Oregon LLCs cost $100 to form and $100/year for annual reports. Annual report due by anniversary date. Oregon Secretary of State processes online filings in 7-10 business days. No state sales tax makes Oregon attractive for retail businesses. Online filing system efficient and user-friendly.
Oregon LLC Formation
Oregon Secretary of State processes LLC formations. $100 filing fee (mid-range for West Coast).
Standard processing: 7-10 business days. Expedited processing: +$100 (2-3 business days). No same-day option available.
Name Requirements
Must include "Limited Liability Company", "L.L.C.", or "LLC". Not case-sensitive.
Restricted words: Bank, Trust, Cooperative, Credit Union. Oregon rejects 18% of names for similarity to existing entities (higher than most states).
Name Availability Search
Search Oregon business registry at egov.sos.state.or.us/br. Free search, real-time results.
Name reservation: $50, holds 120 days. Cannot be extended. Must form LLC within 120 days or lose reservation.
Formation Process
File Articles of Organization with Oregon Secretary of State. Online filing at sos.oregon.gov or mail to Salem office.
Required: LLC name, registered agent with OR address, principal office address, delayed effective date (optional), organizer information.
Registered Agent Requirement
Must have Oregon registered agent with physical OR address (no PO boxes). Can be individual or entity.
Can use yourself if you have OR address. Professional registered agent: $125-250/year.
Annual Report
Due on anniversary of formation date. $100 fee. Example: LLC formed March 15, 2024 must file annual report by March 15, 2025.
Online filing opens 60 days before due date. Grace period: None. Late filing = $100 penalty + potential administrative dissolution.
Anniversary Date Precision
Oregon uses exact formation date (not first of month like some states). Must file by anniversary day each year.
LLC formed mid-month must remember mid-month deadline forever. Consider forming on 1st or 15th for easier tracking.
OR vs Other West Coast States
Oregon $100 + $100/year vs California $70 + $800/year: OR saves $670/year (massive CA difference).
Oregon $100 + $100/year vs Washington $200 + $70/year: WA slightly cheaper annually, OR cheaper formation.
No Sales Tax Advantage
Oregon has no state sales tax (one of only 5 US states). Huge benefit for retail, restaurants, ecommerce businesses.
Businesses don't collect sales tax, reducing compliance burden and bookkeeping complexity.
Tax Considerations
Oregon income tax: 4.75-9.9% graduated brackets. Pass-through taxation like all LLCs.
No sales tax but higher income tax rates than neighboring states. Corporate Activity Tax (CAT) applies to businesses over $1M revenue.
Corporate Activity Tax (CAT)
Oregon businesses with $1M+ in commercial activity pay CAT. 0.57% on gross receipts above $1M threshold.
$250 minimum for businesses $1M-$3M. Higher rates for larger businesses. Does not replace income tax (additional tax).
Operating Agreement
Not required by OR law but HIGHLY RECOMMENDED for all LLCs.
Oregon courts enforce Operating Agreement terms. Critical for multi-member LLCs to prevent disputes.
Foreign LLC
Out-of-state LLCs doing business in Oregon must register as foreign LLC. $275 filing fee (higher than domestic).
Annual report still required: $100/year on anniversary of foreign registration date.
When Foreign Registration Required
Maintaining office in OR, employing OR workers, owning OR real estate, regularly conducting business in state.
Online sales to OR customers typically don't require foreign registration (no physical presence).
Common Mistakes
Missing exact anniversary: Oregon uses formation date (not first of month). LLC formed July 18 must file by July 18 annually.
Underestimating CAT: Many startups hit $1M revenue faster than expected. CAT applies to gross receipts, not profit.
Assuming sales tax applies: Oregon has no sales tax. Don't collect from customers or you violate state law.
When OR Makes Sense
Choose Oregon LLC if: Retail/restaurant business (no sales tax saves hassle), Portland-area operations, value no-sales-tax environment, under $1M revenue (avoid CAT).
Best for: Retail stores, restaurants, ecommerce (no sales tax collection), professional services under $1M.
Consider alternatives if: Revenue above $1M (CAT tax kicks in), very low profit margins (income tax rates higher than some states), operating primarily in other states.
Portland Business Scene
Portland known for food, craft beer, outdoor apparel, tech. Strong entrepreneurial culture.
No sales tax makes retail particularly attractive. Consumers don't pay sales tax, increasing purchasing power.
Trademark Lens verifies Oregon LLC name availability before $100-150 formation costs.