Forming an LLC in Oregon costs $100 to file Articles of Organization with the Oregon Secretary of State, with online approval through the Oregon Business Registry in 1–2 business days. The annual report is $100, due on the LLC's anniversary date each year. Oregon has no statewide sales tax — one of only five U.S. states without one — but the Corporate Activity Tax (CAT) applies to LLCs with Oregon-source gross receipts above $1 million per year, at 0.57% plus a $250 minimum. Top individual income tax is 9.9% — among the highest in the U.S. Oregon's economy is anchored by athletic and outdoor brands (Nike, Columbia Sportswear, Adidas North America HQ all in the Portland metro), advanced semiconductors (Intel's largest U.S. campus is in Hillsboro), and craft food and beverage. For founders in athletic/outdoor or semiconductors, Oregon's industry depth is unmatched — but the high personal income tax is the trade-off.
Why form your LLC in Oregon
Athletic & outdoor (Nike, Columbia, Adidas North America HQ), advanced semiconductors (Intel’s largest U.S. campus), and craft food & beverage. No sales tax is a real advantage for retail.
- No statewide sales tax — one of only 5 such states
- Athletic & outdoor capital — Nike, Columbia, Adidas NA HQ
- Intel's largest U.S. campus (Hillsboro)
- Strong craft food, beverage, and cannabis industries
- Online approval in 1–2 business days
- No LLC franchise tax for pass-through entities
Best fit for: Athletic & outdoor · Semiconductors (Hillsboro) · Craft beverage
Don’t want to file yourself? Northwest Registered Agent files your Oregon LLC for $39 + state fee and acts as your registered agent the first year free.
How to form a Oregon LLC in 7 steps
- 1Search the Oregon business name database
Use the Oregon Secretary of State Business Registry to search names. The name must include "Limited Liability Company", "L.L.C.", or "LLC". Reserve a name for $100 (held 120 days) — pricier than most states.
- 2Appoint an Oregon registered agent
Required to have a physical Oregon street address. Can be the LLC owner if they're an Oregon resident, or a commercial registered agent service.
- 3File Articles of Organization
File online through the Oregon Business Registry for $100. Standard processing is 1–2 business days. The Articles include LLC name, registered agent, principal place of business, member/manager structure, and duration.
- 4Draft an Operating Agreement
Not required by Oregon law but strongly recommended. Defines membership interests, voting, profit/loss splits, and dissolution. Banks routinely ask for it.
- 5Apply for an EIN with the IRS
Free at irs.gov, takes 10 minutes online. Required for opening a business bank account, registering with the Oregon Department of Revenue, and filing federal taxes.
- 6Register with the Oregon Department of Revenue
Register through Oregon Revenue Online for withholding tax (if you have employees), the Corporate Activity Tax (if your Oregon-source revenue is likely to exceed $1M), and any industry-specific accounts. Oregon has no statewide sales tax, so no sales tax registration is needed.
- 7Calendar the annual report
Oregon LLC annual reports are due on the LLC's anniversary date each year. The fee is $100. File through the Oregon Business Registry. Late filings risk administrative dissolution.
File directly with Oregon Secretary of State, Corporation Division →
Oregon LLC taxes & compliance
No state sales tax. Top individual income tax rate of 9.9%. The Corporate Activity Tax (CAT) catches LLCs over $1M in Oregon gross receipts — a meaningful planning point.
Ongoing compliance checklist
- Annual report — $100, due on anniversary date
- Corporate Activity Tax (CAT) — only if Oregon revenue exceeds $1M
- No state sales tax
- Withholding tax filings if you have OR employees
- Federal income tax (Form 1065 multi-member, Schedule C SMLLC)
Registered agent rules
Required — OR street address.
Hidden costs new Oregon LLC owners forget
- Corporate Activity Tax (CAT): 0.57% + $250 on Oregon revenue over $1M
- Top individual income tax of 9.9% — among the highest in the U.S.
- Annual report fee: $100
- Foreign LLC qualification: $275
- Portland Metro Supportive Housing Services tax (1% on income over $125K single/$200K married)
- Multnomah County Preschool tax adds additional 1.5% layer for Portland LLC owners
Should you use a formation service in Oregon?
You can absolutely file directly with the Oregon Secretary of State, Corporation Division for the $100 state fee. The reasons most Oregon owners use a service anyway are (1) registered-agent privacy — keeping their home address off public filings — and (2) calendar reminders for ongoing compliance.
Have Northwest form your Oregon LLC for $39 + state fee
Free registered agent for the first year. Real human support. Privacy-by-default — your home address stays off public filings.
Oregon LLC: frequently asked questions
How much does it cost to start an LLC in Oregon?
Oregon SOS charges $100 to file Articles of Organization. The annual report is also $100, due on the LLC's anniversary date each year. Realistic year-one cost: $100. Ongoing yearly cost: $100.
How long does it take to form an LLC in Oregon?
Online filings through the Oregon Business Registry approve in 1–2 business days. Mail filings take 5–7 business days. Oregon does not offer a separate paid expedited tier.
Does Oregon have a state sales tax?
No. Oregon is one of only five U.S. states with no statewide sales tax (along with Alaska, Delaware, Montana, and New Hampshire). This is a significant advantage for retail and direct-to-consumer LLCs based in Oregon.
What is the Oregon Corporate Activity Tax (CAT)?
The CAT is Oregon's tax on LLCs with Oregon-source gross receipts above $1 million per year. The rate is 0.57% on receipts over $1M, plus a $250 minimum. Most small Oregon LLCs don't cross the $1M threshold and owe nothing. The CAT is filed annually with the Oregon Department of Revenue.
Does Oregon have an LLC franchise tax?
No franchise tax for pass-through LLCs. Owners pay personal income tax (graduated up to 9.9%) on their share of LLC profits. The CAT (gross receipts tax) applies only to LLCs above $1M Oregon revenue.
What's the Oregon LLC tax rate?
Oregon has graduated individual income tax topping at 9.9% — among the highest in the U.S. Combined with the Portland metro layered taxes (Multnomah County Preschool tax 1.5% + Metro SHS tax 1% above thresholds), Portland LLC owners can face combined marginal rates above 12.4%. There is no statewide sales tax.
Can a non-resident form an LLC in Oregon?
Yes. Oregon has no residency requirement for LLC members or managers. You only need an Oregon-based registered agent. Out-of-state owners commonly use a commercial registered agent service.
Is Oregon a good state to form an LLC?
For Oregon residents and businesses tied to athletic/outdoor (Nike, Columbia, Adidas), semiconductors (Intel Hillsboro), or craft food/beverage: yes. The no-sales-tax advantage helps retail. The 9.9% top income tax (plus Portland metro layers) is the trade-off — Portland-based founders should plan carefully for total tax exposure.