LLC Cost in Oregon | How Much Does It Cost to Start an LLC


Steve Bennett
Steve Bennett
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LLC Costs in Oregon

Forming a Limited Liability Company (LLC) in Oregon is a popular choice for entrepreneurs and small business owners who want to protect their personal assets and enjoy flexibility in their business operations. LLC formation costs vary from state to state, and it is essential to understand the costs involved in forming and maintaining an LLC in Oregon.

If you would like to know more about the Oregon LLC Cost, read the whole article until the end. Webinarcare Editorial Team will help you gain knowledge on how much an LLC Costs in Oregon. You must be guided by all the factors gathered in this article.

How to Start an LLC?

Before we dive into the LLC Cost in Oregon, you should know the step-by-step process of starting an LLC, including selecting a unique business name, appointing a Registered Agent, filing the necessary documents, and fulfilling any additional requirements, such as obtaining licenses or permits that are specific to your industry or location.

Here are the steps in starting an LLC in Oregon:

  • Step 1: Choose a Unique Business Name
    The first step in starting an LLC in Oregon is to select a unique business name for your company. The name should be distinguishable from any other registered businesses in the state. You can check the availability of your desired business name by searching the state’s business name database. Once you’ve found an available name, you may need to include “LLC” or “Limited Liability Company” at the end of the name to comply with state requirements.
  • Step 2: Appoint a Registered Agent
    A Registered Agent is someone who will receive official legal and tax documents on behalf of your LLC. The Registered Agent must have a physical address in Oregon and be available during normal business hours. You have the option to appoint yourself as the registered agent or hire a professional registered agent service.
  • Step 3: File the Articles of Organization
    To officially form your LLC, you need to file the Articles of Organization with the Oregon Secretary of State or the appropriate state agency. The Articles of Organization typically requires basic information about your LLC, such as its name, address, Registered Agent details, and the name and address of the LLC’s members or managers.
  • Step 4: Create an Operating Agreement
    Once your LLC is formed, it’s highly recommended to create an operating agreement in Oregon. Although not required by Oregon law, an operating agreement is a crucial internal document that outlines the ownership, management, and operating procedures of your LLC. It helps establish clear guidelines and expectations among members, and it can be especially useful in the event of disputes or disagreements in the future. The operating agreement can be customized to fit the specific needs and goals of your LLC.
  • Step 5: Obtain Required Licenses and Permits
    Depending on the nature of your business, you may need to obtain specific licenses or permits at the federal, state, or local level. Research the licensing requirements in Oregon and apply for business licenses in Oregon related to your industry or activities. Common examples include professional licenses, health or safety permits, and sales tax permits.
  • Step 6: File for an Employer Identification Number (EIN)
    An Employer Identification Number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) that is used to identify your LLC for tax purposes. Even if you don’t have employees, obtaining an EIN is typically required if you plan to open a business bank account, hire contractors, or file certain tax forms. You can easily apply for an EIN in Oregon through the IRS website.
  • Step 7: Comply with Ongoing Requirements
    Once your LLC is established in Oregon, it’s important to stay in compliance with any ongoing requirements. This may include filing periodic reports, paying Annual Report fees, and renewing licenses or permits. Familiarize yourself with the specific obligations for maintaining your LLC’s good standing in Oregon.

Remember, starting an LLC in Oregon involves some specific steps and requirements that may differ from other states. It’s advisable to hire an LLC Services in Oregon that specializes in business formation to ensure that you follow all the necessary procedures accurately and efficiently. We reviewed the Best LLC Services for you to check out.

LLC Cost in Oregon

It is crucial to consider the costs associated with the formation and maintenance of your business. The costs of establishing and operating an LLC in Oregon can vary based on several factors, including the initial formation fees, ongoing compliance requirements, and optional expenses.

Initial LLC Costs

When starting a limited liability company (LLC), knowing the initial costs associated with forming and registering your new business entity is essential. Understanding and preparing for these expenses can help you budget effectively and set your Oregon business on a path to success. Some common initial costs associated with forming an LLC include Articles of Organization filing fees, Registered Agent fees, and additional services, such as business name reservation fees.

