LLC Cost in Oregon – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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Perhaps you are hoping to form an LLC in Oregon. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Oregon.

Oregon LLC Cost of Filing

Here are the costs involved in forming an LLC in Oregon.

Cost of Filing Formation Certificates

The Oregon Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Oregon Secretary of State.

Oregon Domestic LLC

  • Online Filing costs $100.
  • Annual Report filing costs $100
  • Name Reservation fee costs $100
  • By Mail: Fill out the application form, and send it to Secretary of State – Corporation Division – 255 Capitol St. NE, Suite 151 – Salem, OR 97310-1327. Costs $100.

Oregon Foreign LLC

  • Online Filing costs $275.
  • Annual Report filing costs $100
  • Name Reservation fee costs $100
  • By Mail: Fill out the application form, and send it to Secretary of State – Corporation Division – 255 Capitol St. NE, Suite 151 – Salem, OR 97310-1327. Costs $275.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Oregon LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Oregon, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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$0 + State Fees

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$0 + State Fees

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

Business Permits and Licenses

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Oregon Department of Revenue for regulatory boards or agencies requiring licensing.

Taxes payable to Oregon Department of Revenue

To register an LLC in Oregon, an LLC must pay several taxes to the federal and Oregon governments. Let’s take a look at some of the important taxes that are to be paid by LLCs in Oregon. An LLC in the state of Oregon pays two types of taxes to the Oregon State Department of Revenue:

State Income Tax

The LLC owner pays state tax on any amount he earns via the LLC, hence it is termed as State Income Tax. The earnings are taxed through the personal tax return filing. The state income tax rate in Oregon ranges from 5.% to 9.9% depending on the earnings one makes. One can apply for all the standard allowances and deductions.

State Sales & Use Tax

The state of Oregon is among those five states, which do not charge Sales & Use Tax on Goods & Services. Simply put, you should consider yourself lucky because your LLC will not have to pay any sales & USe tax in the state of Oregon.

Oregon Corporate Activity Tax

Any LLC which has commercial activity in excess of $1 million, has to pay the Corporate Activity Tax. This tax is also paid to the Oregon Department of Revenue.

Federal Self-Employment Tax

All the members who run the LLC are self-employed members; because they pay themselves through the LLC. Federal Self Employment Tax, also known as Social Security or Medicare tax, is paid by all such members or managers. The Federal self-employment tax rate in Oregon is 15.3 percent.

Federal Income Tax

If you are in the state of Oregon, you must pay Federal Income Tax, in addition to the State Income Tax. The amount of the Federal Income Tax depends upon your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing.

You pay Federal Income Tax on all the profits your LLC makes after calculating the deductions & allowances such as Healthcare or Retirement Plans.

Employee & Employer Taxes

An LLC that has a number of employees on payroll has to pay the Employee-Employer taxes. These taxes are calculated on the basis of various factors, e.g., the amount earned, number of employees, etc.

Cost Comparison between states

Oregon is surrounded by many states, namely Washington, California, Nevada, Idaho, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Oregon$100$100None
Washington$200$505.3%
California$70$8006%
Nevada$125$854%
Idaho$100None7%

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in Oregon.

Other Costs

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

How Much Does It Cost to Maintain an LLC in Oregon

To maintain an LLC in Oregon you will need to pay an annual fee of $100 along with state income tax at 5% to 9.9% and federal taxes.

One of the main expenses associated with maintaining an LLC in Oregon is the annual report fee. In Oregon, LLCs are required to file an annual report with the Secretary of State and pay a fee to keep their LLC in good standing. This fee can vary depending on the state and the specific requirements for LLCs. Additionally, there may be other fees associated with maintaining an LLC, such as filing fees for certain documents, as well as other compliance requirements that may incur costs.

Another important cost to consider is the cost of hiring a registered agent for your LLC. In Oregon, LLCs are required to have a registered agent, who is responsible for accepting legal documents on behalf of the LLC. While some business owners may choose to act as their own registered agent, many opt to hire a registered agent service to ensure compliance with state regulations. Registering a professional agent comes with an annual fee, which is another expense to be considered when calculating the overall cost of maintaining an LLC in Oregon.

Aside from filing and compliance expenses, there are other ongoing costs associated with running a business in Oregon. These may include taxes, insurance, payroll, and other operational expenses. It’s important to factor these costs into your budget when planning for the financial stability of your LLC.

Furthermore, it’s essential to keep up with changes in regulations and compliance requirements that may affect the cost of maintaining your LLC in Oregon. Staying informed about these changes can help you anticipate any potential additional expenses that may arise in the future.

While the costs of maintaining an LLC in Oregon may seem daunting, it’s important to remember that investing in your business’s legal structure is vital for its long-term success. By budgeting for these expenses and planning accordingly, you can ensure that your LLC remains in good standing and compliant with state regulations.

Ultimately, the cost of maintaining an LLC in Oregon is a necessary investment in the future of your business. By understanding and planning for these expenses, you can navigate the financial responsibilities of business ownership with confidence and set your LLC up for success.

In Conclusion

The cost of Oregon is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

1 thought on “LLC Cost in Oregon – How Much to Pay for an LLC”

  1. All I want is to find the page to pay online annual state of Oregon Llc payment can’t find it used it many times except this time no enchilada

    Reply

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