How to Start a Business in Oregon
Everything you need to form your Oregon LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Forming an LLC in Oregon costs $100 for your Articles of Organization. Oregon imposes no franchise tax on LLCs, and your business income passes through to your personal Oregon income tax return.
This guide covers every step from choosing a business structure to registering with your state and obtaining any licenses your occupation requires.
Choosing Your Oregon Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Oregon small businesses.
| Entity Type | Liability Protection | Taxation | Oregon Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $100 | $100 Annual Report (Renewal) | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $100 | $100 Annual Report (Renewal) | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Oregon Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Oregon Secretary of State, Corporation Division database. Reserve for $100 (120 days).
- 3
Appoint a registered agent
Must have a physical Oregon street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization - Limited Liability Company ($100) or Articles of Incorporation - Business/Professional Corporation ($100) with the Oregon Secretary of State, Corporation Division.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Oregon Department of Revenue. State sales tax rate: none.
- 7
Get required licenses and permits
The State of Oregon does not issue a general business license; the Secretary of State says your business registration serves that purpose.
- 8
Register for Oregon taxes
Personal income tax: Progressive, with 2025 rates of 4.75%, 6.75%, 8.75% and a top rate of 9.9%.
How Much Does It Cost to Start a Business in Oregon?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Oregon Secretary of State, Corporation Division) Required | $100 | Online filings through the Oregon Business Registry are estimated at 1 to 3 business days; |
| Corporation filing fee Required | $100 | If forming a corporation instead |
| Annual Report (Renewal) Required | $100 | On the anniversary date of the original filing, every year. |
| Name reservation | $100 | 120 days |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | The State of Oregon does not issue a general business license; |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $100 to $500 |
Start a Specific Business in Oregon
Oregon Business Guides
- How to Start an LLC in Oregon
- How to Start a Corporation in Oregon
- Sole Proprietorship in Oregon: How to Start One
- Oregon Business License: What You Need and How to Get It
- Oregon Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in Oregon
- Oregon Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in Oregon
- Oregon Registered Agent: Requirements and How to Choose One
- Best LLC Services in Oregon
- Oregon Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in Oregon
Why Start a Business in Oregon?
- Oregon has no general sales or use tax, so retail and service businesses collect nothing at the register and file no sales tax returns.
- Forming an LLC costs a flat $100 for the Articles of Organization, and forming a business corporation also costs $100.
- Keeping an entity in good standing costs $100 per year for the annual report, due on the anniversary of the original filing.
- Filings submitted online through the Oregon Business Registry are processed in about 1 to 3 business days.
- Oregon issues no general state business license; the Secretary of State registration itself serves that purpose, though occupation-specific and local licenses still apply.
- Oregon's economy was $342.9 billion in 2025, the 25th largest of the 50 states, serving a population of 4,273,586 as of July 1, 2025.
Oregon Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in Oregon?
- If you file online through the Oregon Business Registry, your LLC formation will be processed in 1 to 3 business days, with review generally beginning within one business day of submission.
- What does it cost to form an LLC in year one?
- Your Articles of Organization filing costs $100. Your annual report, due on the anniversary of your filing date, costs $100 annually. If you file any time in year one, your first annual report payment is due in year two, so your year-one cost is $100.
- Can a non-resident form an Oregon LLC?
- Yes. Oregon does not require members to be residents of the state to form an LLC.
- What's the cheapest way to start a business in Oregon?
- Forming either an LLC or a business corporation costs $100. Since Oregon requires no general state business license, the minimum cost to establish your business is $100.
- Is an operating agreement required for an Oregon LLC?
- No. Oregon requires you to file Articles of Organization, which costs $100. An operating agreement is not required to be filed with the state.