Updated for 2023

Cost of Starting and Operating an LLC in Oregon

Written by Melissa Pedigo – CPA, updated on

1. Formation cost: $100 to $275

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
Oregon Secretary of State Business Name Search availability. 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.

2. Registered agent services: $100 to $150

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 want to hire a registered agent service in Oregon.

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.

Last updated: May 2023

Start your LLC the easy way

Forming your LLC is a checkbox that needs to be ticked. Easy, fast and worry-free. We reviewed the 13 most popular LLC formation services to figure out who truly understands what new founders need. Our recommendation:

LLC Formation: $39 + state fees
Pricing:
Turnaround Time:
Help & Support:
Customer Satisfaction:
Ease of use:

Best LLC Service 2022

  • Formed 1,000,000+ LLCs
  • $39 formation includes registered agent service
  • Fast formation & same day filing
  • Exceptional customer reviews
Last updated: May 2023

3. 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.

4. 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.

5. 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.

6. Annual LLC fee (report filings): $100 to $275

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.

6. Business permits and licenses: varies

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

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.

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+
Last updated: May 2023

Start your LLC the easy way

Forming your LLC is a checkbox that needs to be ticked. Easy, fast and worry-free. We reviewed the 13 most popular LLC formation services to figure out who truly understands what new founders need. Our recommendation:

LLC Formation: $39 + state fees
Pricing:
Turnaround Time:
Help & Support:
Customer Satisfaction:
Ease of use:

Best LLC Service 2022

  • Formed 1,000,000+ LLCs
  • $39 formation includes registered agent service
  • Fast formation & same day filing
  • Exceptional customer reviews
Last updated: May 2023
Melissa Pedigo

Article by:

Melissa Pedigo

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.

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