How to Start an Oregon LLC
By Bazal Razzaq
Updated: September 29, 2023, 12:30pm
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If we look at the statistics, several new businesses have been formed in the past few years, and Oregon is not far behind. Are you also willing to start your own Oregon LLC then read and follow our step-by-step guide to start an LLC in Oregon.
To form an Oregon LLC, file the Articles of Organization with the Secretary of State in Oregon. One can apply online or by mail, and it will cost around $100. You will be required to do the following-
#1 Name your Oregon LLC
Choose a good company name for your LLC in Oregon keeping in mind it complies with the naming requirements of the Limited Liability company.
We suggest you follow the naming guidelines as follows-
- Include the phrase “Limited Liability Company” in the company name or choose an abbreviation “LLC” or “L.L.C”
- It is advisable to not include the name of any government agency such as – the FBI, State Department, Treasury etc).
- It is good if we avoid using restricted words such as Attorney, University, Bank etc. as it may require some additional work and a licensed individual, say a doctor or a lawyer.
You can go through the Oregon Secretary of State’s guidelines before naming your own Oregon LLC. We suggest you do a name search on the State of Oregon website to make sure the chosen name is not already taken. Also, check if the company name is available as a web domain.
#2 Appoint a Registered Agent for Oregon LLC
After you have successfully chosen a name for your LLC, appoint a registered agent who could be a person or a business entity. His role would be to accept any legal document on behalf of your business. A Registered Agent could be any one of the following-
- It could be your family or friends.
- You can be your Registered Agent.
- You can hire one from registered agent service at $50 to $300.
The eligibility criteria for a registered agent is 18 years or more and he /she must have a physical address in the Oregon State.
#3 File Articles of Organisation for Oregon LLC
You need to file for Articles of Organization in the Oregon Secretary of State to register your LLC in Oregon. It can be easily done online or by mail. Then, determine whether LLC is member-managed vs. manager-managed.
You will need to provide the following information-
- Name of your Oregon LLC and the physical office address.
- Full name and address of your registered agent.
- Address where the Secretary of State will post the LLC.
- Name and address of all the organizers of the LLC.
- Purpose of forming the LLC.
- Full name and address of at least one member of the LLC.
- Duration of the LLC.
- Will the LLC be managed by the managers or members.
- The owner of the LLC will sign the Articles of Organization.
File the Articles of Organization online.
Apply by mail- Download the form and mail it.
The state filing will cost $100 which is payable to the Corporate Division and is non-refundable.
Secretary of State, Corporation Division
255 Capitol St. NE
Salem, OR 97310
#4 Create an Operating Agreement for Oregon LLC
It is not mandatory to have an Operating Agreement in place but it is advisable. The Agreement is good to outline the ownership and functionality of a Limited Liability Company.
The Operating Agreement ensures all the members are aware of the operating procedures, and that there are no chances of future conflicts.
The Operating Agreement will include the following-
- Full name and address of the LLC.
- LLC’s Duration.
- Full name and address of the Registered Agent.
- Details of Articles of Organization.
- Agenda of forming the LLC.
- Members of the LLC and their contribution.
- The division of Profit or loss.
- Method of appointment and outgoing members.
- Methods to manage Oregon LLC.
- liability clauses and Indemnification.
#5 Get an EIN for your LLC in Oregon
It is important to get an Employer Identification Number for your LLC from the IRS. The IRS provides an EIN free of charge. The EIN identifies the business and keeps an eye on the business tax reporting from time to time. The IRS provides an EIN free of charge. The EIN is like the Social Security Number (SSN) of the company.
An EIN is required for the following reasons-
- To open a Bank Account for Business Purposes.
- Federal and State Tax Related Issues.
- Hire Employees.
You can apply for an EIN from the IRS after you have formed your Oregon Limited Liability Company. You can apply in the following manner-
Apply for an Employer Identification Number from the IRS online.
Apply through Mail-
Download the form and mail it to the address given below;
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
#6 File for the Annual Report
An Oregon LLC files for an Annual Report with the Oregon Secretary of State Corporation Division. The form along with the $100 filing fee should be submitted online at the Business Registry portal in Oregon.
Annual Reports must be ready every year by the anniversary date of the LLC.
#7 Keep the company compliant
To run a business in Oregon, you must agree with federal, state, and local government regulations. The fee structure and permit will depend upon the business license you need.
Registering your LLC gives you the legal authority to run a business. So, make sure your LLC is compliant with an active status. All LLCs must file for an Annual Report which should be received by the Secretary of State before its Anniversary date. One must also maintain a Registered Agent and make quarterly tax payments.
Frequently Asked Questions
You can follow the LLC naming guidelines to choose a name for your Limited Liability Company. It should include the term ‘Limited Liability Company’ or LLC/L.L.C.
Domestic businesses have to pay a $100 fee whereas foreign entities pay a $275 fee.
Most of the LLCs don’t require a DBA or an assumed business name in Oregon. The name of your LLC can work as your company’s brand name, and accept checks and other payments with the same name.
You can be a Registered agent for your LLC if you are 18 + and have a physical address in there.
It takes about 24 hours online and three to five approximate days by mail to form an LLC.
It is not necessary to file an Operating Agreement with the state as it is only an internal document that you should keep for future reference.
The LLC must prepare and submit the annual report before the anniversary of its formation every year. The State sends a reminder 45 days prior to the due date and it costs a processing fee of $100.