Portland. Cannon Beach and Nike. Oregon is known for many things including the stunning Crater Lake.
So you’ve decided to take the plunge and are wondering how to start an LLC in Oregon. But what to do next? And how much will it cost? Below we’ve detailed all of the steps you’ll need to take as well as pricing and documentation required for Oregon businesses.
In addition to its many other advantages, a limited liability corporation (LLC) provides small enterprises with protection from legal responsibility and favorable tax treatment.
Follow these easy steps to get your limited liability company (LLC) operating in the state of Oregon after you’ve decided that an LLC is the most suitable company structure for your requirements.
Note that to form a limited liability company (LLC), you can do so yourself, or engage a reputable company formation provider to do all of the legwork on your behalf.
1. Give Your Oregon Corporation a Name
You are required to give your limited liability company a name before you can proceed with anything else. In the Oregon Legislature’s section OR. Rev. Stat. 63.04.9, you’ll find the guidelines for naming your limited liability company (LLC) in the state of Oregon.
It is essential to be aware that the name you choose for your company must be in accordance with all applicable federal and state laws and regulations. The following elements must be included in the name of your limited liability company (LLC) if it is to comply with Oregon law
- Include the phrase “limited liability corporation,” “L.L.C.,” or “LLC” in your writing.
- Do not use any terms or abbreviations that would give the impression that it is a different form of company, such as “corp” or “limited partnership.”
- Make your company name stand out among the other Oregon businesses.
The database of company names maintained by the Oregon Secretary of State allows users to verify the availability of names.
2. Find an Oregon Registered Agent
A registered agent in Oregon is required of every limited liability company operating in the state. If the limited liability company (LLC) is taken to court, this refers to a person or company that has agreed to accept service of process on its behalf.
It is acceptable for the Registered Agent to either be a resident of Oregon or a legal organization that is permitted to do business in Oregon. A Registered Agent in Oregon is required to have a real-life street address in the state.
What role do Registered Agents play?
A Registered Agent is a person or business entity that is liable for receiving essential tax forms, legal documentation, notice of lawsuits, and official correspondence from the government on behalf of your company. This can include tax documents, legal documents, notice of civil suits, and official correspondence. Consider the role of your registered agent as that of the point of contact for your company with the state.
Who is eligible to serve as a Registered Agent?
A Registered Agent in Oregon has to be either a person who lives in the state on a permanent basis or a company that is permitted to operate in Oregon and acts in the capacity of a Registered Agent service. You have the option of selecting anybody who works for the organization, including yourself.
3. Register your company’s articles of incorporation
Your limited liability company (LLC) will be formally recognized after you have a document called the Articles of Organization that lays forth fundamental information about your business. Because this form serves as the legal registration for your company with the state, it is essential that all of the details be accurate.
What should be included in a company’s Articles of Organization?
When completing the Articles of Organization for your Oregon LLC, you are required to give the following information:
- LLC’s name
- if the term of the LLC is permanent or restricted.
- Address of the main office of the limited liability company Name and contact information of the registered agent for the limited liability company
- Location where the Secretary of State should send notifications to the limited liability company (LLC) through mail.
- How the Limited Liability Company (LLC) will be run: by its members or by its managers
- Whether or whether the limited liability company can provide professional services
- Name and address of each person who organized the limited liability company, as well as the name and address of at least one member or management who has direct knowledge of the activities of the limited liability company.
Submitting Your Organization’s Certificate of Organization
Either by internet submission or traditional mail, the articles may be sent in. There is a one hundred dollar fee associated with the application. The name “Corporation Division” should be written on the memo line of the check. Requests for ‘Authority to Transact Business’ may also be submitted by international businesses or organizations.
Additionally, businesses located in other states are required to pay $275. There is no way to get your money back for the processing fee.
Send your fully completed documentation and your money to the following address:
The Corporation Division of the Secretary of State, 255 Capitol Street, NE, Suite 151, Salem, Oregon 97310-1327
For all queries, you can get in touch with them at 503-986-2200.
Make an account profile for yourself
A filing fee of $275 must be paid in order to submit the application online via the website of the Oregon Secretary of State.
The Secure Access System site of the Oregon Secretary of State features a straightforward and quick registration procedure. in order to protect both your login and your password.
4. Obtain a Certificate From the Government of Your State
After the formation paperwork of the LLC has been submitted and authorized, the state will send you a certificate that proves the LLC’s official existence in response to a written request for a copy together with the appropriate amount of postage.
With this certificate, the limited liability company will be able to acquire an Employer tax ID (EIN), as well as business permits and a bank account for the firm.
5. Draft an Operating Agreement for Your Company
Even while establishing a detailed LLC operating agreement is not a legally required step for founding a limited liability company in Oregon, it is highly suggested for all new limited liability firms to do so.
The following items should be included in the operating agreement:
- Describe the business structure of the limited liability company.
