How to Start an LLC in Oregon (Step-by-Step Guide)

If you’re considering forming an Oregon LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and file Oregon LLC Articles of Organization.

But there’s more.

Forming your LLC in Oregon costs about $100, and it takes about two to three business days to be approved if you file online and four to six weeks if you file by mail.

This guide compiles all the information you need to start an LLC in Oregon today.

What Are the Steps to Start an LLC in Oregon?

To start an LLC in Oregon, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Designate a registered agent in Oregon
• Step 3. File Articles of Organization with the state
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. File annual reports

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Name Your Oregon LLC

Choosing a name for your LLC in Oregon is an essential first step. Your name should be distinguishable from others and follow state guidelines.

Here are some key points to remember:

• Required Phrase: Include “limited liability company,” or use the abbreviations “L.L.C.” or “LLC.”
• Avoid Misleading Terms: Don’t use words like “Corp.,” “Inc.,” or “L.L.P.” that suggest a different business type.
• Language Rules: Your name can only use the English alphabet, Arabic, or Roman numerals, along with some punctuation.

Before you fall in love with a name, do a quick Oregon name search to see if it’s available. If someone else has it, try different variations.

If you have the perfect name in mind but aren’t ready to file yet, you can reserve it by filing an Application for Name Reservation for $100. This way, you secure your name for up to 120 days.

Don’t forget to check if your chosen name is available as a web domain and on social media platforms. This can help you build your online presence later.

Think about trademarking your name for extra protection. Unlike state LLC registration, trademarks offer more substantial rights against others who might want to use a similar name. Remember to search the trademark database to ensure your name can stand.

Step 2: Choose a Registered Agent in Oregon

Choosing a registered agent is essential in forming your LLC in Oregon. A registered agent acts as your business’s official point of contact. They receive critical legal documents, government notices, and service of process on your behalf.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Oregon:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Oregon Registered Agents

Oregon law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Oregon?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: File Oregon LLC Articles of Organization

Filing the Articles of Organization is crucial in starting your LLC in Oregon. This document establishes your business as a legal entity and includes essential details such as your LLC’s name, address, registered agent, and members’ or managers’ names.

To file your Articles of Organization in Oregon, follow these steps:

Step #1. Complete the Form: Obtain and complete the Articles of Organization form from the Oregon Secretary of State website.

When filling out the Articles of Organization, include the following:

• Name of your LLC
• Duration of your company
• Principal office address
• Name and address of your registered agent
• Address for receiving important mail
• Management structure (member-managed or manager-managed)
• Name and address of each organizer
• List of members and/or managers

Step #2: File Online or by Mail: You can file your Articles of Organization online through the Oregon Business Registry or by mailing the completed form to:

Secretary of State – Corporation Division 
255 Capitol St. NE, Suite 151 
Salem, OR 97310-1327 

Step #3: Pay the Filing Fee: Filing your Articles of Organization costs $100. You can pay this fee using a credit card online or by check/money order if you’re filing by mail.

Once your articles are filed, the state will review and approve them. This process usually takes a few business days. After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

Step 4: Prepare an Operating Agreement for your LLC

An operating agreement is an essential internal document for your LLC in Oregon. This agreement outlines how your business will run, including the roles of the members and how decisions will be made.

Having an operating agreement is essential for several reasons:

• Structure: It defines the structure of your LLC. This means it lays out who owns what and contributes to the business.
• Guidelines: It provides guidelines on operations, which helps prevent misunderstandings among members.
• Legal Protection: An operating agreement protects your assets. It shows that your LLC is a separate entity.

When creating your operating agreement, include crucial elements such as:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

While Oregon does not require an operating agreement, having one can save you future trouble. It adds clarity and helps ensure everyone involved is on the same page.

Create it based on your needs and ensure all members agree to the terms.

Creating an operating agreement may feel complex, but it’s essential for clarity.

It serves as your LLC’s rulebook, guiding operations and avoiding conflicts down the line. Keeping everyone on the same page is even more vital if you have partners.

Step 5: Obtain an EIN for Your LLC

An EIN, or Employer Identification Number, is a Social Security number for your business. It is required for an Oregon LLC if you plan to hire employees, open a business bank account, or apply for specific permits.

You need an EIN to:

• Open a business banking account
• Apply for a business line of credit
• Make contracts with wholesale vendors

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: It takes at least 1-2 weeks.

Step 6: File a BOI Report

After forming your LLC in Oregon, you must file a Beneficial Ownership Information (BOI) report. This step is crucial for compliance with the Corporate Transparency Act.

The BOI report requires you to disclose essential details about the individuals who benefit from your business. This aims to increase transparency and reduce illegal activities.

Who Should File?

