Learn about the annual report and tax filing obligations for Oregon limited liability companies.
If you want to form and operate an Oregon limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses the most significant continuing reporting and state tax filing obligations for Oregon limited liability companies.
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Report Annual
The state of Oregon requires you to produce an annual report for your limited liability company. It is possible to complete it online at the Secretary of State’s website. Blank report forms are not accessible for download; instead, you may construct a form already including critical information for your LLC by going to the web site. The report requires just a few pieces of information, such as the name and address of your LLC’s registered agent, the street address of your LLC’s primary place of business, and information regarding members or management.
The annual report must be submitted each year by the anniversary date of the founding of your LLC. The filing cost is one hundred dollars. (There is an additional cost for non-Oregon LLCs.)
State Corporation Tax
Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. Oregon, on the other hand, is not one of those states.
However, in certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Oregon, like almost every other state, has a corporate income tax. The corporation tax in Oregon is typically computed using a pair of marginal rates. The tax is due to the Department of Revenue in the state (DOR). To pay the tax, use Form 20 of the state company income tax return.
Employer Taxes in the State
Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Employers in Oregon, on the other hand, must pay state taxes.
To begin, you must withhold and pay employee income taxes to the DOR. Begin by registering your company with the DOR (Form 150-211-055, Combined Employer’s Registration) either online or on paper. After registering, you must submit withholding taxes on a regular basis (for example, semi-weekly, monthly, or quarterly) using Form OTC (Oregon Tax Coupon). Each year, you’ll also need to utilize a form of Form WR to reconcile your LLC’s tax withholding.
You’ll also need to register to pay state unemployment insurance (UI) taxes. The Oregon Employment Department is in charge of these taxes. These taxes may be registered for online or by utilizing Form CBR. Then, utilize Form OQ (Oregon Quarterly Tax Record) and Form 132 (Wage Detail Report) each quarter to report wages and pay UI taxes.
Taxes on Sales and Use
Oregon is now one of just five states without a sales tax. As a result, unlike LLCs in most other states, if your LLC sells things in Oregon, you won’t have to worry about paying sales tax to the state.
Other States Registration
If you want to do business in states other than Oregon, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.