By Jake Lawson, LLC Formation Strategist
Let me cut straight to the chase: Oregon will charge you $100 to start your LLC, then come back for another $100 every single year. That’s not a typo—Oregon’s annual fee is four times higher than most states.
But before you write off the Pacific Northwest, hear me out. I’ve guided 150+ entrepreneurs through Oregon LLC formation, and despite that hefty annual fee, Oregon can still make sense for the right business. The key is understanding exactly what you’re signing up for.
Here’s the complete breakdown of Oregon LLC costs, including the expenses most “formation guides” conveniently forget to mention.
Oregon LLC Formation Costs: The $100 Entry Fee
The Oregon Secretary of State charges exactly $100 to file your Articles of Organization. This one-time fee officially creates your LLC and gives you legal protection for your personal assets.
What your $100 buys:
- Official LLC status in Oregon
- Legal separation between personal and business liabilities
- The right to operate under your chosen business name
- Access to Oregon’s business-friendly legal framework
Jake’s reality check: Oregon’s $100 formation fee sits right in the middle of the pack. It’s not cheap (looking at you, Wyoming at $100), but it’s not Delaware expensive either. The real sticker shock comes later.
The Oregon LLC Cost Truth: Annual Fees That Bite
Here’s where Oregon shows its true colors. That $100 annual report fee? It’s due every year by your LLC’s anniversary date. Miss it, and your LLC gets dissolved faster than a sugar cube in coffee.
Complete Oregon LLC Cost Breakdown:
| Expense | Cost | When Due | Negotiable? |
| Articles of Organization | $100 | One-time | Nope |
| Annual Report | $100 | Every year | Dream on |
| Registered Agent | $0-$299/year | Ongoing | Yes (sort of) |
| Operating Agreement | $0-$600 | One-time | Absolutely |
| EIN (Tax ID) | Free | One-time | It’s free! |
| Business Licenses | $25-$1,000+ | Varies | Depends |
| DBA Registration | $50 | Optional | Skip it |
Mandatory Oregon LLC Expenses You Can’t Escape
Articles of Organization: $100 (One-Time)
This is your LLC’s birth certificate. You’ll file it online with the Oregon Secretary of State, providing basic information like:
- Your LLC’s legal name (must end with “LLC” or “Limited Liability Company”)
- Registered agent details
- Principal business address
- Management structure (member-managed vs. manager-managed)
Processing time: 2-3 business days online, 4-6 weeks by mail (seriously, who still mails forms in 2025?).
Pro tip: File online unless you enjoy watching paint dry. The Oregon Secretary of State’s website is actually pretty user-friendly, unlike some states I could mention.
Annual Report: $100 Every Single Year
This is where Oregon gets expensive. While most states charge $25-$50 for annual filings, Oregon demands $100. Every. Single. Year.
What the Annual Report includes:
- Confirmation of current business address
- Updated registered agent information
- Current member/manager details
- Principal business activity description
Due date: Anniversary of your LLC formation (not calendar year-end like some states)
Consequences of missing it: Administrative dissolution, which means your LLC legally ceases to exist. Reinstatement fees start at $100 plus penalties.
My take after 15 years: This annual fee is Oregon’s biggest drawback for small businesses. If you’re running a lifestyle business that generates under $50K/year, that $100 annual hit really stings.
Registered Agent: Free to $299 Annually
Oregon requires every LLC to maintain a registered agent—someone with an Oregon address who can receive legal documents during business hours.
Your options:
- Serve as your own registered agent (Free, but risky)
- Ask a friend/business partner (Free, but potentially awkward)
- Hire a professional service ($100-$299/year)
When to hire a professional registered agent:
- You don’t live in Oregon
- You travel frequently for business
- You want your home address kept private
- You prefer having compliance experts handle legal notices
Registered agent services I actually recommend:
- Northwest Registered Agent: $125/year, excellent customer service, compliance calendar included
- Incfile: $119/year, decent service, basic compliance tracking
- ZenBusiness: $149/year, good online dashboard, slightly pricier but solid
Warning: I’ve seen too many DIY registered agents miss important deadlines because they were “just stepping out for lunch.” If you’re serious about your business, invest in professional service.
