How to Start an LLC in Oregon (Step-by-Step) 2024 Guide

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Starting an LLC, step-by-step

Starting an Oregon LLC costs $100. And it takes 3 days to get one.

How to start an LLCThere are 5 steps to forming an LLC:

  1. Choose an LLC Name
  2. Select a Registered Agent
  3. File Articles of Organization
  4. Create an Operating Agreement
  5. Get an EIN

If you want to form your LLC yourself, follow our free guide below.

If you want someone to take care of it for you, we recommend hiring Northwest Registered Agent

Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(We recommend Northwest. We've reviewed all the top companies in the industry. And Northwest is our #1 pick for prices, customer support, and address privacy. Check out Northwest vs LegalZoom to learn more.)

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

It costs $100 to start an LLC. And then it costs $100 per year.

What are these fees for?

  • The $100 is to file the Articles of Organization – the document that creates an LLC.
  • The $100 per year is for your Annual Report – a mandatory filing that keeps your LLC in good standing.

To learn more about LLC Costs, see LLC Costs in Oregon.

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

If you file your LLC by mail, it will be approved in 4-6 weeks (plus mail time).

But if you file online, your LLC will be approved in 2-3 business days.

Please see How long does it take to get an LLC in Oregon to check for any delays.

Here are the steps to forming an LLC

1. Search your LLC Name

LLC namesSearch your Oregon LLC Name to make sure it’s available in the state.

You need to do this because two businesses in the state can’t have the same name.

First, search your business name and compare it to existing businesses in the state.

You can make sure the LLC Name you want is unique from existing businesses using the Oregon Secretary of State’s Business Registry Search.

Second, familiarize yourself with the state’s naming rules (so your LLC gets approved).

We’ll explain both in more detail here: Oregon LLC Name.

2. Choose an Oregon Registered Agent

The next step is to choose a Registered Agent.

Registered AgentAn Oregon Registered Agent is a person or company who accepts legal mail and state notices on behalf of your Limited Liability Company.

Who can be an LLC Registered Agent?

You have 3 options for who can be the Registered Agent:

  • You
  • A friend or family member
  • A Registered Agent Service

The Registered Agent for your LLC must have a physical street address in Oregon. PO Boxes aren’t allowed.

And the Registered Agent’s name and address will be listed on public records.

If you don’t have an address in Oregon, or you want more privacy, you can hire a Registered Agent Service for your LLC.

We recommend Northwest Registered Agent

Our favorite feature about Northwest is they’ll let you use their office address throughout your LLC filing. This way, you can keep your address off public records.

They’ll also scan any mail sent to your LLC and upload it to your online account.

Northwest has excellent customer service, and they’re who we trust to be our own Registered Agent.

Special offer: Hire Northwest to form your LLC ($39 + state fee), and you'll get a free year of Registered Agent service.

(Why is Northwest the best? Read our Northwest Registered Agent review)

3. File Oregon LLC Articles of Organization

Articles of OrganizationTo start an LLC, you need to file Articles of Organization with the Oregon Secretary of State.

It costs $100 to file Articles of Organization online.

This is a one-time fee to create your LLC.

If you want to file this yourself, see our step-by-step guide: Oregon Articles of Organization.

Or, you can hire a company to do it for you.

Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(Learn why Northwest is #1 in Northwest vs LegalZoom)

4. Create an Oregon LLC Operating Agreement

Operating AgreementAn LLC Operating Agreement serves as a “companion” document to the Articles of Organization.

The Articles of Organization creates your LLC, and the Operating Agreement shows who owns the LLC.

Additionally, some banks require an Operating Agreement when you open an LLC bank account.

And having an Operating Agreement will be very helpful if you ever end up in court. Reason being, it helps prove that your LLC is being run properly.

That’s why we recommend that all LLCs have an Operating Agreement – including Single-Member LLCs.

Furthermore, an Operating Agreement is an “internal document“. Meaning, you don’t need to file it with the state or the IRS (Internal Revenue Service). Just keep a copy with your business records.

You can download a free template below.

Then, learn how to fill it out by watching our step-by-step Oregon Operating Agreement video.

Download a free LLC Operating Agreement:
Member-managed: Google DocWordPDF
Manager-managed: Google DocWord

(What's better? See Member-managed vs Manager-managed LLC)

5. Get an EIN for your LLC

The next step is to get an Oregon EIN Number from the IRS for your LLC.

Note: An EIN Number is also called a Federal Tax ID Number or Federal Employer Identification Number.

EIN Number for an LLCAn EIN Number is used to:

  • identify your LLC for tax purposes
  • open a business bank account
  • apply for business licenses and permits
How much does an EIN cost?

Getting an EIN Number from the IRS is completely free.

How long does it take to get an EIN?

If you apply online, it takes 15 minutes.

If you apply by mail or fax, it can take 1-3 months.

How can I get an EIN?

US Citizens/US Residents: If you have an SSN or ITIN, you can apply for an EIN online. Follow these instructions: Apply for an EIN online.

Non-US Residents: You can’t get an EIN online, but you can still get one by fax or by mail. Follow these instructions: How to get an EIN without an SSN or ITIN.

What do I do after my LLC is approved?

After your LLC is approved, there are some additional steps.

LLC business bank account

You’ll want to open a business bank account for your LLC.

This makes accounting and record-keeping much easier for your business finances.

Having a separate business bank account also maintains your personal liability protection. This is because it keeps your business entity finances separate from your personal finances.

Get business licenses and permits

Business LicenseGood news, Oregon doesn’t have a state general business license.

However, depending on where your LLC is located, you may need a local business license or permit.

For example, if you want to start a daycare, you may need a business license from the city or county.

You can learn more on our Oregon Business License page.

File your LLC Annual Report

LLC Annual Report

All Oregon LLCs must file an Annual Report every year.

