Northwest Registered Agent, LLC
  • Filing Services
    • Form an LLC
      File Articles of Organization
    • Incorporate
      File Articles of Incorporation
    • Form a Nonprofit
      File Nonprofit Articles
    • Stay Compliant
      File annual reports
    • Foreign Qualification
      Expand into another state
    Identity
    • Business Identity
      Get a website, email and more
    • Domain Name
      A URL for your website
    • Business Website
      No coding experience required
    • Business Email
      A professional email address
    • Phone Service
      A dedicated business line
    Registered Agent
    • Registered Agent Service
      Why you need a registered agent
    • Change Registered Agents
      We'll cover your fees
    • BOC-3 Process Agent
      A blanket agent for every state
    • National Registered Agent
      Bulk registered agent service
    Additional Services
    • Mail Forwarding
      A unique business address
    • Virtual Office
      Work from anywhere
    • Trademark Service
      With help from our attorneys
    • EIN Service
      Get a Federal Tax ID
    Explore All Services

    Not sure where to begin?

    Start from your Home state:

    AK
    ME
    VT
    NH
    WA
    ID
    MT
    ND
    MN
    WI
    MI
    NY
    MA
    CT
    RI
    OR
    NV
    WY
    SD
    IA
    IL
    IN
    OH
    PA
    NJ
    CA
    UT
    CO
    NE
    MO
    KY
    WV
    VA
    MD
    DE
    AZ
    NM
    KS
    AR
    TN
    NC
    SC
    DC
    OK
    LA
    MS
    AL
    GA
    HI
    TX
    FL
    PR
    GU
  • Get Started
    • Start a Business
      How to start from scratch
    • Small Business Ideas
      Brainstorming help
    • LLC vs. Corporation
      Weigh your options
    • Get a DBA Name
      Build your brand
    Keep it Running
    • Maintain a Business
      It won’t take care of itself
    • Certificate of Good Standing
      Proof your business is legit
    • Apostille
      For doing business overseas
    • Certified Copy
      Official copies of originals
    Business Docs
    • Legal Forms
      Every form you’ll ever need
    • LLC Operating Agreements
      Prepared by our attorneys
    • Single-Member LLC Operating Agreement
      For flying solo
    • LLC Bank Account Resolution
      To open a business bank account
    • Corporate Bylaws
      A template for every state
    • Certificate of Stock
      Shares for shareholders
    • Initial Board Meeting
      Minutes for your first meeting
    • Nonprofit Bylaws
      For nonprofits in every state
    Explore All Resources

    Not sure where to begin?

    Start from your Home state:

    AK
    ME
    VT
    NH
    WA
    ID
    MT
    ND
    MN
    WI
    MI
    NY
    MA
    CT
    RI
    OR
    NV
    WY
    SD
    IA
    IL
    IN
    OH
    PA
    NJ
    CA
    UT
    CO
    NE
    MO
    KY
    WV
    VA
    MD
    DE
    AZ
    NM
    KS
    AR
    TN
    NC
    SC
    DC
    OK
    LA
    MS
    AL
    GA
    HI
    TX
    FL
    PR
    GU
  • Who We Are
    • Corporate Guides
      Meet the humans who work here
    • Our Manifesto
      We're Just Not Annoying
    • Privacy by Default
      How we protect your privacy
    • Live Privately with an LLC
      Guard your personal data
    What We're Up To
    • Client Profiles
      Real life success stories
    • Client Reviews
      What real people say about us
    • Blog
      Answers to real client questions
    • Press Releases
      Extra extra, read all about it
    Get in Touch
    • Become an Affiliate
      For marketers and B2B providers
    • Contact Us
      Drop us a line
    • Careers
      Come work with us
    • Life at Northwest
      Learn about our company culture
    Site Directory

    Not sure where to begin?

