How To Start an Oregon LLC

I grew up in Oregon so I'm excited to get into the details for you here but I always like to think about business ideas for Oregon LLCs. So what are we known for? Well if you're reading this, you're most likely an Oregonian that lives in Portland, Eugene, Salem or Bend but if you're at the coast or somewhere in between, you'll love this list.

The best Oregon business ideas:

1. Brewery
2. Sandboarding Rental
3. Food Truck

Yes - food, beer and sandboarding are your next Limited Liability Company ideas in Oregon.

Name Your Oregon LLC

You must choose a name for your LLC that is not already in use by another business and it must end with “LLC,” “L.L.C.,” or “limited liability company.”

You may reserve a name for 120 days by filing an Application for Name Reservation with the Oregon Secretary of State. To do this, you will need to:

Complete the Application for Name Reservation. Include the $50 filing fee.

Mail the completed form and filing fee to:

Business Division

Oregon Secretary of State

255 Capitol St NE, Suite 151

Salem OR 97310-1327

Once your name has been reserved, you may not change it.

I'd make sure you use the Oregon Secretary of State business name portal to check out if you can lock down the business name. You can check it at the Oregon Business Registry here:

https://sos.oregon.gov/business/pages/find.aspx

It's the best place to start for LLC owners looking to start their individual or business entity and setup their Oregon LLC.

Choose your registered agent

Every Oregon LLC must have a registered agent in the state. The registered agent is responsible for receiving important legal documents on behalf of the LLC. These documents can include service of process of lawsuits, tax forms, and notices from the state government.

The registered agent may be an individual who resides in Oregon or a business entity authorized to do business in Oregon.

You can find a list of entities authorized to do business in Oregon here:

https://sos.oregon.gov/business/pages/business-name-search.aspx

The registered agent must have a physical street address in Oregon, and the registered office may not be a PO Box.

You can learn more about Registered Agents in Oregon, here:

https://sos.oregon.gov/business/pages/registered-agents.aspx

There are going to be law firms you can use as your Registered Agent who can help you make sure you've setup your business and using the right registered agent is going to be important as you embark on this journey to setting up your Oregon LLC.

The other options you can use is setting up Registered Agent Services using Northwest Registered Agent who gives you the first year included in your Oregon LLC formation.

Prepare and File Articles of Organization

Next, you will need to prepare and file the Articles of Organization with the Oregon Secretary of State. The Articles of Organization is a short document that includes information about your LLC, such as the LLC’s name and address, the duration of the LLC, and the names and addresses of the members.

To file the Articles of Organization, you will need to:

Complete the Articles of Organization. Include the $100 filing fee.

Mail the completed form and filing fee to:

Business Division

Oregon Secretary of State

255 Capitol St NE, Suite 151

Salem OR 97310-1327

Upon filing, your LLC will be officially created.

You can find the Articles of Organization for Oregon, here:

https://sos.oregon.gov/business/pages/llc-forms.aspx

And remember - if you use Northwest Registered Agent, your first year of Registered Agent Services are included when you setup your Oregon LLC.

Create an operating agreement

An operating agreement is not required in Oregon, but we highly recommend that you create one. The operating agreement is an internal document that outlines how the LLC will be run and the rights and responsibilities of the members.

The operating agreement should include:

• The name and address of the LLC.
• The names and addresses of the members.
• How profits and losses will be distributed among the members.
• The roles and responsibilities of the members.
• The voting rights of the members.
• How new members can join the LLC.
• What will happen if a member leaves the LLC.
• The duration of the LLC.
• The operating agreement does not need to be filed with the state, but it is a good idea to keep it in the LLC’s records.

An operating agreement is one of the most important pieces to your business. You're going to need an LLC operating agreement to keep track of the details for your LLC management structure, business structure in general and if you put in personal assets - you'll want to highlight that too.

Get an EIN

The next step is to obtain an Employer Identification Number (EIN) from the IRS. The EIN is a nine-digit number that is used to identify your LLC for tax purposes. You will need the EIN to open a business bank account and file taxes.

You can apply for an EIN online, by fax, or by mail.

If you apply online, you will need to have a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN).

If you apply by fax or mail, you will need to complete Form SS-4 and submit it to the IRS.

The EIN is free and you should receive it within one to two weeks.

Open a business bank account

Once you have obtained your EIN, you can open a business bank account in the name of your LLC. Having a separate business bank account is important because it will help you track the finances of your LLC and avoid commingling personal and business funds.

To open a business bank account, you will need your EIN and the Articles of Organization for your LLC.

You can find a list of banks in Oregon here:

https://www.bankrate.com/banking/savings/best-savings-accounts-in-oregon/

Open A Business Bank Account

The next step is to open a business bank account. This will help you track the finances of your LLC and avoid commingling personal and business funds, which can create tax and legal problems.

To open a business bank account, you will need your Employer Identification Number (EIN) and the Articles of Organization for your LLC.

You can find a list of banks in Oregon here:

https://www.bankrate.com/banking/savings/best-savings-accounts-in-oregon/

Get a Business License

In Oregon, LLCs are not required to have a state-level business license. However, you may need to get a local business license from your city or county.

To find out if you need a local business license, contact your city or county business office.

You can find the contact information for Oregon cities and counties here:

https://www.oregon.gov/das/Pages/local.aspx

Get small business insurance

It is important to obtain the proper insurance for your LLC. The type of insurance you need will depend on the nature of your business.

Some common types of insurance for LLCs include:

Property insurance - covers damage to property, such as buildings and equipment.

Liability insurance - covers injuries and damage caused by the LLC.

Workers’ compensation insurance - covers injuries and illnesses that occur while employees are working.

You can find more information about insurance for LLCs here:

https://www.sba.gov/starting-business/choose-your-business-structure

File an Annual Report

All LLCs in Oregon are required to file an annual report with the state. The annual report is due on the anniversary of your LLC’s formation and is used to update the state on any changes to your LLC, such as a change in the LLC

Pay Annual Taxes

All LLCs in Oregon are required to pay annual taxes. The amount of tax you will owe depends on the gross income of your LLC.

For more information on LLC taxes in Oregon, see this page:

https://www.oregon.gov/DOR/programs/businesses/pages/llc-taxes.aspx

You will need to file your taxes each year on or before April 15th.

FAQs

How much does it cost to start an LLC in Oregon?

The filing fee for the Articles of Organization is $100. You can also reserve a name for your LLC for 120 days by filing an Application for Name Reservation with the Oregon Secretary of State for $50.