How to Start an LLC in Oregon: If you’re interested in setting up an LLC in Oregon, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. Oregon laws make it easy to establish your LLC in Oregon. On this page, You’ll find all the steps that must be taken to ensure that your Oregon LLC has been correctly established. We recommend you read the whole article very carefully word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Oregon
- After Starting Your Oregon LLC
- Oregon Foreign LLC
- Oregon LLC Formation Review
How to Start an LLC in Oregon
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection.
If you wish to start an LLC in Oregon, you mainly have to file your Certificate of Formation with the State and pay a filing fee of $100. There are some more steps to follow to get your LLC established in Oregon. The following steps explain everything you need to create your LLC in Oregon in 2022. Let’s get started! It is always recommended to hire a professional LLC formation service in Oregon to set up your LLC.
Step 1: Decide a Name for Your Oregon LLC
The very first step while forming an LLC in Oregon is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
Oregon LLC Naming Guidelines
There are a few specific requirements all the LLCs in Oregon have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Oregon can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Oregon State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|Oregon Business Entity Search – Online Name Search|
Name Reservation Form – PDF
Name Availability Standards – Guidelines
Oregon LLC Name Search – Instructions
|Secretary of State, Corporation Division|
255 Capitol St. NE
Salem, OR 97310
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided then you can reserve your LLC name for 120 days. To keep the name, you have to file a name reservation application and pay $100 to reserve your name with the Oregon Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Oregon Secretary of State by submitting an Application to Register Trade Name in Oregon along with the filing fee of $50.
Recommended: You can do name search, get company logo, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Tailor Brands offer DIY website templates and incredible logo designs. If you plan to get a website then it is wise to have a “.com” domain for your business but these days you can also use other TLDs like “.company”, “.xyz” etc. With Tailor Brands, you can get everything you need at an affordable price.
It is not legally mandatory to use the word LLC in your domain name or email. If you want you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Oregon
The second step to forming an Oregon LLC is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Oregon. Hence, hiring a competent Oregon Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Oregon or has a physical street address. Their business address or the principal address should be in Oregon. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services, even if you buy their cheapest plan (normally $49/year) you also get registered agent service and other services at a reasonable price.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Oregon. Some LLC formation services offer standalone Oregon registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.
A person who is above 18 years of age and has a physical address in the state of Oregon can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of Oregon and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in Oregon.
Registered Agent Consent Application
In Oregon, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. A filing fee should be paid for it. For more information on the same, read our guide on Oregon Registered Agent.
Step 3: File Articles of Organization in Oregon
The third and most important step in forming an Oregon LLC is to file the Certificate of Formation. This Oregon Articles of Organization is a legal document needed to officially register your business with the Secretary of State. It costs $100 to file your formation certificate in Oregon. (Read more on LLC cost in Oregon).
The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (member-managed or manager-managed). Before hiring employees in Oregon LLC, one should know about the rules and regulations thoroughly. Also if you are expanding your existing business (an LLC) to Oregon then you need to register as an Oregon Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. If you are already a subscriber then click on the “log in” option and log in with your credentials. If you’re not subscribed, then you can create your account and start filing your LLC by clicking on the “Online Filing” button below. Read more about the Oregon Articles of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your Oregon LLC registration, then you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,
Secretary of State, Corporation Division
255 Capitol St. NE
Salem, OR 97310
Processing Time: It takes 24 hours to get an LLC in Oregon if you file it online. For the mail filing, it takes 3-5 business days to get an LLC. By paying an additional fee, it can be expedited.
Recommended: Online LLC Formation service can provide all these documents in lesser time along with lifetime customer support and 100% accuracy. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Step 4: Create Your Oregon LLC Operating Agreement
Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing an Oregon LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation. Like Oregon, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve Oregon LLC later. Hence, having an operating agreement may not be necessary but it is definitely ideal.
Recommended: You can get operating agreement templates at only $29 with TailorBrands. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Step 5: Filing an Oregon LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Oregon LLC requires following specific rules and regulations. On the other side, EIN for Oregon foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
Tailor Brands – ($49 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your Oregon LLC. If you do it yourself it should take you a long time to properly understand and do all the steps.
However, if you use TailorBrands it should take fewer hours and you always have live chat with expert support for any help you need.
After Starting Your Oregon LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Oregon business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees
- File an Oregon LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Cost of Oregon LLC
Forming an LLC in Oregon is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form an Oregon LLC. LLCs have pass-through taxation. Hence, your Oregon LLC won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in Oregon,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee||$100|
|Articles of Organization Fee||$100|
|LLC Annual Fee||$100|
|Sales Tax||Not Applicable|
In Oregon, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 120 days without registering your LLC. It can be renewed by paying $100. In Oregon, an Annual Report has to be produced every year. It costs $100. Read our guide on LLC costs in Oregon for more information.
Oregon Foreign LLC
If you are interested in forming a Foreign LLC in Oregon then you need to file the Certificate of Foreign LLC to the Oregon Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Oregon SOS to form your foreign LLC in Oregon. To know more in detail, check out our guide on Oregon Foreign LLC.
Reasons to Start an LLC in Oregon
When a person is thinking of starting a business, they have to consider many factors before investing their money. They have to look for different costs and the future of the business. When a business person starts analyzing all these factors, one best option is to start an Oregon LLC. The main reason behind this is various business funding options and a reduction in various tax liabilities. Read more on Oregon’s classification of LLC tax.
