Perhaps you are hoping to form an LLC in Oregon. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Oregon.
On this page, you’ll learn about the following:
- Oregon LLC Cost of Filing
- Taxes payable to Oregon Department of Revenue
- Cost Comparison between states
- Other Costs
Oregon LLC Cost of Filing
Here are the costs involved in forming an LLC in Oregon.
Cost of Filing Formation Certificates
The Oregon Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Oregon Secretary of State.
Oregon Domestic LLC
- Online Filing costs $100.
- Annual Report filing costs $100
- Name Reservation fee costs $100
- By Mail: Fill out the application form, and send it to Secretary of State – Corporation Division – 255 Capitol St. NE, Suite 151 – Salem, OR 97310-1327. Costs $100.
Oregon Foreign LLC
- Online Filing costs $275.
- Annual Report filing costs $100
- Name Reservation fee costs $100
- By Mail: Fill out the application form, and send it to Secretary of State – Corporation Division – 255 Capitol St. NE, Suite 151 – Salem, OR 97310-1327. Costs $275.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Oregon LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Oregon, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Oregon Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes payable to Oregon Department of Revenue
To register an LLC in Oregon, an LLC must pay several taxes to the federal and Oregon governments. Let’s take a look at some of the important taxes that are to be paid by LLCs in Oregon. An LLC in the state of Oregon pays two types of taxes to the Oregon State Department of Revenue:
State Income Tax
The LLC owner pays state tax on any amount he earns via the LLC, hence it is termed as State Income Tax. The earnings are taxed through the personal tax return filing. The state income tax rate in Oregon ranges from 5.% to 9.9% depending on the earnings one makes. One can apply for all the standard allowances and deductions.
State Sales & Use Tax
The state of Oregon is among those five states, which do not charge Sales & Use Tax on Goods & Services. Simply put, you should consider yourself lucky because your LLC will not have to pay any sales & USe tax in the state of Oregon.
Oregon Corporate Activity Tax
Any LLC which has commercial activity in excess of $1 million, has to pay the Corporate Activity Tax. This tax is also paid to the Oregon Department of Revenue.
Federal Self-Employment Tax
All the members who run the LLC are self-employed members; because they pay themselves through the LLC. Federal Self Employment Tax, also known as Social Security or Medicare tax, is paid by all such members or managers. The Federal self-employment tax rate in Oregon is 15.3 percent.
Federal Income Tax
If you are in the state of Oregon, you must pay Federal Income Tax, in addition to the State Income Tax. The amount of the Federal Income Tax depends upon your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing.
You pay Federal Income Tax on all the profits your LLC makes after calculating the deductions & allowances such as Healthcare or Retirement Plans.
Employee & Employer Taxes
An LLC that has a number of employees on payroll has to pay the Employee-Employer taxes. These taxes are calculated on the basis of various factors, e.g., the amount earned, number of employees, etc.
Cost Comparison between states
Oregon is surrounded by many states, namely Washington, California, Nevada, Idaho, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
|States||Filing Fee||Annual/Biennial Fee||Sales Tax|
Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in Oregon.
- Oregon Name Reservation: $100 for online fillings or by mail
- Doing Business As (DBA): $50 for online filling or if filing by mail
- Certified Document Copies: $15 per document.
- Certified of Good Standing: $10
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Oregon LLC: $100
How Much Does It Cost to Maintain an LLC in Oregon
To maintain an LLC in Oregon you will need to pay an annual fee of $100 along with state income tax at 5% to 9.9% and federal taxes.
Depending on your industry and location, there are many different costs associated with starting an LLC in Oregon. Some are required while others are optional. In addition, there are also costs associated with keeping your LLC in good standing. For example, if your business sells products or services, you will need to register for sales and use taxes. If your business employs workers, you will need to pay unemployment insurance tax.
The first major expense you will encounter when forming an LLC is the formation fee. A one-time fee of $100 is required to form an LLC. You can pay for this by going to the Oregon Secretary of State’s office in person, by mail or online. However, you will also need to pay an annual fee for maintenance. You can pay the fee online with a credit card or with a check.
The cost of maintaining an LLC in Oregon can be daunting, but there are ways to help simplify the process. For example, you can hire a registered agent to help you with the administrative tasks involved. The fees vary, but a professional service can save you a lot of time and headaches. The average fee is about $150 a year, but the costs can vary by company.
Another fee that you may be required to pay is a license. Some states require businesses to have a state-level business license while others require specific licenses for industries such as retail or construction. If you are operating a business in Oregon, you may also need to register for sales and use tax. While this cost is not as large as the formation fee, it still adds up over time.
The Oregon state government has a nifty little feature that will allow you to check the availability of your business name. You can use this feature on the Secretary of State’s website to see if your selected name is available. However, you must also pay a processing fee of $100 to get your name reserved. If you are not ready to form an LLC yet, you can reserve the name for 120 days.
Another big expense you will face is the annual report. The Oregon annual report is required for every business. If your business has an annual report, you will need to file it online. The state will send you a reminder 45 days before the report is due. If you fail to file your annual report, you may face penalties and/or the loss of your personal liability protection. The most important thing to remember about an annual report is that you need to file it early to avoid late fees.
Finally, the most expensive annual expense you will likely face is your license renewal. Depending on the nature of your business, you may need to renew a business license several times a year. For example, a greenhouse grower’s license can cost anywhere from $148 to over $1,563 based on how much you make in yearly sales.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Oregon is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.