Articles of Organization Filing Fee

The first step in forming an LLC in Oregon is to file the Oregon Articles of Organization with the Oregon Secretary of State. This document officially creates the LLC and includes essential information about the business, such as its name, address, and Registered Agent.

This document includes essential information about your LLC, such as:

  • The name of your LLC
  • The address of your LLC’s principal office
  • The name and address of your Registered Agent
  • The purpose of your LLC (optional in some states)

You can typically file the Articles of Organization online, by mail, or in person. A filing fee is associated with this process, which costs around $100. You can also file by mailing it to Oregon Secretary of State, which is located at Secretary of State, Corporation Division, 255 Capitol St. NE, Suite 151, Salem, OR 97310.

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Registered Agent Fee

An LLC in Oregon must designate a Registered Agent who will be responsible for receiving legal and government documents on behalf of the business. You can act as your own Registered Agent or appoint someone you know. Professional Registered Agent in Oregon typically charge an annual fee ranging from $50 – $150.

In Oregon, your Registered Agent must:

  • Be a resident of Oregon or a business entity authorized to do business in the state.
  • Have a physical address in Oregon (P.O. boxes are not acceptable)

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business.

We reviewed some of the Best Registered Agent Services in Oregon and provided features as an add-on with their packages for you to check out.

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Business Name Reservation Fee

If you have a specific business name in mind and want to ensure it is available when you are ready to file your Articles of Organization, you can reserve the business name with the Oregon Secretary of State.

In Oregon, your LLC name must:

  • Include the words “Limited Liability Company,” “LLC,” or “L.L.C.
  • Not contain any words or phrases that are prohibited by state law
  • Be distinguishable from the names of other businesses registered in the state

However, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application in the Oregon Secretary of State to keep the name.

The online name reservation fee is $100, while the mail name reservation fee is $100. You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for a DBA (doing business as). If you have decided to file for a DBA, you can file it in three methods, online, by mail, and in person filing. However, before filing Oregon DBA, you should know that you need to renew your DBA for up to two years, which cost $50.

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Ongoing LLC Costs

After you know the initial costs of forming an LLC in Oregon, you should also know the ongoing costs once you have filed for an LLC. Here are the involved costs that you need to know.

Annual Report Filing Fee

To keep your LLC in good standing, you must file Annual Report with the Oregon Secretary of State. The Annual Report provides updated information about your LLC, such as changes in address, members, or Registered Agent.

In Oregon, the Annual Report fee costs $100 which can be paid every 1 year.

Franchise Tax or Annual LLC Tax

Some states require LLCs to pay an annual franchise or LLC tax, separate from the Annual Report filing fee. Franchise tax, or annual tax, is a fee imposed by Oregon on businesses, including LLCs and Oregon Corporations, for the privilege of operating within their jurisdiction. This tax is separate from income taxes and is usually based on factors such as the company’s net worth, assets, capital, or a fixed dollar amount, depending on the Oregon’s specific tax regulations.

Oregon LLC Taxes To Be Paid

The State of Oregon is one of those rarest states in the United States that does not levy any personal income tax on businesses. However, the business LLCs must file other taxes with the State authorities.

  • Sales Tax: A sales tax is a government-imposed tax on the sale of goods and services. It is generally added to the price of a product or service at the point of sale and paid by the consumer. The tax is collected by the retailer or service provider, who then remits the collected tax amount to the relevant government authority. In Oregon, the sales tax rate is 0%; Oregon has no sales tax.
  • State Income Tax: Considering other taxes in Oregon, you should pay for the state income tax, with a rate of 6.6-7.6%.
  • LLC Federal Self-Employment Tax: Federal self-employment tax rates are the same across all states. Self-employment taxes are imposed on self-employed individuals or members of a Limited Liability Company (LLC) taxed as a sole proprietorship or partnership.
  • Property Tax: The property tax is fixed at 1.07% of industrial, commercial, residential, agricultural, and all other properties.

Business Licenses and Permits

Depending on the nature of your Oregon business and the location of your operations, you may need to obtain permits and business licenses in Oregon. The costs of these licenses and permits will vary based on your specific business and location. In Oregon, the business license ranges from $50 – $300. However, research the requirements for your LLC in Oregon and budget for these expenses accordingly.

