Updated Recently

LLC in Oregon: Costs & Fees You Need to Know

An Oregon LLC registration will include mandatory and optional costs.

Are you starting a new business in Oregon? Consider structuring it as a limited liability company (LLC).

This type of business structure is easy to form and provides numerous benefits for small business owners and growing companies alike.

The benefits include personal liability protection not offered by sole proprietorships and can give some tax breaks compared to corporations.

And forming an LLC in Oregon is affordable. You can get started for as little as $100 unless you use a professional LLC formation service.

Still, you may incur extra fees for your new business. So it’s important to understand the complete picture of costs. Otherwise, you’ll risk financial setbacks.

We’ll map out all the standard initial costs, as well as the recurring fees you can expect to pay to operate your Oregon business.

Table of contents

  1. Oregon LLC formation cost: $100
  2. Extra Oregon LLC formation costs to account for
  3. Does Oregon have an annual LLC fee?
  4. What taxes do LLCs pay in Oregon?
  5. Conclusion: How much does an LLC cost in Oregon?

Oregon LLC formation cost: $100

The Oregon Secretary of State charges the following fees to form LLCs in Oregon:

  • $100 for Articles of Organization for a domestic LLC.
  • $275 for Application for Authority for a foreign LLC.
Tip: A domestic LLC has its principal place of business in Oregon. A foreign LLC is a business headquartered in another state but wishes to do business in Oregon.

Unlike other states, Oregon doesn’t offer an expedited filing option. That means you can expect the company formation document processing to take as little as 2 or 3 business days and up to 2 weeks if there are any backlogs or delays.

To start forming your LLC in Oregon, choose a business name that’s not already in use. You can do a name search of Oregon’s business registry to verify that a selected LLC name is available. Remember to run a search using LLC abbreviations.

Business Name Search
Business Name Search. Source: Oregon Secretary of State.

Next, you’ll need to appoint an Oregon registered agent to accept service of process (e.g., legal, tax, or other official business documents) before you file your Oregon Articles of Organization.

This person or service will need to have an Oregon street address (not a P.O. box) and be available during regular business hours.

And finally, don’t forget these last few steps of your business entity setup:

  • Create an LLC operating agreement. Use a template or have an attorney help you draft one.
  • Apply for an employer identification number (EIN) from the Internal Revenue Service (IRS). However, you can also use your social security number for a single-member LLC.
  • Open a business bank account.

Extra Oregon LLC formation costs to account for

LLC expenses don’t stop at state application fees. Most businesses will generally face other costs such as the following.

Registered agent fees

Oregon doesn’t charge a separate fee for registered agent appointments. It’s bundled into the Articles of Organization filing.

If you decide to change your agent details later, you’ll need to file a form, but there’s no fee.

Also, you may choose to hire a registered agent service. Using a professional service ensures that no critical legal documents get misplaced or overlooked. But it comes with a cost. On average, a professional registered agent service charges between $50 and $200 per year.

Name reservation: $100

If you’ve checked that your business name is available, but you’re not ready to file your Articles of Organization yet, you can reserve the name for up to 120 days.

You’ll need to submit an application form and pay the state filing fee of $100 + $5 if you need a confirmation copy.

Assumed name registration: $50

If you want to get a DBA “doing business as” for your LLC to operate under an assumed (fictitious) name, you’ll need to file a form and pay a fee of $50.

In Oregon, assumed name registrations are valid for two years. If you plan to keep using the same name, you’ll have to file a renewal.

Using a trade name might make sense if your LLC’s legal name is too formal or not descriptive to help your customers find you.

For example, if your LLC’s legal name is “Heading West LLC” and you’re an electrician, you might want to use the trade name “Portland Electrical Services” instead.

Trademark and service mark applications: $50

A trademark is any word, phrase, symbol, design, or combination that distinguishes one source of goods from another.

Registration form for trade and service marks
Registration form for trade and service marks. Source: Oregon Secretary of State.

Trademarks can be granted on both federal and state levels. If you want to protect your brand in Oregon state only, you’ll need to complete an application and pay a fee of $50.

Registered marks are valid for five years, and renewals are $50 too.

Business permits and licenses

Oregon doesn’t have a general business license. However, certain types of businesses must be registered with the state, depending on their industry.

The common type of occupations requiring a professional license include:

  • Attorneys
  • Architects
  • Accountants
  • Beauty services providers
  • Medical professionals
  • Nursery dealers
  • Florists
  • Property services contractors

You can use the Oregon Business License directory to search your profession and learn about the licensing requirements. Filing fees vary depending on the type of occupation and the number of permits you need.

Some examples include:

  • Dentists: starting at $395.
  • Pesticide applicators: $25 – $75+.
  • Insurance agents: $75.

Does Oregon have an annual LLC fee?

Yes, Oregon requires annual report filings, and the fee is $100 for domestic LLCs and $275 for foreign LLCs.

Your annual report is due on your company’s anniversary date.

Does Oregon have an annual LLC fee

Filing annual reports keeps your company in good standing with the state. Forgetting can make your company inactive which means owners lose their personal liability protection, and you’ll need to pay late fees and penalties to get back into the good graces of the state.

What taxes do LLCs pay in Oregon?

At the federal tax level, all LLCs enjoy pass-through taxation. That means the company doesn’t pay income tax. Instead, profits pass through to the members who pay tax on their individual income tax returns.

However, if your LLC has employees, it will need to pay federal payroll taxes like FICA and federal unemployment.

At the state tax level, there are a few taxes to be aware of.

  • There’s no sales tax in Oregon.
  • Corporate activity tax. Charged to LLCs with more than $1 million in annual revenue. Rate: $250 plus 0.57% of gross revenue exceeding $1 million.
  • Employer taxes: If your company has employees, you’ll need to pay state unemployment tax. Rates for new employers: 2.6% on the first $43,800 of each employee’s pay per year.

The latter two are due to be reported to the Oregon Department of Revenue.

Conclusion: How much does an LLC cost in Oregon?

The minimal cost for starting an LLC in Oregon is $100 ​​— a filing fee to obtain articles of organization from the Secretary of State for a domestic company.

If you’re registering as a foreign LLC, then the fee is $275. If you’re handling the company formation process on your own, that’s the only cost you may incur.

Below, however, we outlined the maximum spending scenario for the first year of operations and a simulation for LLC maintenance in Oregon.

Annual costs for Oregon LLC (1st year)
DescriptionCost
Articles of Organization$100 or $275
Professional registered agent service (if needed)$50 – $200
Fictitious name registration (if needed)$50
Name reservation (if needed)$100
Trademark registration (if desired)$50
Specific permits or licenses (if needed)$20+
Corporate activity tax$250 + 0.57% on revenue over $1 million
Annual costs for Oregon LLC (2nd year & after)
DescriptionCost
Annual report renewal$100 or $275
Registered agent service$50 – $200
Corporate activity tax$250 + 0.57% on revenue over $1 million
Specific permits or licenses (if needed)$20+
Melissa Pedigo

Article by:

Melissa Pedigo

Certified Public Accountant (CPA)

Melissa Pedigo is a US CPA with more than 20 years of experience. She’s worked at Big 4 firms, for the government, and internationally. Now a full-time writer, she enjoys translating complex financial and tax topics into plain English. When she’s not keeping current reading IRS rules or tax legislation, you’ll find her studying foreign languages or playing tennis.

Small business tips straight to your inbox

Already running a small business? Get free tips to your inbox.

We respect your privacy. We're GDPR compliant.