Form an Oregon LLC

Oregon LLC

It’s always exciting to embark on a new business venture. If you’re looking to start an LLC in Oregon but aren’t quite sure where to begin, let us help you! At LLC Formations, we take great pride in helping others get started on their new journeys in life. If you have a dream or goal, we are here to show you the pathways to success.

Did you know that many people dream of starting an LLC but never do? They allow discouraging words and falsified statements to defer them from their dreams. You may have also developed false beliefs based on what you’ve heard in circular conversations. You may have heard that it’s too difficult to start a business or that it’s hard to maintain business once it’s up and operating.

Everyone from LLC Formations is here to inform you that it’s not that difficult to learn the ways of setting up an LLC in Oregon. It’s probably easier than you know! Never give up on your vision!

We are going to walk you through the easy eight steps on how to start an LLC in Oregon. Each step will be broken down into easy-to-read details and instructions. As with anything in life, take one step at a time. There’s no need to be in a rush or to get overwhelmed!

For starters, let’s take a look at a summary of the eight steps on how to form an LLC in Oregon:

1. Reserve a Name for the LLC

2. Select a Registered Agent

3. Create an Articles of Organization

4. Write an Operating Agreement

5. EIN

6. Annual Report for Your Oregon LLC

7. Business State Licenses and Permits

These are the very basic steps to creating an LLC in Oregon. If you’re still confused on what to do, don’t worry! This was to give you an idea of what steps we will work through together. You are well on your way to starting your first business in the great state of Oregon!

Now let’s dive deeper into the seven steps and learn how the LLC Oregon process is designed.

1. Reserve a Name for the LLC

The first step in forming an LLC in the state of Oregon is to reserve a name. You will need to ensure that no one else has the name that you have chosen. To make sure, you will need to search for the name of choice in the Oregon Business Registry. Obviously, if it doesn’t show up in the database, then you’re safe to use the name for your LLC. However, there are some things to keep in mind when choosing a name for your new business.

While doing an Oregon LLC search, it’s important to know that the state takes the name reservation seriously. Should your LLC name not be accepted, Oregon will hold onto your funds and give you another 45 days to file again. That’s right; they will hold your money and give you a time limit on when you can file again. So, to completely avoid this inconvenience, it wouldn’t hurt to call the Oregon Corporation Division to ask for a manual name check. This could save you some time and money.

Name Requirements

Oregon has certain name requirements that you must abide by.

These requirements include:

  • Your name must end with a designator showing that your company is a LLC.
  • Your name must not give the appearance of a corporation. It must resemble that of an LLC.
  • Certain word choices in your name require approval.
  • Your name cannot be too similar to any other LLC name.

What is a designator at the end of the LLC name?

The designator at the end of your LLC name should designate that your company is indeed an LLC. Therefore, the designator should be one of these three choices: LLC, L.L.C., or Limited Liability Company.

Here are some name examples:

  • Oregon Oranges, LLC
  • Oregon Oranges, L.L.C.
  • Oregon Oranges, Limited Liability Company

The three examples listed above are the legally required was that the state requires you to designate your name. Most businesses choose the, “LLC” designator.

Let Us Help You!

Let Us Help You!

2. Select a Registered Agent

It’s important to have an understanding of some basic legalities when starting your own LLC. Since a LLC becomes a legal institution, it’s required to have a secure place within the state to receive legal mail. Known as “Service of Process”, this is a fancy term for receiving court summons, subpoenas and more. You never know when your business could be facing a lawsuit against an unfair business partner, customer or rivalry.

Regardless, the state of Oregon requires you to select a registered agent to receive legal mail. A registered agent is simply a person who has a physical street address in the state of the LLC to properly receive the legal mail.

Who can be a registered agent for your business?

If you have a physical address in Oregon, then you can be your own registered agent. Many people choose to go that route.

If you don’t have a physical address in Oregon, then you may choose trusted family or friends that do have a physical address in Oregon to be your registered agent.

If neither of these options apply to you, then you may choose a commercial registered agent. A commercial registered agent is a third party place that charges you a price for receiving your legal mail on your behalf. They have a physical address in the state of Oregon, and they will forward any and all legal mail to you.

3. Articles of Organization

The Articles of Organization is the form that creates your LLC in the state of Oregon. Some states call this document the “Certificate of Formation”. However, you only have to send the Articles of Organization in to Oregon’s Secretary of State. That makes the process fairly simple!

