How to Start an LLC in Oregon: If you’re looking to start an LLC in Oregon, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC at a very low cost in Oregon. Though, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost almost negligible.
On this page, You’ll find all the steps that must be taken to ensure that your Oregon LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Oregon
- After Starting Your Oregon LLC
- Oregon Foreign LLC
- Oregon LLC Formation Review
How to Start an LLC in Oregon
An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.
If you wish to start an LLC, you must file your Articles of Organization with the State and pay a filing fee of $100. While it’s the most important step, it’s not the only one. There are 4 other crucial steps to follow to get your LLC formed in Oregon. Below mentioned all 5 steps that explain everything you need to do to start an Oregon LLC in 2023. Let’s get started! You can always hire a professional LLC formation service in Oregon to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.
Step 1: Decide a Name for Your Oregon LLC
The first step while forming a limited liability company in Oregon is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
LLC Naming Guidelines in Oregon
There are a few specific requirements all the LLCs in Oregon have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Oregon can have the same name. LegalZoom offers unlimited business name searches without any hassle.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Oregon State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|Oregon Business Entity Search – Online Name Search|
Name Reservation Form – PDF
Name Availability Standards – Guidelines
Oregon LLC Name Search – Instructions
|Secretary of State, Corporation Division|
255 Capitol St. NE
Salem, OR 97310
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided on, you can reserve your LLC name for 120 days. To keep the name, you must file a name reservation application and pay $100 to reserve your name with the Oregon Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Oregon Secretary of State by submitting an Application to Register Trade Name in Oregon, along with the filing fee of $50.
Recommended: You can do name search, Trademark search, Trademark registration, copyright registration, and a lot more in one place by hiring a professional service. We recommend using –
LegalZoom – (Worry-free LLC Formation)
Apart from LLC formation, LegalZoom offers Trademark search, trademark registration, copyright registration, and etc. at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc.
It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Oregon
The second step to forming an LLC in Oregon is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Oregon. Hence, hiring a competent Oregon Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Oregon or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0), you also get registered agent service and other services at a very reasonable price.
These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Oregon. Some LLC formation services also offer standalone Oregon registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.
A person who is above 18 years of age and has a physical address in the state of Oregon can be a Registered Agent. A Registered Agent for service of process can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of Oregon and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Oregon.
There are a few reasons why you shouldn’t be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won’t be easy for you as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.
If an LLC is sued in Oregon, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are not separated anymore. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.
Registered Agent Consent Application
In Oregon, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. A filing fee should be paid for it. For more information on the same, read our guide on Oregon Registered Agent.
Step 3: File Articles of Organization in Oregon
The third and most important step in forming an LLC is to file the Certificate of Formation. This Oregon Articles of Organization is a legal document that is required to register your business with the Oregon Secretary of State. It costs $100 to file your formation certificate in Oregon. (Read more on LLC cost in Oregon).
The Certificate of Formation includes details like the name of the LLC, the registered agent’s name, address, employees’ details, and the company’s structure (member-managed or manager-managed). Before hiring employees in Oregon LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) in other states to Oregon, you must register as an Oregon Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. If you are already a subscriber, then click on the “log in” option and log in with your credentials. If you’re not subscribed, then you can create your account and start filing your LLC by clicking on the “Online Filing” button below. Read more about the Oregon Articles of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your LLC registration, then you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,
Secretary of State, Corporation Division
255 Capitol St. NE
Salem, OR 97310
Processing Time: Normally, it takes around 5 business days (approx) to get your LLC formed in Oregon. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well. However, the document processing time can be changed due to various factors.
Recommended: Online LLC Formation service can fill up and submit all these documents on your behalf in much lesser time along with lifetime customer support and 100% accuracy. We recommend using –
LegalZoom – ($0 + State Fees) Online LLC Setup
Every LLC owner has to pay the filing fees to register their business in Oregon. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Oregon.
Step 4: Create Your LLC Operating Agreement in Oregon
Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing an Oregon LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Oregon LLC later. Hence, having an operating agreement may not be necessary, but it is surely ideal.
Recommended: You can get operating agreement templates at a reasonable price with LLC formation service. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
LegalZoom – ($0 + State Fees) Online LLC Setup
The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂
Step 5: Filing an LLC EIN in Oregon
The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business, for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Oregon LLC requires following specific rules and regulations. On the other side, EIN for Oregon foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN), one must fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
LegalZoom – ($0 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your Limited Liability Company in Oregon. If you do it yourself, it should take you a long time to understand and do all the steps properly.
