How to form an LLC in Oregon
A $100 filing, a $100 annual report, and no state sales tax.
Contents 7 sections
regon is one of the more founder-friendly West Coast states. Formation costs $100 and the annual report runs $100; flat, predictable, and filed online. Oregon is also one of only five U.S. states with no general sales tax, which makes it attractive for retail and e-commerce operators whose customers are local.
Overview
The filing
Submit the Articles of Organization through the Oregon Secretary of State business services portal. Required fields:
- LLC name containing "Limited Liability Company" or "LLC"
- Principal place of business
- A registered agent with a physical Oregon street address (no P.O. boxes)
- Duration (default perpetual)
- Organizer name and signature
- Member-managed or manager-managed designation
Online filings are usually approved within one business day.
Oregon's lack of sales tax is a genuine advantage for an Oregon-resident operator selling to Oregon customers. It is not a tax shelter for non-residents; a Wyoming LLC selling into Oregon may still owe Oregon's Corporate Activity Tax if it crosses the threshold.
Ongoing obligations
The Annual Report is due on the anniversary of formation and costs $100. Oregon does not levy a franchise tax; the state does impose a corporate income / excise tax, and the Corporate Activity Tax (CAT) applies to commercial activity above $1M in-state. The Oregon Department of Revenue corporate activity tax page has the current threshold, the apportionment rules, and the quarterly estimated-payment schedule.
LLCs taxed as partnerships or disregarded entities owe Oregon personal income tax on their share of Oregon-source income. Nonresident members file Form OR-OC or get included in a composite return; see the Oregon Department of Revenue pass-through entity guidance for composite election mechanics.
The sales-tax angle
Oregon has no general sales tax, but it is not a tax haven. A Wyoming or Delaware LLC selling into Oregon still owes nothing at the Oregon register, but it may owe Oregon corporate-activity tax if revenue crosses the threshold, and it still owes sales tax in every other state where it has nexus. The sales-tax advantage matters most to Oregon-resident operators whose buyers are also Oregon residents.
EIN and federal setup
After the state filing clears, apply for a federal Employer Identification Number through the IRS EIN application. Oregon uses the federal EIN as the basis for state tax registration through Revenue Online. If you plan to hire, also register with the Oregon Employment Department for unemployment insurance.
The IRS LLC classification page explains how a single-member Oregon LLC is treated federally as a disregarded entity by default, and how Form 8832 changes that election. For most Oregon founders the default pass-through is the right answer, because C-Corp election pulls the entity into the state's corporate excise-tax calculation and adds filings that most solo operators don't need.
When Oregon makes sense
Oregon is a solid home-state formation choice for Portland-area operators. It is rarely chosen by out-of-state founders because the $100 annual plus registered-agent fees don't beat Wyoming on pure cost, and the CAT can reach revenue earned in Oregon even if the LLC is domiciled elsewhere.
Source
- Oregon Secretary of State business services: https://sos.oregon.gov/business/
- Oregon Department of Revenue, Corporate Activity Tax: https://www.oregon.gov/dor/programs/businesses/pages/corporate-activity-tax.aspx
- IRS EIN application: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online