Oregon LLC Costs 2026: $100 to Form + $100/yr
Quick Answer
It costs $100 to form an Oregon LLC (Articles of Organization) and $100 per year for the annual report, due on your formation anniversary. Oregon has no franchise tax and no sales tax, so a pass-through LLC files no entity-level income tax return. Owners still pay federal self-employment tax (15.3%) and Oregon personal income tax on LLC profits at 4.75% to 9.9%. The Corporate Activity Tax only applies once a business exceeds $1 million in Oregon commercial activity.
Key Takeaways
- Oregon LLCs pay no franchise tax (pass-through taxation at the entity level)
- Members pay Oregon personal income tax on LLC profits (4.75%-9.9%)
- Annual report fee is $100, due on the formation anniversary
- Foreign (out-of-state) LLCs pay $275 to register and $275/yr to renew
- Federal self-employment tax is 15.3% on net LLC earnings
- Corporate Activity Tax applies only above $1M in Oregon commercial activity ($250 + 0.57%)
- TriMet payroll tax (0.8237% in 2026) applies to Portland-area employee wages
- No Oregon sales tax, but the 0.1% statewide transit tax applies to all Oregon wages
| Item | Cost/Details | Notes |
|---|---|---|
| Franchise Tax | None | Oregon has no LLC franchise/privilege tax |
| LLC Formation Fee | $100 | Articles of Organization, one-time |
| Annual Report Fee | $100 | Due on formation anniversary |
| Foreign LLC Registration | $275 | Application for Authority; $275/yr renewal |
| Federal Self-Employment Tax | 15.3% | On net earnings |
| Oregon Personal Income Tax | 4.75%-9.9% | On LLC profits (owner level) |
| Corporate Activity Tax (CAT) | $250 + 0.57% | Only above $1M Oregon commercial activity |
| TriMet Payroll Tax | 0.8237% | Portland-area employee wages (2026) |
| Articles of Amendment | $50-$100 | Online $50, mail $100 |
Oregon State Taxes for LLCs
No State Income Tax on LLCs
Oregon LLCs organized as pass-through entities (single-member LLCs and multi-member LLCs taxed as partnerships) do not pay state income tax at the business level.
What this means: Your LLC does not file an Oregon state income tax return. LLC profits pass through to members' personal tax returns. Members pay Oregon personal income tax on their share of LLC profits. No franchise tax or minimum annual fee beyond the annual report.
Important exception: If your LLC elects to be taxed as a C-corporation, it pays Oregon corporation excise tax: 6.6% on the first $1 million of Oregon taxable income and 7.6% above $1 million, subject to a minimum tax of at least $150.
Oregon Personal Income Tax for LLC Members
While your LLC doesn't pay Oregon state taxes, you personally do on LLC profits.
2026 Oregon Personal Income Tax Brackets
| Taxable Income (Single) | Tax Rate |
|---|---|
| Up to $4,400 | 4.75% |
| $4,400 - $11,100 | 6.75% |
| $11,100 - $125,000 | 8.75% |
| Over $125,000 | 9.9% |
| Taxable Income (Married Filing Jointly) | Tax Rate |
|---|---|
| Up to $8,800 | 4.75% |
| $8,800 - $22,200 | 6.75% |
| $22,200 - $250,000 | 8.75% |
| Over $250,000 | 9.9% |
Bottom line: If your LLC earns $80,000 in profit and you're a single-member LLC owner, you'll pay Oregon personal income tax on that $80,000 at graduated rates.
Federal Taxes for Oregon LLCs
Your Oregon LLC pays federal taxes based on how it's classified by the IRS.