This filing keeps your LLC in good standing with the state.

How much does an Oregon LLC Annual Report cost?

The Annual Report filing fee is $100 per year.

When is the Annual Report due?

Your LLC’s Annual Report is due by your LLC’s anniversary date every year.

When is my first Annual Report due?

Your first Annual Report is due the year after your LLC was approved.

For example, if your LLC was approved on February 15, 2024, your first Annual Report is due by February 15, 2025.

How do I file my LLC Annual Report?

You can file your LLC’s Annual Report online or by mail. We recommend the online filing because it’s easier to complete.

Follow our step-by-step guide here: Oregon LLC Annual Report.

File and pay taxes

LLC TaxesLLCs don’t pay federal taxes. Instead, the LLC Members pay the taxes for the LLC.

Said another way, the owners pay taxes for the LLC as a part of their personal tax return.

How will my LLC be taxed?

By default, an LLC is taxed by the IRS based on the number of owners your LLC has:

  • A Single-Member LLC is taxed like a Sole Proprietorship.
  • A Multi-Member LLC is taxed like a Partnership.

Alternatively, you can ask the IRS to tax your LLC like a C-Corporation or S-Corporation.

Partnership Minimum Tax

LLCs that are taxed as Partnerships in Oregon may also need to pay the Partnership Minimum Tax (PMT).

Your Multi-Member LLC has to pay this tax if your LLC:

  • has done business in Oregon in the past year, and
  • is required to file an Oregon Partnership Return (Form OR-65)

You can read more about the PMT from the Oregon Department of Revenue: Partnership Minimum Tax.

And besides federal taxes, there are also state and local income taxes.

Learn more in Oregon LLC Taxes.

How to Start an LLC in Oregon FAQs

Can I start an LLC online in Oregon?

Yes, you can file your LLC online. The Articles of Organization filing fee is $100.

When you start your LLC online, it will be approved in 2-3 business days.

What are the benefits of an LLC?

The first benefit of an LLC is protecting your personal assets. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected.

This protection applies to all LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC owners are protected from the business debts and liabilities.

This type of protection wouldn’t apply if you operate as a Sole Proprietorship or Partnership. With these types of informal business structures, the owners aren’t protected in the event of a lawsuit. For that reason, Limited Liability Companies (LLCs) are a much more popular business structure.

Another benefit is LLC pass-through taxation. This means the LLC itself doesn’t pay federal income tax. Instead, the profits “pass through” to the LLC Members. And the Members pay the taxes on their personal tax return.

And state income taxes are very similar, since the state honors the federal tax treatment of your LLC.

To learn more, please see How are LLCs taxed.

Is Oregon a good state to start an LLC?

Whether Oregon is a good state to start an LLC depends on where you live – and where you’re doing business.

Meaning, if you live in or do business in Oregon, then you should start your LLC there. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business.

For example, if you form an LLC in Wyoming, but live in and conduct business in Oregon, you’ll also need to register your Wyoming LLC in Oregon (and pay extra fees). And you’ll end up paying Oregon taxes anyway. This ends up leading to more costs and more headaches with no advantages.

In summary, if you live in and conduct business in Oregon, then yes, it is a good state to start a business. If you don’t live in and do business in Oregon, then no, it isn’t a good state to start a business.

Real estate exception: If you’re purchasing real estate outside of Oregon, you should form your LLC in the state where the property is located.

For more information, please see Best State to Form an LLC.

Oregon State Agencies

Oregon Secretary of State (Corporation Division)
​​503-986-2200​​​​​​
8am to 5pm, Monday through Friday

Oregon Department of Revenue
503-378-4988
7:45am – 5:00pm, Monday through Friday
Note: Phones lines are closed on Thursdays from 9am – 11am

Matt Horwitz
Matt Horwitz
Matt Horwitz is the leading expert on LLC education, and has been teaching for 15 years. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.

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8 comments on “Oregon LLC”

Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

  1. I’ve set up several LLCs in Oregon over the last 4 years and this is all excellent advice. I wish I’d seen this when I was setting up my first business. Great advice! One item I would add is for the Registered Agent, ask your CPA. My CPA does this for her clients.

    • Thanks Ilene! Glad you found us :) Yes, you are correct, especially if an accountant (or attorney) includes the Registered Agent service at no extra cost (or a reasonable fee).

  2. Can I set up an LLC strictly for the purpose of buying liability insurance for an organization that is not a registered company? There will be no income or expenses (other than for the LLC).

    • Hi Katie, we are not insurance specialists, so we’re not 100% sure on this. While you can certainly form the LLC and have the LLC hold an insurance policy, we’re not sure what happens in the event the non-registered organization needs to file a claim. It’s likely the claim won’t be accepted. However, maybe the LLC is able to get a rider policy (or list the non-registered organization as an additionally insured party). We recommend speaking with the insurance provider(s). Hope that helps.

  3. how do I pay for annual fees? and who do I make check out to? address to send to? for LLC?…I have 3 LLC’s…..can the correct paperwork be mailed to me at my gmail each year?…thx

  4. I live and own a rental property in Washington state. Also I own three rental properties in Oregon. Which state should I set up an LLC?

    • Hi Pat, there are a few ways to structure your entity (or entities). It’s best practice to speak with a real estate attorney to dive into the details. You can look into forming an LLC in Washington and registering as a foreign LLC in Oregon. Another option is to form a Washington LLC that owns your Washington property and then form another Washington LLC that owns one, or multiple, Oregon LLCs. Another option is to form an LLC in Wyoming and that Wyoming LLC owns one, or multiple, Oregon LLCs as well as a Washington LLC. Some real estate investors choose the Wyoming holding company LLC for charging order protection. There’s many ways to go about it. Hope that helps.

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