Oregon LLC Tax Filing Requirements (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Oregon has no general sales tax. An Oregon LLC's profit passes through to owners by default, but a business with more than $1 million of Oregon commercial activity owes the Corporate Activity Tax (Form OR-CAT). You also file an annual report with the Secretary of State by your formation anniversary and may owe Portland/Multnomah local business taxes.

Quick Answer

Sales tax
None - Oregon has no general statewide sales or use tax
Default federal tax
Disregarded (1 member) or partnership (2+); S-corp optional
Income tax
Pass-through to owners on Oregon personal income tax returns
Corporate Activity Tax
$250 + 0.57% on Oregon commercial activity over $1M (Form OR-CAT)
Local taxes
Portland Business License Tax + Multnomah County Business Income Tax
Annual report
Due on formation anniversary; $100 domestic LLC fee

How an Oregon LLC Is Taxed by Default

An LLC is a state-law entity, so the IRS assigns it a default federal tax classification, and Oregon follows that federal treatment. A single-member Oregon LLC is a disregarded entity: its income and expenses flow onto the owner's own return, usually Schedule C. An Oregon LLC with two or more members is taxed as a partnership, filing a federal Form 1065 and passing profit to members on Schedule K-1. In both cases, the profit is taxed to the owners rather than to the LLC, so most Oregon LLCs pay no entity-level state income tax by default.

Because of this pass-through design, the LLC's Oregon income tax story is mostly the owners' story. Each owner reports their share of Oregon-source income on their Oregon personal income tax return and pays the state's graduated income tax on it. Federal self-employment tax also applies to actively involved owners' share of profit. Even a single-member LLC should generally get an EIN, since banks and the state frequently ask for one, and it keeps business filings separate from your personal Social Security number.

Electing S-Corp or C-Corp Status

An Oregon LLC can change its default classification. By filing IRS Form 2553, an eligible LLC elects to be taxed as an S corporation. Income still passes through, but owner-employees take a reasonable salary plus distributions, which can reduce the earnings exposed to self-employment tax. Oregon recognizes the federal S-election, though an S corporation still files an Oregon return and may owe the state's minimum tax.

Alternatively, an LLC can elect C corporation treatment with IRS Form 8832. A C-corporation-taxed LLC pays Oregon corporation excise or income tax at the entity level. Oregon imposes a minimum tax on corporations that scales with Oregon sales, starting at $150 for the smallest filers and rising in tiers, so a corporate-taxed entity owes at least the minimum even in a low-profit year. Most small LLCs keep the default pass-through treatment; compare the trade-offs in our S-corp vs LLC explainer before electing.

Oregon Has No General Sales Tax

Oregon is one of a small number of states with no general sales or use tax. That means an Oregon LLC selling goods or services to Oregon customers does not register for, or collect, a statewide sales tax the way a business in most other states must. This removes a whole category of compliance - no sales tax permit, no periodic sales tax returns - that dominates LLC tax filing elsewhere.

There are important caveats. Oregon still imposes targeted taxes on specific products and activities (for example, taxes tied to vehicles, lodging, and certain other categories), and businesses selling into other states may have sales-tax obligations there under those states' economic-nexus rules. And "no sales tax" does not mean "no business tax" - Oregon relies instead on income taxes and the Corporate Activity Tax described below. So an Oregon LLC trades sales-tax administration for a different set of state filings.

The Oregon Corporate Activity Tax (CAT)

The Corporate Activity Tax is Oregon's gross-receipts-style tax on business activity, and despite its name it applies to many business types, including LLCs and other pass-through entities - not just corporations. The CAT is imposed on a business's Oregon commercial activity (broadly, Oregon-sourced commercial receipts) above a threshold.

The mechanics matter. A business with more than $750,000 of Oregon commercial activity must register for the CAT with the Department of Revenue. The tax itself applies once Oregon commercial activity exceeds $1 million, and it equals $250 plus 0.57% of taxable commercial activity above $1 million (after a partial subtraction for certain costs). CAT returns are filed on Form OR-CAT through Oregon's Revenue Online system, and estimated CAT payments can be required during the year. Because the CAT is measured on receipts rather than profit, a growing Oregon LLC can cross the threshold even in a thin-margin year, so track Oregon commercial activity as your revenue climbs.

The CAT is separate from, and in addition to, the income tax the owners pay on the LLC's profit. In other words, a large Oregon LLC can owe the CAT at the entity level while its owners also pay Oregon personal income tax on the same underlying business - the two taxes measure different things (receipts versus net income). The law does allow a subtraction for a portion of either labor costs or cost of goods sold when calculating taxable commercial activity, which softens the CAT for businesses with heavy payrolls or inventory. Because the rules on what counts as Oregon commercial activity are detailed, businesses approaching the $750,000 registration line should map their receipts carefully and register on time to avoid penalties. Keeping monthly revenue totals lets you see the threshold coming well before year-end rather than discovering it on the return.