Default LLC Tax Classification
Single-Member LLC
Taxed as a sole proprietorship (disregarded entity):
- Report income on Schedule C of your personal Form 1040
- Pay self-employment tax (15.3%) on net earnings
- No separate LLC tax return
Multi-Member LLC
Taxed as a partnership:
- LLC files Form 1065 (partnership return)
- Each member receives Schedule K-1 showing their share of income
- Members report K-1 income on personal returns
- Members pay self-employment tax on their share
Federal Self-Employment Tax
Oregon LLC members pay 15.3% self-employment tax on net earnings up to $184,500 (the 2026 Social Security wage base), plus 2.9% Medicare tax on all earnings above that.
| Tax Component | Rate | Income Limit |
|---|---|---|
| Social Security | 12.4% | First $184,500 (2026) |
| Medicare | 2.9% | All earnings |
| Additional Medicare Tax | 0.9% | Over $200,000 (single) / $250,000 (married) |
Example Tax Calculation
Your Oregon LLC earns $100,000 profit in 2026:
- • Self-employment tax: $15,300
- • Oregon personal income tax: ~$8,750 (single filer)
- • Federal income tax: ~$12,000 (single filer, standard deduction)
- • Total tax burden: ~$36,050 (36% effective rate)
LLC Tax Elections: S-Corp vs. C-Corp
You can elect to have your Oregon LLC taxed as an S-corporation or C-corporation instead of the default classification.
S-Corporation Election (Form 2553)
- Avoid self-employment tax on distributions (only pay on reasonable salary)
- Must pay yourself a reasonable W-2 salary
- Potential tax savings if LLC profit exceeds $60,000
- More payroll and compliance complexity
C-Corporation Election (Form 8832)
- 21% federal corporate tax rate
- 6.6%-7.6% Oregon corporation excise tax ($150 minimum)
- Double taxation (corporate + personal on dividends)
- Rarely beneficial for small Oregon LLCs
Pro tip: Consider S-corp election if your LLC earns over $60,000 in annual profit. Consult a CPA to calculate potential savings.
Oregon LLC Formation & Compliance Fees
Beyond taxes, Oregon LLCs pay these Secretary of State fees. For the full filing walkthrough, see our Oregon LLC formation guide, and for a state-wide overview of deadlines and requirements, visit the Oregon LLC compliance hub.
One-Time Formation Fees
| Fee | Amount | When Due |
|---|---|---|
| Articles of Organization (domestic LLC) | $100 | At formation |
| Foreign LLC Authority to Transact Business | $275 | Out-of-state LLC registering in Oregon |
| Name Reservation (optional) | $50 | Before filing (holds name 120 days) |
| Registered Agent (service) | $50-$300 | Annual |
| Operating Agreement (attorney) | $500-$2,000 | One-time |
Annual Compliance Fees
| Fee | Amount | When Due |
|---|---|---|
| Annual Report (domestic LLC) | $100 | Anniversary of formation |
| Annual Report (foreign LLC) | $275 | Anniversary of registration |
| Registered Agent (service) | $50-$300 | Annual renewal |
| Total Annual Costs | $100-$400 | — |
Amendment & Dissolution Fees
| Fee | Amount | Purpose |
|---|---|---|
| Articles of Amendment | $50 (online), $100 (mail) | Change LLC name, address, or structure |
| Statement of Change | Free | Update registered agent |
| Articles of Dissolution | $20 | Formally dissolve LLC |
No expedited processing: Oregon Secretary of State does not offer expedited LLC filing. All documents are processed in order received (typically 5-7 business days online, 10-15 business days by mail).
Already running an LLC in another state? You will file an Application for Authority instead of Articles of Organization — see our Oregon foreign LLC registration guide. Either way, every Oregon LLC must keep a registered agent on file; our Oregon registered agent requirements guide covers what qualifies.
Oregon Payroll and Transit Taxes
These taxes only apply if your LLC pays wages to employees. A single-member LLC with no employees owes none of them.
Statewide Transit Tax (STT)
The statewide transit tax is withheld from every Oregon employee's wages, no matter where in the state they work. It is separate from the district payroll taxes below.
| Rate | 0.1% (one-tenth of 1 percent) of wages, withheld from the employee |
| Who Must Pay | All Oregon employers, statewide (voters rejected a 2026 rate increase) |
| Filing | Through the Oregon Department of Revenue Combined Payroll Tax System |
TriMet Payroll Tax (Portland Metro)
This is an employer-paid tax on payroll for work performed inside the TriMet district (the Portland metro area across parts of Multnomah, Clackamas, and Washington counties).