However, if you use LegalZoom, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.
After Starting Your Oregon LLC
After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.
Apart from that, there are a few things you need to take note of,
- Get a company business bank account
- File Oregon business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees
- File an Oregon LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Cost of Starting an LLC in the State of Oregon
LLCs can be formed by spending very less price. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Oregon must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Oregon,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee||$100|
|Articles of Organization Fee||$100|
|LLC Annual Fee||$100|
|Sales Tax||Not Applicable|
In Oregon, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 120 days without registering your LLC. It can be renewed by paying $100. In Oregon, an Annual Report has to be produced every year. It costs $100. Read our guide on LLC costs in Oregon for more information.
Oregon Foreign LLC
If you are interested in forming a Foreign LLC in the state of Oregon, then you need to file the Certificate of Foreign LLC to the Oregon Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Oregon SOS to form your foreign LLC in the state of Oregon. To know more in detail, check out our guide on Oregon Foreign LLC.
Reasons to Start an LLC in Oregon
When a person is thinking of starting a business, they have to consider many factors before investing their money. They have to look for different costs and the future of the business. When a business person starts analyzing all these factors, one best option is to start an LLC. The main reason behind this is various business funding options and a reduction in various tax liabilities. Read more on Oregon’s classification of LLC tax.
In general, LLCs do not pay massive taxes other than a few federal taxes, such as federal income taxes. However, this income tax does not depend solely on LLC income. It is based on the individual’s personal income. Members of LLCs must file personal tax returns. LLCs need to pay only individual taxes like personal taxes and self-employment taxes.
Apart from that, the business environment is competitive, which pushes a business towards growth. Some of the other monetary benefits of incorporating the Oregon state are-
Oregon Newmarket Tax Credit
If entrepreneurs Start an LLC, then different tax-based incentives are provided to them, out of which NMTC is the most popular. Every LLC owner looks up the details of this rebate and wants to enroll their business for this credit. The main agenda of this program is to bring investment in the form of business incorporations and uplift the living standard of the low-income communities of the state by providing them a jobs. The qualified business gets a tax credit of around 30 percent of the value that they have invested in the Oregon state LLC. The tax credit is divided into a yearly form.
- For the first two years, there will be no tax credit to the company, and they have to invest the money.
- After 2 years, there is a tax credit of 7% provided to the start-up in the third year.
- After that, in the next 4 consecutive business years, a credit of 8% is offered to the company.
Oregon Business Expansion Program
To be eligible for this tax credit, an LLC has to think about expanding its business. It will be a cash-based fund that will be decided based on the expansion cost of a business. The state Lottery funds the handle of this program.
Oregon Investment Advantage
This is a unique program that the Oregon government funds for those who form an LLC in the state of Oregon. In this, a tax holiday of 10 days is provided to the business, and for qualifying for this program, one needs to focus on hiring 5 people who will be doing a full-time job in the company. This way, both parties benefit, and the state’s economy will start moving towards development.
Top Businesses of Oregon State
If you are looking to form an LLC in the state of Oregon, it is important to know about its businesses completely. That is why here is the list of top businesses that are established and operating in Oregon state.
The lumber production of Oregon State is very famous, and it accounts for around 10% of total produced in the USA. Out of the total manufacturing done in the state, 33% is due to the forest and its material. Apart from that, there are metal production industries that include fabricated and primary metals and transportation equipment. The total contribution of the manufacturing sector to the country’s GDP is $33.95 billion, which is huge.
The state is famous for the production of hazelnut and blueberries. These rare products’ output is possible due to their ideal terrains that support different cropping systems. Out of the whole hazelnut produced in the country, 95% is the portion of Oregon State. Moreover, there is a bumper production of cranberries, which has accounted for over 7% of the total produced.
Also, the state’s forest cover is huge, supporting such a big manufacturing industry. The agricultural sector’s overall contribution, including crops, forests, and animal-based products, is around $5.38 billion.
Mining and Energy
The mining sector of the Oregon state is accounting for a huge ratio of the state’s economy. The mining of sand and gravel is done in the state, which is used for construction. There is a Mist-Gas Field in Oregon, which is important for electricity production apart from hydroelectricity. 66% of the energy consumed in households of Oregon is produced with the help of water resources.
