How to Start an LLC in Oregon

Forming an LLC in Oregon costs $100 to file your Articles of Organization with the Oregon Secretary of State, with processing typically completed in 3-5 business days. Oregon is notable for having no state sales tax, which simplifies tax compliance for retail businesses. The state’s straightforward filing process and reasonable fees make it an accessible choice for entrepreneurs looking to start a business.

Follow these steps to start your Oregon LLC in 2026.

How to Start an LLC in Oregon (6 Steps)

Step 1: Name Your Oregon LLC

Your Oregon LLC name must be distinguishable from any existing business entity registered with the Oregon Secretary of State. The name must include a designator such as “Limited Liability Company,” “LLC,” or “L.L.C.” You can search for available names using the Oregon Business Name Search.

If you find an available name but need more time to prepare your formation documents, you can reserve it for 120 days by filing a Name Reservation with the Secretary of State for $100. This prevents anyone else from registering the same name while you get your LLC paperwork ready.

Before finalizing your name, check whether the matching domain name and social media handles are available. You should also search the USPTO trademark database to ensure your desired name doesn’t infringe on an existing trademark.

Oregon naming rules:

• Must include “Limited Liability Company,” “LLC,” or “L.L.C.”
• Must be distinguishable from other business names on file with the Secretary of State
• Cannot include words that suggest the LLC is a bank, insurance company, or government agency without proper authorization
• Cannot contain language that is deceptive or misleading about the LLC’s purpose

Step 2: Choose a Registered Agent

Oregon does not require a registered agent for domestic LLCs that maintain an office in Oregon where they can be contacted. However, if your LLC doesn’t have a physical Oregon office or you want to keep your personal address off public records, appointing a registered agent is the way to go.

A registered agent receives legal documents, including lawsuits, subpoenas, and official state correspondence, on behalf of your LLC during normal business hours. You can serve as your own registered agent, appoint a trusted individual, or hire a professional registered agent service.

Our top recommendation is Northwest Registered Agent ($39/year), which is actually headquartered in the Pacific Northwest. They also handle LLC formation for $39 + the $100 state fee. Using a professional service provides privacy, ensures you never miss important legal documents, and keeps your home address off public filings.

Step 3: File Your Articles of Organization

To officially create your Oregon LLC, you need to file Articles of Organization with the Oregon Secretary of State. The fastest and most convenient way to file is online through the Oregon Business Registry. You can also file by mail, but online filing provides faster processing.

Oregon’s Articles of Organization are relatively simple. You’ll provide your LLC’s name, the mailing address, the registered agent information (if applicable), and whether the LLC will be member-managed or manager-managed.

Filing details:

• Filing fee: $100
• Online filing: Oregon Secretary of State Business Registry
• Processing time: 3-5 business days (standard)

Information required:

• LLC name
• Mailing address
• Registered agent name and address (if appointing one)
• Management structure (member-managed or manager-managed)
• Names and addresses of managers (if manager-managed) or members (if member-managed)
• Organizer name and address

Step 4: Create an Operating Agreement

Oregon does not legally require an operating agreement, but creating one is strongly recommended for every LLC. An operating agreement is an internal document that establishes the rules for how your LLC is governed, including ownership percentages, profit and loss distribution, voting rights, and procedures for dissolving the LLC or handling member departures.

Without an operating agreement, your LLC will be governed by the default rules in the Oregon Revised Statutes, which may not align with your specific business arrangement. For instance, default rules typically assume equal profit sharing regardless of capital contributions. Most banks also require an operating agreement before opening a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. An EIN acts as your LLC’s tax identification number and is needed to open a business bank account, hire employees, file federal taxes, and apply for business licenses. Even single-member LLCs should get an EIN to keep their personal Social Security Number off business documents.

Step 6: File Your Oregon Annual Report

All Oregon LLCs must file an annual report with the Secretary of State. The annual report fee is $100, and it is due on the anniversary of your LLC’s formation date each year. You can file your annual report online through the Oregon Business Registry.

The annual report updates your LLC’s information on file with the state, including your registered agent, principal office address, and member or manager details. Failure to file your annual report can result in administrative dissolution of your LLC. The state will send a reminder notice before your filing deadline, but it’s wise to set your own calendar reminder as well.

