How to Form an LLC in Oregon (2026)

1. 1Choose a name for your LLC and verify availability by searching the Oregon Secretary of State business entity database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent with a physical street address in Oregon.
3. 3File Articles of Organization with the Oregon Secretary of State. The filing fee is $100. Online filing processes in 2-3 business days.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement. Not legally required in Oregon but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Obtain any required business licenses and permits from your city and county. Oregon has no sales tax.
8. 8File your first annual report on the anniversary of formation. The fee is $100.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Register for Oregon state taxes with the Department of Revenue
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓Apply for any local business licenses or permits
• ✓File your first annual report ($100) on the anniversary of formation

Your Oregon LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." Restricted words like "Bank," "Insurance," or "Trust" require additional licensing. The name must be distinguishable from existing business entities in Oregon.

Oregon LLCs are pass-through entities by default. Members pay Oregon individual income tax on their share of profits (rates from 4.75% to 9.9%). Oregon has no sales tax — one of only 5 states without one — which benefits retail businesses. Oregon does not impose a franchise tax on LLCs. The annual report is $100.

LLC vs. other structures in Oregon

Oregon has moderate LLC costs: $100 to file and $100/year. Total first-year cost is $200. Oregon's lack of sales tax is a major advantage for retail and e-commerce businesses. However, the high top income tax rate (9.9%) is a consideration for high earners. For profitable LLCs, an S-Corp election can reduce self-employment taxes.

• •File an annual report on the anniversary of formation — $100 fee (filing window opens 45 days before)
• •Maintain a registered agent with a physical address in Oregon at all times
• •Keep your operating agreement current and update it when membership changes
• •File Oregon state income tax returns for all members receiving pass-through income
• •Renew any local business licenses or permits as required

Oregon offers a reasonable cost structure for LLCs. The $100 filing fee is competitive, and ongoing costs are manageable. If you operate in Oregon, forming your LLC here makes the most sense.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in Oregon, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What Oregon LLC Owners Need to Know

• •Oregon has no sales tax, which benefits retail and e-commerce LLCs
• •Annual report is $100, due on the anniversary of formation
• •Filing window opens 45 days before your anniversary date
• •Total first-year cost is $200 ($100 filing + $100 annual report)

Official Oregon Resources

• Oregon Secretary of State — Business Registry
• Oregon Business Registration