How to Form an LLC in Oregon (OR LLC 2023)
Forming a Limited Liability Company (LLC) in Oregon is an easy process, but it involves a few steps.
Start an Oregon LLC for $0 + state fee
To form an LLC in Oregon for free + state fee, we have listed 3 options to consider:
You can go online and visit the Oregon Secretary of State’s website and do it yourself or you can use the ‘free’ service from Incfile or ZenBusiness.
- DIY $0 + state fee
- Incfile $0 + state fee
- ZenBusiness $0 + state fee
Want to Keep Things More Private?
- Northwest $39 + state fee ‘Privacy by Default’
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Forming an LLC in Oregon for $0 (DIY Summary)
Here’s a brief step-by-step guide to help you through the DIY process, along with relevant links to official resources:
Step 1: Choose a Name for Your LLC
When forming an LLC in Oregon, the first step is to choose a unique and distinguishable name for your business. The name should not be identical or confusingly similar to any existing businesses in the state. To check the availability of your desired name, you can use the Oregon Secretary of State’s business name search tool here.
Step 2: Appoint a Registered Agent
Every LLC in Oregon is required to have a registered agent who acts as the point of contact between the business and the state.
The registered agent can be an individual resident of Oregon or a business entity authorized to conduct business in the state.
They must have a physical address in Oregon where they can receive legal documents and official correspondence on behalf of the LLC.
Step 3: File Articles of Organization
To officially form your LLC in Oregon, you need to file the Articles of Organization with the Oregon Secretary of State.
You can file the articles online through the Secretary of State’s website or submit a paper filing by mail.
The articles will require basic information about your LLC, such as the name, registered agent details, and the purpose of the business.
You can find the online filing system and more information on the Articles of Organization on the Oregon Secretary of State’s website here.
Step 4: Create an LLC Operating Agreement
While Oregon law does not require LLCs to have an operating agreement, it is highly recommended to create one.
An operating agreement outlines the ownership structure, management responsibilities, and operating procedures of the LLC. It helps clarify the rights and obligations of the members and can be useful in resolving disputes.
The operating agreement is an internal document, so it doesn’t need to be filed with the state.
Step 5: Obtain Required Permits and Licenses
Depending on the nature of your business, you may need to obtain specific permits and licenses to operate legally in Oregon.
The licenses required can vary based on your industry, location, and activities.
The Oregon Business Xpress website here provides a comprehensive list of licenses and permits required for different types of businesses.
Step 6: Obtain an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is a federal tax identification number issued by the Internal Revenue Service (IRS).
It is used to identify your LLC for tax purposes and is required if you plan to hire employees or have multiple members in your LLC.
You can apply for an EIN for free on the IRS website here.
Step 7: File Annual Reports
LLCs in Oregon are required to file an Annual Report with the Secretary of State each year.
The report provides updated information about your LLC, such as the current registered agent, business address, and member/manager information.
The Annual Report can be filed online through the Secretary of State’s website.
Extended Version
The United States has seen a huge increase in the number of new businesses over the last few years. Oregon is no different.
The state witnessed an unprecedented year in business formation. It’s not surprising that there is an increase in the number of limited liability companies (LLCs), and new corporations.
Are you looking to create your own Oregon LLC?
To make setting up your business easier, follow our step–by–step guide to how to create an LLC in Oregon.
If you want to use an LLC service, visit our list of the best LLC services in Oregon.
Before Setting Up Your LLC In Oregon
Before you can move to Oregon to create an LLC, there are some things that you should do. These sections provide information on what you need to do or how to handle it before you file your paperwork.
A registered agent can be hired
To receive important state and legal documents, your LLC will need to have a registered agent. Oregon allows you, or an LLC member, to act as agents. However you must be at least 18 and have a physical address in the state.
Don’t worry if you are unable to take on the role, delegate the position or feel that you don’t want to. Numerous companies offer services as registered agents within the state. The average cost of registering agents is between $50 and $300. Make sure you do your research before you choose the right service for your company.