The “Optional” Costs That Aren’t Really Optional
EIN (Federal Tax ID): Free From IRS
Every LLC needs an Employer Identification Number for tax purposes and business banking. The IRS provides these free through their website.
Why you need an EIN:
- Required for business bank accounts
- Necessary for tax filings
- Needed if you ever hire employees
- Makes your business look legitimate to vendors
Scam alert: Tons of websites charge $50-$200 to “help” you get an EIN. They’re just filling out the same free form you can complete in 10 minutes. Don’t fall for it.
Operating Agreement: $0-$600
Oregon doesn’t legally require an Operating Agreement, but skipping one is like driving without insurance—technically legal, potentially catastrophic.
Your Operating Agreement should define:
- Ownership percentages and capital contributions
- Management structure and decision-making process
- Profit and loss distribution
- Buy-sell provisions for member exits
- Dissolution procedures
Cost options:
- DIY templates: Free to $50 (basic protection)
- Attorney-drafted: $400-$600 (comprehensive protection)
- Online legal services: $200-$300 (middle ground)
Jake’s recommendation: Start with a solid template, then upgrade to attorney-drafted as your business grows and gets more complex.
Business Banking: $10-$25/Month
Oregon banks typically charge monthly maintenance fees for business checking accounts. Some waive fees if you maintain minimum balances ($1,500-$5,000).
Banks I recommend for Oregon LLCs:
- Umpqua Bank: Local focus, reasonable fees, good business support
- Chase Business: National presence, extensive ATM network
- US Bank: Competitive rates, solid online banking
Money-saving tip: Call banks directly and ask about fee waivers. Many offer promotional rates for new businesses.
Oregon-Specific Costs That Might Apply
DBA (Doing Business As): $50
If you want to operate under a name different from your LLC’s legal name, you’ll need to file a DBA.
Example:
The $50 fee covers state filing, but some counties require newspaper publication (add $75-$150).
My honest take: Unless you absolutely need a different public-facing name, skip the DBA. It’s one more thing to maintain and renew.
Business License Requirements: Highly Variable
This is where costs can explode if you’re not prepared. Oregon requires different licenses based on:
Industry-specific licenses:
- Professional services: $100-$500
- Food service: $200-$400
- Construction: $300-$800
- Retail sales: $50-$200
Location-based permits:
- City business license: $50-$200
- County permits: $25-$150
- Special district fees: Varies
Research strategy: Contact Oregon’s Business Information Center (1-800-896-4222) for a complete list based on your specific business activities.
Hidden Costs That Catch Oregon LLC Owners Off-Guard
State Income Tax Implications
Oregon has no sales tax, but it makes up for it with income tax rates up to 9.9%—among the highest in the nation.
LLC tax considerations:
- Pass-through taxation means LLC income is taxed on your personal return
- Estimated quarterly payments may be required
- Professional tax prep becomes essential for anything beyond simple businesses
Workers’ Compensation Insurance
If you hire employees in Oregon, workers’ comp is mandatory. Costs vary by industry:
- Office work: $0.50-$2.00 per $100 of payroll
- Construction: $5.00-$15.00 per $100 of payroll
- Manufacturing: $2.00-$8.00 per $100 of payroll
Expedited Processing Fees
Need your LLC approved faster? Oregon offers expedited processing, but it’ll cost you extra. Honestly, unless you’re under a tight deadline, standard processing works fine.