If your LLC is not exempt, you must file a BOI report. Exempt entities generally include larger businesses and certain government bodies.

When to File:

• Companies created before January 1, 2024, have until January 1, 2025.
• New companies formed between January 1, 2024, and January 1, 2025, must file within 90 days.
• LLCs formed after January 1, 2025, must report within 30 days.

How to File:

• Visit the FinCEN BOIR e-filing page.
• Choose from the options available:
  • Initial Report
  • Correct Prior Report
  • Update Prior Report
  • Newly Exempt Entity
• Select “Initial Report” for new filings and click NEXT.

Information Needed:

• Business Name and Address: Your LLC’s official name and primary location.
• Owner Information: Names, addresses, and dates of birth for each beneficial owner.
• Identification Numbers: This could include Social Security numbers or tax ID numbers.

Provide accurate and complete information to avoid delays. Filing this report is a legal requirement and helps maintain transparency in business operations.

Step 7: File Annual Report for your Oregon LLC

Once you form an LLC in Oregon, you must file an Annual Report each year and pay a fee to maintain compliance and good standing with the Secretary of State. The Annual Report filing fee is $100, payable annually as long as your LLC operates.

Your Annual Report is due on your LLC’s anniversary—the date the Oregon Secretary of State approved your LLC.

This date can be found in your Articles of Organization or by searching your LLC’s name in the Oregon Registry. Your first Annual Report is due the year after your LLC is formed.

Examples:

• If your LLC was formed on September 10th, 2024, your first Annual Report is due by September 10th, 2025.
• If your LLC was formed on March 3rd, 2024, your first Annual Report is due by March 3rd, 2025.

The Annual Report can be filed online through the Oregon Secretary of State website. After completing the form, you submit it electronically, paying the $100 fee using a debit or credit card.

Online filings are processed within 1-2 business hours. Once processed, you’ll receive an email confirmation with an Acknowledgment Letter as proof of filing.

You can file the Annual Report as soon as you receive the state’s reminder notice, sent 45 days before the deadline.

The state provides a 45-day grace period if you miss the due date. After that, your LLC will be administratively dissolved.

To reinstate your LLC, you must file a Reinstatement Form, pay a $100 penalty, and submit any overdue Annual Reports, each with the $100 fee.

What are the Different Methods To Start an Oregon LLC?

You have several options to start an LLC in Oregon. Each method has its benefits and drawbacks.

Here’s a closer look at how you can set up your LLC.

DIY LLC Formation in Oregon

Starting your LLC on your own is a cost-effective method. You can handle all the paperwork through the Oregon Secretary of State’s website.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Oregon?

If you’re looking to start an LLC in Oregon on a budget, the most affordable option is to do it online. By filing the Articles of Organization directly with the Oregon Secretary of State, you only pay the required $100 filing fee.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Oregon?

There are a myriad of Oregon LLC services from which to choose. Choosing the wrong one can affect your Oregon LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Oregon LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for one year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands out in Oregon LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Oregon?

Forming an LLC in Oregon costs around $100, which covers the Oregon LLC formation fees. However, there are other fees you need to be aware of.

Here’s a breakdown of the entire Oregon LLC costs:

Requirement	Cost
New LLC Filing Fee (Articles of Organization)	$100
Name Reservation (optional)	$100
LLC Formation Service (optional)	$39 (via Northwest)
Registered Agent Fee (optional)	$0 (via Northwest)
Annual Report	$100
Total Estimated Cost	$200 – $340

When forming a new company in Oregon, it is ideal to budget about $200-$340 for the first year. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

The most significant (and essential) expense for every Oregon business owner is filing the Articles of Organization, which costs $100.

Pros and Cons of Forming an LLC in Oregon

6 Important Things To Do After Creating Your Oregon LLC

After you form your LLC in Oregon, several essential steps will help ensure your business runs smoothly. Getting your licenses, setting up finances, and understanding tax responsibilities are critical to your success.

1. Research the Best Licenses and Permits for Your Business

Every business requires different licenses and permits, depending on what you do. Start by checking with the Oregon Secretary of State for state-specific needs. You may also need local permits based on where your business operates.

Consider these standard licenses:

• Business License: Many cities in Oregon require a general business license.
• Sales Tax Permit: You’ll need this permit to collect sales tax if you sell goods.
• Professional Licenses: Certain professions, like healthcare or real estate, may need additional licensing.

Use resources like the Oregon Business Xpress website to ensure compliance.

2. Create Business Accounts for Your Oregon LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds.

This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Oregon Tax Requirements and Managing Your Taxes

Oregon has several tax requirements that LLC owners must understand. Knowing what taxes apply to your business is essential to avoid penalties.

