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.

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.

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]

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.

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]

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]

And don't forget the 15.3% federal self-employment tax.^[10]

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

References