Going to set up your brand new business in Oregon? To ensure that your business grows successfully without endangering your personal assets, you need to form an LLC. An LLC will not only increase your credibility with your future clients and investors but will also provide a financial safety net for you.
Instead of getting lost down the rabbit hole of the internet, we are here with this comprehensive guide on forming an Oregon LLC. From the first step until the very last, you will get all the information you need to set your LLC up in one place!
Without further ado, let’s get started!
For the best overall value, ZenBusiness is our recommended LLC formation service. Great price of $49 (plus state fees) and everything you need to start your business.
For the cheapest LLC formation service and great customer support. You can get your LLC formed for free (plus state fees).
Got loads to do and don’t have the time to read the entire review? We understand that as an entrepreneur you are going to be short on time so we have provided you quick highlights that will form an LLC in Oregon.
Just follow the given steps, and you will have your LLC in Oregon up and running in no time!
- Selecting an LLC Name
- Choosing a Registered Agent
- Preparing and filing Articles of Organization
- Creating a Business Operating Agreement
- Getting an EIN
- Acquiring Business Licenses and Permits
- Filing Annual Reports
Thinking about forming the LLC in Oregon yourself? You definitely can do so but if you ask us, we will not recommend that you take the DIY route. You are a new business owner and your focus right now should be building and growing your company instead of getting lost in the technical world of legal documentation.
If there is help available, why shouldn’t one take it? With so many LLC formation services out there, you can definitely find one that fulfills your needs and requirements. We recommend ZenBusiness and IncFile to anyone looking to form their LLC professionally.
- ZenBusiness is the best overall choice with their affordable rates and feature-full formation plans. With stellar customer reviews and friendly customer service, you are in for a treat!
- IncFile is the perfect choice for new business owners who want professional services but can’t afford one. With IncFile’s free LLC formation package, you don’t have to worry about having a small budget!
What is an LLC?
Before moving on to the steps of LLC formation, let’s take a brief look at what an LLC is and what are the advantages of having one. An LLC stands for Limited Liability Company and is a type of business structure that comes with the flexibility of a sole proprietorship and the limited liability of a corporation.
With a business, there are always potential legal issues attached. For instance, let’s assume that you own delivery service and fail to deliver important documents on time. The recipient of the sender can sue your company for this.
No matter what the outcome of that lawsuit might be, your personal belongings will remain safe and protected.
Form an LLC in Oregon
The basic steps of forming an LLC, such as selecting a name, getting a registered agent, etc. are the same in every state. However, the rules and regulations, LLC formation fees, business licenses, permits, etc. differ from one state to the other.
Forming an LLC in Oregon is an easy task. You need to file your LLC’s Articles of Organization with the Secretary of State of Oregon and pay a processing fee of $100. Let’s take a look at the steps you need to follow to create your LLC.
Oregon LLC Name
The first step when it comes to forming an LLC is choosing the LLC name. You have to make sure that the name you choose complies with the State’s naming requirements and guidelines.
The name needs to include either the phrase Limited Liability Company or one of its approved abbreviations. Designators for other types of business entities such as Corp., Inc., etc. can’t be used.
Moreover, words such as FBI, State Department, etc. that will confuse your company with a government agency should not be used. Furthermore, there are restricted words such as an attorney, bank, university, etc. that may require paperwork and licenses before making them a part of your LLC’s name.
You should go through the complete list of rules on the State’s website before finalizing the name.
Your LLC name needs to be unique and individual. You can’t take on the name of some other business entity. An easy name search through the state database will ensure that the name you have thought of is available.
Moreover, we recommend that you also check the availability of the web domain before you choose a final LLC name. In the world of today, without a digital platform for your business, it is very likely that you will not miss a lot of opportunities.
Therefore, check out the web domain availability so that you can create a website for your company in the future.
Business Name Reservation
What if you have selected a name but are a bit behind on your filing paperwork? Until you claim the name as you, it is highly likely that another individual will choose the name you have selected so passionately.
To avoid this, you can reserve your LLC name for 120 days after filling out an application and paying the name reservation fee.
Using a Fictitious Business Name
When you are running your business, you can use a name that is different from the one that is registered on your Articles of Organization. You can use a fictitious business name known as DBA.
You can register for the DBA online or send in a physical form for using an assumed business name. The registration fee is $50 and you have to renew this registration bi-annually.
Appointing a Registered Agent
By Oregon state law, every LLC in Oregon should have a registered agent who will accept legal documentation on the behalf of the LLC. The registered agent will be the point of contact between your state and your business.
You can’t simply use PO boxes instead of registered agents. Your registered agent can be an individual or a business entity. However, the registered agent needs to have a physical street address in the State.
Moreover, your registered agent needs to maintain regular office throughout the week in case the government needs to correspond with your LLC. When it comes to choosing a registered agent, you have a few options.
You can become your own registered agent, choose someone from your company, get the help of a friend or a family member, or you can hire a professional registered agent such as Northwest Registered Agent.
We don’t recommend that you become your own registered agent for your address will become part of public records. This means you will have no privacy and there will be plenty of unsolicited visitors on your doorstep, apart from plenty of junk mail that you will get.
Moreover, you will need to be available during business hours which means that you will not be able to take a break during weekdays if you want to. For all these reasons, we recommend that you don’t become your own registered agent, nor appoint your family members, colleagues, or friends as registered agents.
A professional registered agent such as Northwest Registered Agent will be perfect for you. Not only will you keep your privacy, but you will also be sure that all the legal documentation will reach your offices in a timely fashion.
