Question 1

How much does it cost to maintain an LLC in Oregon?

Accepted Answer

Oregon charges $100/year for LLC annual filings. There is also a $150 minimum corporate excise tax. Oregon also levies a Corporate Activity Tax (CAT) at 0.57% on commercial activity over $1 million. As a pass-through entity, LLC income is taxed on the owner's personal return — not at the entity level.

Question 2

What is the corporate income tax rate in Oregon?

Accepted Answer

Oregon's top corporate income tax rate is 7.6%. There is a $150 minimum tax. This rate applies to C-Corporations; pass-through entities (LLCs, S-Corps, sole proprietorships) are not subject to entity-level income tax.

Question 3

What entity type should I choose in Oregon?

Accepted Answer

The best entity type depends on your situation. Sole proprietorships have no state filing fees but no liability protection. LLCs offer liability protection with pass-through taxation ($100/year in Oregon). S-Corps can save on self-employment tax if you pay yourself a reasonable salary. C-Corps face double taxation but offer the most flexibility for investors and retained earnings. Consider both state costs and your federal tax situation when choosing.

Question 4

Does Oregon have both income tax and a gross receipts tax?

Accepted Answer

Yes. Oregon is one of the few states that levies both a corporate income tax (7.6% top rate, $150 minimum) and a Corporate Activity Tax (CAT) of 0.57% on commercial activity over $1 million in annual revenue. The CAT is a relatively new tax (effective 2020) that applies to most businesses regardless of entity type. This dual-tax structure can make Oregon expensive for high-revenue businesses.

Cost Component	Annual Amount
Annual Filing Fee (LLC)	$100
Gross Receipts Tax	$0

= Total Annual State Business Cost	$100

Oregon LLC & Business Tax Calculator (2025)

Annual State Business Cost Breakdown

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