    Start from your Home state:

    AK
    ME
    VT
    NH
    WA
    ID
    MT
    ND
    MN
    WI
    MI
    NY
    MA
    CT
    RI
    OR
    NV
    WY
    SD
    IA
    IL
    IN
    OH
    PA
    NJ
    CA
    UT
    CO
    NE
    MO
    KY
    WV
    VA
    MD
    DE
    AZ
    NM
    KS
    AR
    TN
    NC
    SC
    DC
    OK
    LA
    MS
    AL
    GA
    HI
    TX
    FL
    PR
    GU
  • Login
  • Hire Us

Home / Start an LLC / Oregon LLC / Oregon LLC Taxes

Oregon LLC Taxes

LLCs in Oregon are classified by default as pass-through entities, with LLC members paying federal income tax through their own individual returns. Members pay the state’s graduated personal income tax rate ranging from 4.75% to 9.90%. Members are also taxed at the 15.3% federal self-employment tax rate (12.4% for social security and 2.9% for Medicare). You can, however, have your LLC taxed as a corporation.


In this article, we’ll cover:

  1. How Are Oregon LLCs Taxed?
  2. Oregon State Income Tax
  3. Corporate Excise and Activity Tax
  4. Local Oregon Taxes
  5. Other Taxes in Oregon
  6. Do foreign LLCs in Oregon need to pay Oregon taxes?
RA-image

How Are Oregon LLCs Taxed?

If your LLC is only you, you’re a single-member LLC (SMLLC) and will be taxed as a sole proprietorship—or “disregarded entity”—by default. On the other hand, if your LLC has two or more members, you’re part of a multi-member LLC and will be taxed as a partnership by default. The federal tax forms you’ll need to file as a single- or multi-member LLC are:

  • Single-member LLC—Form 1040 (usually Schedule C, but some SMLLCs file C-EZ, E, or F)
  • Multi-member LLC—Form 1065

However, LLCs are not limited to default tax classification—they can also apply for S-corp or elect C-corp tax status. Here’s what that means for you and your Oregon LLC:

Oregon LLCs taxed as S-corp

S-Corporation or S-corp status is a federal tax election available to both corporations and LLCs who meet the IRS requirements. LLCs with S-corp status can make distributions without having to pay the 15.3% self-employment tax on the LLC’s dividends. You will still have to pay for it on salaries, though. You also won’t pay the federal corporate income tax, but you do have to pay the state’s corporate excise or activity tax.

To apply to have your LLC taxed as an S-corp, you will file Form 2553 with the IRS. Note that your LLC must meet the IRS S-corp requirements, like having no more than 100 shareholders. S-corps file Form 1120-S to report their income to the IRS. Before making a big decision like changing your LLC’s tax status, consult with a CPA to see if the move will benefit your business.

Learn more about the S-Corp tax election.

LLCs taxed as C-corp

In very rare cases, some LLCs elect to be taxed as C-corps—the default tax status for corporations. The reason some LLCs choose C-corp status is often because of the plethora of tax breaks offered to C-corps over LLCs and S-corps. They are also more attractive to investors. C-corps, however, pay double the taxes by paying 21% federal corporate income tax and shareholders paying 15.3% self-employment tax on dividends.

On top of the federal taxes, you’ll also pay Oregon’s graduated corporate income tax, excise, or activity tax. To file your taxes with the IRS as a C-corp, you’ll need to submit Form 1120.

Learn how to apply for C-corp status as an LLC.

Oregon State Income Tax

Oregon has a graduated personal income tax based on earnings ranging from 4.75% to 9.90%. How much you or your LLC’s members will have to pay is broken down in $100 increments and by joint or single filing. The Oregon Secretary of State provides a very comprehensive income tax table chart to see where you land on the tax breakdown and how much you’ll owe in taxes.

For LLC’s that file as corporations (S-corps or C-corps) and don’t do business in Oregon but have income from the state, will pay the state’s corporate income tax rates of either 6.60% or 7.60%. If your corporation’s gross taxable income is less than $250,000, you pay the 6.60% tax rate, and any earnings above are taxed at the 7.60% rate.

Corporate Excise and Activity Tax

The Oregon Corporate Excise Tax (CET) and Corporate Activity Tax (CAT) is similar to a franchise or sales and use tax and is collected for the privilege of doing business in Oregon. Only LLCs with C-corp status must pay the Oregon corporate excise tax. Most Oregon LLC’s don’t pay the Oregon corporate income tax rate and instead pay the CET.

