC. Annual reports are currently $100. For many purely online businesses, it is usually worth comparing your home state with commonly used business-friendly states such as Wyoming, which charges $100 to form an LLC and has a $60 minimum annual license tax, before choosing Oregon.

Should you form your LLC in Oregon?

A Oregon LLC usually makes sense if you live in Oregon, operate your business from Oregon, or have a clear legal or tax reason to use Oregon. If you live and operate somewhere else, forming in Oregon may create extra registered agent costs, foreign qualification requirements, and duplicate compliance obligations. Oregon may appeal to some owners, but compare it with Wyoming, Delaware, Nevada, and your home state in our guide to the best state for an online business LLC. For a comprehensive overview of starting a business, visit our LLC formation hub.

Situation Is a Oregon LLC usually a good fit?
You live in Oregon Usually yes
Your business operates in Oregon Usually yes
You want privacy Depends on state rules
You live in another state Usually only if you have a specific reason
You are a non-US resident Depends on banking, taxes, and compliance needs

Oregon LLC vs Wyoming LLC

For non-resident business owners, Wyoming is vastly superior to Oregon. While Oregon charges a $100 annual report fee, Wyoming only charges $60 minimum. More importantly, Wyoming has zero state income tax, compared to Oregon's steep 4.75%–9.9% rates. Finally, Wyoming offers robust statutory anonymity, keeping your ownership details completely off public registries, whereas Oregon makes this information public. If you operate a brick-and-mortar business inside Oregon, you must register an Oregon LLC. If you run a purely online business, Wyoming is a far better choice.