Do you want to learn how to form an LLC in Oregon? We’re here to help.
Oregon is one of the most scenic states in the United States and has a solid small-business atmosphere and a growing startup ecosystem. So, if you want a great quality of life and enjoy the outdoors, Oregon is a perfect place to establish your small business.
Let’s get your business started. In this article, we will walk you through the steps you need to form your LLC in Oregon, from choosing a name to obtaining licenses.
Choose a Name for Your Oregon LLC
Choosing a name for your Oregon LLC is one of the first things you should do when forming an LLC in Oregon. Whatever name you pick, ensure that your clients and customers will find it easy to pronounce and remember your chosen LLC name. We also recommend choosing a name that relates to the business activities of your Oregon LLC.
It is also essential to ensure that your LLC name complies with the Oregon LLC naming requirements and guidelines, including the following:
- Choose an LLC name that is unique and distinguishable
- The name should have the words “limited liability company” or the abbreviations: “LLC” or “L.L.C.” at the end.
- The name for your Oregon LLC should not confuse your business entity with government agencies such as Treasury, FBI, State Departments, etc.
For a complete list of LLC naming guidelines in Oregon, read the Oregon Secretary of State’s LLC naming rules.
Finally, we recommend doing an Oregon Business Name Search to confirm if the chosen name is available in Oregon and that no other business entity has already picked it.
Hire a Registered Agent
All LLCs in Oregon must appoint a registered agent to receive legal forms and tax documents on behalf of your business entity. While Oregon state laws allow entrepreneurs to reside anywhere in the world, your registered agent must have a permanent street address within the Oregon state.
You can appoint yourself as your own, provided you are at least 18 years old and available to receive documents during all regular Oregon business hours.
However, we recommend hiring a business entity called a registered agent service provider. The following three registered agents may afford greater levels of business and personal flexibility:
Oregon Registered Agent
If you are looking for an affordable registered agent service provider for your Oregon LLC, look no further than Oregon Registered Agent.
Its efficient yet cost-effective registered agent services offer all the basics your LLC requires to remain compliant with the laws of the Oregon Secretary of State. For example, you will get access to real-time document delivery, compliance documents, online accounts, and real-time report reminders.
Its Oregon office is located in Salem, and its pricing is just $35 per year.
Northwest is a popular and reputable name in the registered agent industry. It offers affordable registered agent services that cost just $125 per year.
Northwest offers a comprehensive range of registered agent services, as well as excellent support and a strong commitment to privacy, which ensures that all your personal data remains protected at all times.
It’s also a great choice for owners of multiple businesses. If you hire Northwest’s registered agent services in five or more states, you will get a discounted fee of $100.
Popular for its incredible legal services, LegalZoom is one of the best choices for a registered agent for your Oregon LLC.
They have helped more than 2,000,000 businesses grow and flourish over the years. If you are not satisfied with your current registered agent, LegalZoom allows you to change it for free, as they cover all the essential state fees in the process.
Moreover, LegalZoom will ensure that your Oregon LLC remains protected at all times, thanks to its $1M identity theft insurance.
The annual fee for LegalZoom’s registered agent services is $299. However, the first year will cost just $249 if you purchase LegalZoom’s LLC formation package.
File an Article of Organization
The next step after choosing an LLC name and picking a registered agent is to register your Oregon business with the Oregon Secretary of State.
The easiest way to register your Oregon LLC is to file an Article of Organization via the Oregon Online Business Formation System, which takes just 24 hours and costs $100.
If you don’t want to use the online filing system, you can file your Article of Organization via mail, which takes 3-5 business days. All you need to do is download and fill out the Oregon LLC Articles of Organization Form and send it, together with a check or money order for the $100 filing fee, to the following address:
Secretary of State, Corporation Division
255 Capitol St. NE, Suite 151
Salem, OR 97310
Regardless of the filing method you chose, the Article of Organization for your Oregon LLC must include the following details:
- The purpose of your Oregon LLC
- The name and physical address of your LLC
- The effective date of your Oregon LLC
- Correspondence email and name
- The street address and name of the LLC’s hired registered agent.
- The names and physical addresses of the initial members
- The signatures, names, and permanent addresses of the LLC organizers.
Think About Writing an Operating Agreement
The next step after registering your Oregon business is to draft an Operating Agreement. An Operating Agreement is an internal document that defines how your LLC will operate. It keeps all managers and members on the same page and prevents any future conflicts from arising among members.