Annual Oregon LLC Maintenance Costs
Here’s what you’ll pay each year to keep your LLC compliant:
Guaranteed expenses:
- Annual Report: $100
- Registered agent (if hired): $125-$299
Likely expenses:
- Tax preparation: $400-$1,200
- Business license renewals: $50-$300
- General liability insurance: $500-$1,200
Total annual maintenance: $1,075-$3,100 for most small businesses
Oregon vs. Other States: The Real Comparison
| State | Formation | Annual Fee | 5-Year Total |
| Oregon | $100 | $100 | $600 |
| Washington | $200 | $60 | $440 |
| California | $70 | $20 | $150 |
| Nevada | $75 | $350 | $1,825 |
| Delaware | $90 | $300 | $1,590 |
The verdict: Oregon’s high annual fee makes it expensive for long-term operations, but it’s still cheaper than Nevada or Delaware over time.
Smart Money-Saving Strategies for Oregon LLCs
After forming hundreds of Oregon LLCs, here are my proven cost-cutting tactics:
1. Time Your Formation Strategically
File in January to align your annual report with tax season. This makes compliance easier and ensures you won’t forget the deadline.
2. Bundle Professional Services
Many accountants offer packages including:
- LLC formation assistance
- First-year registered agent service
- Tax ID number application
- Basic Operating Agreement template
Typical bundle savings: 20-30% compared to buying services separately.
3. Choose Your Business Structure Carefully
Consider whether you really need an LLC. For some simple businesses, a sole proprietorship might make more sense until you’re generating significant revenue.
4. Negotiate Everything
Business insurance, banking fees, professional services—everything is negotiable. I’ve seen clients save hundreds annually just by asking for better rates.
When Oregon Makes Sense (And When It Doesn’t)
Oregon is right for you if:
- You live or do business primarily in Oregon
- You want strong legal protections and business-friendly courts
- Your business generates enough revenue to absorb the $100 annual fee
- You value Oregon’s reputation for ethical business practices
Skip Oregon if:
- You’re running a low-revenue side business
- You don’t have genuine Oregon business activities
- You’re chasing imaginary tax advantages
- You can’t afford the ongoing compliance costs
Common Oregon LLC Questions (Answered Honestly)
Can I Deduct Oregon LLC Formation Costs?
Yes, business startup expenses are generally deductible. You can deduct up to $5,000 in the first year, with remaining costs spread over 15 years.
What Happens If I Don’t Pay the Annual Report Fee?
Your LLC gets administratively dissolved. Reinstatement costs $100 plus the missed annual fee, and you lose liability protection during the dissolution period.
Do I Need an Oregon Business Bank Account?
Not legally required, but practically essential. Mixing personal and business finances destroys your liability protection and creates tax headaches.
Can I Change My Registered Agent Later?
Absolutely. File a simple amendment form with the Secretary of State. No fee if you’re just updating contact information.
The Bottom Line on Oregon LLC Costs
Oregon isn’t the cheapest state for LLC formation, but it’s far from the most expensive. The $100 formation fee is reasonable, and the annual $100 fee, while painful, buys you access to one of the most business-friendly legal environments in the country.
Budget for your first year:
- Formation and basic setup: $200-$400
- Professional services: $300-$600
- Annual compliance: $100-$300
- Total first-year cost: $600-$1,300
Budget for ongoing years:
- Annual report: $100
- Registered agent: $125-$299
- Professional services: $400-$800
- Total annual cost: $625-$1,200
My final advice: If you’re committed to building a real business in Oregon, don’t let the costs scare you away. The annual fee is annoying, but Oregon’s business infrastructure, legal protections, and professional ecosystem can easily justify the investment.
Just don’t form an Oregon LLC because someone told you it’s “cheap.” It’s not. But for the right business, it’s worth every penny.
Ready to form your Oregon LLC? I’ve tested every formation service out there. Check out my detailed reviews and recommendations to find the best option for your specific situation.
About Jake Lawson: With 15+ years guiding entrepreneurs through U.S. business formation, Jake has helped launch over 1,200 successful LLCs across all 50 states. His straight-shooting advice focuses on real-world costs and practical solutions.