How to Start an LLC in Oregon (2026 Guide)
Oregon is one of only five states with no sales tax at all — a genuine draw for retail and e-commerce businesses. But that trade-off shows up elsewhere: Oregon's top income tax rate is 9.9%, among the highest in the country, and it kicks in at a surprisingly low income level. Here's all 8 steps, with the honest trade-offs laid out.
To start an Oregon LLC, file Articles of Organization with the Oregon Secretary of State, Corporation Division for $100, with online processing in about 1–3 business days (mail takes 4–7 business days). Every LLC then files an annual report ($100), due on the exact anniversary date of your original filing — not a month, the precise date. Oregon has no state sales tax, but a graduated income tax topping out at 9.9% — one of the highest top rates in the country, reached at a relatively low income threshold. Businesses with Oregon commercial activity above $1 million also owe the Corporate Activity Tax (CAT).
- State filing fee
- $100
- Processing time
- ~1–3 business days online
- Annual report
- $100 · due on exact anniversary date
- Sales tax
- None — one of 5 states
- Income tax
- Graduated, tops out at 9.9%
- Corporate Activity Tax
- Only above $1M commercial activity
Why Form an LLC in Oregon?
Oregon offers a genuinely distinctive tax trade-off worth understanding clearly before you form here. What you get:
- A moderate $100 formation fee — the same whether you file online or by mail, with fast 1–3 business day online processing.
- No state sales tax — one of only five states in the country without one, a real advantage for retail and e-commerce.
- No franchise tax or privilege tax — Oregon's baseline compliance cost is genuinely simple beyond the annual report.
- The "kicker" law — when state revenue exceeds projections by more than 2%, the surplus returns to taxpayers as a credit.
The honest trade-off: Oregon's no-sales-tax reputation comes with a real cost elsewhere. The state's top income tax rate is 9.9% — among the highest in the country — and it kicks in at just $125,000 of taxable income for single filers ($250,000 married filing jointly). Most profitable LLC owners in Oregon will hit that top bracket faster than they'd expect. And if your business crosses $1 million in Oregon commercial activity, the Corporate Activity Tax applies on top of everything else — a gross receipts tax most other states don't have.
How to Start an Oregon LLC in 8 Steps
Your name must be distinguishable from every Oregon entity and contain "LLC" or "Limited Liability Company." Search free through the Secretary of State.
Every Oregon LLC must continuously maintain a registered agent — an OR resident or authorized entity with a physical in-state street address.
File the Articles of Organization
The $100 filing that creates your LLC. Online approval typically takes 1–3 business days; mail takes 4–7 business days.
Not required by Oregon, but it overrides state default rules, satisfies your bank, and hardens a single-member LLC's liability shield.
Get Your Free EIN from the IRS
Your federal tax ID for banking, hiring, and Oregon Department of Revenue registration. Always free at IRS.gov.
File Your Annual Report (Exact Anniversary Date)
$100/yr, due on the precise date your Articles were approved — not the month, the exact date. A 45-day filing window opens beforehand.
Get Business Licenses & Permits
No statewide general license — but no sales tax to register for either, plus local permits and professional board licenses as applicable.
A graduated income tax topping out at 9.9%, no sales tax, and the Corporate Activity Tax above $1M in commercial activity.
What an Oregon LLC Really Costs (2026)
| Cost Item | Amount | When |
|---|---|---|
| Articles of Organization (required) | $100 | One-time, at formation |
| Annual report (required) | $100 | Every year, on your exact anniversary date |
| Registered agent service (optional) | $50–$125/yr | Annual, if hired |
| EIN from the IRS | $0 — always free | At IRS.gov |
| Franchise/privilege tax | $0 — none | Not applicable |
| Sales tax registration | $0 — not applicable | Oregon has no sales tax |
| Corporate Activity Tax | $0, unless >$1M commercial activity | Only if you grow large enough |
Bottom line: $100 to form and $100/yr to maintain — a predictable, moderate cost structure, though your real long-term cost will be driven far more by Oregon's income tax than by state filing fees. Model your exact setup below.
Oregon LLC Cost Calculator
Oregon LLC Cost Calculator
First-year + 5-year totals · verified July 2026
Excludes state income tax and local permits. Foreign LLC annual report fees run higher than domestic — verify current foreign entity rates with the Secretary of State.
The Exact-Date Annual Report — Not a Month, a Date
Oregon's annual report deadline is unusually precise: it's due on the exact calendar date your Articles of Organization were originally approved — not the last day of a month, not a fixed date shared by every LLC. If your LLC was approved March 8, your report is due every March 8, indefinitely. Oregon opens the filing window 45 days before that date and won't let you file earlier. This precision is worth internalizing early, since it's easy to assume "sometime in March" is close enough when the state actually means one specific day.
Oregon LLC Taxes at a Glance
Default LLCs pass profits to your personal return, taxed at Oregon's graduated rate topping out at 9.9% — reached at just $125,000 of taxable income for single filers. Add federal self-employment tax of 15.3% on 92.35% of net profit. Oregon has no state sales tax. The Corporate Activity Tax — a gross receipts tax applying to all entity types — kicks in only above $1 million in Oregon commercial activity, calculated as $250 plus 0.57% of the excess. Details in Step 8.
Ahmad Adil's Take: I want every founder considering Oregon to see the full trade-off clearly, not just the "no sales tax" headline that gets repeated everywhere. That part is genuinely true and genuinely useful if you're running a retail or e-commerce business. But the 9.9% top income tax rate, reached at a fairly modest $125,000, is the number that actually determines what you pay here — and for a profitable LLC owner, it usually outweighs the sales tax savings by a wide margin. Oregon makes sense if you're actually operating and living here, or if your business model genuinely benefits from no sales tax on a high volume of retail transactions. It's not a state to choose purely for tax arbitrage the way some no-income-tax states are.
- ✓Forms your Oregon LLC for $39 + the $100 state fee
- ✓Files online with the Secretary of State
- ✓Free Oregon registered agent the first year
- ✓No upsells · No data selling · Privacy by Default
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Oregon LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. The figures here — the $100 Articles of Organization, the $100 annual report due on your exact anniversary date, and Oregon’s top 9.9% income tax rate — reflect current Oregon Secretary of State and Department of Revenue guidance. This is educational content, not legal or tax advice.
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