How Much Does an LLC Cost in Oregon
It costs at least $100 to form an LLC in Oregon. But additional expenses could increase the total to over $3,000.
Here are the fees an LLC in Oregon will encounter:
- Articles of Organization: $100
- Application for Authority (for foreign LLCs): $275
- Annual Renewal: $100/yr
- Business Permits and Licenses: Typically $100+/yr
- Business Taxes: 4.75% to 9.9% of taxable income
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Other Optional Fees: Up to $3,000+
Oregon's lack of sales tax is a siren song for entrepreneurs. However, forming an LLC in this tax-friendly state still has a price.
Find out the cost of forming an LLC in Oregon in this in-depth guide. Starting with mandatory fees like the Articles of Organization, plus additional expenses you should plan for.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Articles of Organization
One-time Fee: $100[1]
To form an LLC in Oregon, you must submit the Articles of Organization to the Oregon Secretary of State. Once the documents are approved, your LLC will be recognized as a separate legal entity.
An Oregon LLC's Articles of Organization contains the following information, among other details:[2]
- Name of your Limited liability company
- Registered agent name and address
- Management structure (member- or manager-managed)
- Business owner names and addresses
You can file the Articles of Organization online, by mail, or in person. Filings made online are typically processed on the same or next business day.[3]
The Oregon Secretary of State does not offer expedited services for LLCs. However, online and in-person filings are typically processed on the same or next business day. Meanwhile, filings by mail typically take 7 to 10 days.[3]
Application for Authority (for foreign LLCs)
One-time Fee: $275[1]
If you already have an LLC in another state and want to expand your business to Oregon, you need to register it as a foreign LLC.
To create a foreign LLC in Oregon, you must file an Application for Authority with the Secretary of State. Don't forget to attach a Certificate of Good Standing from your domestic state.
Forming a foreign LLC costs more in Oregon because the administrative process is more complex. A foreign LLC has more paperwork and compliance requirements compared to a domestic LLC.
Annual Renewal
Annual Fee: $100[1]
All LLCs in Oregon are required to file annual renewals with the Secretary of State (also called an Annual Report). It lets the government, banks, and anyone who can access public records know that your business is still active.
Renewals are due on the LLC's anniversary date. For example, if you filed the Articles of Organization on August 15, 2024, the first renewal is due by August 15, 2025. Oregon typically sends a renewal reminder as early as 45 days before the due date.[4]
The Oregon Secretary of State can mark your LLC as 'inactive' if you don't file an annual renewal. This means you're no longer doing business legally in the state. Your business name may also be taken by someone else, after which you won't be able to reuse it.[5]
Business Permits and Licenses
Annual Fee: Typically $100+/yr
Oregon does not have a state-level general business license. Instead, the state leaves business licensing requirements to local jurisdictions and specific industries.
For example, in Beaverton, a license for businesses with up to four employees costs $100 yearly, plus $12 for each additional employee.[6]
In Hillsboro, a new business license application is $105, plus $5 for each employee over two employees. The base renewal fee is $25, but the limit on employee fees is $725.[7]
The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously and could renew yearly.
Business Taxes
Cost: 4.75% to 9.9% of taxable income[8]
It's true: Oregon doesn't have a sales tax. However, you must still pay the state income tax based on the LLC's profits passed on to you as taxable income.
On top of that, you must also pay federal income taxes.
Federal Income Tax Rates for 2024:[9]
Tax Rate | Taxable Income |
---|---|
10% | $0 to $11,000 |
12% | $11,001 to $44,725 |
22% | $44,726 to $95,375 |
24% | $95,376 to $182,100 |
32% | $182,101 to $231,250 |
35% | $231,251 to $578,125 |
37% | $578,126 and up |
And don't forget the 15.3% federal self-employment tax.[10]
The fees that you'll incur when forming an LLC can be claimed as tax deductions. You can write off the following expenses:
Optional Fees
While the fees below are generally optional, some are unavoidable depending on your business needs.
For example, obtaining a Certificate of Existence is often necessary when opening an LLC bank account.
Oregon LLC Optional Fees | Cost |
---|---|
Registered Agent Services | $0, or $100-$300/yr |
Operating Agreement | $0, or up to $500+ |
Employer Identification Number | $0, or $50 to $99 |
BOI Report | $0, or $25 to $149 |
LLC Name Reservation | $100 |
LLC Trade Name | $50 |
Articles of Amendment | $100 to $275 |
Certificate of Existence | $10 |
Certified Copy of Documents | $15 |
Website Domain | $10 to $20 |
Business Insurance Premiums | Varies |
Registered Agent Services
Annual Cost: $0, or $100-$300/yr
In Oregon, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Oregon. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
No, you don't need an attorney to form an LLC in Oregon. You can form on your own or hire a formation service to help you.
Operating Agreement
Cost: $0, or up to $500+
LLCs in Oregon are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Oregon. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Oregon don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
BOI Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.[11]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Name Reservation
Filing Fee: $100[1]
Got a name in mind but not ready to form an LLC yet? You can reserve your desired name for $100. This will prevent others from using that name for 120 days.[12]
If you need more time, renew the name reservation for the same fee and get another 120 days.
Don't forget to review Oregon's naming regulations. For example, an LLC name must include LLC, Ltd., or similar.
Check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL to prevent others from acquiring it.
