How Much Does an LLC Cost in Oregon (A Breakdown of Fees)
To register your LLC in Oregon, you'll need to cover specific fees associated with the process.
Forming an LLC in Oregon can be costly, from filing fees to yearly upkeep and other business expenses.
As a Mergers and Acquisitions specialist, I helped multiple clients form businesses across the states. After consulting LLC experts in Oregon, we’ll share our insights regarding the costs of starting a business in the state.
Quick Summary
- An LLC in Oregon costs $100 to file the Articles of Organization.
- Additional expenses come in the form of a registered agent service, license fees, taxes, and other documents.
- As of February 2023, there are 5,026 registered limited liability companies in Oregon, according to the Oregon Secretary of State.
- If your LLC is in need of professional assistance, my experience revealed that it will cost less to employ online consultants.
Cost to Start an LLC in Oregon
When forming an LLC in Oregon, there are mandatory costs and optional fees that have to be shouldered before the company becomes operational.
1. LLC Formation Filing Fee ($100 - Mandatory)
Setting up an LLC in Oregon requires only a one-time fee of $100 for the Articles of Organization, as outlined in the Oregon Secretary of State's business registry fee schedule as of July 2013.
Filing this to the Oregon Secretary of State triggers your official business status, and you don't need to worry about recurring fees or expenses [1].
When I wanted to avail of the expedited service, I discovered that the state does not offer one since online filings only take 1-2 business days to be reviewed and approved.
"To initiate an LLC in Oregon, there's a $100 registration fee payable to the Secretary of State. Additionally, maintaining your LLC requires an annual renewal fee of $100, accompanied by the submission of an annual report."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
2. Registered Agent Service Fee ($80-$300 – Optional)
Establishing an Oregon LLC necessitates choosing a Registered Agent that meets state regulations.
This individual or company is appointed to receive legal documents, such as service of process and other notifications, on behalf of the LLC.
If you choose to employ the services of one, the average annual cost would be between $80-$300.
Under ORS § 63.111, they must possess a physical address in Oregon to be reached during standard business hours [2].
3. Name Reservation Fee ($100 - Optional)
Filing an Application for Name Reservation with the Oregon Secretary of State costs $100.
You have 120 days from submitting your application until its expiration date, which is enough time to complete all necessary paperwork.
Before filing a name reservation form, I advise clients to check if their preferred business name is available and follows state guidelines.
Expenses Following the Approval of Your LLC
Once the business has been approved and registered, there are additional expenses that you have to cover.
1. Business License (Depending on the Line of Business - Mandatory)
With the City of Portland Revenue Division, business owners in Oregon must obtain a range of local permits to comply with state laws.
Although costs differ between fields and types of licenses, a colleague who was required to obtain a 3-year General Supervising Electrician's license had to pay $100.
To ensure you comply with local regulations and don't incur additional costs, consult your jurisdiction to determine which business permits are necessary and how much they'll cost.
2. Annual Report Fee ($100 – Mandatory)
The Oregon Annual report fee has a flat rate of $100, which needs to be factored into your yearly budget as a recurring cost.
It's simple to process - submit it online each year on the date you originally filed it.
To ensure you don't forget, the Secretary of State will send a notice 45 days prior to the deadline.
3. LLC Operating Agreement (Optional, but Recommended)
Although the operating agreement is not filed with the state, it is advisable to draft one. The document outlines your LLC's management structure, profit distribution, and voting requirements, to name a few.
You can draft an operating agreement yourself at no additional cost or use an online LLC formation service. It costs $100 to $200 to avail of an online template.
In my experience, it would be safer to have your document professionally prepared since a well-written operating agreement can be pivotal in avoiding any potential conflicts between LLC owners or members. Lawyer fees, however, are much more expensive.
4. DBA Name ($50 - Optional)
If you want to do business under a DBA (any name other than your legal business name), you will need an Assumed Business Name – New Registration form, which only costs $50.
Remember to renew it every two years through the Secretary of State's Online Business Registry for another fee of just $50.
5. Certified Copies Of Business Documents ($15 - Optional)
If you want certified copies of your business documents, the Secretary of State can provide them for a nominal fee of $15.
To request copies of the business documents, I had to fill out their Request for Copy form and submit it in-person - itemizing which document(s) I wanted to be copied.
6. Oregon Certificate Of Existence ($10 - Optional)
To get a Certificate of Existence for your LLC, submit the Request for Certificate form and pay the $10 fee.
You can also order documents verifying the merger or name change by mail, fax, or person.
Alternatively, Certificates of Existence are available to be ordered online as well.
7. LLC Employer Identification Number (EIN) ($0 - Optional, but Recommended)
A Federal Employer Identification Number (FEIN), or EIN Number, is essential for any business.
When forming an LLC, I always advise clients to obtain an EIN since it can be used to file taxes, open a business bank account in the name of your LLC, and hire employees.
FAQs
How Much Do I Have To Pay To Reinstate My Oregon LLC?
You have to pay $100 to reinstate your Oregon LLC. Businesses which are administratively dissolved for less than 5 years can apply for reinstatement online and with paper form.
Is There A Penalty For Paying My Taxes Late In Oregon?
There’s a 5% penalty for paying your taxes late in Oregon, and an additional 20% if the period exceeds four months.
Do You Need Professional Help With Your Oregon LLC?
Ensure that all the necessary steps to form an LLC in Oregon are taken correctly and according to your unique situation by enlisting the help of a professional.
For just around $100, which includes filing fees with the Oregon Secretary of State, you can rest assured knowing everything has been done accurately.
Partnering with a qualified attorney to form your Oregon LLC and provide guidance is crucial for success.
These professional LLC services in Oregon can assist you in understanding Oregon law so that your business remains compliant at all times.
References:
- https://sos.oregon.gov/business/Documents/business-registry-forms/br-fee-schedule.pdf
- https://oregon.public.law/statutes/ors_63.111
