Starting an LLC in Oregon

Are you ready to form an LLC in the state of Oregon but you are unsure of how to get started? 

Before you begin the process of registration for an LLC in Oregon, it is important that you understand what an LLC is and whether or not it is a viable or appropriate option of business structure for your company. Please be sure to read up on what an LLC is and its benefits.

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What is a limited liability company?

  • The acronym LLC stands for limited liability company. In Oregon due to the business structure of an LLC it offers the personal liability protection of a corporation with a pass-through taxation of a sole proprietorship or partnership.
  • By forming a Oregon LLC for your business you are creating a great way to protect your personal assets in the event of your business being sued.  This is one of the most popular reasons that people will opt for an LLC. 
  • An LLC can be owned by a single individual or can be owned by more than one person. A Oregon LLC with one member who is known as a single-member LLC if your LLC will have more than one owner it will be known as a multi-member LLC

Forming LLCs in Oregon are easy and affordable. As with other states, Oregon has some specific requirements.

So let’s dig in and find out more about your new business in the Oregon

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1. Deciding on a Name for your LLC

You will need to choose a name for your business, but however you choose , the name must end with “ Limited Liability Company” or a variant of its abbreviation. You must also get the name approved by certain state agencies and departments. 

Cross check the name you are considering with the Oregon secretary of State’s Registry database to make sure that the name is not already in use. 

You can reserve a name for up to 120 days from the date of the “application for name reservation” has been filed. This can be done online or through the mail. The fee is $100.00

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2. Assigning a Resident Agent in Oregon

Assign an agent for service of process. They will receive due service documents on your behalf. A Registered Agent is a person or a company who agrees to accept legal mail on behalf of your Oregon LLC in case your business gets sued. Legal mail is more specifically known as Service of Process, and this may include items like complaints, summons, and subpoenas.

Who Can Be Your LLC’s Registered Agent in Oregon?

In Oregon you have 3 options for your registered agent.
Option 1: You can elect yourself to be the registered agent when you form the LLC.
Option 2: You can choose a family member or friend to be your LLC’s Registered Agent.
Option 3: Commercial Registered Agents are also available for a monthly or annual fee.

Important: If your Registered Agent is going to be an individual (you, a friend, or a family member), that individual needs to: have a street address in Oregon, be a resident of Oregon, be available during business hours, and be at least 18 years of age.

3. Obtaining your EIN Number from the IRS

You must acquire a Employer Identification Number ( EIN ) from the IRS if there are two or more members in your LLC. This is for taxation purposes.

4. Getting an Oregon Tax ID Number

Oregon tax identification number is required if you will be hiring employees. You can get this through the Oregon central business Registry.

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5. Creating an Operating Agreement for your LLC

If your LLC business has more than one member , make sure that you have an Operating Agreement. While this is not required in the state of Oregon when you file your LLC documents, the Operating Agreement must be submitted when you file your Oregon Tax License.

6. File an Annual Report

You will need to file an annual report and renew forms yearly. You must file them all with the Oregon Secretary of State before the anniversary date of formation to avoid any late fines or fees. There is a $100.00 filing fee and you can submit your report online or by the mail.

Am I required to submit quarterly income tax payment’s?

Please Note That in the state of Oregon, you may be required to submit to a quarterly estimated income tax payment. This will apply if you expect to pay at least $1,000.00 in federal and Oregon state taxes, after you have subtracted any withholding and tax credits.

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