Form an LLC in Oregon.

Oregon LLC fees, line by line

Component	Cost / Rule	Note
Articles of Organization filing fee	$100	One-time charge to register the LLC with the state.
Annual report	$100 / year	Late or missed reports trigger administrative dissolution in most states.
Franchise / business tax	$0	This state has no minimum franchise tax for LLCs.
Registered agent	Required	Every state requires a registered agent. You can be your own RA in your home state at no cost; commercial services run $35–$300/yr.
Expedited filing	Not offered	Standard processing only.

Should you form in this state if you don't live here?

For most operators, the answer is no. An LLC pays state income tax wherever it operates, not where it's formed. Forming in Oregon while doing business in another state means paying both states' fees plus a foreign-qualification fee in your operating state. Real reasons to form in a non-home state: pure IP holdcos, real estate holdcos in the property state, asset-protection structures, or non-US residents with no US nexus. Full breakdown of when forming out-of-state pays off →

Forming an LLC in Oregon

Oregon's LLC formation process is managed by the Secretary of State's Business Registry Division. Articles of Organization can be filed online through the state portal, by mail, or in person at the Salem office. Online filing is processed within one to two business days, providing fast turnaround for entrepreneurs. The standard filing fee is $100 for online submission or $100 by mail. Expedited processing (24-hour turnaround) is available for an additional $50 fee. Oregon's online filing system is efficient and user-friendly, guiding applicants through each required field with clear instructions. The state provides real-time status updates so you can track your application's progress from submission to approval.

Before filing, verify your desired LLC name is available by searching Oregon's Secretary of State database. The search is free, instantaneous, and available 24/7 online. Oregon requires your business name to include "LLC," "L.L.C.," "Limited Liability Company," or an approved variant. Once you've confirmed availability, you can file immediately without pre-approval or waiting periods. Oregon offers name reservation for 120 days for a $10 fee, providing time to finalize your operating agreement or arrange other startup details. The affordable filing costs and fast processing timeline make Oregon an accessible option for entrepreneurs nationwide.

Oregon does not require a registered agent or registered office at the time of LLC formation, eliminating a mandatory compliance cost found in states like New Jersey and New York. However, if your LLC will conduct business in Oregon or have in-state nexus, designating a registered agent is advisable for reliable service-of-process and receipt of legal documents. The Secretary of State requires that at least one member or manager maintain current contact information on file with your LLC. You must notify the state of any changes to member, manager, or agent information within 30 days. This flexibility allows entrepreneurs to avoid registered agent costs while retaining the ability to designate one as their business grows.

Oregon does not require publication of your LLC formation in newspapers or state gazettes after filing. This eliminates a compliance burden and cost found in states like New York. Once your Articles of Organization are accepted by the Secretary of State, your LLC is fully operational with no additional public notice requirements. This streamlined approach accelerates your formation timeline and reduces overall startup costs.

After formation, Oregon requires annual reports due by the end of the month following your LLC's anniversary date. The annual report filing fee is $100 for online submission or $100 by mail. The report confirms your registered agent and principal business address or notifies the state of any changes. Late filing incurs penalties that escalate over time, so timely submission prevents unnecessary fines. This annual compliance cost is moderate and manageable for most small business owners. Oregon's annual reporting requirement is straightforward, with minimal paperwork needed beyond confirmation of current information.

Oregon's business tax environment includes specific considerations for LLCs. The state does not impose a corporate income tax on business entities, a significant advantage compared to many states. However, Oregon does impose a Business and Occupation (B&O) Tax on gross revenues from certain activities—particularly service and professional activities. The B&O tax rate is typically 1.5% of gross revenue for service businesses, though it varies by business classification. Single-member LLCs taxed as sole proprietorships and multi-member LLCs taxed as partnerships may be subject to B&O tax depending on the nature of their business. Consult a tax professional to determine whether your LLC is subject to B&O tax and what rate applies to your specific business activities.

State-specific tax considerations

Oregon's tax treatment of LLC income is governed by state B&O tax and personal income tax on business profits. Unlike many states, Oregon does not impose a corporate income tax on LLCs—instead, the state relies on a Business and Occupation (B&O) Tax on gross revenues. For service and professional LLCs, the B&O tax is typically 1.5% of gross revenue, calculated and filed annually. This tax is owed regardless of profitability, based solely on gross revenue. In addition, members are taxed on their share of profits at Oregon's personal income tax rates, which range from 4.75% to 9.9% depending on income level. This combined approach means Oregon LLCs face a gross-revenue tax plus personal income tax on profits, which can represent a higher total tax burden than states with pass-through-only taxation.

If your LLC has employees in Oregon, you must register with the Employment Department for unemployment insurance and workers' compensation. Oregon requires federal income tax withholding from employee paychecks but does not assess a separate state income tax withholding requirement (though members will owe state income tax on profits at year-end). Unemployment insurance contribution rates range from 0.5% to 3.5% of payroll depending on your industry and experience rating. Workers' compensation insurance is mandatory and rates vary by industry classification. Self-employed members of LLCs do not pay Oregon unemployment taxes on themselves; they pay federal self-employment tax on personal returns. Sales tax does not exist in Oregon—the state has no sales tax, a significant advantage for retail and service businesses. However, Oregon requires business license registration and the B&O tax reporting described above.

Frequently asked questions

Sources & verification

• Official: Oregon Secretary of State — business filings
• IRS — Limited Liability Company guidance

Last verified: pending. Fees can change between legislative sessions — the linked official source above is the canonical record.

Compare Oregon with other states

See the full ranking — best states to form an LLC →   Compare formation services →