How to form an llc in oregon

A business license is not required in order to form a limited liability company (LLC), but it may be required before you begin business operations. Whether a business license is needed depends upon the state, county, or city where you operate your business. It may also depend upon the nature of your business.

How to form an llc in oregon

Forming an LLC

An LLC is one of several ways to organize a business. Other options include a sole proprietorship, partnership, limited partnership, and corporation.

Formation of an LLC is a matter of state law and is done by filing certain documents with the appropriate state agency. This is typically the Secretary of State or a business registration or corporation division of a branch of the state government. The basic document to form an LLC is most often called the articles of organization, which usually sets forth basic information such as the official legal name the LLC will use, the address of its main office, the name and address of a registered agent (where legal papers may be served if the LLC is sued), and the names of the owners, who are also called members. Not all states require the names of the members. Registration also involves paying a fee.

An LLC with only one member is called a single-member LLC, while an LLC with two or more members is called a multimember LLC. It is generally recommended that an LLC also have an operating agreement, which spells out in more detail how the LLC operates. This is especially recommended for multimember LLCs so as to help avoid or resolve any disputes between members.

The LLC and Business Licenses

Whether your LLC requires a business license is a separate matter from forming an LLC.

Check with your state and local governments to find out if you need a license to conduct business. Types of business licenses that are required by some states, counties, or cities include:

Business licenses. This is a type of license that is typically required by a county, city, or other local government. It is generally required of anyone doing business in the county or municipality, regardless of whether the business is organized as a sole proprietorship, partnership, limited partnership, LLC, or corporation. It is essentially a tax on your business.

Occupational licenses. This is a license that applies to certain types of businesses or professions. An occupational license may be required by state law, local law, or both. Just a few examples of the hundreds of types of businesses that may require an occupational license are accountants, ambulance services, barbers, burglar alarm contractors, construction contractors, electrologists, junk dealers, landscape architects, manicurists, pest control, pet shops, real estate appraisers, surveyors, tattoo parlors, and warehouses.

A state can easily have hundreds of types of businesses that require licensing, and it can be a challenge to find them all. States are constantly adding to the list of businesses and occupations that require licensing, so it is dangerous to assume you can start business operations without determining whether a license is required.

Tax licenses. Many states require businesses to collect and pay certain taxes, such as sales tax, business income tax (based on such factors as sales, gross receipts, or profits), employee tax withholding, unemployment compensation tax, and workers compensation tax. Depending upon the nature of your business, your LLC may also be subject to various other taxes, such as motor fuel taxes; taxes related to sales of tobacco products, firearms, or liquor; and hotel and motel room taxes. Your business may also be subject to various local sales or income taxes. Any of these may require you to obtain a tax license or register with the appropriate taxing authority.

Determining if You Need a Business License

To learn if your LLC needs some type of business license, you can check with one or more of the following:

  • Your state and local government, at its website, by phone, or at the closest office. Many state governments offer special assistance for those seeking to start a new business.
  • The U.S. Small Business Administration, at their local office or at www.sba.gov.
  • Any trade or professional association related to the type of business in which you are engaged.

Although you are not required to have a business license in order to form your LLC, before starting business operations, you should check with the appropriate state and local agencies to find out if you need to obtain some type of business license.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.

Forming your LLC in Oregon can be easy. This guide will help you get off on the right foot.

by Rudri Bhatt Patel
updated September 01, 2021 · 5 min read

A limited liability company (LLC) offers liability protection and tax advantages, among other benefits for small businesses.

LLC formation in Oregon is easy. Just follow these six steps, and you’ll be on your way.

How to form an llc in oregon

1. Name Your Oregon LLC

You’ll need to choose a name to include in your articles before you can register your LLC.

Names must comply with Oregon’s naming requirements. The following are the most important requirements to keep in mind:

  • Your business name must include the words Limited Liability Company, LLC, or L.L.C.
  • Your name must be different from an existing business in the state. You can do a search on the Secretary of State’s website to determine if a particular business name is in use. For name availability in Oregon, check this link.
  • The business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.)
  • Certain restricted words (bank, lawyer, attorney, credit union, etc.) may require additional documentation and licensure paperwork.

See a complete listing of Oregon’s naming rules.