Optional LLC Costs

Here are the optional costs you must consider if you will form an operating agreement or hire a professional service.

Operating Agreement

Although not required by law, it is highly recommended that LLCs create an operating agreement in Oregon. This document outlines the LLC’s ownership structure, management, and operating procedures. Hiring a business attorney to draft an operating agreement can cost anywhere from $500 to $2,000, or you can use online resources and templates to create one yourself.

Professional Services

You may hire professionals such as attorneys, accountants, or business consultants to help you establish and run your Oregon LLC. These services can provide valuable expertise and guidance but come at an additional cost. Consider the potential benefits and weigh them against the costs when hiring professional assistance.

You may check out the Best Business Attorney Services in Oregon that offer their professional services to form your business.

Can I Set Up an LLC For Free?

It’s impossible to set up an LLC entirely for free, as state filing fees and other costs are associated with establishing an LLC. However, you can save money by handling the formation process instead of hiring a professional service. Here are some steps to help you minimize the cost of setting up an LLC:

  • Choose your LLC’s name and check for availability in your state. This can generally be done through the Secretary of State’s website.
  • Prepare and file the Articles of Organization yourself. Oregon offer an online filing option or downloadable forms on their websites. By completing this process independently, you can avoid paying additional fees for a professional service.
  • Act as your own Registered Agent if permitted within Oregon. It allows the business owner to serve as the Registered Agent, saving you the cost of hiring a professional registered agent service.
  • Create your own Operating Agreement using online resources and templates. Although not required in every state, an Operating Agreement is highly recommended to outline your LLC’s ownership structure and management. By drafting this document yourself, you can save on legal fees.
  • Research and apply for any required licenses and permits on your own. Depending on your business type and location, you may need specific permits or licenses. These costs can vary, but handling the application process yourself can save you the expense of hiring a professional service.

While you can’t set up an LLC for free, taking a do-it-yourself approach and minimizing the use of professional services can help you save money during the formation process. However, handling these tasks requires time and effort, and there may be additional legal or financial risks if mistakes occur.

