Oregon LLC Costs
Small businesses and entrepreneurs benefit when forming a limited liability company in Oregon. An LLC is a business structure that provides business owners with liability protection, unique taxes, special incentives, and a workable management structure. It is a common belief that LLC formation in Oregon is far too complicated and costly. However, it is actually a straightforward process that is worth the small investment for most people.
Recommended LLC Services
Costs to start an LLC in Oregon
LLC Articles of Organization ($100)
- You must file Articles of Organization with the Oregon Secretary of State.
- The cost to file Oregon Articles of Organization is $100.
- Oregon does not offer any expedited LLC services.
Oregon annual report fee ($100)
- In Oregon, you will have to file an annual report with the Secretary of State Corporation Division.
- You will file your annual report online using the Oregon Business Registry website.
- The annual fee in Oregon is $100.
- The fee is due every year on the anniversary of your LLC formation.
- Failure to submit your annual report fee will result in inactive status and possible involuntary dissolution.
Oregon registered agent fee (varies between $50 to $300)
- When you form an LLC in Oregon, you must appoint a registered agent.
- By appointing a registered agent, you are letting the Oregon Secretary of State know that someone is physically available during office hours to accept tax notices, subpoenas, and other services.
- In Oregon, anyone who meets the state requirements can act as a registered agent.
- However, Oregon does not allow an LLC to be its own registered agent.
- The total cost of appointing a registered agent will depend on the appointed agent, the needs of your LLC, and the state filing fees.
Fees to form a foreign LLC in Oregon ($275)
- You must register an LLC as a foreign LLC if you have an existing one in a different state and wish to expand into Oregon.
- You can use the Oregon Business Registry website to register as a foreign LLC.
- Or, you can complete the Application of Authority to Transact Business and submit it by mail.
- The LLC cost to register a foreign LLC in Oregon is $275.
LLC name reservation fee ($100)
- Oregon does not require you to reserve an LLC name before the formation process.
- However, reserving an LLC name means no one else can reserve and register the same one.
- An LLC name in Oregon must be unique and entirely distinguishable from any other business name in the state.
- You can reserve an Oregon LLC name for up to 120 days.
- You can use the Oregon Business Register website to reserve an LLC name online.
- Or, you can complete the Application for Name Reservation and submit it by mail.
- The filing cost to reserve an Oregon LLC name is $100.
DBA filing fees in Oregon ($50)
- The business term DBA stands for ‘doing business as.’ A DBA, or an assumed name, is any name an individual or business uses to operate that is not the legal name.
- LLCs do not have to register a DBA name in Oregon. However, filing a DBA keeps other businesses from using the same name in the state.
- A DBA name in Oregon must be unique and available for use.
- You can register an Oregon DBA online using the Oregon Business Registry.
- Or, you can complete the Assumed Business Name form and submit it by mail to the Oregon Secretary of State Corporation Division.
- The LLC filing fee to register a DBA name in Oregon is $50.
Cost of certified document copies ($15)
- You will order Oregon LLC certified documents by completing the Request for Copy form and submitting it by mail or fax.
- The cost for Oregon LLC certified documents is $15.
Oregon Certificate of Existence ($10)
- Financial institutions will require a copy of your LLC’s Oregon Certificate of Existence before allowing you to open a business bank account.
- You will complete the Request for Certificate form and submit it by mail, fax, or in-person to the Oregon SOS Corporation Division.
- The fee for a Certificate of Existence is $10 in Oregon.
Steps to start an LLC in Oregon
Choose a business name
When deciding on an LLC name in Oregon, you will want to consider a few things.
- LLC names in Oregon must be unique and available.
- An LLC name in Oregon must meet all state naming requirements.
- It is always a good idea to check web domain availability to keep branding and marketing easy.
You will use the Business Registry Database to conduct a name search.
LLC name reservation fee
Oregon does not require the reservation of an LLC name before formation.
You can reserve an Oregon LLC name online or by mail. The reservation is good for up to 120 days before formation.
The cost to reserve a company name in Oregon is $100. An LLC name is good for up to 120 days. Oregon does not require you to reserve an LLC name.
Appoint an Oregon registered agent
You must appoint a registered agent when you form an LLC in Oregon.
The price for an Oregon registered agent or service varies between $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Oregon is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be an Oregon resident or a registered agent service authorized to conduct business in the state.
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness has a stand-alone registered agent service for Oregon LLCs. The price is $99 per year.
- Total Out The Door Oregon LLC Formation Service Package – $45 a month and includes:
- Oregon State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
- Economy – $79 plus $153 Oregon filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
File Oregon Articles of Organization
You must file Articles of Organization with the Oregon Secretary of State Corporation Division.
You can file Articles of Organization online using the Oregon Business Registry.
Or, you can complete the Articles of Organization form and submit it by mail.