Preparing and filing Articles of Organization
Now that you have selected the name of your LLC and appointed a registered agent, to officially create your LLC, you have to prepare and file the Articles of Organization. You can file them online or send the documents via mail.
- The Articles of Organization must include the following.
- The name of the LLC
- The address of the main office
- The name of the Registered Agent along with their address
- The type of service the LLC will provide
- The management structure of the LLC
- The name & address of the organizers of the LLC
The filing fee for these documents in the state of Oregon is $100. This is a one-time fee and if you file the articles of the organization online, your LLC will be approved very quickly – in almost 1 to business hours, which is very fast!
If you file by mail, it will take almost 5 to 7 business days to approve your LLC. We recommend that you file your LLC since you won’t have to worry about posting the documents and your LLC will be formed pretty quickly as well.
You will get an Acknowledgement letter from the state along with your LLC’s registration number. The approved and stamped articles of the organization can be downloaded from the Oregon Registry.
Preparing and filing articles of organization is a technical process and it is highly likely that you will end up making errors – we are not all lawyers after all! Therefore, we recommend that you use the services of professional LLC incorporation services such as ZenBusiness or IncFile.
They will not only form your LLC in Oregon for you but will also take care of other things such as business operating agreements, annual reports, etc. that we will mention below!
Preparing a Business Operating Agreement
The state of Oregon doesn’t ask you to create and file a business operating agreement. However, a business operating is highly recommended to ensure that your LLC keeps running smoothly.
A business agreement is an internal document that lays down the rules about the daily operations of your LLC. The document will set down the rights and responsibilities of the members and managers of the LLC.
Moreover, it will ensure that you and your LLC are considered separate entities. In case you don’t create a business operating document, the state LLC laws will be applicable by default. An operating agreement ensures that the members and owners of the LLC are all on the same page.
It also states things such as profit-loss division, rules for dissolution of an LLC, etc. To make sure that you create an operating agreement that is legally binding, you should get in touch with a professional LLC incorporation service such as ZenBusiness or IncFile. They will provide you customized operating agreements as a part of their LLC formation packages.
An EIN stands for Employer Identification Number and it is a nine-digit number assigned to businesses by the IRS for tax purposes. To file federal and state taxes, you need an EIN. Moreover, an EIN is also necessary for creating a business bank account and hiring employees.
If you are running a sole proprietorship, and already have an EIN, you will need a new EIN when you form your LLC. You can apply for an EIN on the IRS’s website or you can send in an application via mail. You don’t have to pay anything if you get an EIN yourself.
Wait until your LLC gets approved and then file for an EIN. The approval time for online applications is very quick. If you fax the application form, it usually takes 4 to 5 business days. If you mail the application, you may even have to wait for 4 to 6 weeks.
Professional LLC formation services will get an EIN for you as a part of their LLC formation packages. Not only will this take a load off your backs, but will also save your time which you can put into growing your business!
Filing Annual Reports
All LLCs in Oregon as well as the foreign LLCs with permission to do business in Oregon have to file an Annual Report with the Secretary of State of Oregon. Every year, before the anniversary of your LLC’s formation, you have to file the annual report.
For domestic LLCs, the filing fee is $100 while the annual fee for foreign LLCs is $275. You can file the annual report via mail or online. The State of Oregon gives a 45-day grace period to LLCs for filing the annual report.
If you fail to submit your annual report within that period, your LLC will be revoked by the State.
Depending on the type of business that you do and its location, you will have to get permits or licenses for running your company. The State of Oregon has a license directory called Business Xpress.
With the help of this directory, you can easily find out which licenses and permits are necessary for your company. Moreover, you should get in touch with your local government as well to see if there are any local licensure requirements.
Business Tax Requirements
LLCs are classified as pass-through entities by default. This means that you don’t have to file your tax returns as an LLC separately. All the profits from the LLC will pass through to your own tax returns.
Depending on your income, you will have to pay the Oregon State income tax. There are four tax brackets from 5% to 9.9%. You would be happy to know that Oregon is one of those states which doesn’t impose a sales tax.
You may have to local taxes depending on the city or county in which your LLC is located. Check with a professional tax expert to ensure that you are fulfilling all the tax requirements of your state.
LLC in Oregon – Final Word
When we start our business, we have big dreams and huge aspirations. To make sure that you achieve all your goals in the best possible way, you need to be free of additional tensions and worries like lawsuits, etc.
Forming an LLC is the perfect way to make sure that no matter what happens to your business, your house, car, and other personal belongings will remain safe. Forming an LLC in Oregon is a straightforward, simple, and easy process.
The steps that we have mentioned above will help you get your LLC up and running in no time. All you need to do is file the articles of the organization and you will be good to go. However, forming an LLC is a technical and time-consuming process.
As a new business owner, all your focus and energy should be devoted to your company and business only. Instead of wasting your time filing technical documents, you should hire a professional, expert LLC formation service that will take care of your LLC formation needs.
- ZenBusiness is our top choice when it comes to affordable, feature-full services. They have a friendly and expert staff that takes care of all your needs. With glowing customer reviews and affordable rates, you will be satisfied with them.
- IncFile is the only choice for new business owners who are on a tight budget and don’t have any money to spare. They have a free basic LLC formation package that you can use. Not only will they form your LLC, but they will also provide you free registered agent services for a year!
Here’s to you having a successful LLC in Oregon!