FAQs

What is the cost of forming an LLC in Oregon?
The cost to form an LLC in Oregon is $100.
Is Oregon’s LLC filing fee the same regardless of the type of business?
Yes, the initial LLC filing fee in Oregon is the same regardless of the type of business.
What is the filing fee for registering to conduct business in Oregon for out-of-state LLCs?
The fee to register an out-of-state LLC to conduct business in Oregon is $275.
Can I pay the filing fee for my Oregon LLC with a credit card?
Yes, you can pay the filing fee for your Oregon LLC with a credit card.
Are there any additional fees besides the filing fee for forming an LLC in Oregon?
No, there are no additional fees besides the initial filing fee for forming an LLC in Oregon.
How much does it cost to file annual reports for LLCs in Oregon?
The cost to file an annual report for an LLC in Oregon is $100.
What are the consequences of not filing an annual report for an LLC in Oregon?
Failure to file an annual report for an LLC in Oregon can result in dissolution of the LLC.
Can I file the annual report for my Oregon LLC online?
Yes, the annual report for an Oregon LLC can be filed online.
Is there a fee for changing the name of an Oregon LLC?
Yes, the fee to change the name of an Oregon LLC is $100.
How long does it take to receive my LLC certificate of formation after filing in Oregon?
It usually takes 7-10 business days to receive an LLC certificate of formation from the state of Oregon.
Can I expedite my LLC filing process in Oregon?
Yes, you can expedite your LLC filing process in Oregon by paying a $50 expedite fee.
Are there any discounts available for forming an LLC in Oregon?
There are no discounts available for forming an LLC in Oregon.
How much does it cost to get a copy of my LLC formation documents in Oregon?
The fee for a copy of your LLC formation documents in Oregon is $20.
Is there a penalty for filing my annual report for my LLC in Oregon late?
Yes, there is a penalty fee of $200 for filing an annual report for an LLC in Oregon late.
Can I request a certificate of existence for my LLC in Oregon?
Yes, you can request a certificate of existence for your LLC in Oregon for a $10 fee.
Are there any ongoing annual fees for registered LLCs in Oregon?
Yes, there is an annual fee to maintain active status in Oregon of $100.
Can I file my Oregon LLC formation in person?
You can’t file your LLC formation in person in Oregon, but you can mail it or file online.
Can I file for an LLC formation using a PO Box address in Oregon?
No, the initial formation documents for an LLC in Oregon can’t be filed using a PO Box address.
Where can I find information about trademark registration for my LLC in Oregon?
You can find information about trademark registration for your LLC in Oregon on the Oregon Secretary of State website.
Can an LLC certified copy be mailed outside of the US from Oregon?
Yes, a certified copy of an LLC formation document in Oregon can be mailed outside of the US.
Is there a minimum amount of members required to form an LLC in Oregon?
No, there is no minimum number of members required to form an LLC in Oregon.
Can I convert a foreign LLC to do business as a domestic LLC in Oregon?
Yes, you can convert a foreign LLC to domestic LLC in Oregon by registering for a foreign LLC doing business in the state.
Can I file a ‘Doing Business As’ for my Oregon LLC?
Yes, you can file a ‘Doing Business As’ statement in Oregon under certain conditions.
Do Oregon LLC fees change if the member structure is multiple or single-member?
No, there is no change to the fees for an LLC in Oregon if there is a single member or multiple members.
What is the basic annual renewal fee for LLCs in Oregon?
The basic annual renewal fee for LLCs in Oregon is $100.
Are there any specific tax penalties for Oregon LLCs?
Oregon LLCs are subject to the same tax penalties and interest as other businesses in the state.
Can I register my LLC online in Oregon if I am not a resident of the state?
Yes, you can register your LLC online in Oregon regardless of where you reside.
Can I use a named series LLC when filing for my Oregon LLC?
Yes, you can legally register a named series LLC in Oregon.
Do LLCs registered in Oregon have to pay business or gross receipt taxes?
LLCs in Oregon are subject to various taxes and obligations based on their business activities and location, including business and commercial activity taxes.
How much does it cost to form an LLC in Oregon?
In Oregon, the filing fee to form an LLC is $100.
Is there a yearly fee to maintain an LLC in Oregon?
Yes, there is an annual fee of $100 to maintain your LLC registration in Oregon.
Can I file my LLC formation documents online in Oregon?
Yes, you can file your LLC formation documents online using Oregon’s Business Registry.
How long does it take to form an LLC in Oregon?
In Oregon, it takes about 3-5 business days to form an LLC if you file online.
Is it necessary for me to hire a lawyer to form an LLC in Oregon?
No, it is not necessary to hire a lawyer to form an LLC in Oregon, but it’s always recommended to consult one.
Do I need to publish my LLC formation in a newspaper in Oregon?
No, Oregon does not require you to publish your LLC formation in a newspaper.
Do I have to provide an operating agreement when forming an LLC in Oregon?
No, it is not required to file an operating agreement when forming an LLC in Oregon.
Can I be a sole owner of an LLC in Oregon?
Yes, you can be a single member LLC in Oregon.
Is there any minimum amount I need to invest when starting an LLC in Oregon?
There is no minimum investment required when forming an LLC in Oregon.
Do I need to file an annual report with the state of Oregon if I have an LLC?
Yes, you are required to file an annual report of your LLC in Oregon.
Can I change my LLC’s name in Oregon after forming it?
Yes, you can change your LLC name anytime by filing a Certificate of Amendment.
Are there any special tax liabilities for LLCs in Oregon?
LLCs in Oregon are taxed as pass-through entities, meaning there are no additional state taxes than personal income tax.
Do I need to register my out-of-state LLC in Oregon?
Yes, if you conduct regular business activities in Oregon, you have to register your foreign LLC in Oregon.
Do I need to have an Oregon-licensed registered agent to form an LLC in Oregon?
Yes, your LLC needs to have a registered agent that is located in Oregon or a foreign company that is allowed to do business in Oregon.
Can an LLC file as an S-Corporation in Oregon?
Yes, an LLC may elect S-Corporation status, which Oregon recognizes.
Is Oregon LLC medical insurance mandatory?
No, Oregon LLC medical insurance is not mandatory by law.
Can I operate more than one business under a single LLC in Oregon?
Yes, it is allowed to operate multiple businesses under a single Oregon LLC.
What are the restricted words can I not use in my LLC name in Oregon?
In Oregon, you cannot use words like banking, attorney, engineer, or school in an LLC name unless you have the appropriate regulatory licensure.
Can an LLC have employees in Oregon?
Yes, an LLC in Oregon can have employees.
Where do I obtain an Oregon business license?
The Oregon Secretary of State issues business licenses in Oregon.
Where can I find more information about Oregon business taxes?
You can go through the Oregon Department of Revenue website to learn about Oregon business taxes.
Do I have to file for county or local business licenses in Oregon?
Required for some cities, counties, and special or local obligations. You will have to check with your local government entities.
Are LLCs required to have insurance in Oregon?
State, city, county, clients, lenders’ liability exposure and insurance laws dictate the requirement for LLC insurance.
Can an LLC licensed in another state also do business in Oregon?
Yes provided you complete the registering process and submit all the essential forms to the Oregon Secretary of State.
Can I change my LLC from a membership tax to a C-Corporation tax in Oregon?
Yes of course. Any with pass-through taxation like and LLC can change to C-Corp Down the line.
What’s the penalty if I don’t file my LLC annual report in Oregon?
If you miss the deadline, a $100 late fee applies, following five months if still overdue a $200 penalty fee, and potentially lose your good standing.
Can I be a non-Oregonian and have an LLC in Oregon if I don’t have an Oregon representative?
No, all foreign LLCs in Oregon are required to have a registered agent in Oregon.
If my LLC is registered in Oregon, what other legal actions should I take to protect my business if someone sues me?
Consider using trademark filings, liability insurance, strong contracts, and agreements, following the rules and laws avoiding risks.
Can I cancel or disband my LLC in Oregon?
Yes, an LLC can be dissolved formally under Oregon law.
What is the Oregon Business Xpress?
The Oregon Business Xpress is the secretary of state official website; a portal for online services where entrepreneurs can find information on forming, running or managing an LLC in Oregon.