Additional Considerations:

  • URL availability. Even if you don’t think you’ll need a webpage, you probably will. At the very least, you should reserve the option of having one in the future by buying your domain name now. Before finalizing your LLC name, it’s a good idea to check if the URL is available.
  • Reserve your name. If you aren’t ready to register your LLC but are concerned your name might be taken by someone else, you can reserve it for a small fee. In [State], names may be reserved for up to 120 days by paying the fee and submitting the proper form to the state authority.

2. Choose Your Registered Agent

Oregon requires you to appoint a registered agent for your LLC.

A registered agent is the person or entity authorized to receive service of process and other official legal documents and notices on behalf of your LLC.

A registered agent can be a person (including yourself or an employee of your LLC) or an entity that offers a registered agent service. They must meet the following criteria:

  • Entities (or companies) must provide registered agent services.
  • The agent must have an address in Oregon.
  • The agent must be on-site and available to accept documents during regular business hours.

3. Prepare and File Articles of Organization

The Articles of Organization is a document that officially establishes your LLC by laying out basic information about it.

Prepare Articles of Organization and file them with the Oregon Secretary of State to register your Oregon LLC properly. Though it sounds like a big job, that simply means filling out a relatively simple online form and submitting it. You can also send it by mail.

To prepare your articles, you’ll usually need the following information:

  • Your LLC name and address of the LLC’s principal office.
  • The name and address of your registered agent.
  • The address where the Secretary of State should mail notices to the LLC.
  • Whether the LLC will provide professional services.
  • The name and address of each organizer of the LLC.
  • A reason why you formed the LLC. This can be a general statement.
  • The name and address of at least one member or manager with direct knowledge of the LLC’s operations.
  • An LLC’s duration or time period over which the LLC will exist. In most cases, LLCs are perpetual, meaning the duration is indefinite. A perpetual LLC can be dissolved voluntarily or involuntarily. If your LLC exists for a purpose that will end at a specified date, you will specify that date here.
  • Management structure: Will managers or members manage the LLC?
  • The person forming the LLC is required to sign the Articles.

Once you file your Articles, the secretary of state will review the filing. If the articles are approved, the LLC becomes a legal business entity.

4. Receive a Certificate From the State

The state will mail (or email) you an acknowledgment letter that confirms the LLC formally exists after the LLC’s formation documents are filed and approved. You can download your stamped and approved Articles of Organization.

This certificate will allow the LLC to obtain an Employer Identification Number (EIN), business licenses, and business bank account.

5. Create an Operating Agreement

An operating agreement is a document that outlines the way your LLC will conduct business.

Oregon doesn’t require a operating agreement, but it is an essential component of your business. Having a readily accessible, written operating agreement is helpful for various reasons, including settling disputes that may arise over financial agreements and other potential litigation. Without an agreement in place, the courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members.

The operating agreement can include, but is not limited to, the following:

  • LLC’s name and principal address
  • Duration of the LLC
  • Name and address of the registered agent
  • Information about the Articles of Organization
  • Purpose of the business
  • Members and their contribution
  • The way profits and losses will be divided
  • Procedure for admitting new members, as well as outgoing members
  • Management of the LLC
  • Indemnification and liability clauses

6. Get an Employer Identification Number

The nine-digit Employer Identification Number (EIN) is assigned by the Internal Revenue Service to identify your LLC for taxes. You can obtain your EIN by mail or online through the IRS.

The purpose of an EIN is to assist with the following:

  • File and manage taxes at the state and federal level
  • Open a business bank account.
  • Hire employees.

Next Steps

Registering your LLC gives you a legal foundation to conduct business. Plan to keep your LLC compliant and in active status on the state’s website.

All Oregon LLC’s are required to file an annual report. It must be received by the Secretary of State prior to your LLC’s anniversary date to avoid late filing penalties.

You might be required to make quarterly tax payments and maintain a registered agent for your business.

How to form an llc in oregon

LLCs are the most popular structure for small businesses in Oregon. That’s because starting and running a limited liability company (LLC) is very simple and offers important benefits.

LLCs can protect your personal assets (car, house, savings) if something happens to your business. LLCs also offer credibility and options to save on taxes.