Small businesses an entrepreneur can consider are:-
- Protein water
- Mobile Karaoke
- Gluten-free bakery products
Oregon LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Oregon. Click on the steps in this list to read the full detail.
- Name your Oregon LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Oregon, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming a Limited Liability Company in Oregon. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Oregon but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
Things to Consider While Starting an Oregon LLC
All the essential steps are explained in this article. However, there are a few more things you need to consider when starting your LLC. The first thing is naming your LLC. You can go for a business name search on the state’s website. If you hire a professional service provider, then you might get the business name reservation service for free.
The next thing to consider is to appoint a registered agent. Your registered agent address must be used as a primary operating address. This will be the principal office address. You can use your residential address as a secondary address if you’re running your business from home.
An Oregon single-member LLC is taxed as a sole proprietorship. On the other hand, a multi-member LLC is taxed as a corporation. For any Oregon limited liability company, while filing the Articles of Organization, you need to choose the tax structure. According to that, LLCs get taxed. If you hire a professional LLC formation service provider, you will get worry-free services from them. From tax filing reminders to annual report service, everything will be done without any hassle.
All these companies provide rush filing services. Hence, your work will be done sooner. In Oregon, the operating agreement is not a mandatory document to publish. However, LLCs must have it as an internal document. In future, if the members decide to dissolve the company, they can. Based on the terms written in the operating agreement. You can read our Oregon LLC dissolution guide to know more about dissolving LLCs in Oregon.
How Fast Can I Form an LLC in Oregon
When filing for LLC in Oregon, the procedure will be completed within 24 hours. For filings through mail, it will take up to 3-5 business days.
Starting a business can be an appealing prospect when you want to work for yourself or create something that adds value to society. One of the many challenges people face when they embark on their maiden entrepreneurial journey involves registration of the business as a legal entity, identifying it as an LLC (Limited Liability Company).
Having an LLC can provide business owners with a layer of security by separating the personal business of shareholders, members, or owners from the daily operations of the company. The significant benefit of LLCs is protection of personal assets like your home or your car. However, the task of setting up your LLC in Oregon can bring to mind questions about how long it’ll take or what’s the process involved.
The state of Oregon has made filing for an LLC quite straightforward and can usually be accomplished within a few hours to a few days. By going through the official Oregon Secretary of State’s website (SOS), the whole process becomes simpler, with fewer formalities and no procedure through a third-party that will help expedite the filing process. The site itself provides thorough instructions to guide users throughout the filing process and the necessary forms are available free of charge.
After filing all the necessary documents, things might take up to 24 hours for initial approval by the office of SOS before provision of workers’ compensation account and any other corresponding documents.
On the bright side, Oregon allows for expedited filing, which can shoo away time-consuming filing bureaucracy. The expedited service feature makes availability of filing within hours count in a rush situation to ensure organizational data processing doesn’t interfere much with time. The fee necessitated is fifteen times the regular price, but the hold my information option is among its amenities of a day processing time.
Furthermore, Attention should be paid when you make finalize some crucial details, which can make the application much more likely to be approved promptly for most scenarios, thorough checking include confirmation of legal name availability from the Secretary of state office name database, correspondence address and email phone number.
One appealing factor to LLC in Oregon is the low cost involved when compared to other eastern and southern states. Oregon law requires fees to be charged annually but also may indemnify you by the dismissal of excess procedure found in some states plus filing tax returns registering the business from the state.
It’s important to note that filing through the Oregon SOS does not handle other necessary licensing procedures and when engaging your working contact a trustworthy business advisors which can provide relevant checklists to enable other necessary steps to complete properly.
In conclusion, when starting an LLC in Oregon, the process is straightforward and reasonably accessible as well as speedy. Indeed, several things may cause deliberation, but filers may bypass rigid processes to identifying availability of a chosen business name and it’s high-level compatibility with other organizations when building potential branding strategies. Overall, starting a business can take time, but LLC formation in Oregon makes things a lot more smooth-sailed, lowering some levels risks and several log time events.
If you are a resident of Oregon, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $100 (domestic LLC) and $275 (foreign LLC), LLC costs in Oregon include $100 for Annual Reports every year.
It takes 24 hours to get an LLC in Oregon if you file it online. For the mail filing, it takes 3-5 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands, which has an impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report and pay $100 to the Oregon Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Oregon Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in the state of Oregon at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.