Assumed Name
Filing Fee: $50[1]
If you would like your LLC to operate under a different name from its legal one registered with the state, you can apply for an assumed name. It's also known as "Doing Business As" or DBA.
Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name that doesn't have an "LLC" at the end.
Assumed names in Oregon must be renewed every two years.[1] The filing fees for new registrations and renewals are non-refundable.
An assumed name allows a business to operate under a name different from its legal name. Meanwhile, a trademark is an intellectual property protection that legally protects your brand name, logo, or slogan at the national level.
Articles of Amendment
Filing Fee: $100 (domestic) | $275 (foreign)[1]
Your Articles of Organization contains specific details about your Oregon LLC. If you need to change a detail, you must file an amendment to the Secretary of State.
File the Articles of Amendment if you:
- Change the LLC name
- Have a new principal address
- Appoint a new manager
Certificate of Existence
Filing Fee: $10[13]
A Certificate of Existence (also known as Certificate of Good Standing) is an official document issued by the Secretary of State. It verifies that your LLC is updated with all state filings and has paid all its fees and taxes.
You might need to request a Certificate of Existence to:
- Open a bank account
- Apply for business loans
- Qualify for business insurance
- Conduct business as a foreign LLC
You can order it online, and if everything is in order, receive it in just minutes.
Contact the Secretary of State to ask why your LLC is in bad standing. The most common reasons include:
- Failure to file the annual renewal
- Failure to renew business permits and licenses
- Not having a registered agent in Oregon
Pay any outstanding fees and penalties. Then, file a Reinstatement with the $100 filing fee.[1]
Certified Copies
Filing Fee: $15[13]
Certified copies of documents verify that your LLC is legitimate and that its details are accurate.
You might need these for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and amendments (if any) for recordkeeping purposes.
The Oregon Secretary of State provides plain, uncertified copies of a specific document at $5 per copy.[14]
Business Website Domain
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Business Insurance Premiums
Annual Cost: Varies
If you have employees, Oregon typically requires you to provide workers' compensation insurance.[15] The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.
Your LLC might also be required to get other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
You can self-insure or purchase from an insurance carrier. Alternatively, apply for the Oregon Assigned Risk Insurance Plan.[16]
Bottom Line
It costs $100 to file the Articles of Organization with the Oregon Secretary of State. Additionally, startup costs may include:
- Name reservation fee: $100
- Assumed name fee: $50
- Business permits and licenses: Typically $100+/yr.
Depending on your business needs, you could shell out at least $350 to get your LLC started in Oregon.
The total cost of forming an LLC in Oregon will increase depending on the additional services, documents, and licenses you need. Ultimately, it's never a bad idea to set aside extra budget for unexpected fees.
- Alabama LLC
- Alaska LLC
- Arizona LLC
- Arkansas LLC
- California LLC
- Colorado LLC
- Connecticut LLC
- Delaware LLC
- District of Columbia LLC
- Florida LLC
- Georgia LLC
- Hawaii LLC
- Idaho LLC
- Illinois LLC
- Indiana LLC
- Kansas LLC
- Kentucky LLC
- Louisiana LLC
- Maryland LLC
- Massachusetts LLC
- Michigan LLC
- Minnesota LLC
- Mississippi LLC
- Missouri LLC
- Montana LLC
- Nevada LLC
- New Hampshire LLC
- New Jersey LLC
- New Mexico LLC
- New York LLC
- North Carolina LLC
- North Dakota LLC
- Ohio LLC
- Oklahoma LLC
- Oregon LLC
- Pennsylvania LLC
- Rhode Island LLC
- South Carolina LLC
- South Dakota LLC
- Tennessee LLC
- Texas LLC
- Utah LLC
- Vermont LLC
- Virginia LLC
- Washington LLC
- West Virginia LLC
- Wisconsin LLC
- Wyoming LLC
References
- ^ Oregon Secretary of State. Business Registry Fee Schedule, Retrieved 09/03/2024
- ^ Oregon Secretary of State. Articles of Organization - Limited Liability Company, Retrieved 09/03/2024
- ^ Oregon Secretary of State. Delivery Options, Retrieved 09/03/2024
- ^ Oregon Secretary of State. Annual Report or Renewal, Retrieved 09/03/2024
- ^ Oregon Secretary of State. Reinstate a Business, Retrieved 09/03/2024
- ^ City of Beaverton. Business License Fee Schedule, Retrieved 09/03/2024
- ^ City of Hillsboro. Business Licenses, Retrieved 09/03/2024
- ^ Oregon Department of Revenue. Personal income tax rate charts and tables , Retrieved 10/28/2024
- ^ IRS. Federal Income Tax Rates and Brackets, Retrieved 09/03/2024
- ^ IRS. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 09/03/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Oregon Secretary of State. Application for Name Reservation, Retrieved 09/03/2024
- ^ Oregon Secretary of State. Business Registry Certificates, Retrieved 09/03/2024
- ^ Oregon Secretary of State. Request for Copy, Retrieved 09/03/2024
- ^ Oregon Workers' Compensation Division. Workers' Compensation Insurance Overview, Retrieved 09/03/2024
- ^ Oregon Workers' Compensation Division. How Do I Get Workers' Compensation Coverage?, Retrieved 09/03/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
|
|
| ||||||
|
|
|