In recent years, new businesses have emerged across the United States, including Oregon. In 2022, individuals established 84,039 new business entities in Oregon.
Here’s our step-by-step guide on how to start an LLC in Oregon. It will give you the confidence to set up your new business smoothly.
Step#1: Name your Oregon LLC
Step#2: Choose a Registered Agent
Step#3: Submit Articles of Organization
Step#4: Get a Certificate From the State
Step#5: Create an LLC Agreement
Step#6: Obtain an Employer Identification Number
Step#7: Submit Yearly Updates
Step#1: Name your Oregon LLC
When starting a business in Oregon, your LLC name should include “Limited Liability Company” and differ from other registered business names. The Oregon Secretary of State website can help you check if your name is available.
Naming Your Oregon LLC Requirements
When picking a name for your Oregon LLC, you need to follow these simple rules:
- Your LLC name shouldn’t sound connected to the government or any political organization.
- Include “LLC”: Your name must have “limited liability company,” “L.L.C.,” or “LLC” in it.
- Be unique: Your name must differ from any other Oregon business name.
- Language and numbers: Use letters from the English alphabet and Arabic and Roman numerals.
- Avoid banking terms: If your name has banking-related words, like “bank” or “savings,” you need special approval.
- Avoid specific words: You can’t use words like “cooperative,” “corporation,” “incorporated,” “limited partnership,” or “limited liability partnership” or their short forms.
Reserve Your Oregon LLC Name:
If you want to keep a name for a while, you can reserve it for 120 days with a processing fee of $100 by filling out a form called Application for Name Reservation. You can do this online through the Oregon Central Business Registry webpage.
Additional Consideration: Make sure the website address (URL) you want is free. Even if you need more time to create a website, getting your domain name in advance is a good idea. Check if it’s available before you finalize your LLC name.
Step#2: Choose a Registered Agent
Your LLC needs someone to handle important legal and state documents. Only some people can do this; this person is a registered agent.
A registered agent handles all state-related matters for your LLC and manages legal notices if your LLC faces legal issues. Selecting a reliable agent is crucial after you’ve learned how to start an LLC in Oregon. Your agent should be:
- Responsible and organized to ensure prompt notification and compliance with legal obligations.
- Registered agents can be any Oregon resident or authorized business entity.
Some LLCs choose a member or their attorney as the agent for quick notice and legal advice availability.
Step#3: Submit Articles of Organization
To set up an Oregon LLC, you must fill out a form called Articles of Organization and send it to the Secretary of State. This form asks for:
- Your LLC’s name
- How long your LLC will exist
- Specify the location of your LLC’s principal office
- The name and address of your Oregon LLC’s registered agent
- Where the Secretary of State should send mail
- If the LLC will be run by its members or by managers
- If the LLC will offer professional services
- The names and addresses of the people starting the LLC
- The name and address of at least one person who knows how the LLC works
You have a few options to file your Articles of Organization:
- Online: Use Oregon’s website for the fastest option.
- In-person: Go to the Public Service Building in Salem, OR, Monday to Friday (8 a.m. to 5 p.m.) for same-day processing.
- By mail: Please send your forms and fees to the Public Service Building, 255 Capitol St. NE, Suite 151, Salem, OR 97310.
After processing, you’ll receive your official documents via mail. To expedite delivery, please include a prepaid FedEx airbill along with your paperwork for an additional fee of $100. Please note that processing fees become non-refundable once paid.
The Oregon Secretary of State offers detailed guidance on completing the form, simplifying each section for easier understanding.
Step#4: Get a Certificate From the State
Once the state approves your LLC’s paperwork, they’ll send you a letter confirming its establishment. You’ll also receive your approved organization articles. With this certificate, your LLC can get an Employer Identification Number.
Step#5: Create an LLC Agreement
While not required in Oregon, an LLC operating agreement is advisable. This document outlines how your LLC operates, detailing the roles of members and managers and how you will manage your LLC. Additionally, it helps establish the separation between your assets and those of the LLC, thus protecting your limited liability.
The operating agreement covers:
- Member responsibilities and duties
- Management structure, whether member-managed or manager-managed
- Voting procedures
- Procedures for admitting new members
- Guidelines for transferring membership
- Day-to-day business operations
- Description of liability
- Financial and accounting practices of the company
Operating without an agreement is like navigating a road trip without a map—it hinders reaching your destination.
Step#6: Obtain an Employer Identification Number
The first step to begin an LLC in Oregon is obtaining an EIN (employer identification number) from the IRS if your LLC has multiple members or employees. Employer Identification Number is essential for tax purposes, opening a bank account or hiring employees.
You can obtain an EIN by completing an online application on the IRS website. The application is free, and there is no fee for filing.
Step#7: Submit yearly updates
Every Oregon LLC and out-of-state LLC authorized to operate in Oregon must submit an Annual Report to the Oregon Secretary of State. You must file the report for the year it’s due. Ensure it reaches the Secretary of State’s office before your LLC’s anniversary to avoid additional fees.
You must submit the report online through the Oregon Secretary of State Business Registry Web Renewal page. On the Web Renewal page, you cannot download a blank form; you can generate one with your LLC’s information. The filing cost for the annual report is $100 for in-state LLCs and $275 for out-of-state LLCs.
Follow this guide to start an LLC in Oregon and run your business quickly. These steps can help make setting up your LLC in Oregon easier and faster.
LLC State Guides
FAQs About How To Start an LLC in Oregon
What is the cost of starting an LLC in Oregon?
The Secretary of State charges a $100 fee for processing the Articles of Organization. Oregon LLCs should submit an annual report to the Secretary of State each year. The fee is $100 for Oregon LLCs and $275 for LLCs from other states.
Can I form a single-member LLC in Oregon?
Yes. A single-member LLC in Oregon is treated similarly to one with multiple members.
What benefits does establishing an LLC in Oregon provide?
Starting an LLC is usually cheaper than starting a corporation and offers some liability protection.
What happens if I already own an LLC in another state?
You need to register as a foreign LLC in Oregon, which requires submitting the paperwork and paying the fees needed to gain legal recognition for business operations in the state.
How quickly can an LLC be formed in Oregon, and can it expedite the process?
Oregon LLC approvals generally require 6-8 weeks for mail submissions, encompassing a processing period of 4-6 weeks with the time needed for document mailing. For online, approvals for Oregon LLCs typically occur within 2-3 business days.
