Oregon (OR) does not impose a general sales tax, making it one of the most tax-friendly states for retail businesses. As of 2026, the LLC filing fee is $100 with an annual franchise tax of $100.
Tax Environment in Oregon
Since Oregon does not impose a general sales tax, there are no economic nexus thresholds for sales tax collection. However, businesses should be aware of other tax obligations such as gross receipts taxes, business income taxes, or industry-specific levies. The Oregon Department of Revenue provides guidance at https://www.oregon.gov/dor.
LLC Formation in Oregon (2026)
Forming an LLC in Oregon costs $100 for the initial filing. An annual franchise tax of $100 is required to maintain good standing. The annual report fee is $100. Oregon imposes a state income tax, which affects pass-through LLC taxation.
The process involves filing Articles of Organization with the Secretary of State, obtaining a federal EIN, and registering for applicable state tax accounts.
Key Tax Rules
• Oregon has NO sales tax at the state or local level.
• Corporate Activity Tax (CAT) of 0.57% applies to commercial activity over $1 million.
• No sales tax makes Oregon attractive for large purchases.
• Businesses still need to collect sales tax when selling to other states with nexus.