How to Start an LLC in Oregon

What is an LLC?

1

Limited Liability Protection

Limited Liability Company (LLC) is a type of legal business organization that merges the benefits of a corporation and partnership. LLC enjoys limited liability, whereby the members of the company (who own the company) are not individually liable for debts or obligations incurred by the firm.

2

Tax Advantages

LLC enjoys pass-through taxation, in which profit only gets taxed on the member side and does not get taxed on the corporate level as corporations undergo double taxation.

3

Management Flexibility

Oregon LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

Formation Process

Select a Solely Unique Oregon LLC Name

Selecting the name for your LLC is a significant aspect of the formation. Your LLC's name should not be similar to another business with a registration in Oregon. Check whether your proposed name is available or not, by conducting a name search via the Oregon Secretary of State's website.

Required Words: The name should contain "Limited Liability Company" or an abbreviation such as "LLC," "L.L.C.," or "Ltd."
Prohibited Words: Your name may not employ prohibited words such as "Agency," "Department," "Commission," or words that might suggest a government affiliation (e.g., "FBI," "State," or "Treasury").
Domain Name: If you intend to have a website for your business, see if the corresponding domain name is available in order to safeguard your web presence.

Choose a Registered Agent for Your Oregon LLC

Each Oregon LLC must have a Registered Agent. This is an individual or business organization that accepts critical legal notices on behalf of your LLC. These notices might be service of process (legal notices), tax returns, and official government mail.

Agent Options

Your Registered Agent may be:

You, if you've got a physical address in Oregon and are present during business hours to accept documents.
A person or professional service that you appoint to take care of these responsibilities.

Professional Services

A professional Registered Agent service can guarantee that you never miss important legal notices. Some well-known Registered Agent services available in Oregon are:

Best Oregon Registered Agent Services

ZenBusiness

ZenBusiness makes it simple to form your LLC and has ongoing assistance. They also include a virtual dashboard for complete access to your LLC's documents.

Quick, guaranteed LLC registration
Complete compliance services
Simple online platform with document access

Best for: LLC Formation & Registered Agent Services

Price: $199 annually

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Northwest Registered Agent

Northwest is renowned for its data protection and customer service. They also include a secure online portal to handle your LLC's documents.

High-quality service at a reasonable price
Data privacy and security focus
Supports corporation and LLC registration in all 50 states

Best for: Professional Registered Agent Services

Cost: $125 per year

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File Your LLC Formation Documents with the State

After you have decided on your name and Registered Agent, the second step is to submit your Articles of Organization with the Oregon Secretary of State. This is your official document declaring your LLC to be a formal business entity.

Filing Fee

The normal filing fee is $100.

Processing Times

Online filings are processed in 1-2 business days. Mail filings are processed in approximately 3-5 business days. If you file in person, processing can be accelerated, sometimes the same day with a fee.

Filing Options

Online: This method is the fastest and usually takes 1-2 business days.
Mail: You can submit by mail too, which takes around 3-5 business days.
In-Person: Filing in person with the Secretary of State's office is also available for quicker service.

Mailing Address:

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

Once you've filed, your LLC is officially formed and you will receive a confirmation from the state.

After Your LLC is Registered

After your LLC is registered in Oregon, you can then continue to the next steps in order to have your business up and running:

Open a Business Bank Account

It is essential to keep your personal and business finances separate to maintain liability protection. Create a business bank account that will assist you in paying the expenses of running your business without jeopardizing your personal assets.

Create an Operating Agreement

Though not required by law in Oregon, having an Operating Agreement is recommended to establish rules for how your LLC will be managed. This agreement details the responsibilities and roles of LLC members and clarifies the business's internal organization and decision-making process.

Apply for an EIN

If you will have employees or need to open a business bank account, you will require an Employer Identification Number (EIN), which you can get from the IRS free of charge.

Get Required Permits and Licenses

Depending on the type of business you have and where you are located in Oregon, you will need certain licenses or permits to operate lawfully in Oregon.

Consider Business Insurance

It's a good idea to invest in insurance, especially liability coverage, to protect your LLC from potential lawsuits and business risks.

Stay Compliant with State Requirements

Oregon demands that all LLCs file an Annual Report with the Secretary of State. This keeps your company in good standing and prevents you from incurring penalties.

FAQs

What is the cost to register an LLC in Oregon?

The filing fee for registering an LLC in Oregon is $100.

Is a DBA required for my Oregon LLC?

Oregon does not need a Doing Business As (DBA) name unless you will conduct business under a name other than your LLC's formal name. If you conduct business under a DBA, you must file it with the state.

How long does it take to process my LLC registration in Oregon?

Online filings are processed in 1-2 business days. Mail filings are processed in approximately 3-5 business days. If you file in person, processing can be accelerated, sometimes the same day with a fee.

Can I serve as my own Registered Agent for my Oregon LLC?

Yes, you may be your own Registered Agent, provided you maintain an Oregon physical address and are present during regular business hours to accept documents.

Do I need an Operating Agreement for my Oregon LLC?

Although Oregon is not a requirement by law, it is highly advisable. This will state how your LLC is governed and prevent infighting from within.

Is an EIN required for my Oregon LLC?

If your LLC is going to have employees or if you wish to establish a business checking account, you will require an Employer Identification Number (EIN). You can obtain an EIN at no charge from the IRS.

Is it possible to rename my LLC after it's been registered?

Yes, you may rename your LLC by submitting an Amendment to the Articles of Organization to the Oregon Secretary of State. This is subject to a filing fee.

Does an Oregon LLC need to submit annual reports?

No, Oregon does not require LLCs to file annual reports. However, if there are any changes to your business, such as a change in address or ownership, you'll need to file an update with the state.

What are the ongoing compliance requirements for an Oregon LLC?

Oregon LLCs do not have to file annual reports, but they do need to maintain their information current with the Secretary of State. You should also keep your LLC compliant with state and federal tax laws and other business obligations.

Ready to Start Your Oregon LLC?

Creating an LLC in Oregon is an excellent option for those who want to have personal liability protection and the ability to conduct business in any number of ways.

Get Started Today

How to Form an LLC in Oregon