In this Article, we will give you a snapshot of the legal compliance requirement and associated fees required to register Limited Liability Company (LLC) in Oregon and most importantly, maintain the status of an LLC, especially as a small business e-commerce start up.
In the United States, LLCs are registered on the state level, therefore you can register an LLC in any of the 50 States in the United States, including Washington DC.
You can check out our the best states in the US to register your LLC as a small business e-commerce start-up, if you want to pay less State fees, less State imposed taxes and do less periodic paperwork in order to maintain your LLC.
In this Article, our focus is on Oregon LLC. What cost should you expect to pay when you register an Oregon LLC? What periodic filings requirements are imposed on Oregon LLCs? What State taxes are levied on e-commerce small business start ups in Oregon and what are the tax rates? What business permits are required to be obtained by e-commerce businesses in Oregon, what’s the cost of these permits and are there any renewal requirements?
This Article presents you a snapshot, so you know what fees and legal compliance requirements to expect if you want to register an LLC for your e-commerce small business start up in Oregon, operate with the required licenses and maintain your LLC status.
Business registration and compliance on Oregon
LLC Registration cost; the state fee for registering an LLC in Oregon is $100. You can register your LLC with Bizee for a service charge of $0 + the State fee.
LLC registration Publishing requirement; No, LLCs in Oregon are not required to publish their registration in a local newspaper.
Has the Option to register as an Anonymous LLC; No, LLCs in Oregon do not have the option to register as an anonymous LLC. Meaning that the business details of the LLC Owners are published on the Oregon public records. The LLC can still maintain some privacy by using a virtual office address and not the Owners real addresses.
DBA requirement; DBA is required if your LLC is operating under a different name than your LLC registered name. In Oregon DBA is referred to as a “Assumed business name”. Cost of registration is $50, the length of approval is 2 years. You can register for a DBA in Oregon online or outsource the registration of your Oregon DBA (if needed) to Bizee.
Annual report filing requirement; yes, Oregon LLCs have annual report filing requirements. The cost of filing annual report in Oregon is $100.
You can file the Oregon annual returns yourself, you’ll need to visit the Oregon Business Registry page or you can outsource the filling of your annual returns to Bizee for a $99 service charge + the state fee.
You can register your DBA or fill your annual returns directly on the State’s website and only pay the state’s filing fees. Alternatively you can use Bizee a US business filing service to register your DBA and file your annual returns. Bizee charge a service fee of $99 + the state fees. We recommend Bizee for registering your LLC because specifically for LLC registration, Bizee does not charge any service fee. so you pay $0 + the state fees.
Annual Franchise tax filing and compliance in Oregon
State Franchise tax requirement; No, LLCs are not required to pay Franchise tax in Oregon
Annual State income tax filing and compliance in Oregon
State income tax requirement; Oregon has a graduated individual income tax, with rates ranging from 4.75 percent to 9.90 percent. There are also jurisdictions that collect local income taxes. Oregon has a 6.60 percent to 7.60 percent corporate income tax rate and levies a gross receipts tax.
- Who files State income tax; LLCs by default are passed through entities meaning that tax obligation passes through to the individuals who own the LLC. Therefore an LLC with a default tax status pays the individual state income tax. Interestingly, if the individuals behind the LLC are not resident in the state and do not have state source income (a dependent agent in the state), then they are not required to pay “individual State income tax”.
If the LLC owners are resident in the State or have State source income (a dependent agent in the state), then the LLC Owners are required to pay “individual State income tax”.
If the LLC has elected to be taxed as a corporation (C-corp), then the LLC is required to pay “Corporate State income tax”.
- How to file state income tax; You can file your Oregon State income tax by yourself. You will need to visit the State website. Alternatively, we recommend using the Service of a Certified Public Accountant (CPA), through H&R Block to file your state income tax.
Periodic Sales tax filing and compliance in Oregon
Sales tax requirement; Oregon does not have a state sales tax and does not levy local sales taxes.
- Sales tax nexus; Sales tax nexus is
the state-defined threshold between a Seller and a state, which when reached makes it obligatory for the Seller to register for a Seller permit in the state, charge sales tax to customers in the state and remit the sales tax to the State Government.
Generally, there is the “physical sales tax nexus” and “economic sales tax nexus”.
Physical sales tax nexus is reached when the Seller had physical presence in the state (i.e have an office address, a warehouse etc).
In most States, “economic sales tax nexus” is reached when a Seller makes up to 200 transactions or $100,000 in sales in a State.
It’s important to note that, when you register your LLC in the State of Oregon (which generally requires that you have a registered business address in Oregon), you automatically meet the physical sales tax nexus and will be required to obtain a Sales tax permit in Oregon, charge applicable sales tax rates to customers in Oregon and remit sales tax to the Oregon State Government.
Sales tax permit; there is no sales tax permit registration requirement in Oregon because there is no sales tax levied in Oregon.
Reseller/Resale Certificate; Delaware doesn’t have a state sales tax, or similar. Therefore, a Resale certificate is not applicable.
Delaware resale businesses who want to the MTC Uniform Sales & Use Tax Resale Certificate or SST Certificate of Exemption form can use the Delaware Federal Employment Identification Number (FEIN) as Seller’s ID when indicating others States as resale States (except for states that do not accept out-of-state seller ID). For States that do not accept out-of-state seller IDs, the Business must register for seller IDs specifically in those states and indicate those state issues seller IDs on the MCT or SST forms.
This Article shows you a snapshot of the legal fillings and compliance requirements for LLCs that are registered in Oregon, specifically for LLCs that want to carry on the business of selling and especially for small e-commerce start up LLCs that are registered in Oregon.
If you are wondering what might be the best State in the United States to register your small business (especially if you are a reseller or an e-commerce business), we have written this Article, where we go over our most recommended states for registering a business in the United States, if you want to pay less LLC filling and legal compliance fees, if you want less state imposed taxes and if you want to do less periodic legal paperwork required to maintain your LLC status.