It’s easy to form an LLC in Oregon online yourself. Just follow these steps:


Or, use an online LLC service to form an LLC:

ZenBusiness ($39 + State Fees)

LegalZoom ($149 + State Fees)

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Starting an LLC in Oregon

You can form an Oregon LLC online by filing the Articles of Organization with the Secretary of State. The cost of Oregon LLC registration is $100.

Follow our How to Start an LLC in Oregon guide below to get started.

How to form an llc in oregon

Step 1: Create A Name For Your Oregon LLC

Before you register your LLC, you’ll need to come up with a name. Your business name needs to be catchy for branding purposes and legitimate for legal purposes.

We go into depth on this topic in our LLC naming guide. We’ll go over the basics below.

Naming Your LLC

First, brainstorm some possibilities. Use our LLC name generator to get the ideas flowing.

Next, make sure your name meets Oregon guidelines:

  • it contains the words limited liability company, limited company, LLC, or L.L.C.
  • it doesn’t contain restricted words or phrases (these often include words like bank, attorney, and university) without approval
  • it’s distinguishable from any other entity or trade name registered in Oregon
  • full list of Oregon naming guidelines

Next, do a Oregon LLC name search with the Secretary of State to find out if your name is available in Oregon.

If your business name is available and meets guidelines, you’ll be able to register it when you file your Articles of Organization with the Secretary of State.

Is the URL available? Before you commit 100% to a name, check to see if there’s a good web domain available.

We recommend buying your domain right away because even if launching a business website isn’t on your radar right now, it will be soon.

How to form an llc in oregon

An LLC is a Limited Liability Company business entity type that allows business owners (“members”) to enjoy tax flexibility and personal liability protection without extensive and complicated compliance requirements. Essentially, operating as an Oregon LLC combines the limited liability features of a Corporation with administrative simplicity similar to that of a Sole Proprietorship or General Partnership.

A Limited Liability Company may have one owner (single-member LLC) or multiple owners (multi-member LLC). Multi-member LLCs may be member-managed or manager-managed, and they may have an unlimited number of owners.

The Oregon Secretary of State is the state government office that keeps record of all domestic and foreign business entities registered to operate in the state. Domestic LLCs in Oregon are those that are on record as having Oregon as their home state (their state of domicile). Foreign LLCs are those that are formed in a state other than Oregon but that apply for foreign qualification to conduct business there.

Legal and Tax Considerations of an LLC

An LLC is considered to be a separate legal entity from its members. So, if the business gets sued or faces financial difficulties, generally, the owners’ personal assets are not at risk of being used to settle those debts.

By default, the IRS treats LLCs as a pass-through entity. It considers the LLC and its members as the same tax-paying entity. Profits, losses, and income tax obligations flow through to the LLC’s owners’ personal tax returns. Qualifying Limited Liability Companies may instead choose to be taxed as an S Corporation. S Corp tax treatment is also on a pass-through basis. However, how self-employment taxes (Medicare and Social Security) are applied is different than how they are handled with the default LLC tax treatment. Normally, all of an LLC’s profits are subject to self-employment taxes. Alternatively, with the S Corp tax election, only owners’ salaries and wages are subject to those taxes. Compensation paid as distributions to members is subject to federal income tax but not self-employment taxes.

Potential Benefits of Forming an LLC

  • Limits the owners’ personal liability for the business’s debt and legal issues.
  • Allows for the transfer of ownership – If a member leaves or dies, an LLC’s operating agreement should have provisions for how that member’s ownership stake should be handled.
  • The business may survive beyond a member’s lifetime because an LLC is a legal entity separate from its owners.
  • Has fewer corporate formalities than a corporation – e.g., no bylaws, board of directors, shareholder meetings, etc.
  • May have an unlimited number of members.
  • Provides ownership flexibility – LLC members do not need to be U.S. citizens or have permanent residences in the state.
  • Offers tax treatment flexibility – Members may choose to be taxed as either a Partnership (or Sole Proprietorship if a single-member LLC) , S Corporation, or C Corporation.

