How to form an LLC in Oregon.
Oregon is an excellent place to form a new LLC.
With low sales tax and fast start-up growth,
it ranks 8th in highest economic growth prospects
in the country.
Every state has slightly different requirements
for forming an LLC.
Follow along closely to learn the required steps
for creating your own limited liability company
in the state of Oregon.
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They are two ways to form an LLC in Oregon.
You can form one yourself,
or you can hire a service to do it for you.
Let's start by looking at the five basic requirements
to form an LLC in Oregon on your own.
You can also find these steps and more detail
on our website, linked in the description below.
One: name your LLC.
Every state has its own rules about
what kind of names are allowed for LLCs.
In general, you will need to
observe these naming guidelines.
Your name must include the phrase:
"Limited Liability Company"
or one of its abbreviations: LLC or L.L.C
with a period following each letter.
Restricted words, such as bank, attorney, law office etc.,
may require additional paperwork
and may also need a licensed professional
to be part of the LLC.
Your name cannot include words that can
confuse your LLC with the government agency.
Such as: FBI, Treasury, State Department, etc.
You cannot use name that is already been registered.
To see if your name is available in your state,
you'll need to do a name search.
This free service is available on
your state's Secretary of State website.
Check out our free guide for finding the
direct link to your state.
We also recommend that you check to see if
your business' name is available as a web domain.
Even if you don't plan to make a business website today,
you may want to buy the URL in order to
prevent others from acquiring it.
Two: choose a registered agent.
Oregon requires that you nominate
a registered agent for your LLC.
Who is your business' point of contact with the state.
The registered agent can be an
individual within the company;
including yourself, or you can hire a professional service
authorized to do business in Oregon.
They will send and receive legal papers on your behalf.
These documents include official correspondents like:
legal summons and document filings.
Which your registered agent will receive
and forward to you.
Your registered agent will hep remind you to
file the necessary reports.
Failure to properly maintain your LLC
can result in fines and dissolution.
So this assistance is valuable.
Three: file the Articles of Organization.
To register your Oregon LLC,
you'll need to file the Articles of Organization
with the Oregon's Secretary of State.
This can be done online or by mail.
You'll need to state whether your LLC will be
member-managed or manager managed.
Member-managed means all members of the LLC
manage the company.
This is good for small organizations,
where everyone is involved in the day-to-day operations.
The second option is manager managed,
where individuals are appointed to manage the LLC.
This is appropriate for larger organizations,
where not everyone's involved in
the day-to-day affairs of the business.
Four: create an Operating Agreement.
Although not every state requires it,
you should always create an Operating Agreement to
establish ownership terms and member roles for your LLC.
This foundational document is the core of your LLC,
and will help you maintain your organization,
as well as further establish your LLC
as a separate, legal entity.
There are six main sections of an Operating Agreement.
Organization outlines when and where
the company was created, who the members are,
and how the ownership is structured.
Management and voting addresses how the company is managed,
as well as how the members vote.
Capital contributions covers which members
financially support the LLC
and how more funds will be raised in the future.
Distributions outlines how the company's profits and losses
are shared among members.
Membership changes describes the process for
adding or removing members, as well as if and when
members can transfer their ownership shares.
And dissolution, which explains the circumstances
in which the LLC may be dissolved.
An Operating Agreement is an internal document.
It does not need to filed with the state.
However, it should be updated every time
there is a change in membership,
or management at the company.
You can download a free sample Operating Agreement or,
create a custom one using our free
Operating Agreement tool at howtostartanllc.com.
Five: Obtain an EIN.
Lastly, you'll need to get an
employer identification number or, EIN, from the IRS.
Also known as a Federal tax identification number,
your EIN is like a social security number for your LLC
and it's how the IRS tracks your business for tax purposes.
An EIN is also necessary to open a business banking account
and legally hire employees.
EINs are free of charge and can be obtained
from the IRS online or through the mail.
And with that, you'll have formed an Oregon LLC on your own.
Option two: hire a professional service.
The second way to create an Oregon LLC is to hire a
professional service to create your LLC for you.
Hiring a professional service to file your forms
and act as your registered office,
more commonly known as a registered agent,
will cost you an additional 50 to 150 dollars.
However, there are several benefits to working with a pro.
A hired registered agent helps with
getting your reports filed on time,
helps you stay organized by
keeping your business mail separate,
and is available at all business hours to
accept official mail and legal papers on your LLC's behalf.
A final, and important additional benefit
of using a service is privacy.
A professional service will provide a level of privacy by
withholding your personal name and home address
from the LLC's contact information.
There are many reasons why you might not want
your personal information easily accessible
and associated with your business.
Hiring a professional LLC formation service
is an easy way to accomplish this.
Now that you have seen the different requirements
and ways you can form an LLC in Oregon,
visit our site and take some time to research your options
and establish a solid foundation
for your business activities.
Click on the links in the description below
to research the top five professional formation services or,
get more information on how to form
an Oregon LLC on your own.
Now you know all the steps to form an LLC in your state.
For a more detailed guide, go to howtostartanLLC.com.
You can also create an Operating Agreement
and use our business plan tool, free of charge!
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And if you have questions or encounter any roadblocks,
leave a comment below.
Good luck in starting your small business.
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