Why Form an LLC in Oregon
Oregon is one of only five states with no sales tax, making it attractive for retail and e-commerce.
Portland's Silicon Forest hosts Intel, Nike, and hundreds of software companies.
The tradeoff: income tax up to 9.9%. For service businesses, the high income tax can negate the sales tax advantage.
Oregon also has a Corporate Activity Tax (0.57%) on commercial activity over $1 million.
Oregon LLC Costs and Fees
Complete fee breakdown for Oregon LLCs. State fees sourced from the Oregon Secretary of State.
| Fee | Amount | When Due |
|---|---|---|
| Articles of Organization | $100 | One-time |
| Annual report | $100/year | Anniversary date |
| Same-day processing | $50 additional | Optional |
| Registered agent | $100-150/year | Ongoing |
Step-by-Step: How to Form a Oregon LLC
Step 1: Choose your LLC name
Your name must be distinguishable from existing entities. Must include "LLC" or "Limited Liability Company." Check availability on the Oregon business search. Reserve a name for 120 days for $50.
Step 2: Appoint a registered agent
Every Oregon LLC needs a registered agent with a physical Oregon address (not a PO Box). USLLCGlobal includes one year of registered agent service in all packages.
Step 3: File Articles of Organization
File with the Oregon Secretary of State through the Oregon filing portal or by mail. Required information:
- LLC name with designator
- Registered agent name and address
- LLC mailing address
- Organizer name and address
- Member-managed or manager-managed
- $100 filing fee
Step 4: Create an Operating Agreement
Not legally required in Oregon but essential. Defines ownership, profit distribution, management, and exit provisions. Banks and the IRS expect to see it.
Step 5: Obtain an EIN
Your federal tax ID from the IRS. Required for bank accounts, hiring, and taxes. Non-residents can apply via Form SS-4 (4-6 weeks). USLLCGlobal handles EIN applications in every package.
Step 6: Open a US bank account
With your Articles of Organization, EIN, and Operating Agreement, open a US business account. Mercury, Relay, and Wise Business allow remote opening for non-residents.
Annual Compliance Requirements
What you need each year to keep your Oregon LLC in good standing:
- Annual report: Due on anniversary date. Fee $100.
- Federal tax filing: Form 5472 for non-US owners. $25,000 penalty.
- Oregon state tax: Up to 9.9%.
- CAT: Register if activity exceeds $1M.
- Registered agent: Maintain physical OR address.
- FinCEN BOI Report: File within 30 days.
Oregon Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| Personal income tax | Up to 9.9% | Among the highest |
| Corporate Activity Tax | 0.57% | On activity over $1M |
| Franchise tax | $0 | No franchise tax |
| State sales tax | $0 | No sales tax |
Important tax note
Forming in Oregon does not eliminate federal US tax obligations. Non-resident owners must file Form 5472 annually ($25,000 penalty for non-filing). Consult a qualified tax professional.
Processing Times
| Option | Time | Fee |
|---|---|---|
| Standard | 2-3 business days | $0 (included) |
| Same-day processing | As described | $50 additional |
Pros and Cons of a Oregon LLC
Advantages
- No state sales tax
- Reasonable $100 filing fee
- Strong tech sector (Silicon Forest)
- Fast processing (2-3 days)
- No franchise tax
- Innovation-friendly culture
- Growing food and beverage industry
Disadvantages
- Very high income tax (up to 9.9%)
- $100/year annual report
- CAT (0.57%) on receipts over $1M
- High Portland cost of living
- Not ideal for non-residents
The bottom line
Oregon is right if you sell physical products and want zero sales tax. But the 9.9% income tax is steep for service businesses. Product businesses in the Pacific Northwest should seriously consider Oregon.
Our Pricing: Oregon LLC Formation
Domestic Filers (US Residents)
$249 service + $100 state fee
International Filers (Non-US)
$349 service + $100 state fee
Every package includes:
- Articles of Organization filing with Oregon Secretary of State
- One year registered agent service
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital delivery within 24 hours of approval
- Compliance calendar
- Dedicated email and WhatsApp support
No hidden fees. No upsells. The price listed is the price you pay.
Form your Oregon LLC today
$349 all-in for US residents. $449 for international filers. Formed in 2-3 business days.
Start My Oregon LLC →