The cost to file Articles of Organization in Oregon is $100.
The state of Oregon does not offer any expedited LLC services.
Mailing and physical address
Oregon Secretary of State, Corporation Division
255 Capitol St. NE
Salem, OR 97310
The Oregon Articles of Organization form will ask for specific information.
- LLC name
- Duration of the LLC
- Registered agent information
The fee in Oregon for filing the LLC Articles of Organization is $100.
Get an Oregon LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
The federal government issues the 9-digit EIN for no additional cost. The EIN acts as a Social Security Number for LLCs for income tax purposes.
You must apply for an EIN if you are converting a sole proprietorship into an LLC in Oregon.
Applying for an EIN is a simple process online through the IRS website.
Business banking for an Oregon LLC
Banking experts recommend opening a business bank account separate from your personal one. It will protect personal assets and credit scores.
In Oregon, financial institutions will require you to submit a copy of the LLC’s Articles of Organization, operating agreement, and EIN before allowing you to do business banking.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Oregon
Business attorneys in Oregon keep LLC formation on a simple track. Also, by retaining an attorney, you have someone available to handle future business-related issues.
In Oregon, business attorneys typically offer free consultations for first-time clients.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in Oregon will cost $300 per hour.
LLC taxes in Oregon
- LLCs are considered pass-through entities in Oregon. As an LLC owner, you will file your personal taxes rather than the LLC’s tax returns.
- Oregon is one of a handful of states that do not impose state taxes.
- When hiring employees in Oregon, you must register for an Oregon Business Identification Number (BIN). It is how you will report your LLC’s payroll tax.
- You will also use your BIN to register for Unemployment Insurance Tax and Employee Withholding Tax.
- By hiring a tax expert, you help ensure that you do not miss important deadlines, accrue late fees, or face possible dissolution.
Business licenses and permits in Oregon
The total cost for Oregon business licenses and permits will vary depending on where the company is located and the type of business.
You will use the Oregon State License Requirements and Business Information Center to locate the licenses and permits you need for your LLC.
A business licence in Oregon varies between $50 to $300. The total cost of permits and licences will depend on where your LLC is, and the type of LLC.
Local government agencies in Oregon will have different license processes and rules. You will want to contact the office to inquire about the process, price, and office hours.
You will come across some Oregon LLC formation documents that will require a notarization from a notary public.
If you cannot locate a notary, most government agencies have one in the office.
According to Oregon law, a notary public can only charge a max of $10 per signature.
Employer obligations in Oregon
- You have specific employer obligations when hiring employees in Oregon.
- According to federal law, employers must verify that the LLC employees are all eligible to work in the United States using Form I-9 from the USCIS Website.
- You must enroll in worker’s compensation insurance.
- You must report all new hires to the Oregon Department of Justice Child Support Division.
- You will find the complete list of Oregon employer obligations using the SOS website.
Benefits of an Oregon LLC
- Business banking is kept simple when you form an LLC in Oregon. It protects future liability. And, banks will require that you open separate personal and business banking accounts.
- An LLC has different compliance requirements than other business structures. Incorporations must answer to shareholders and stock owners when they make business decisions.
- All LLCs in Oregon are considered pass-through entities. Owners file personal tax returns rather than the LLC’s tax returns.
- When you form an LLC, you are reducing your chances of double-taxation. C-corporations are double-taxed while LLCs are not.
- LLC formation is affordable in Oregon. The cost to file Articles of Organization is $100. Also, the state does not impose a sales tax, making it a good option.
- Oregon has state-specific incentives that are available to LLCs. The Oregon New Markets Tax Credit (NMTC) and Oregon Business Expansion Program (BEP) are available to LLCs in the state.
How long does it take to register an LLC in Oregon?
It takes the Oregon Secretary of State 5 to 7 hours to process an online LLC registration. And, it will take 5 to 7 business days for registrations filed by mail.
The Oregon SOS Corporations Division does not offer expedited services.
How do I dissolve my Oregon LLC?
In Oregon, dissolving an inactive LLC is the only way to avoid ongoing costs and state fees. You can file your LLC’s Articles of Dissolution by mail.
The cost of LLC cancellation is $100 in Oregon.
Does Oregon have a publishing requirement for LLCs?
Nebraska and Arizona are two states that have expensive publishing requirements.
However, Oregon does not require an LLC to publish notices.
Does Oregon have an annual franchise tax?
One thing that makes forming an LLC affordable in Oregon is that they do not impose an annual franchise tax on LLCs.
Do I need a business operating agreement for my LLC in Oregon?
Oregon does not legally require you to submit an operating agreement to the Secretary of State. However, having one on file helps reduce the chance of future misunderstandings.
Most banks and money lenders in Oregon will require an LLC to file an operating agreement before doing any business banking.
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