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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#1 TOP PICK

$0 + State Fees

  • 100% accuracy guarantee

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  • Great customer support

  • 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 primary costs of maintaining an LLC in Oregon is the annual filing fee. Every LLC in Oregon is required to file an annual report with the Secretary of State and pay a fee to keep the company in good standing. This fee helps to cover the administrative costs of maintaining records, processing paperwork, and providing information to the public. The amount of the annual filing fee varies, depending on the state’s regulations and business activities.

Another cost to consider is the annual LLC tax. In Oregon, LLCs are subject to an annual tax based on the net income generated within the state. This tax is levied in addition to any federal income taxes that the LLC may owe. Business owners should keep accurate records of their income and expenses to ensure compliance with the state’s tax laws and avoid any penalties or fines.

Additionally, maintaining an LLC in Oregon may require legal fees for consulting with an attorney on various matters. For example, business owners may need legal advice on structuring their LLC, drafting operating agreements, and navigating state regulations. Having a knowledgeable attorney on retainer can help business owners avoid costly mistakes and ensure compliance with the law.

There are also costs associated with maintaining a registered agent in Oregon. An LLC is required to have a registered agent appointed in the state to receive legal notices, tax documents, and other important correspondence on behalf of the company. Business owners can choose to be their own registered agent, but many opt to hire a professional service to ensure that important documents are received promptly and securely.

Overall, the costs of maintaining an LLC in Oregon can vary depending on the size and nature of the business. It is essential for business owners to budget accordingly and factor in these costs when planning their operations. By staying informed about the costs of maintaining an LLC in Oregon and budgeting appropriately, business owners can ensure the long-term success and compliance of their company.

In conclusion, although maintaining an LLC in Oregon can incur costs, the benefits of operating as an LLC often outweigh the financial investment. By understanding and planning for these costs, business owners can ensure the smooth operation and compliance of their company in the state.

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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