- Rate: 0.8237% of wages (0.008237) for 2026
- Who must pay: Employers with workers in the TriMet district
Lane Transit District Tax (Eugene-Springfield)
Applies to employers with workers in the Lane Transit District.
- Rate: 0.80% of wages (0.0080) for 2026
- Who must pay: Employers with employees working in the Lane Transit District
Check your location: The TriMet and LTD rates are published each year in the Oregon Combined Payroll Tax Report instructions at oregon.gov/dor.
Oregon Corporate Activity Tax (CAT)
The Corporate Activity Tax is Oregon's gross-receipts tax. It applies to LLCs of every classification (pass-through or corporate), but only once your Oregon commercial activity gets large.
| Registration threshold | $750,000 in Oregon commercial activity (you must register) |
| Tax threshold | More than $1 million in taxable Oregon commercial activity |
| How it is computed | $250 plus 0.57% of taxable Oregon commercial activity above $1 million |
Most small LLCs owe $0: If your Oregon commercial activity stays under $1 million, you owe no CAT, and you do not even have to register until you cross $750,000. The CAT allows a 35% subtraction for certain business costs before the rate is applied.
Oregon LLC Tax Deductions
Oregon LLCs can deduct ordinary and necessary business expenses on federal returns (and reduce Oregon personal income tax accordingly).
Common LLC Tax Deductions
- Home office expenses (if you work from home)
- Vehicle expenses (mileage or actual expenses)
- Equipment and supplies
- Professional services (attorneys, accountants)
- Marketing and advertising
- Business insurance
- Health insurance premiums (self-employed deduction)
- Retirement contributions (SEP-IRA, Solo 401(k))
- State and local taxes (SALT deduction, limited to $10,000)
- Business meals (50% deductible)
Oregon-Specific Considerations
- Oregon has no sales tax, so no sales tax deduction applies
- Transit tax payments are deductible as business expenses
- Oregon personal income tax paid is deductible on federal Schedule A (if itemizing)
Pro tip: Track all business expenses throughout the year. Use accounting software like QuickBooks or FreshBooks to categorize deductions automatically.
Oregon LLC Quarterly Estimated Taxes
If you expect to owe $1,000 or more in federal taxes or $400 or more in Oregon personal income tax, you must make quarterly estimated tax payments.
Federal Estimated Tax Deadlines (2026)
| Quarter | Due Date |
|---|---|
| Q1 2026 | April 15, 2026 |
| Q2 2026 | June 15, 2026 |
| Q3 2026 | September 15, 2026 |
| Q4 2026 | January 15, 2027 |
How to pay: File Form 1040-ES and pay electronically at irs.gov/payments or mail a check.
Oregon Estimated Tax Deadlines (2026)
Oregon estimated tax deadlines match federal deadlines: April 15, June 15, September 15, January 15.
How to pay: File Oregon Form 40-V or pay online at oregon.gov/dor.
Penalty for underpayment: Both IRS and Oregon Department of Revenue charge penalties and interest if you underpay estimated taxes.
Safe harbor rule: Pay 100% of last year's tax liability (110% if AGI exceeds $150,000) to avoid penalties, even if you owe more this year.
Oregon LLC Tax Filing Requirements
Here's what you need to file annually:
Federal Tax Returns
Single-Member LLC
- Schedule C (part of Form 1040) — report LLC profit/loss
- Schedule SE — calculate self-employment tax
- Form 1040 — personal income tax return
- Due date: April 15, 2027 (for 2026 tax year)
Multi-Member LLC
- Form 1065 — partnership return (informational only)
- Schedule K-1 — issued to each member showing income share
- Schedule SE (each member) — self-employment tax
- Form 1040 (each member) — personal return
- Due date: March 15, 2027 (partnership return), April 15, 2027 (personal)
S-Corp LLC
- Form 1120-S — S-corporation return
- Schedule K-1 — issued to each shareholder
- Form 941 — quarterly payroll tax return
- Form 940 — annual federal unemployment tax
- Due date: March 15, 2027
Oregon State Tax Returns
LLC Members File
- Form 40 (Oregon personal income tax return) — report LLC income
- Due date: April 15, 2027
LLCs Taxed as C-Corps File
- Form 20 (Oregon Corporation Excise Tax Return)
- Due date: April 15, 2027
No LLC-level filing required for pass-through LLCs (single-member or multi-member partnerships).