Oregon LLC Costs

Total first-year cost: $200-$500. This range covers the required state filing fee ($100), the annual report ($100), and an optional registered agent service. If you serve as your own registered agent (or don’t designate one), your mandatory costs total $200 in the first year.

Oregon LLC Taxes

Oregon has a graduated state income tax with rates ranging from 4.75% to 9.9%. LLC profits that pass through to members are subject to Oregon state income tax on each member’s individual return. The top rate of 9.9% applies to income over approximately $125,000 for single filers, making Oregon one of the higher-income-tax states.

Oregon does not impose a separate franchise tax on LLCs. However, Oregon does have a Corporate Activity Tax (CAT) that applies to businesses with Oregon commercial activity exceeding $1 million. The CAT rate is 0.57% of commercial activity over $1 million, minus a subtraction for 35% of the greater of cost of goods sold or labor costs. Most small LLCs will not reach this threshold.

Oregon has no state sales tax, which is a significant advantage for retail and e-commerce businesses. This means you don’t need to collect or remit sales tax on goods sold in Oregon, simplifying your tax compliance. However, if you sell in other states, you may still have sales tax obligations in those states.

All LLC members owe federal income tax and self-employment tax (15.3%) on their share of LLC profits, regardless of state tax treatment.

Oregon LLC Annual Requirements

Oregon LLCs must file an annual report with the Secretary of State, due on the anniversary of the LLC’s formation date. The filing fee is $100 per year. You can file online through the Oregon Business Registry. The report updates your LLC’s registered agent, office address, and member or manager information.

In addition to the annual report, keep your registered agent information current (if you have one) and file an amendment if your LLC’s name, management structure, or other key details change. Maintain accurate internal records, including your operating agreement and financial statements. LLCs that fail to file their annual report may be administratively dissolved by the state.

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Frequently Asked Questions

How much does it cost to start an LLC in Oregon?

The state filing fee for an Oregon LLC is $100. Additional costs may include a registered agent service ($39-$299/year) and the annual report ($100/year). Most people spend between $200 and $500 in their first year. The annual report is $100 each year thereafter.

How long does it take to form an LLC in Oregon?

Standard processing for Oregon LLC filings takes 3-5 business days when filed online through the Secretary of State’s Business Registry. Mail filings take longer. Expedited options may be available for faster processing.

Do I need a registered agent in Oregon?

Oregon does not require a registered agent for domestic LLCs that maintain an office in the state. However, appointing a registered agent is recommended for privacy and convenience, especially if you run your business from home or want to keep your personal address off public records.

Does Oregon require an operating agreement?

No, Oregon does not legally require an operating agreement. However, creating one is strongly recommended to define ownership percentages, profit distribution, management roles, and dispute resolution procedures. Without one, your LLC is governed by default state rules. Most banks require an operating agreement to open a business bank account.

How are LLCs taxed in Oregon?

Oregon LLCs are taxed as pass-through entities by default. Profits pass through to members and are taxed at graduated state income tax rates from 4.75% to 9.9%. Oregon has no state sales tax, which benefits retail businesses. However, businesses with over $1 million in Oregon commercial activity may be subject to the Corporate Activity Tax (0.57%).

Does Oregon have a sales tax?

No, Oregon does not have a state sales tax. This is one of the state’s biggest advantages for retail and e-commerce businesses. You do not need to collect or remit sales tax on goods sold in Oregon. However, if you sell to customers in other states, you may have sales tax obligations in those states based on economic nexus laws.

When is the Oregon LLC annual report due?

The Oregon LLC annual report is due on the anniversary of your LLC’s formation date each year. The filing fee is $100. You can file online through the Secretary of State’s Business Registry. Failure to file can result in administrative dissolution of your LLC.

Can a non-resident form an LLC in Oregon?

Yes, you do not need to be an Oregon resident or a U.S. citizen to form an LLC in Oregon. If you don’t have an Oregon office, you’ll want to appoint a registered agent with a physical address in the state. Many non-residents use a professional registered agent service for this purpose.

What is the Oregon Corporate Activity Tax?

The Oregon Corporate Activity Tax (CAT) is a tax on businesses with Oregon commercial activity exceeding $1 million. The rate is 0.57% on commercial activity over $1 million, minus a subtraction for 35% of the greater of cost of goods sold or labor costs. Most small LLCs will not reach this threshold and will not owe any CAT.