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How to start an LLC in Oregon

By Brent Chudoba, editor Updated

Forming an LLC in Oregon costs $100 to file the Articles of Organization with the Oregon Secretary of State. After that you file an annual report of $100. Oregon charges no franchise tax on a standard LLC. The $100 Articles of Organization fee and $100 annual report (renewal) fee, due each year on the anniversary of formation, are the only mandatory state-level costs; the Secretary of State explicitly warns filers about third-party sites that charge inflated 'processing fees' for filings that cost $100 directly through sos.oregon.gov. A registered agent with a physical Oregon street address (not a PO box or virtual office) must be continuously maintained per ORS 63.111.

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

Oregon LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization)$100
Annual report$100/year
Franchise or business taxNone
Registered agentRequired

Source: Oregon Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Oregon?

  1. Name your LLC. Pick a name that is available and meets Oregon naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Oregon requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization. Submit it to the Oregon Secretary of State and pay the $100 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Oregon charges $100 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Oregon have a franchise tax on an LLC?

No. Oregon does not impose a franchise or annual privilege tax on LLCs. An LLC's profits pass through to members (or the LLC pays Oregon corporate income/excise tax if it elects corporate taxation) but there is no separate flat franchise fee beyond the $100 annual report.

How is an LLC taxed in Oregon?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Oregon has a state individual income tax with a top rate of 9.9% (graduated brackets), so those profits are taxed on your Oregon return on top of federal tax. Oregon has a 4-bracket graduated income tax: 4.75%, 6.75%, 8.75%, and 9.9%. For 2026, single/married-filing-separately: 4.75% up to $4,550; 6.75% on $4,550-$11,400; 8.75% on $11,400-$125,000; 9.9% over $125,000. Married filing jointly/head of household/qualifying surviving spouse: 4.75% up to $9,100; 6.75% on $9,100-$22,800; 8.75% on $22,800-$250,000; 9.9% over $250,000. Brackets are adjusted annually for inflation.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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