How to Start an LLC in Oregon (Step-by-Step Guide)

Our picks for LLC formation services

	Most recommendedNorthwest Registered Agent	Same-day processing Free registered agent service for one year Free domain, website, email and phone Expert support from real people	Visit Northwest
	ZenBusiness	Starts at $0 plus state fees 100% accuracy guarantee and worry-free compliance Personalized dashboard Finance and marketing tools	Visit ZenBusiness
	LegalZoom	Starts at $0 plus state fees Attorney guidance at an affordable price Most tools, support, and guidance for your business Reputable company trusted by 4M+ business owners	Visit LegalZoom

FAQs

How do I file my Oregon Articles of Organization?

As in most states, you’ll file your business formation documents, known as Articles of Organization, with the Secretary of State. You’ll submit the forms and a filing fee electronically.

When are Annual Reports due?

In Oregon, LLCs are responsible for filing a yearly report. Your Annual Report updates the information provided on your Articles of Organization and is due during your anniversary month.

What steps should I follow to form an LLC in Oregon?

To form an LLC, you’ll select a business name, file Articles of Organization, select a registered agent, obtain business licenses, and maintain your good standing by filing your Annual Report on time and meeting your tax obligations.

What is the process to obtain an EIN?

An EIN issued by the IRS. You’ll answer a few short questions and receive the nine-digit number instantly. You’ll need the EIN to set up bank accounts, hire employees, and pay federal taxes.

What’s a registered agent?

A registered agent is a point person for your business. He or she agrees to receive important communication, like tax notices or service of process documents, on your company’s behalf. The registered agent is a matter of public record.

Can an Oregon LLC owner serve as a registered agent?

Yes, a small business owner can serve as the company’s registered agent. You can also tap a friend or coworker. You can also hire a professional service to fill this role.

SHARE THIS POST

When starting a new company, choosing a business entity is the most important decision that the founders must make. For most businesses with more than one founding member, forming an LLC is often the best option. An LLC is an uncomplicated business structure that affords business owners legal protection by separating personal assets from business debts.

1. Select a name for your Oregon LLC

Follow naming requirements

There are two major guidelines to follow when naming your LLC in the State of Oregon:

1. An LLC’s name must be distinguishable from the names of existing business entities on file with the Oregon Secretary of State.
2. An LLC’s name must contain one of the following phrases or abbreviations: “Limited Liability Company”, “LLC”, or “L.L.C.”

Need help coming up with a business name? Check out our free business name generator.

Check LLC name availability

Make sure that your chosen LLC name is available in Oregon using the Oregon Secretary of State Business Name Search.

Reserve your LLC name with the Oregon Secretary of State

Reserving a business name prevents another business entity from using it before you file your Articles of Organization and form your LLC in the state, so it’s a good idea to do so if you anticipate any delay in filing.

File an Application for Name Reservation with the Oregon Secretary of State online using the Oregon Business Registry in order to reserve the name for up to 120 days. The filing fee is $100.

2. Designate a registered agent

As in every U.S. state, forming an LLC in Oregon requires the appointment of a registered agent service to handle state and federal legal documents and service of process on the business’s behalf. The registered agent must either be a state resident or business entity with a street address in Oregon OR, if the individual or business is based out-of-state, they must have a business office in Oregon.

3. File Articles of Organization

An LLC is formed in Oregon through the filing of Articles of Organization-Limited Liability Company with the Oregon Secretary of State.

The Articles of Organization must provide the following information:

• LLC name, principal office address, and email address
• Mailing address for Secretary of State notices
• Whether the LLC is perpetual or will end at a set date
• Registered agent name and address
• Whether the LLC is member-managed or manager-managed
• Whether the LLC is a professional LLC
• LLC organizers’ names and addresses
• Name and address of an LLC member or manager

You can file the articles online or print and complete a form and file by postal mail. The filing fee is $100. You’ll submit your paperwork and the fee electronically on the state website. You’ll wait to hear for approval, which usually takes 3-5 days.

4. Create an operating agreement

Although not a legally mandated step for forming an LLC in Oregon, drafting a comprehensive LLC operating agreement is strongly recommended for all nascent limited liability companies.

The operating agreement should do the following:

1. Describe the LLC’s business structure
2. Establish the individual responsibilities and obligations of LLC members
3. Detail how the LLC will be run

Without an operating agreement clarifying the specific duties of its members, an LLC may face significant legal and operational difficulties.

Aren’t sure how to write an operating agreement? You’re not alone. Look online for templates that you can customize. If you have a lawyer on your team, you can consult with him or her on this topic too.

5. Obtain an IRS Employer Identification Number (EIN) 

All newly formed LLCs in the United States must acquire an Employer Identification Number (EIN) from the Internal Revenue Service (with the exception of single-member LLCs). The nine-digit EIN is like a social security number for a business and is necessary to pay income tax, file tax returns, open business bank accounts, and perform many other important functions.

You can apply for an EIN online on the IRS website without paying a filing fee.

6. Fulfill your legal obligations

Once an LLC is registered, its members must devote attention to fulfilling legal requirements that apply for the duration of the company’s existence.

File annual reports (annual renewal)

All LLCs active in Oregon must file an annual report (AKA annual renewal) with the Secretary of State each year by the anniversary of the effective date of its Articles of Organization or the date it become authorized to do business in Oregon (foreign LLCs).