There are two ways in which you can submit your Article of Organization for your LLC. You can submit the document online or by mail. The filing fee is $100.00 for both types of submissions; however, the length of approval varies significantly between the two. The Oregon LLC registration online takes approximately one to two business hours at most. Doing this process by mail takes approximately five to seven business days. Do you see the major time approval difference? Therefore, we highly recommend to register LLC in Oregon online for a near instant approval rate. BUT! If you’re not comfortable with performing such legal tasks online and aren’t in a rush to get the LLC approval, then snail mail will work just fine!

If you are interested in submitting your Articles of Organization online, then take a look below for in depth instructions.

Create an Account with the Oregon Business Registry

First and foremost, when you’re ready to submit your Articles of Organization for your LLC, visit the Oregon Business Registry website. This is where all of the magic will happen.

Go ahead and create an account with them if you have not already. (It’s important to know that the blank fields on the registration page that are highlighted in bold are required fields to fill out. You cannot skip these blank fields as they won’t allow you to progress to the next step.)

The website will then ask you to fill out your contact information. Once that’s completed, you’ll need to create a memorable username and password. After that, it’ll prompt you to choose a security question. Always write these things down! It’s often a surprise to folks how quickly they forget usernames and passwords. This is something that you won’t want to forget.

Type a Brief Summary of Your LLC’s Purpose and Services

Once you’ve created an account on Oregon’s Business Registry, you’re ready to start the process of submitting your Article of Organization! Simply follow the directions on the website. At the top of the web page, you literally start with the “Start” button. It will guide you from there.

Remember to enter your LLC name exactly as you would like for it to be called. Absolutely do not forget to add the designator at the end of your name (that will be the LLC, L.L.C. or Limited Liability Company).

How Long Do You Expect to Operate Your LLC?

This part of the submission form asks for you to state the expected length of operations. Most people choose to click on “Perpetual”. This means that you plan on keeping your LLC open indefinitely. Should it ever close, it would only be closed by your or any other LLC owners.

However, if you have a future date in mind for when you’d like for your LLC to close, simply click on the, “Business Entity to Dissolve on Certain Date”. This will prompt you to enter the anticipated closing date for your LLC.

Don’t Forget to Enter Mailing Address for Special Notices and Alerts!

Once you’ve accomplished everything up to this point, the state of Oregon then asks for you to list your mailing address for important notices and alerts that concern your LLC. This address can be anywhere that you would like for your mail to be sent to. This isn’t the same as the registered agent mailing address. This address is for the Secretary of State to send you your Annual Report reminders and other important reminders for your LLC.

The address can even be outside the state of Oregon! It’s wherever you feel the most comfortable to receive your mail concerning your LLC.

Enter Your Daytime Contact Information

The contact information for your LLC should be the one in which the Oregon Secretary of State can reach you. This is for any questions that the state may have about your LLC submission. So be sure to enter your correct daytime contact information.

Finally, Enter Your Physical Location and Jurisdiction

Finally, you must enter the physical location of your LLC. This has to be a street address. There’s no other exception to that! This address informs the state of the location for your business operations and activities. P.O. Boxes are not allowed.

The state of Oregon has also passed a law that bans the physical address from being that of a Commercial Mail Receiving Agency, Mail Forwarding Service, Virtual Address or Private Mailbox. With that being said, it’s absolutely imperative that your list the physical address of your LLC.

Statement of Management

As the website helps to navigate your way through the process of submitting the Articles of Organization, you’ll come across the Statement of Management section. It’s here that you can choose whether your LLC is a “Member-managed LLC” or a “Manager-managed LLC”.

What’s the difference?

A Member-managed LLC is a company that is managed by one or more of its members.

A Manager-managed LLC is a company that is managed by one or more of its managers.

It’s up to you to decide on how you would like for your LLC to be operated and managed. Simply choose the selection that best fits your situation.

Sealing the Deal

As you work your way through the process on the Oregon Business Registry website, you’ll come to the last sections that ask for your title and signature. The title is, well, you! Since you’re the one organizing the LLC, you’ll state that you’re the LLC Organizer and digitally sign the form.

From there, the website will direct you to the payment page. You’ll pay your $100.00 filing fee and voila! You will have successfully registered your LLC in the state of Oregon. The LLC approval is usually processed in one hour or so.