Key taxes include:

• Income Tax: If your LLC is a pass-through entity, you’ll pay personal income taxes on your share of the profits.
• Capital Gains Tax: If you sell any assets, you may owe capital gains tax.
• Payroll Taxes: If you have employees, deduct and remit payroll taxes.

4. File your Annual Report

Once you form an LLC in Oregon, you must file an Annual Report each year and pay a fee to maintain compliance and good standing with the Secretary of State. The Annual Report filing fee is $100, payable annually as long as your LLC operates.

Your Annual Report is due on your LLC’s anniversary date—the date the Oregon Secretary of State approved your LLC.

This date can be found in your Articles of Organization or by searching your LLC’s name in the Oregon Registry. Your first Annual Report is due the year after your LLC is formed.

The Annual Report can be filed online through the Oregon Secretary of State website. After completing the form, you submit it electronically, paying the $100 fee using a debit or credit card.

Online filings are processed within 1-2 business hours. Once processed, you’ll receive an email confirmation with an Acknowledgment Letter as proof of filing.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities.

Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions. Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Setup Your Business Online Presence (optional)

In today’s digital age, online presence can significantly benefit your business. Start by creating a professional website. This platform allows you to showcase your services and connect with customers.

Consider using social media to engage your audience. Platforms like Facebook, Instagram, and LinkedIn can enhance your visibility.

Oregon LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business in Oregon, you can choose from several structures: LLC, S Corp, Partnership, Sole Proprietorship, and Corporation. Each has its features and benefits.

Choosing the proper structure impacts how you run your business and your financial security. Consider your needs and seek professional advice if unsure.

Sole Proprietorship

An Oregon sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk. It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

An Oregon partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

An Oregon corporation is the most complex structure, suitable for larger businesses aiming for significant growth.

Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Oregon

Starting an LLC in Oregon is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

To form your LLC in Oregon, follow these steps:

• Pick a name for your LLC.
• Choose a registered agent.
• File the Articles of Organization.
• Create an Operating Agreement.
• Get an Employer Identification Number (EIN).
• File a Beneficial Ownership Information Report.
• File annual reports

The filing fee for the Articles of Organization is $100.

After forming your LLC, prepare for annual reports, which cost $100 yearly.

Forming an LLC in Oregon is straightforward. By completing these steps, you can protect your assets and benefit from the LLC structure. This structure can offer flexibility and ease of management for your business.

Take your time with each step. Proper planning helps ensure your LLC runs smoothly from the start. Good luck with your new business venture!

Learn More About Starting an LLC in Oregon

If you need additional help to start an LLC in Oregon, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Oregon?

Yes, you can change your registered agent in Oregon. You must file a form with the Oregon Secretary of State to update this information.

How do I change my Oregon LLC’s name?

To change your LLC’s name, you must file an amendment with the Oregon Secretary of State. This process typically involves a small fee and submitting the new name information.

How do I renew my Oregon LLC?

Renewing your Oregon LLC involves filing an annual report with the Oregon Secretary of State. This report is due annually and requires a fee.

How do I dissolve an LLC in Oregon?

You must file a dissolution form with the Oregon Secretary of State to dissolve your LLC in Oregon. This will officially close your LLC.

How do I add a member to an Oregon LLC?

To add a member to your Oregon LLC, update your operating agreement and file any necessary changes with the state if required.

How do I add a DBA to an LLC in Oregon?

To add a DBA (Doing Business As) to your LLC, you must file a specific form with the county where your business operates. This allows you to operate under a different name.

Can a minor own an LLC in Oregon?

In Oregon, a minor can be a member of an LLC, but there may be additional considerations, such as appointing a guardian or adult to handle legal matters.

When is the Oregon Annual Report due?

The Oregon Annual Report is due on the anniversary of your LLC’s formation. It must be filed each year to keep your LLC in good standing.

Does LLC expire in Oregon?

No, an LLC does not have a set expiration date in Oregon. If you file the necessary reports and fees, your LLC can continue indefinitely.

Can a non-resident open an LLC in Oregon?

Yes, a non-resident can open an LLC in Oregon. There is no residency requirement for forming an LLC in the state.

Can I buy a house or car with my LLC in Oregon?

Yes, your LLC can buy a house or a car. However, you should ensure the purchase is in the LLC’s name and follow the necessary steps for legal ownership.

Can you have multiple businesses under one LLC in Oregon?

Yes, you can operate multiple businesses under one LLC in Oregon. If necessary, you may use DBAs for each business.

Is Oregon an excellent state to form an LLC? Is it worth it?

Whether Oregon is a good state for you depends on your business needs. Researching regulations, fees, and business climate can help determine if it suits your goals.

Can one person form an LLC in Oregon?

Yes, one person can form an LLC in Oregon. Single-member LLCs are common and offer the same legal protections as multi-member LLCs.