1. Oregon LLC Overview

If you operate a business in Oregon, forming an LLC locally is required. While Oregon has high state income taxes, the complete lack of a sales tax makes retail and e-commerce compliance significantly easier.

  • Reasonable fees — $100 formation, $100 annually
  • No sales tax — Oregon is one of five states without a general sales tax
  • Corporate Activity Tax — Applies to businesses with over $1 million in Oregon commercial activity

2. Oregon LLC Requirements

  • Name must contain "Limited Liability Company," "L.L.C.," or "LLC"
  • Appoint a registered agent with an Oregon physical address
  • File Articles of Organization with the Secretary of State ($100)
  • File an Annual Report by the anniversary date each year ($100)

3. Oregon LLC Costs and Fees (2026)

Cost Item Amount Notes
Articles of Organization$100One-time state filing fee
Annual Report$100/yearDue on anniversary date
Registered Agent$50–$150/yearRequired OR physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$1,000Recommended, not legally required

4. How to Start an Oregon LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company" or "LLC")
  2. 2 Appoint a registered agent with an Oregon physical address
  3. 3 File Articles of Organization with the OR Secretary of State ($100)
  4. 4 Obtain an EIN from the IRS (free at IRS.gov)
  5. 5 Draft an Operating Agreement (not filed, but legally binding)
  6. 6 File the Annual Report by your anniversary date each year ($100)
  7. 7 Register for the Corporate Activity Tax (CAT) if gross receipts exceed $1 million
  8. 8 Open a business bank account

5. Oregon Annual Report

Oregon LLCs must file an Annual Report to maintain their active status with the Secretary of State.

  • Due Date: On the exact anniversary date of the LLC's formation.
  • Fee: $100.
  • Filing: Filed online via the Oregon Central Business Registry.

6. Oregon LLC Taxes (2026)

  • State income tax — 4.75% to 9.9% graduated rate on pass-through profits
  • Federal income tax — Pass-through to personal return
  • Self-employment tax — 15.3% on net earnings
  • Corporate Activity Tax (CAT) — If your Oregon gross receipts exceed $1 million, you must register and pay the CAT tax, regardless of whether your LLC makes a profit.
  • Sales tax — $0 (Oregon has no general sales tax)

7. Best For / Not Best For

Best For

  • Entrepreneurs living and operating in Oregon
  • Founders wanting a state with zero sales tax

Not Best For

  • Out-of-state owners without Oregon nexus
  • High-revenue, low-margin businesses that might get hit by the CAT tax