How to Form an LLC in Oregon

Some of the steps involved in starting an LLC in Oregon include:

  1. Choose a name for the LLC – Do a name search to make sure it’s available in the state.
  2. Designate a Registered Agent – An LLC must designate a Registered Agent authorized to accept service of process (important government documents and legal notices) on behalf of its business.
  3. Prepare and submit the required business registration documents – To register a Limited Liability Company (LLC), business owners must file Articles of Organization with the Oregon Secretary of State, Corporations Division.
  4. Create an LLC Operating Agreement – The LLC operating agreement sets the rules for how an LLC will be run and describes the roles and responsibilities of the LLC members.
  5. Obtain an EIN – An Employer Identification Number (Federal Tax ID Number) is a unique nine-digit number issued by the IRS. It’s used for tax purposes and may be required for setting up a business bank account and other accounts.
  6. Obtain the necessary business licenses and permits – Depending on the type of business the LLC conducts, there may also be state, federal, or local business licenses and permits required to legally operate.

CorpNet Makes It Simple and Cost-effective!

CorpNet’s LLC formation services ensure that your business registration paperwork is submitted accurately and quickly. And you will likely find that we can take care of it all—preparing and filing Articles of Organization, applications for business licenses and permits, DBAs, foreign qualification, EINs, S Corporation election, and more—at a lower cost than if you would have an attorney handle the forms. We also provide affordable registered agent services, and customized LLC Operating Agreements.

Save time, enjoy personalized service, and get peace of mind by working with our filing experts who have experience helping entrepreneurs in all 50 states, including Oregon. We stand by our services with a 100% satisfaction guarantee.

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If you needs help forming your LLC, These Companies can do it for you. Just Click on the Company below.

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If you are like many and struggle with preparing your own limited liability company paperwork, you might consider using an online service. They can handle all of the paperwork and eliminate your stress.

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Quick Start Guide
This Quick Start Guide is a brief overview of how to form an LLC in Oregon.

Detailed Lessons:

Oregon LLC Costs:
Oregon state fee: $100
Annual Report: $100

Need to save time?
Hire a professional to form your LLC in Oregon:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

Note: Our tax lesson is not as step-by-step as our Oregon LLC formation lessons, due to the uniqueness and variation among businesses formed in Oregon.

Taxes are not as straightforward as forming an LLC, and therefore, the information below is an overview, and not a comprehensive guide.

Recommendation:
We recommend speaking with a few accountants in Oregon to make sure you meet all your state and local tax obligations.

We recommend reading our How to Find an Accountant guide and then using Thumbtack and Yelp.

Overview

Federal Income Tax

Most Oregon LLCs do not pay taxes directly to the federal government. Instead, the members of the LLC are responsible for reporting income or losses on their personal 1040 tax return with the IRS.

LLC income is most often reported on a Schedule C, however, you may need to include additional Schedules, depending on how you derive your income.

By “most LLCs”, we are specifically referring to LLCs taxed in their default status. Unless you elect to have your LLC taxed as a Corporation (C-Corp or S-Corp), single-member LLCs are taxed like a Sole Proprietorship and multi-member LLCs are taxed like a Partnership.

Alternatively, an LLC can be taxed as a C-Corp, or more popularly, an LLC can be taxed as an S-Corp (in order to save money on self-employment taxes).

If an LLC is taxed as a C-Corp, it must file federally, using Form 1120. If an LLC is taxed as an S-Corp, it must file federally, using Form 1120S.

LLC taxed as an S-Corp:

Typically, most accountants recommend that your Oregon LLC’s net income (income minus expenses, but not including salaries) be around $70,000 per year (per Member), plus or minus. At this net income level, the accounting and administrative costs of maintaining the S-Corp tax election for the LLC are offset by the self-employment tax savings.

Oregon State Income Tax

If you are a resident of Oregon, you’ll need to report your LLC’s income/losses on your state income return. This will be done on your OR-40, OR-40P, or OR-40N form.

Again, make sure you speak with your accountant about how to prepare, file, and pay your state income tax.

Other Taxes in Oregon

Oregon imposes the following taxes:

• Amusement Device tax
• Combined Payroll tax
• Corporate Income and Excise tax
• Emergency Communications (E911) tax
• Estate tax
• Fiduciary tax
• Hazardous Substance fee
• Lane Self-employment tax
• Lane Transit Payroll tax
• Marijuana tax
• OAA (Other Agency Accounts) tax
• Oregon Drivers License Reinstatement Program Partnership
• Petroleum Load Fee
• Senior and Disabled Deferral
• State Lodging tax
• Timber taxes
• Tobacco Consumer Products and Cigarette Consumer tax
• TriMet Self-employment tax
• TriMet Transit Payroll tax
• Withholding tax (assessment or deficiency)

No Sales or Use Tax

Oregon does not have a general sales tax or a use/transaction tax.

