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.
While forming an LLC in Oregon can be simple, it can also be a difficult process. In some cases, it may be better to opt for an online service that handles all the details for you. Several companies, including LegalZoom and ZenBusiness, offer basic services at a low cost, but premium packages are available for those who need more assistance. Here are some tips to help you with the registration process:
To register an LLC in Oregon, the business owner must select a registered agent. The registered agent is the person assigned to receive official correspondence. The registered agent must have a physical office in Oregon and be available during normal business hours. This person should be someone trusted by the business owner or an employee. Alternatively, a corporate attorney or accountant can be hired to act as the registered agent. Registration costs typically range from $50 to $200, depending on the level of service required.
The Secretary of State office in Oregon requires that LLC owners submit an annual report to the office on an annual basis. The fee for filing this report online is $100. In addition to completing an annual report, LLC owners are required to appoint a registered agent. Choosing a registered agent will increase your business’s credibility and allow you to market your products and services. If you have any plans to expand your business, you’ll want to make sure that your LLC name is available.
To form an LLC in Oregon, you need to file Articles of Organization with the Secretary of State. You can do this yourself online, by mail, or in person. However, it is recommended to use an Oregon registered agent service to help with this step. Additionally, the Oregon Secretary of State requires that an LLC appoint a registered agent, who must reside in Oregon. The registered agent must be available to receive service of process during normal business hours. You can also use a registered agent for a minimal fee.
The cost of forming an LLC in Oregon is lower than other forms of business. The cost of registering an LLC is primarily in annual taxes and the fees for a registered agent. Before registering your business in Oregon, it is important to review all licensing requirements for your state. The cost of the license may vary depending on your location, industry, and regulatory board. It’s worth paying the extra money to maintain an LLC in Oregon.
Once you have formed an LLC in Oregon, you need to file annual reports with the state. The annual reports are due a few months after formation and cost about $100. The filing process is easy and you can complete your annual reports online, but the process can be complex depending on your business’ operations. If you’re unsure how to fill out these reports, consider hiring a licensed CPA to complete them.
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.