Portland and Multnomah Local Business Taxes

Oregon's lack of a sales tax does not mean local governments impose nothing. Businesses that operate in the City of Portland and Multnomah County commonly owe the Portland Business License Tax and the Multnomah County Business Income Tax, both administered by the Portland Revenue Division. These are income-based local taxes on net business income apportioned to the city and county, and they are filed separately from your Oregon state return.

The Portland metro area has additional local taxes in recent years - such as personal income taxes funding regional programs - that can reach LLC owners on their pass-through income depending on where they live and work. If your LLC does business in or around Portland, budget for these local filings on top of any state CAT and income tax. Outside the metro area, most Oregon LLCs deal only with state filings and their annual report. A business license requirement can also arise at the city level, distinct from these taxes.

Annual Report and How to File Oregon LLC Taxes

Every Oregon LLC must file an annual report with the Secretary of State to stay active. Unlike states with a fixed calendar date, Oregon ties the report to your LLC's formation anniversary - it is due each year by that date - and the domestic LLC fee is $100. Missing it leads first to a notice and eventually to administrative dissolution, which ends your good standing until reinstated. Put together, a compliant Oregon LLC follows this cycle:

  1. Confirm federal classification - disregarded, partnership, or elected corporation - because it drives the Oregon income tax result.
  2. Report income on Oregon returns. Owners report pass-through profit on their Oregon personal income tax returns; there is no sales tax to collect.
  3. Test the CAT thresholds. Register above $750,000 of Oregon commercial activity and file Form OR-CAT once you exceed $1 million.
  4. Handle local taxes. Register and file Portland and Multnomah County business taxes if you operate there.
  5. File the annual report by your formation anniversary and pay the $100 fee.

Calendar your formation-anniversary report and any CAT deadlines together so neither one slips. Keeping an operating agreement and clean books current makes each of these filings quicker.

Frequently Asked Questions

Does Oregon have a sales tax for LLCs?

No. Oregon has no general statewide sales or use tax, so an Oregon LLC does not register for or collect state sales tax. The main state-level business taxes are income tax on the owners and, for larger businesses, the Corporate Activity Tax.

What is the Oregon Corporate Activity Tax?

The Corporate Activity Tax applies to businesses with Oregon commercial activity above $1 million. It is $250 plus 0.57% of taxable commercial activity over $1 million. Businesses with more than $750,000 of Oregon commercial activity must register for the CAT.

Does an Oregon LLC pay state income tax?

By default the LLC pays no entity income tax. Profit passes through to owners, who report it on their Oregon personal income tax returns. An LLC that elects C-corporation status instead pays Oregon corporation excise or income tax, including a minimum tax.

When is the Oregon LLC annual report due?

The Oregon annual report is due each year by the anniversary of the LLC's formation date. The filing fee for a domestic LLC is $100, paid to the Secretary of State. Missing it can lead to administrative dissolution of the LLC.

Do Portland LLCs pay local business taxes?

Often yes. Businesses operating in the City of Portland and Multnomah County may owe the Portland Business License Tax and the Multnomah County Business Income Tax, administered by the Portland Revenue Division, in addition to Oregon state taxes.

Can an Oregon LLC elect S-corp status?

Yes. An Oregon LLC can elect S-corporation treatment by filing IRS Form 2553. Oregon recognizes the federal S-election. Income still passes through to owners, though the S corporation itself may owe Oregon's minimum tax and files a state return.

Related

More Oregon business guides

Form an LLC In Business License In Dissolve An LLC In Annual Report Articles Of Organization Business Entity Search DBA Filing Registered Agent Operating Agreement Single-Member LLC S-Corp Election Foreign LLC

More: registered agents, trademarks, business licenses, DBAs, and dissolving an LLC.

Sources

  1. Oregon Department of Revenue - Corporate Activity Tax (CAT) ($1M threshold; $250 + 0.57%).
  2. Oregon Department of Revenue - Corporate Activity Tax Registration ($750,000 registration threshold).
  3. Oregon Department of Revenue - Personal Income Tax (pass-through owner reporting).
  4. Oregon Department of Revenue - Corporation Excise and Income Tax (minimum tax).
  5. Oregon Department of Revenue - Oregon Department of Revenue (business taxes; no general sales tax).
  6. Oregon Secretary of State - Register or Update a Business (annual report; $100 fee).
  7. Oregon Secretary of State - Business Name Search / Registry.
  8. City of Portland Revenue Division - Business Taxes (Portland Business License Tax; Multnomah County Business Income Tax).
  9. Oregon Legislature - ORS Chapter 63, Limited Liability Companies.
  10. Oregon Legislature - ORS Chapter 317A, Corporate Activity Tax.
  11. IRS - Limited Liability Company (LLC) (default federal classification).
  12. IRS - About Form 2553, Election by a Small Business Corporation (S-corp election).
  13. IRS - About Form 1065, U.S. Return of Partnership Income.
  14. IRS - Single Member Limited Liability Companies.
  15. IRS - Get an Employer Identification Number (free EIN).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Thresholds, fees, and local taxes change; verify current requirements with the Oregon Department of Revenue, the Oregon Secretary of State, and the Portland Revenue Division before acting.