While a written Operating Agreement is not needed by law in Oregon, creating one serves crucial functions for your Oregon LLC, including the following:
- Defines how to resolve disputes and conflicts among LLC members
- Allows you to apply for business bank and credit accounts and specific business licenses and permits
- It gives you the power to define how your LLC will operate instead of relying on the determination of the state or court
A well-created Operating Agreement for your Oregon LLC must include the following general information:
- The purpose and general description of your LLC
- The physical address and name of your business entity
- The responsibilities and rights of each member
- The management structure (manager-managed or member-managed)
- The dissolution procedures of the LLC
- The procedures of adding and removing members
- Profit and loss sharing distribution
- How decisions will be determined and voting rights
There are plenty of templates online that can help you craft a thorough Operating Agreement. Alternatively, your attorney will be able to help.
Obtain Necessary Licenses and Permits
In Oregon state, certain business activities may need business licenses. Depending on your LLC, you may also require specific certifications and permits from various state boards and agencies. The Oregon Business Licenses Directory keeps a database that will get you started with the registration, licenses, and permits you may need.
Your LLC license fees and requirements may vary depending on the location of your business. Therefore, check with your county and city jurisdiction to understand the permits, licenses, or certifications you need.
If you are unsure about the license and permit requirements of your Oregon LLC or need assistance with your small business, you can contact the Office of Small Business Assistance.
Sign Up for Federal and State Tax IDs
The next step in forming your Oregon LLC is obtaining a Federal and State Tax ID. You can think of it as an EIN (Employer Identification Number) or a Social Security Number (SSN) for multiple-member LLCs.
The IRS uses the Federal and State Tax ID to identify your Oregon business entity for tax purposes. You will also need it to pay income tax, file business tax returns, and open a business bank and credit account.
Obtaining a Federal and State Tax ID for your Oregon LLC is simple and free. You only need to apply for it with the Internal Revenue Service, and you will have it in no time!
Open a Business Bank Account
Once you have a Federal and State Tax ID, you will be required to open a business bank and credit account with a local financial institution. You should do this as soon as possible, as you need to keep your personal and LLC transactions separate.
When opening a business bank account, you will need to bring, at the very minimum, a small opening deposit and a Federal and State Tax ID. However, we recommend calling your bank in advance to learn more about the specific requirements.
There are many top financial institutions in Oregon, including the following three banks;
Purchase Oregon Business Insurance
The legal structure of your Oregon LLC offers protection for your personal assets. However, this does not mean you do not need insurance for your Oregon LLC.
Some types of insurance policies, such as workers’ compensation insurance coverages, are required by Oregon state law, while others are not mandated but may be needed by other entities, such as lenders and landlords.
The Oregon business insurance market is governed by the Division of Financial Regulation, and the most common policies include the following:
- General liability insurance: It is ideal for business entities that may be held liable for property damage, misleading advertising, slander, or bodily injury.
- Workers’ compensation insurance: You will need it to cover your employees’ on-job injuries, deaths, and illnesses.
You can get a competitive quote for your insurance needs by visiting a comparison site like Insureon.
Speed Things Up With an LLC Formation Package
Learning how to form your LLC in Oregon can be a tedious and complex process. Fortunately, if these steps appear too complex and time-consuming, you can hire an LLC formation company to streamline and speed up the process.
There are multiple companies in Oregon that provide LLC formation services as part of their package, and some of them won’t charge you anything for it.
One of the best LLC formation companies is IncFile. Their LLC formation package is entirely free — you just need to cover the state filing fee.
LegalZoom is another top LLC formation company that offers three LLC formation packages. The Basic package is free of charge, while the Pro package costs $249 per year, and the Premium package costs $299 per year. ZenBusiness also has three LLC formation packages, including the Basic plan (free), the Pro package ($199 per year), and the Premium package ($299 per year).
FAQs About Forming an LLC in Oregon
How Long Will It Take to Form My Oregon LLC?
Your Oregon LLC will be ready in one business day if you file your Article of Organization online and around 3-4 weeks if you file via mail. You can also pay for expedited processing.
How Much Does It Cost to Set Up an LLC in Oregon?
The Oregon Secretary of State charges a fee of $100 to form an LLC in Oregon. This is the fee for filing an Article of Organization. You will also be required to pay for the relevant licenses and permits.
Can I Act as my Own Registered Agent in Oregon?
Yes. Oregon law allows business owners to be their own registered agents. However, you must meet certain requirements. For example, you must be a permanent Oregon resident with a physical street address. You must also be available during all regular working hours and be over 18 years old.
Can I Form a Single-Member LLC in Oregon?
Yes. You can form a single-member LLC in Oregon by following the steps outlined in this guide. However, you must comply with all the relevant state regulations for forming a single-member LLC.
Start Your Oregon LLC Today
We hope our informative article has given you an idea of what you need to form your LLC in Oregon.
Forming an LLC in Oregon is generally simple and only requires a few steps to complete. However, if you find the process challenging, daunting, and time-consuming, consider hiring one of our recommended LLC formation companies to do everything for you.