## Initial Costs and Ongoing Fees for Oregon LLCs
To maintain an LLC in Oregon you will need to pay an annual fee of $100 along with state income tax at 5% to 9.9% and federal taxes.
- Initial Formation Fee: Establishing an LLC requires the submission of a specific set of documents and official paperwork to the Oregon Secretary of State’s office.
- Annual Report: LLCs in Oregon are required to file an annual report. The filing fee for the annual report is $100.
- Assumed Business Name Renewal: If your LLC has an assumed business name, you will need to renew it every two years. The renewal fee is $50.
- Registered Agent Fee: Oregon requires every LLC to have a registered agent. There is no ongoing fee for this role if you choose to act as your own registered agent.
## LLC Formation Process in Oregon
Establishing an LLC in Oregon requires a specific process, including:
1. Filing the Articles of Organization with the Oregon Secretary of State along with a $100 filing fee.
2. If forming a single-member LLC, you must serve as the organizer.
3. Report the LLC’s income and losses on your state income return.
Please note that Oregon does not have a general sales tax.
## Tax Considerations for Oregon LLCs
LLCs in Oregon are taxed as pass-through entities, which has various implications:
- Minimum Tax Range: Applies to S corporations and all LLCs classified as partnerships. It ranges from $150 for sales under $500,000 to $100,000 for sales in excess of $100 million.
- S Corporation Status: To have an LLC taxed as an S-corp, file Form 2553 with the IRS. Note that LLC must meet the requirements.
- Property Taxes: LLCs must file a detailed tax return of properties by March 15 annually.
## Benefits of Forming an LLC in Oregon
Forming an LLC in Oregon offers multiple advantages, such as limited liability protection and simplified taxation. An LLC can protect personal assets and help grow your business. It requires the following:
- EIN: Obtain an Employer Identification Number from the IRS for tax identification purposes.
- Annual Reports: Must be filed with the Secretary of State of Oregon each year by the LLC's formation anniversary date.
- Naming Requirements: An Oregon LLC name must include specific designations indicating its status as an LLC.
## Understanding Taxes for Oregon LLCs
- Corporate Taxes: For corporations, the state corporate income tax is 7.6%, while an S corporation pays a minimum excise tax of $150 per year.
- LLC Taxation: LLCs are taxed based on the tax structure set up, with the owners paying taxes on profits.
- Corporate Activity Tax: Applies to income of companies over $1 million at 0.57% of income over this amount.
## Maintaining an Oregon LLC
To maintain your LLC’s operation and good standing:
- File necessary forms such as the Annual Report.
- Pay any applicable taxes, including property and state taxes.
- Understand the requirements for different tax statuses, such as S-corp status.
For detailed guidance on maintaining an LLC in Oregon, seek professional advice to ensure compliance with all state requirements and tax obligations.
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