Register Your LLC Business Name
Are you unsure if your LLC exists? A name availability check can be done using the Secretary-of-State (SOS) website. You have the option to hold a name once you have settled on it. To do this, submit a Name Reservation Form. It is subject to $100 processing fee and is valid for 120 calendar days.
Remember to include “limited liability company” in your business name when you file.
Purchase a web domain and set up social media
Once you have established your LLC in Oregon, it is important to promote your business. A website and social media profiles for your business will allow you to connect with potential customers. This allows you to establish brand authority and trust. This is an excellent time to get your internet presence started, even if you have already completed the steps necessary for LLC formation.
Filing Your Oregon LLC Paperwork
To file as a domestic entity, please complete and submit the Articles form. The fee is $100. Checks must be made payable to the “Corporation Division.” Foreign entities can submit an Application to Authority to Transact Business. Out-of-state companies must also pay $275 The processing fees are non-refundable.
Completed forms and payment must be sent to the Secretary Of State, Corporation Division at 255 Capitol St. NE Suite 151 Salem, Oregon 97310-1327. For any questions, please call 503-986-2200.
How to get started with your Oregon LLC
There is much more to do after you have set up your LLC. The following sections will provide useful tips to help you get the most from your new Oregonian business.
Register for an Employer Identification Number (EIN).
EINs are required for most businesses. One exception is single-member LLCs. They can use the owner’s Social Security Number. EINs are a secure and private alternative to SSNs. One might be called a Federal Tax Identification Number, (FTIN), or a Federal Employer ID Number (FEIN). All have the same meaning. You can obtain an EIN free of charge through The IRS Website.
Send an annual report
Oregon requires LLCs to submit a yearly report. This report must be submitted on the anniversary of your original business filing. The state will notify you 45 days before the deadline so that you don’t miss it. $100 is required to process a report.
Make an LLC Operating Agreement
An operating agreement for your Oregon LLC can be a great way to show your long-term goals for your business. These agreements, while not legally required, provide long-term transparency about how your company is run. This includes voting rights and financial obligations for members.
LLC operating agreements can be a great way for you to avoid any future conflicts or confusion. They can help to legitimize your brand and maintain its good standing.
Most Frequently Asked Questions
What is an LLC?
A limited liability company combines the flexibility and ease of a sole proprietorship or partnership structure with the greater risk protection offered by a corporate structure. LLC owners, also known as “members”, have limited liability. This means that their personal liability to the company is limited to what they have invested. It does not cover losses or debts beyond that amount.
Members of an LLC are subject to taxes by default. This is the same as for owners of a general partnership or sole proprietorship. This structure is commonly referred to as a “pass-through” tax structure. If the LLC meets certain criteria, it can choose to be taxed either as a C corporation (C-corp) or an S corporation (Scorp). Small business owners prefer LLCs because of their simplicity and flexibility.
What is the cost of an LLC filing in Oregon?
A $100 fee is charged to domestic entities. Meanwhile, foreign entities forming Oregon LLCs pay a $275 fee.
What are the advantages of forming an LLC?
Because LLCs are more affordable than corporations that offer some liability protection, many entrepreneurs create them. LLC finances can be treated separately from individual assets. You can also claim them on your taxes because they are pass-through tax entities. There are exceptions for LLCs, whose members elect to be taxed like corporations.
Is it necessary to file an annual report on my Oregon LLC?
Yes. Oregon LLCs must file an annual report by the anniversary of incorporation. The request is sent to the state 45 days prior to due date. $100 is the processing fee.
Brian Wilson is the content manager and founder of LLC Radar.
Brian grew up in North Texas, just outside of Dallas, and has a bachelor’s degree in business journalism from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications.
Brian resides in Plano, Texas and he can be reached by email: info@llcradar.com
Phone: 972-776-4050