Also Read

How to Save Money While Starting Your Business LLC in Oregon

One of the first steps in saving money when starting your business is to carefully consider the type of structure you want to establish. In Oregon, forming a Limited Liability Company (LLC) offers many benefits such as limited liability for members and pass-through taxation. Additionally, forming an LLC can often be less expensive than incorporating a business. By choosing the right entity for your business, you can potentially save on registration fees and legal costs.

Another way to save money while starting your business in Oregon is to carefully research and compare the costs of various services and supplies. From office space to equipment, it is important to shop around and negotiate with vendors to get the best deal possible. Consider leasing office space or equipment instead of buying outright to lower upfront costs. Look for inexpensive marketing and advertising options such as social media or networking events to reach your target audience without breaking the bank.

Furthermore, take advantage of any available resources and support for small businesses in Oregon. There are numerous agencies and organizations that offer free or low-cost services such as business counseling, workshops, and networking events. By utilizing these resources, you can gain valuable insights and guidance without having to pay hefty consulting fees. Additionally, consider hiring interns or freelancers for certain tasks instead of full-time employees to save on labor costs.

When it comes to financial management, it is crucial to create a budget and stick to it. Identify your startup costs and ongoing expenses, and prioritize spending on essential items. Look for ways to reduce overhead costs such as renting a shared office space or using virtual office services. Keep track of your cash flow and monitor your expenses closely to ensure that you are not overspending.

Lastly, consider seeking out financing options for your business. In Oregon, there are various programs and resources available to assist entrepreneurs with funding, such as small business loans, grants, and venture capital. Before applying for funding, make sure to have a solid business plan in place and demonstrate a clear vision for your business’s growth and success.

In conclusion, starting a business LLC in Oregon does not have to break the bank. By carefully considering your options, planning ahead, and being resourceful, you can save money while laying the foundation for a successful business venture. Remember to research, budget, and take advantage of available resources to make the most of your investment and set yourself up for long-term success.

Conclusion

Forming and maintaining an LLC in Oregon involves various costs, including initial filing fees, ongoing annual report fees, and taxes. Understanding and planning for these costs is essential when establishing your LLC. Additionally, consider any optional expenses, such as hiring professional services or drafting an operating agreement, to ensure the success and longevity of your LLC in Oregon.

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