If you are purchasing good or products outside of Oregon and need to present the seller (or the state) with a Resale/Reseller Certificate, you can use this form provided by the Oregon Department of Revenue: http://www.oregon.gov/DOR/forms/FormsPubs/or-business-registry-resale-cert_800-002.pdf

This form can be used to exempt the transaction from the state’s sales, use, or transaction tax.

Some states may not accept this form though and they may require your LLC to complete one of their own state forms.

Oregon Tax Resources

Local Taxes for Oregon LLCs

If your business is located in Oregon, you likely need to file and pay state and local taxes, including your city, township, or county.

Again, this depends on where your LLC is located and what type of business you are in. We recommend seeking professional assistance.

Our Recommendation

Calculating your tax obligations federally (with the IRS), on the state-level (with Oregon), and locally (with your city, county, or township), can be complicated and if done improperly can negatively impact your LLC.

We recommend that you get help from a local accountant once your Oregon LLC is formed. We recommend reading our How to Find an Accountant guide and then using Thumbtack or Yelp to find a local professional.

Hiring a tax professional will not only help you keep your Oregon LLC in compliance, but it will also give you an advisor to go to for other business questions.

You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 accountants before making your final decision.

References

How to form an llc in oregon

Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren’t offering. He’s cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.

Matt holds a Bachelor’s Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC – all for free! Read more about Matt Horwitz and LLC University.

2 comments on “Oregon LLC Taxes”

Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

Hi Matt,
I am planning to open a single-member LLC in Oregon but I am a WA resident and WA has no state income tax so I don’t need to file any state tax return. On the state level, will the pass-through income taxation follow where I reside or where the LLC is formed? Or both?

Hi Jas, we don’t get into the details of taxation, so you’ll need to run this by an accountant. However, you’ll likely pay state taxes in your residence state and you may need to file a “zeroed out” state-level return in Oregon apportioning your income to Washington state. Please double-check on this though with a tax professional. Hope that helps and thank you for your understanding.

Oregon is bordered by the Pacific Ocean. It is an extremely geographically diverse and beautiful state, and it is home to the largest living organism on the planet! The state’s economy is driven by timber, agriculture, energy, tourism and technology.

For most business owners, the fastest and easiest way to start a business in Oregon is by creating an Oregon LLC. A Limited Liability Company (LLC) is a type of business entity that’s ideal for startups and small- to medium-sized businesses. You get the advantages and protections of larger Oregon corporations but with much simpler rules and regulations.

Briefly, the benefits of starting an Oregon LLC include:

  • Separating and limiting your personal liability from your business liability and debts
  • Quick and simple filing, management, compliance, regulations and administration of your Oregon LLC
  • Easy tax filing and potential advantages for tax treatment

Six Quick Steps for Setting up Your Oregon Company

We’ve got lots of useful information on starting a business in OR. On this page you’ll find the basic steps of how to form an Oregon LLC, with more in-depth content throughout the rest of our guide.

First, you need to gather basic information about your LLC, including the names and addresses of the managers or members. The LLC members are typically the people who own and run the business. They are also the ones who can take profits out of the business to pay themselves.

You will need a distinctive and original name for your Oregon LLC that’s not used by any other business in OR. To find out if another company is using your chosen business name, carry out an Oregon business entity name search on the OR Secretary of State website.

There are a few rules you’ll need to follow when choosing an LLC name. You can find out more in our guide to searching for and naming your Oregon LLC.

Every Oregon LLC must have a designated street address. That could be your home address (if you’re running the company from your residence), your company’s office building or any physical address of your preference. The address must be inside the state of Oregon, but it cannot be a P.O. Box.

Every Oregon LLC must have a “Registered Agent.” This is an official position; the Registered Agent is someone who receives official legal and tax correspondence and has responsibility for filing reports with the Oregon Secretary of State.

This position can be filled by you, another manager in the business or a dedicated Registered Agent service. Your Registered Agent must have a physical street address in Oregon and must be present to receive important documents for your company during business hours.

