How to Start an LLC in Oregon: Step-by-Step Guide

Step 1: Name Your Oregon LLC

Choosing a company name is the first and most important step of starting an LLC in Oregon. Be sure to choose a name that complies with Oregon naming requirements and is easily searchable by potential clients.

1. Follow the naming guidelines:

• Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
• Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.

For a complete list of naming rules in Oregon, you can read the OregonSecretary of State's guidelines.

2. Is the name available in Oregon?Make sure the name you want isn't already taken by doing aname searchon the State of Oregon website.

To learn more about searching for anOregon LLC name, read our full guide. Find name ideas using our freeLLC name generator.

3. Is the URL available?我们建议您检查你的企业s name is available as a网络域. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

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FAQ: Naming an Oregon LLC

Step 2: Choose a Registered Agent in Oregon

You arerequiredto nominate anOregon registered agentfor your LLC.

What is a registered agent?A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent as your business's point of contact with the state.

Who can be a registered agent?A registered agent must be a resident of Oregon or a corporation, such as aregistered agent service, authorized to transact business in Oregon. You may elect an individual within the company including yourself.

FAQ: Nominating a Registered Agent

Step 3: File Your Oregon LLC Articles of Organization

To register your Oregon LLC, you will need to file theArticles of Organizationwith the Secretary of State. This can be done online or by mail.

Now is a good time to determine whether your LLC will bemember-managed vs. manager-managed.

For help with completing the form, visit ourOregon Articles of Organizationguide.

If you’re expanding your existing LLC to the state of Oregon, you will need to form aforeign LLC.

FAQ: Filing Oregon LLC Documents

Step 4: Create an Oregon LLC Operating Agreement

An operating agreement is not required in Oregon, but it's a good practice to have one.

What is an operating agreement?An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important?A comprehensive operating agreement ensures that all LLC owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read ourOregon LLC operating agreementguide.

FAQ: Creating an Oregon LLC Operating Agreement

Step 5: Get an Oregon LLC EIN

You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.

Why do I need an EIN?An EIN number is required for the following:

• To open abusiness bank accountfor the company
• For federal and state tax purposes
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Where do I get an EIN?An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS:Youdo not need an SSNto get an EIN.Learn more here.

FAQ: Getting an EIN

How to Maintain Your LLC

File the Annual Report

Oregon requires LLCs to file an annual report with the Oregon Secretary of State Corporation Division. This form and the $100 filing fee can be submittedonlineusing the Oregon Business Registry portal.

Annual reports are due every year by your LLC’s anniversary date (i.e., the date when you initially registered your LLC with the state).

Keep Your Company Compliant

Oregon Business Licenses & Permits

To operate your LLC, you must comply with federal, state, and local government regulations. Fees and requirements for licenses and permits will vary depending on what sort of business license you need.

Find out how to get the necessary business licenses and permits for your LLC with ourOregon Business Licenseguide.

Oregon LLC Tax Filing Requirements

It's important to stay up to date onOregon LLC taxes.

Depending on the nature of your business, you may be required to register for one or more forms of tax:

Sales Tax

Oregon is one of five states that doesn't impose a sales tax. There are also no local sales tax rates.

Employer Taxes

If you’re hiring employees, you’ll need to register for both Unemployment Insurance Tax and Employee Withholding Tax using theOregon Business Registry portal.

Income Tax

State:
Oregon uses a graduated individual income tax structure. Depending on your LLC’s income, your tax rate could range from 4.75% to 9.9%. Some local jurisdictions also levy a local income tax.

State tax returns are due each year by April 18. To calculate your tax or determine your tax bracket, visit theOregon Department of Revenue website.

Federal:
You’ll also need to report your federal income tax using eitherForm 1065(multi-member LLC) orForm 1040 Schedule C(single-member LLC).

Hiring Employees in Oregon

If you plan to hire employees, stay compliant with the law by following these steps:

• Verify that new employees areable to work in the US
• Report employeesas "new hires" to the state
• Provideworkers' compensationinsurance for employees
• Withhold employee taxes
• Printworkspace compliance postersand place them in visible areas of your workspace

Find more information on theState of Oregon's checklist.

Oregon Business Resources

• Oregon Secretary of State Business Services
• Oregon LLC Statutes
• Oregon Small Business Resources
• Understanding Oregon LLC Laws
• Oregon LLC
• Oregon LLC Dissolution