You pay your CET on top of your corporate income tax only if you are based in Oregon and doing business in the state. If you’re just a foreign LLC doing business in the state without a physical location in the state, you only have to pay the corporate excise tax. If your LLC brought in $1 million or less, you’re taxed at a 6.6% rate—anything above $1 million is taxed at the 7.6% rate. CAT is only applied to businesses that make more than $1 million and is collected as $250 plus 0.57% of all income above $1 million.

Local Oregon Taxes

Oregon allows local cities and towns to levy their own local taxes on businesses, but not every town has a local business tax. For example, Medford, requires marijuana retailers to pay a 3% marijuana tax. Oregon does not have a local sales and use tax.

Other Taxes in Oregon

Here are some other taxes you may encounter while doing business in Oregon.

Oregon State Employer Taxes

Oregon employers must pay unemployment insurance and workers’ compensation taxes:

  • Unemployment (UI) Tax—Unemployment insurance pays employees during hardships when they have lost their job. Employers pay into the fund for employees to use. In Oregon, employers pay between 0.9% to 5.4%, and all new employers pay 2.4%. For 2022, the taxable wage base is $47,700.
  • Workers’ Compensation—Oregon Workers’ Compensation Insurance protects workers who are injured on the job for lost wages, medical bills, funeral costs, and more. Though most businesses in Oregon do require you to have workers’ compensation, there are a few instances that would allow a business to forgo it, such as domestic servants, like home health workers, gardeners, home maintenance repair, etc. You don’t have to insure independent contractors.

To learn more about Oregon employer taxes, visit the Oregon Employment Department and Oregon Workers’ Compensation Division websites.

Industry Taxes

Oregon also taxes certain industries and services,including:

  • Amusement Device tax
  • Combined Payroll tax
  • Corporate Income and Excise tax
  • Emergency Communications (E911) tax
  • Estate tax
  • Fiduciary tax
  • Hazardous Substance fee
  • Lane Transit Payroll tax
  • Marijuana tax
  • OAA (Other Agency Accounts) tax
  • State Lodging tax
  • Timber taxes
  • Tobacco Consumer Products and Cigarette Consumer tax
  • TriMet Transit Payroll tax

Find more information on industry taxes on the Oregon Business Taxes page.

Do foreign LLCs in Oregon need to pay Oregon taxes?

Yes. If you have an Oregon foreign LLC, you will have to pay the same taxes as domestic LLCs. You will also have to pay Oregon’s corporate excise tax for the ability to do business in the state. Your LLC is viewed as a foreign LLC if it was originally formed in another state and registered with the Oregon Secretary of State to do business in the state. Most foreign LLCs will have to pay the state’s corporate income tax for the privilege of doing business in Oregon.

Related Articles

A red, white and blue name tag labeled

Start an Oregon LLC

Your guide to starting an LLC in Oregon.

A stack of documents showing the dark blue silhouette of a brick and mortar store with a white dollar sign, all positioned above three gold coins.

Oregon LLC Cost

Discover all the costs associated with starting an LLC in Oregon.

A blue shredder shredding a piece of paper with the text

Dissolve an Oregon LLC

Sometimes things don't work out. Learn how to dissolve an LLC in Oregon.

A heart monitor connected to a red heart shape with the text

Reinstate an Oregon LLC

Ready to try again? Learn how to reinstate your Oregon LLC and get back to business.

A white form with

How to File LLC Taxes

Your guide to understanding LLC taxes.

envelope with the words

Oregon Annual Report

A complete guide to filing the Oregon Annual Report.

  1. Start an Oregon LLC
  2. Oregon LLC Cost
  3. Dissolve an Oregon LLC
  4. Reinstate an Oregon LLC
  5. How to File LLC Taxes
  6. Oregon Annual Report

Northwest Registered Agent, LLC

Northwest Registered Agent ®

We’re Just Not Annoying ®

509-768-2249


1998 – 2023 Copyright © Northwest Registered Agent, LLC. All Rights Reserved

Privacy Policy | Terms of Service

We store the cookies our website needs to function, and we never sell data to third parties. To learn more, see our Privacy Policy or read about Privacy by Default®.