Apart from that, the business environment is competitive, which pushes a business towards growth. Some of the other monetary benefits of incorporating in the Oregon state are-
Oregon Newmarket Tax Credit
If entrepreneurs Start an Oregon LLC, then different tax-based incentives are provided to them, out of which NMTC is most popular. Every LLC owner looks up the details of this rebate and wants to enroll their business for this credit. The main agenda of this program is to bring investment in the form of business incorporations and uplift the living standard of the low-income communities of the state by providing them a job. The qualified business gets a tax credit of around 30 percent of the value that they have invested in the Oregon state LLC. The tax credit is divided into a yearly form.
- For the first two years, there will be no tax credit to the company, and they have to invest the money.
- After 2 years, there is a tax credit of 7% provided to the start-up in the third year.
- After that, in the next 4 consecutive business years, a credit of 8% is offered to the company.
Oregon Business Expansion Program
To be eligible for this tax credit, an Oregon LLC has to think about expanding its business. It will be a cash-based fund that will be decided based on the expansion cost of a business. The state Lottery funds do the handle of this program.
Oregon Investment Advantage
This is a unique program that the Oregon government funds for those who form an LLC in Oregon. In this, a tax holiday of 10 days is provided to the business, and for qualifying for this program, one needs to focus on hiring 5 people who will be doing a full-time job in the company. This way, both parties benefit, and the state’s economy will start moving towards development.
Top Businesses of Oregon State
If you are looking to form an LLC in Oregon, it is important to know about its businesses completely. That is why here is the list of top businesses that are established and operating in Oregon state.
The lumber production of Oregon State is very famous, and it accounts for around 10% of total produced in the USA. Out of the total manufacturing done in the state, 33% is due to the forest and its material. Apart from that, there are metal production industries that include fabricated and primary metals and transportation equipment. The total contribution of the manufacturing sector to the country’s GDP is $33.95 billion, which is huge.
The state is famous for the production of hazelnut and blueberries. These rare products’ output is possible due to their ideal terrains that support different cropping systems. Out of the whole hazelnut produced in the country, 95% is the portion of Oregon State. Moreover, there is a bumper production of cranberries, which has accounted for over 7% of the total produced.
Also, the state’s forest cover is huge, supporting such a big manufacturing industry. The agricultural sector’s overall contribution, including crops, forests, and animal-based products, is around $5.38 billion.
Mining and Energy
The mining sector of the Oregon state is accounting for a huge ratio of the state’s economy. The mining of sand and gravel is done in the state, which is used for construction. There is a Mist-Gas Field in Oregon, which is important for electricity production apart from hydroelectricity. 66% of the energy consumed in households of Oregon is produced with the help of water resources.
Small businesses an entrepreneur can consider are:-
- Protein water
- Mobile karaoke
- Gluten-free bakery products
Oregon LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Oregon. Click on the steps in this list to read the full detail.
- Name your Oregon LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Oregon, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services like NorthWest Registered Agent to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming an LLC in Oregon. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Oregon but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
How Fast Can I Form an LLC in Oregon
When filing for LLC in Oregon, the procedure will be completed within 24 hours. For filings through mail, it will take up to 3-5 business days.
If you are wondering How Fast Can I Form an LLC in Oregon, you’ve come to the right place. Oregon’s business laws allow you to start your LLC in 24 hours online or five business days via mail. Both methods require you to file your articles of organization. You can file your articles online using the Secretary of State’s online registration system, or you can mail them. However, you should be aware that you will need to pay a processing fee of $100 to the Oregon Secretary of State’s office.
While there are a number of services available in Oregon, Northwest Registered Agent and ZenBusiness are the top-rated companies. LLCs offer significant tax breaks because they do not pay taxes at the state level. Unlike corporations, LLCs are exempt from many taxes, including personal income tax. Furthermore, LLCs require fewer legal processes and documents than corporations. As a result, small businesses in Oregon can get their LLCs up and running quickly and affordably.
Before you begin the process of forming your LLC in Oregon, make sure that your business name is available in the state. If you’re unsure, you can always opt for a different name. Make sure to use a web domain if you plan to register your LLC online. To avoid the hassle of having to file your name, purchase it first. In addition, if you can’t find a web domain, you should use another one.
The next step is obtaining your EIN (Employer Identification Number). This will identify your business to the IRS and enable you to open a business bank account. You can obtain your EIN directly from the IRS, or through an online service, such as Incfile. When you’ve got your EIN, you can move on to the next step – the LLC Operating Agreement. This document is vital in liability protection and separates your personal money from the business’s funds.
The Operating Agreement describes how your LLC will operate, how members will invest, and how the LLC will be governed. The Operating Agreement also gives you the authority to determine the terms of a disagreement with the other members. You can also file an operating agreement online to protect your legal interests. The operating agreement can also protect your limited liability status. However, it is not mandatory in Oregon. In Oregon, you can use the free Oregon LLC Operating Agreement Template to create an LLC operating agreement.
When forming an LLC in Oregon, it is important to hire a registered agent. This person serves as a contact for the LLC’s registered agent. It can be difficult to hire an attorney to serve as a registered agent, but there are many online registered agent services that do all of this for you. Moreover, they are cheaper than hiring an attorney, and some even offer the first year of service for free.
If you are a resident of Oregon, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $100 (domestic LLC) and $275 (foreign LLC), LLC costs in Oregon include $100 for Annual Reports every year.
It takes 24 hours to get an LLC in Oregon if you file it online. For the mail filing, it takes 3-5 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend Tailor Brands which has impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report and pay $100 to the Oregon Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Oregon Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start an LLC in Oregon at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.