How To Start An LLC In Oregon (2024 Guide)

Considering the strong growth of new businesses in Oregon, it’s a promising environment in which to start an LLC—especially given the LLC’s ease of formation, flexibility and liability protection. The following key steps will help you successfully form an LLC in Oregon.

Step 1: Reserve Your LLC Name

Not sure if your LLC name is available? You can perform a name availability check using the Secretary of State (SOS) website. Once you’ve settled on a name, you have the option of holding it by submitting a name reservation form. The processing fee for reserving a name is $100 and it is valid for 120 days.

Oregon LLC Naming Requirements

Whether or not you already have a name in mind for your new LLC, there are specific legal requirements that the name you select must meet. These guidelines are in place to prevent confusion among customers, and also to ensure that a business’s name doesn’t mislead the public:

• No implied governmental affiliation. The name can’t suggest that your LLC is a state agency or a political division.
• LLC identifier. The terms “limited liability company,” “L.L.C.” or “LLC” must be a part of your LLC name.
• Uniqueness. The name must be distinguishable from any existing Oregon business, reserved or registered names. Differences such as punctuation or capitalization don’t count.
• Language and numbers. Your LLC name must use the letters of the English alphabet. It can also include Arabic and Roman numerals.
• Banking terms. Names that include banking-related terms (for example, “bank” or “savings”) must be approved first.
• Prohibited words. You can’t use the words “cooperative,” “corporation,” “incorporated,” “limited partnership” or “limited liability partnership” or any of their abbreviations.

Buy a Web Domain and Set Up Social Media

After establishing your LLC in Oregon, you will want to be able to spread the word about your business. Setting up a website domain and social media profile for your company generally offers a point of contact between yourself and any potential customers. It also lets you start to build brand trust and authority. While going through the other preliminary steps for LLC formation, this is a great time for getting your internet presence rolling.

Step 2: Hire a Registered Agent

Your LLC will need a registered agent to receive important legal and state documents on its behalf. Not everyone can be a registered agent, though. Your registered agent must meet the following requirements:

• Have a physical street address in Oregon where they can accept or sign for legal service
• Be an individual resident or an authorized business entity in Oregon

You or a member of your LLC can act as the registered agent, provided you meet these conditions. But this may not be an ideal solution. Your registered agent must be present at the registered office address during standard business hours, which could interfere with your or another member’s day-to-day tasks. There are also privacy concerns, as your personal or business address will become part of the public record.

If you find that acting as your own registered agent isn’t a good option, you can hire a registered agent service. These are companies that specialize in acting as registered agents for businesses—an alternative that lets you focus your time on running your business. Prices for these services range from $50 to $300 in Oregon, depending on the company you choose and the level of service you require.

Step 3: File Your Oregon LLC Paperwork

To register your LLC, you’ll need to complete and submit the Articles of Organization form, for a filing fee of $100. Foreign LLCs must submit an Application for Authority to Transact Business. The filing fee for this form is $275.

Processing fees are nonrefundable. If paying by check, make your check payable to the Corporation Division. For online filing, enter your payment information as instructed.

What To Include in the Articles of Organization

Your Articles of Organization sets out the basic facts about your LLC. Here’s what you’ll need to include:

• LLC’s name
• Duration (most LLCs are set up to last indefinitely)
• Principal office (this must be a street address, not a P.O. box or virtual office)
• Registered agent and registered agent’s address
• Address for renewal and other notices
• Who will manage the LLC (member or manager)
• Name and address (business or mailing) of each person forming the LLC
• List of members and/or managers (addresses are optional)
• Individual with direct knowledge of the business (any authorized representative)
• Signature of each person forming the LLC

If your LLC is rendering a licensed professional service, you need to describe the service or services. You can also select from two optional provisions (benefit company and indemnification), as well as attach other optional provisions on a separate page.

Where To Submit the Articles of Organization

There are a number of options for filing your Articles of Organization:

• Online: For the fastest method, use Oregon’s online business portal.
• In person: In-person filing is available at the Public Service Building, 255 Capitol St. NE, Suite 151, Salem, OR 97310, from Monday to Friday (8 a.m. to 5 p.m.), not including holidays. Same-day processing is available.
• Mail: You can send your forms and fee payments by mail to Public Service Building, 255 Capitol St. NE, Suite 151, Salem, OR 97310.

Once your forms have been processed, your official documents will be mailed to you. If you prefer expedited shipping, include a FedEx prepaid airbill with your documents (or FedEx, UPS or DHL prepaid airbills for international shipping).

Step 4: Get an Employer Identification Number (EIN)

While most businesses will need to have a federal EIN (FEIN)—also known as federal tax identification number (FTIN)—the requirement for an EIN doesn’t apply to single-member LLCs with no employees, which can use their owner’s Social Security number on tax documents.

However, even if your LLC isn’t required to obtain an EIN, it’s always a good idea. Not only is an EIN more privacy-protective than using your Social Security number, but you’ll also find that most banks and financial institutions will request an EIN to open up bank accounts for your LLC.

You can apply for an EIN for free on the IRS website. If you apply online, you can get your EIN immediately.

After finally getting your LLC going, there is still much to do. In the following sections, you’ll find useful tips for getting the most out of your budding new Oregonian business.