- Determine the specific duties and commitments that each member of the limited liability company (LLC)
- Lay out the operational structure of the LLC.
Significant legal and logistical challenges might await a limited liability company (LLC) in the absence of an operating agreement that defines the precise responsibilities of its members.
6. Obtain a number that identifies you as an employer (EIN)
A number of limited liability companies (LLCs) will be required to get a Federal Employer Identification Number (EIN), often known as a tax ID number.
An Employer Identification Number (EIN) is a nine-digit number that identifies your company to the Internal Revenue Service. You need an EIN in order to pay federal employer taxes, open a bank account (in most situations), or recruit staff.
You may check to see whether you need an EIN by using the IRS website, where you can also submit your application for free online. The vast majority of businesses are required to have an EIN, although single-member LLCs may be able to get away with using just the owner’s Social Security number.
Depending on the nature of their operations and where they are located, some limited liability companies (LLCs) doing business in Oregon may be needed to get one or more business licenses or permits from the state or from their respective municipal governments.
Consult the Oregon Start a Company Guide, which is made available by the Secretary of State for guidance on how to satisfy the prerequisites for obtaining a state license to operate a business in the state. The Oregon License Directory allows for the search and retrieval of specific license information.
Contact the municipal or county clerk where your LLC is situated for local licensing requirements.
7. Submit Yearly Company Renewals
Each year, by the anniversary of the date on which its Articles of Organization became effective or the date on which it became authorized to conduct business in Oregon, limited liability companies that are active in the state of Oregon are required to submit an annual report to the Secretary of State (foreign LLCs).
The yearly report has to be submitted online. LLCs that were founded inside the state have a filing charge of $100 for their annual report, whereas LLCs formed outside of the state have a filing cost of $275.
Additional information on how to submit annual reports for an LLC may be found here.
Costs and next steps
The filing of the Articles of Organization in Oregon for an LLC costs a minimum of one hundred dollars. This fee does not include the cost of submitting an annual report, which is one hundred dollars for domestic LLCs and two hundred seventy-five dollars for international LLCs.
Consider the following additional fees that may be incurred by an LLC:
- LLC name reservation (one hundred dollars)
- DBA (Doing Business As) name (fifty dollars)
- Certified document copies (fifteen dollars)
- Certificate of existence (ten dollars)
When you register a limited liability company (LLC), you establish a legal basis upon which to operate your firm. Companies should make it a priority to maintain their limited liability company in compliance with state regulations and in an active position on the state’s website.
In addition, having a registered limited liability company enables you to perform the following:
- Obtain any permissions or licenses that are required to run your business, such as those issued by the health department, the zoning department, the department of home occupations, the department of professional licensing, and so on. Some states need a seller’s permission to conduct sales
- Register your company with the department of revenue in your state.
- Create a bank account for your company.
- Create a credit card account for your company.
- Invest in insurance coverage for your company.
- Create a trademark to protect both your company’s name and its logo.
Setup LLC yourself or with a professional provider?
To establish a limited liability company (LLC), you are not required by law to consult a lawyer. The majority of states enable the establishment of LLCs via the process of registering the business entity on the website of the secretary of state and with the Internal Revenue Service (IRS).
If you are not acquainted with the process of forming an LLC, your best bet may be to employ a professional LLC creation service so that you can be certain that the creation will go smoothly and quickly.
When entrepreneurs start a new firm, they may save startup costs and save valuable time by using a professional agency that specializes in company forms.
They can take care of the things that you may not have time to think about for a price ranging from $50 to over $500, and some examples of such things are as follows:
- Developing an operating agreement for an LLC that details your company’s who, what, when, where, why, and how, and putting it into writing (required in some states).
- putting together articles of incorporation that identify the management of the LLC, the registration agent, and the date the company was formed.
- Taking up the role of registered agent for your firm.
- Keeping careful records in the event that there are investigations or litigation.
- Payment of filing fees and registration with the appropriate parties.
- Registering the name of your firm and ensuring that the name you choose for your limited liability company is accessible.
- Finishing up and turning in all of the necessary legal and formation documentation.
What are the steps to setting up an LLC in Oregon?
You will need the registration fee, a name for your limited liability company (LLC), a Registered Agent, a Certificate of Formation, an Operating Agreement, and an EIN number from the Internal Revenue Service in order to create an LLC in the state of Georgia.
How much will it cost to start up an LLC in the state of Oregon?
The filing of the Articles of Organization for a limited liability company (LLC) in Oregon is $100. This fee does not include the annual report filing fees, which are $100 for domestic LLCs and $275 for international LLCs.
What taxation rules apply to LLCs in Oregon?
Oregon partnerships are taxed like S corporations. While the company is responsible for paying the minimum excise tax of $150, the owners of the company are personally liable for paying income tax on the money that goes through.
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