4. Oregon's LLC Operating Agreement

An operating agreement simply provides an outline of your business operations and procedures. It addresses ownership details, employee processes, services and much more. It’s highly recommended to create an operating agreement as it provides tremendous protection for your business. Even better? It protects you and other LLC members should any conflict or disagreement threaten the business. Furthermore, an operating agreement establishes and maintains your company’s credibility as an LLC.

What Should You State in an Operating Agreement?

To create an operating agreement, follow the list mentioned below:

a. State when the LLC was formed and who owns it.

b. State how the LLC is managed. Is it member-managed or manager-managed?

c. State the amount of investment by each participating member.

d. State how the profits and losses will be divided among the members.

e. State how any changes in management roles would be handled.

f. State how the LLC member should dissolve the business should that scenario ever become a reality.

This legal document not only protects you and your LLC, but it also protects any and all members of the LLC. Be wise and create an operating agreement. It’ll reserve your LLC credibility AND provide protection and rules.

Let Us Help You!

Let Us Help You!

5. Apply for an EIN

Once you have created your LLC’s operating agreement, you’ll need to apply for an EIN. This compares to a person’s social security number but applies to an LLC. Every business needs an EIN or it cannot function.

EIN stands for, “Employer Identification Number”. It’s issued by the IRS. An EIN number is needed to file taxes and to pay your employees. It’s also needed for when you open your LLC’s bank account and other important financial accounts.

To summarize it briefly, you cannot operate a business without an EIN. Contact the IRS and obtain your EIN. No worries! It’s free to obtain an EIN!

6. Annual Report for Your Oregon LLC

In the state of Oregon, you’re required to file an Annual Report every year. The fee to file this is $100.00 and paid once a year. This is required of every LLC as it keeps your business in decent standing with the Oregon’s Secretary of State.

When is it due?

Your Annual Report will always be due on the birthday of your LLC. In other words, the day that you formed the LLC is when the Annual Report is due.

You can always file your Annual Report online through Oregon’s Secretary of State website. This makes the process go much faster! And, as always, if you prefer snail mail, then that’s fine as well!

Keep in mind that as you go through the process of starting your own LLC, we are here to help you! LLC Formations takes great pride in alleviating the stress from new business owners by offering guidance every step of the way. If these steps overwhelm you in any way, please don’t hesitate to contact us! We are here to help!

7. Business State Licenses and Permits

Fortunately, the state of Oregon does not offer a general business license. However, they do require that you have the necessary licenses and permits for your particular profession.

For example, if you’re a doctor, then you’ll be required to have your medical licenses and permits to practice medicine.

Depending on what your expertise is, you’ll need the appropriate licenses and permits.

In addition to professional licenses and permits, you may need certain property, building and zoning permits as well. Be sure to educate yourself on all the necessary permits for your business and location. Not obtaining these important documents can close your business and cause much unnecessary stress.

Conclusion

Now that you’ve read about the process of starting an LLC in Oregon, how do you feel? At LLC Formations, we are glad to help you every step of the way! Contact us and we will guide you through the pathways to achieving success.

Let’s take a summarized look at the steps to creating an LLC in the beautiful state of Oregon!

How to Form an LLC in Oregon: The Summarized Version

1. Reserve a name for your LLC in the state of Oregon

2. Determine a registered agent.

3. File the Articles of Organization

4. Create an operating agreement

5. Apply for an EIN

6. Annual Report for your Oregon LLC

7. Business State Licenses and Permits

As you can see, setting up an LLC in Oregon is accomplished in these seven basic steps. At LLC Formations, we are here to serve people just like you that are seeking to start an LLC. Perhaps you’re overwhelmed or have no idea where to begin. Regardless of the reason, we are LLC experts that can show you the way! It doesn’t have to be a stressful event. After all, you’re starting on a new business venture! Let us help you to enjoy the process in achieving success!

Oregon is a beautiful state to operate a business. Each state does have its own unique set of laws and rules to starting up an LLC. If you’re from out of state and know very little about the LLC laws in the state of Oregon, then let us guide you through the process. As long as we live in the Land of the Free, everyone should know how to take advantage of the amazing opportunities set before them. Where there is a will, there’s a way!

With that being said, we look forward to working with you as you embark on your new business venture. Remember the seven steps to success in the state of Oregon, and you’ll fly effortlessly into success. Pennsylvania LLC’s are the next guide we will be discussing.