Submit an Annual Report

Oregon requires LLCs to submit a yearly report, due on the original anniversary date of your business filing. You need not worry about missing the deadline, as the state sends out a notification 45 days in advance. The report processing fee is $100.

Create an LLC Operating Agreement

Writing up an operating agreement for your Oregon LLC is fantastic for showcasing your sincere long-term plans for your new business. Though not a legal requirement, these agreements provide long-term clarity about how your company gets run. That includes member voting power or individual financial obligations.

Ultimately, LLC operating agreements are a great way to avoid future confusion or conflicts. They can also potentially help provide legitimacy for your brand and keep it in good standing.

Separate Business and Personal Finances

Keeping your LLC’s finances separate from your personal funds isn’t just a good business practice—it’s essential for keeping your business running smoothly and avoiding potential legal issues.

The best way to separate your finances is by opening a business bank account. It draws a clear line between your business and personal expenses and is an easy solution for keeping your finances organized.

Even though starting an LLC is less expensive than incorporating your business, there are still fees involved. Here’s what it costs to form an Oregon LLC:

• Domestic LLC: $100 to file your Articles of Organization
• Foreign LLC: $275 to file an Application for Authority to Transact Business

While business license and permit fees aren’t technically a part of your business formation costs, you should check whether you’ll need to obtain any licenses or fees so you can include those fees into your startup budget.

Navigating the path of starting and running an Oregon LLC can feel overwhelming, but you don’t have to journey alone. Oregon offers a host of official business resources to help guide you every step of the way, from planning and startup to growth and management:

• Business Xpress: Think of Oregon’s Business Xpress as your one-stop portal for all things business in Oregon. Packed full of resources for planning, starting, managing, growing, and changing or closing your business, there’s something for every step of your entrepreneurial journey.
• Business Startup Toolkit: You’ll find links to resources for each step of starting your business in Oregon in the Business Startup Toolkit.
• Office of Small Business Assistance: Finding it tough to untangle the rules and regulations for small businesses in Oregon? The Office of Small Business Assistance is your go-to resource for help with any questions you have about state or local government.
• Business Taxes: Understand Your Tax Obligations is where you’ll find everything you need to know about business taxes in Oregon, from how to report your taxes to the latest changes in tax laws or credits.
• Business Registry Database: If you need to search for a business by name or by part of a name, or do a quick business name availability check, the Business Registry Database is the database to use.
• Oregon Tax Payment System: Whether you need to make a tax payment, cancel a payment or review your payment history, the Oregon Tax Payment System is a convenient online system for handling your business taxes.
• Professional Licenses and Permit Directory: Looking to apply for or renew a business license or permit? The Professional Licenses and Permit Directory connects you to information about relevant state agencies, cities or counties for your Oregon business licenses, permits and registrations.
• Oregon Business Registry: The Oregon Business Registry is a user-friendly platform where you can register, renew or reinstate your business, as well as opt-in for convenient email notifications for renewals.
• LLC Business Forms: Need to amend or restate your Articles of Organization or dissolve your LLC? Find the form you need on Oregon’s LLC Business Forms page.
• Closing Your Business: Winding down your business? You’ll find the information you need on this Close a Business page.
• Oregon Laws and Rules: When it comes to rules and regulations, sometimes you just need to go straight to the source. Find the business laws you’re looking for on Oregon’s Business Laws and Rules page.
• Oregon Business Databases: Need a specific Oregon government database? Find it on the Oregon Business Databases page.
• Scam Alerts: Small businesses are just as vulnerable to fraudsters and scammers as individuals. Next time you receive a suspicious offer or solicitation, check out these Business Alerts to see the latest examples reported.
• Trademark Search: Want to register a trademark? Check the availability of your intended trademark at the United States Patent and Trademark Office and the Oregon Secretary of State Trademark search.

Ready to dive even deeper into forming your Oregon LLC? We’ve rounded up some additional pages and helpful guides to give you a full understanding of how to start an LLC in Oregon:

Business Formation Resources

• How To Start an LLC in 7 Steps: A complete guide to launching your LLC.
• Sole Proprietorship vs. LLC: Compare the pros and cons of different business structures.
• Best LLC Services: Reviews of different services that can form an LLC for you.
• LLC vs. Corporation: Weigh the differences between an LLC and a corporation.
• LLP vs. LLC: A comparison of Limited Liability Partnerships and LLCs.

Oregon-Specific Resources

• Oregon Business Licenses: What you need to know about getting a business license in Oregon.
• Oregon Registered Agents: Information on registered agents specifically for Oregon.

LLC Management and Operations

• How To Pay Yourself From an LLC: Guidelines for drawing income from your LLC.
• EIN for LLC: How and why you should get an EIN for your Oregon LLC.
• How To Change an LLC Name: Steps to take if you decide to rebrand.
• How To Dissolve an LLC: The correct way to close down your LLC.

Registered Agents and Registered Agent Services

• What Is a Registered Agent: Understand the role of a registered agent in your Oregon LLC.
• Best Registered Agent Services: A roundup of top registered agent services across the nation.

Business Licenses and Permits

• What Is a Business License: Basic info about the importance of business licenses.
• How To Get a Business License: A guide to obtaining a business license.