The annual report must be filed online. The annual report filing fee is $100 for LLCs formed in-state and $275 for foreign LLCs.

Obtain business licenses and permits

Certain LLCs active in Oregon may be required to obtain one or more state or local business licenses or permits depending on their type of business and location.

Read through the Oregon Start a Business Guide for information on how to fulfill state business license requirements. Specific licenses can be searched for using the Oregon License Directory.

For information on local licensing requirements, contact a city or county clerk in the city or county where your LLC is located.

Understand Oregon state taxes

Wondering how LLCs pay taxes in Oregon? LLCs are usually pass-through entities, which means business income passes to the owner’s personal tax report. As a result, the owner pays income tax (both federal taxes and state taxes) on it.

Oregon tax rates: How much are you likely to pay? It depends on various factors, but Oregon has a graduated individual income tax, with rates ranging from 4.75 to 9.90%. There are also jurisdictions that collect local income taxes.

Register with the Oregon Department of Revenue: As part of your tax obligations, you’ll need to register with the Oregon Department of Revenue. LLCs are issued a state tax ID, which is a lot like the EIN, but it’s used to file state taxes. You’ll also use the platform to pay taxes.

Talk with an accountant: If computing income and identifying deductions is a bit too overwhelming, you’re not alone. Many startup owners rely on experienced tax accountants to help them plan and file taxes. While you will pay for these services, many owners prefer to leave this task in the hands of a qualified person who knows the ins and outs of filing business taxes.

File a BOI Report

New LLC owners must file a BOI Report or Beneficial Ownership Report with the Financial Crimes Network Enforcement. The report is due within 90 days of being established.

This new requirement, which started in 2024, aims to give authorities more information to combat financial crimes like money laundering.

The report asks for each owner or stakeholder’s company information and contact information.

Learn more about the BOI Report and how to file it.

Post LLC tasks

Open business bank accounts

One of the major reasons to select an LLC as a business structure is its limited liability protection. If your business gets sued or gets into financial trouble, for example, only your business assets are used to manage these problems. It protects your personal assets. However, you can lose that protection if you can’t tell the difference between your business and personal finances.

As a result, it’s wise to keep your personal finances separate from your business finances. Consider opening a business checking and savings account. You might consider a business credit card as well.

Research financial institutions: While you can open accounts at a bank you’re familiar with, consider doing some research first. You might be surprised by the number of business-minded banks. Many financial institutions offer more than online banking and mobile deposits. You can find banks that offer integrations with tools you’re already using, like PayPal or QuickBooks. Some banks, like Found, offer several accounting tools, like the ability to send invoices.

Consider these banks: Found, Relay, or Mercury.

Start a business website

Before you can start marketing your business, you need a website. Your website will help you attract, educate, and convert customers, so it’s important to invest time and effort into its setup.

Worried about your lack of coding skills? No worries. Dozens of website builders provide an all-in-one solution for business owners like you. Domain.com and GoDaddy, for example, are website builders that provide all the tools you need to get a site up and running.

To get started, follow these steps:

1. Search for domain name availability
2. Purchase a domain name that matches (or is similar to) your business name
3. Sign up for web hosting.
4. Pick a web builder like Domain.com or GoDaddy to create a site with no coding experience necessary.
5. Create a site that’s tailored to your customers.
6. Consider adding an e-commerce section to your site to sell products online.
7. Review, test, and publish your site.

Adding an online store: If the majority of your sales will come from your site, pay special attention to the builder you use. Review its capabilities before you make a selection. You need a streamlined checkout process, integrations with payment solutions, and a clean product display to make shopping easy.

Costs to set up an LLC in Oregon

Average cost to set up an LLC in Oregon: $250-$400

As a new business owner, you’re probably excited about making your first sale. However, before you start marketing to customers, consider your setup costs. Here’s a look at the costs you’ll need to manage as you register your new business:

• Incorporation fees: As mentioned, you need to file LLC formation documents with the state. When you submit them electronically, you’re charged a filing fee of $100.
• File Annual Renewal: Most states require businesses to file a yearly report. In Oregon, this report is known as an Annual Renewal. The state fee is $100.
• Registered agent fees (optional): Every business must name a registered agent. In some cases, owners name themselves or tap a trusted employee, but other times, owners choose to use a registered agent service. For an annual fee, this service collects confidential paperwork on your company’s behalf and notifies you of its arrival. If you choose to use a professional company, you’ll pay somewhere between $50 to $200 a year.

Foreign LLC registration

An LLC formed in a different state that intends to do business in Oregon must register with the Oregon Secretary of State.

Follow these steps to do business in Oregon as a foreign LLC:

1. Comply with Oregon LLC naming guidelines and confirm that your LLC name is available in the state with the Oregon Secretary of State Business Name Search.
2. Appoint an Oregon registered agent.
3. File an Application for Authority to Transact Business–Foreign Limited Liability Company with the Oregon Secretary of State. The application can be filed online or through the mail. The filing fee is $275.
   • The application must include either the LLC’s registration number in its home state or a Certificate of Good Standing or a Certificate of Existence from the LLC’s home state that is no more than 60 days old.