LLC Annual Report and Tax Filing Requirements in Oregon

A limited liability company (LLC) is a business structure that typically requires owners to file maintenance documents with the state. If you form an LLC in Oregon, you'll need to submit an annual report and pay applicable business taxes to the state.

Let's take a look at the most important ongoing reporting and state tax filing requirements for Oregon LLCs. (If you're looking for information about other states' LLC requirements, you can review our article on LLC tax and filing requirements.)

Oregon LLC Annual Report

If you organized your LLC in Oregon, you must file an annual report with the Oregon Secretary of State (SOS) every year. You can file your annual report online with the SOS. Blank report forms aren't available for download. Instead, if you go to the online site you can generate a form already containing key information for your LLC.

You only need to provide a few key pieces of information to complete the report, including:

• the name and address of your LLC's registered agent
• the street address of your LLC's principal place of business, and
• information about your LLC's members or managers.

The annual report must be filed each year by the anniversary date of your LLC's formation. As of 2023, the filing fee is $100.

State Business Taxes in Oregon

For income tax purposes, most LLCs are considered "pass-through tax entities." If you're an owner of a pass-through entity, the responsibility for paying federal income taxes passes through the LLC itself and falls on you as one of the LLC members. By default, LLCs themselves don't pay income taxes, only their members do. You'll report and pay your share of the LLC's income on your personal tax return.

You must file any returns and pay applicable taxes to the Oregon Department of Revenue (DOR).

Must pay a minimum excise tax. LLCs taxed as partnerships, S corporations, and partnerships must pay a minimum excise tax. As of 2023, the minimum tax is $150.

Might pay corporate activity tax (CAT). The CAT is a tax on commercial activity that's imposed on businesses for the privilege of doing business in the state. You must pay the CAT on commercial activity that's more than $1 million. You might be able to take advantage of certain exemptions and deductions when evaluating your CAT liability. You can find out more about this tax on the CAT webpage of the DOR website.

Electing corporate tax status. Typically, LLCs are taxed as partnerships by default. However, some LLC owners choose to have their LLCs taxed as corporations for federal tax purposes. To elect to be taxed as a corporation, you just need to file IRS Form 2553 with the IRS. If you elect federal corporate tax status, Oregon will also tax your LLC as a corporation and your LLC will be responsible for Oregon's corporate income tax. In Oregon, the corporate tax generally is calculated at a pair of marginal rates. You can find more information on the corporation excise and income tax section of the DOR website.

Oregon Employer Taxes

If your LLC has employees or plans to, you must pay employer taxes to the federal and state governments. You should get your federal employer identification number (EIN) from the IRS to report and pay these taxes as an employer.

Oregon employers must register for a business identification number (BIN) to report and pay Oregon payroll taxes. You can register for your BIN either:

• online with Revenue Online, or
• by paper using the Oregon Combined Employer's Registration (Form 150-211-055).

Withholding employee wages. Oregon employers must withhold and pay employee income taxes to the DOR. You'll need to file your returns and pay withholding taxes based on your federal filing requirements. Most employers will file reports quarterly. Use Form OQ and Form 132 to file your quarterly reports and Form WR to reconcile your LLC's tax withholding every year. You can file Forms OQ and 132 online using Frances Online. You can file Form WR online using Revenue Online. See the DOR's withholding and payroll tax webpage for more details.

Unemployment insurance (UI) tax. In addition to withholding taxes, you'll probably need to register to pay state UI taxes to the Oregon Employment Department. As with your withholding taxes, you must file Forms OQ and 132 every quarter.

For more detailed instructions about employer obligations, read the Oregon Combined Payroll Tax Report.

No Sales and Use Tax in Oregon

Oregon, as of 2023, is one of just five states that doesn't charge sales tax. Consequently, unlike LLCs that sell taxable goods and services in most other states, if your LLC sells goods in Oregon you don't need to worry about paying sales tax to the state.

LLC Registration in Other States

If you have plans to do business outside of Oregon, then you could need to register your LLC in the states where you'll conduct your business activities. For example, if you organize your LLC in Oregon and do business in California, you might need to register or qualify as an out-of-state business in California.

You'll need to look at each state's rules and requirements about when an out-of-state business is required to register. However, typically, you'll need to register as an out-of-state LLC if you have a physical presence in a state, hire employees in the state, or advertise directly to residents of the state.

You can review individual state requirements in our state guide to qualifying to do business outside your state.

More Information About Oregon LLCs

The SOS's starting a business section of its website has helpful information and resources for business owners. You can find steps to starting an Oregon business, including information about:

• creating a business plan
• selecting your business name and business structure
• registering your business
• learning your tax obligations
• checking what business licenses, permits, and certifications you need
• protecting your copyrights, trademarks, and patents, and
• other ongoing registration requirements.

You can find more guidance on managing and operating your LLC in LLC section of our website. If you need more personalized, professional help or have specific legal questions, consider talking to an Oregon business lawyer.