Do Oregon LLCs Need to Register for Taxes?
Federal EIN
Required if:
- You have employees
- Your LLC has multiple members
- You elect S-corp or C-corp tax treatment
Optional but recommended for: Single-member LLCs with no employees (helps protect personal SSN)
How to get an EIN: Free from IRS at irs.gov/ein — takes 5 minutes online.
Oregon Department of Revenue
Register if:
- You have employees
- You operate in a transit tax district
- You collect local taxes
How to register: Create an account at oregon.gov/dor and complete Combined Payroll Tax Registration.
No registration needed for single-member LLCs with no employees and no local tax obligations.
Oregon LLC Taxes: First-Year Example
Scenario
You form a single-member Oregon LLC in Portland on March 1, 2026. Your LLC earns $120,000 profit in 2026. You have no employees.
State Fees
- • LLC formation: $100
- • Annual report (due March 2027): $100
- • Total: $200
Federal Taxes (single filer, standard deduction)
- • Self-employment tax: ~$15,300
- • Federal income tax: ~$16,000
- • Total federal: ~$31,300
Oregon Personal Income Tax
- • Taxable income: $120,000
- • Oregon personal tax: ~$10,600
Total First-Year Cost
- • Formation + compliance: $200
- • Federal taxes: $31,300
- • Oregon personal tax: $10,600
- • Grand total: ~$42,100
Effective tax rate: ~35% (excludes any business deductions)
With S-corp election: Potential savings of $3,000-$5,000 by reducing self-employment tax (consult a CPA).
Comparing Oregon LLC Taxes to Other States
Oregon ranks as a moderate-tax state for LLCs.
| State | State Income Tax | Annual Fee | Advantage |
|---|---|---|---|
| Oregon | None (pass-through) | $100 annual report | ✅ No franchise tax, moderate personal tax |
| California | 1.5%-12.3% personal | $800 minimum franchise | ❌ High franchise tax even for $0 income |
| Washington | None | $60 annual report | ✅ No income tax at all |
| Nevada | None | $350 business license | ✅ No income tax, higher annual fees |
| Delaware | None (pass-through) | $300 franchise tax | ❌ High annual fees |
| Wyoming | None | $60 annual report | ✅ Lowest overall costs |
| Texas | None | $0 (no annual report) | ✅ No income tax, no annual report |
Bottom line: Oregon is LLC-friendly compared to California (no franchise tax), but Washington, Wyoming, and Texas offer lower overall costs.
Frequently Asked Questions
Does Oregon have a franchise tax on LLCs?
How much does it cost to maintain an Oregon LLC annually?
Do Oregon LLCs pay sales tax?
Can I deduct Oregon LLC losses on my personal tax return?
Does an Oregon LLC need to file a state tax return?
Should my Oregon LLC elect S-corp taxation?
What is Oregon's statewide transit tax?
Do I owe Oregon taxes if my LLC is formed in Oregon but I live elsewhere?
Official Source
For the most up-to-date information, always verify requirements with the official Oregon Secretary of State website:
https://sos.oregon.gov/businessImportant Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
Related Oregon LLC Articles
Oregon LLC Formation Guide 2026: Fees, Steps & Requirements
Complete guide to forming an Oregon LLC in 2026.
Oregon Registered Agent Requirements 2026
Requirements for maintaining a registered agent in Oregon.
Can I Be My Own Registered Agent in Oregon?
Pros and cons of serving as your own Oregon registered agent.
Oregon Foreign LLC Registration
How to register an out-of-state LLC in Oregon.
Complete Oregon LLC Compliance Guide
View all Oregon LLC requirements, fees, and deadlines in one place.
View OR State GuideOr compare Oregon to every state on the annual report deadlines hub.