At Incfile, all of our packages include an Oregon Registered Agent service that is free for the first year and just $119 per year afterward. We also have a dashboard where you can log in and easily view any document your Registered Agent has received on your behalf.

You will need an EIN to identify your business with the IRS. You use this number when filing and paying taxes or when submitting payroll information and payments for your employees. You can obtain one directly from the IRS, or we can get one for you as part of the Oregon LLC business formation process.

Once you’ve gathered all the information for your LLC, you’ll need to file a formal document with the Oregon Secretary of State. This document is known as your “Articles of Organization,” and filing the document creates your Oregon LLC. Here’s what is typically included:

  • Your business name and address
  • Details of your Registered Agent
  • Tax closing month

You can file your Oregon Articles of Organization online, mail in a form or have Incfile do it on your behalf. There is a fee to file and start an LLC in Oregon, but you only need to file your Articles of Organization once.

The most important Oregon single-member LLC filing requirement is filing your Articles of Organization, which formally establishes your limited liability company (LLC). Oregon LLCs are also required to file an Annual Report to maintain their good standing.

Why Form an Oregon LLC?

If you’re looking for a formal structure for your business, there’s almost no better option than forming an LLC. With an LLC, your personal assets, which can include your home and your car, will not be at stake if someone files a lawsuit against your business.

Other popular business structures, such as general partnerships and sole proprietorships, do not provide limited liability. With these structures, your personal assets will be at risk if your business gets sued. If you want to limit your personal liability from your business, forming an LLC is the right choice.

Steps to Forming Your Single-Member LLC

If you want to establish a single-member LLC in Oregon, you first need to choose a suitable name. Oregon, like most states, requires that your LLC name include one of the following words or an abbreviation of these words:

  • Limited Liability Company.
  • L.L.C. or LLC.
  • Ltd. Liability Co. or Ltd. Liability Company.

You can reserve your LLC name for a 120-day period.

Filing your Articles of Organization is the primary Oregon single-member LLC filing requirement. You should submit your completed formation documents to the Oregon Secretary of State. Include the following information in your Articles:

  • The official name of your company.
  • Your LLC organizer’s contact information.
  • Your registered agent’s Oregon street address.
  • Your principal business address.

In Oregon, LLCs can have one or more organizers. Since organizers are only needed when forming the company, you could serve as the organizer if you want to form a single-member LLC.

LLCs in Oregon must have at least one member. Oregon LLC members do not have to reside in the state, and there is also no age requirement for members. You do not have to name your LLC members in your Articles of Organization.

You have the option of limiting the duration of your limited liability company. If you want your company to end after a certain date, you should include this date in your Articles. If you do not list a duration period in your formation document, the length of your company’s existence will default to perpetual.

Most LLCs are formed for the purpose of transacting legal business. This will be your company’s default purpose unless you state a limited activity or purpose in your formation documents.

Oregon LLCs must hire a registered agent. Once hired, your registered agent will be responsible for accepting any service of process mailed to your company, as well as documents sent by the state. Your Oregon LLC registered agent should have a physical address in the state, and they must be available to receive service of process during normal business hours. Residents of Oregon can serve as registered agents, as can foreign and domestic business entities that are legally allowed to conduct business in the state.

Once you have formed your company, you should consider drafting an Operating Agreement, which is an internal document that will dictate how your company is managed. You can use your Operating Agreement to outline several issues:

  • How your company will be managed.
  • How to distribute profits to company members.
  • What each member will contribute to the company.

All LLCs in Oregon must file an Annual Report. You should file this report on the anniversary of your LLC’s formation. When you file your report, you will also need to pay a $100 filing fee.

The state taxes that your company must pay will depend on the taxable income you earn in Oregon. When it comes to federal taxation, LLCs have a great deal of flexibility. As the sole member of your company, you will get to decide how your LLC will be taxed. For federal taxes, LLCs can elect to get taxed as one of the following:

  • Corporation.
  • Partnership.
  • Sole proprietorship.

Generally, single-member LLCs will be taxed as sole proprietorship. This means that you will report your company’s profits on a Schedule C form and submit this form with your personal tax return. You will also need to pay self-employment taxes on your net income.

If you need help with the Oregon single-member LLC filing requirement, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.