Oregon LLC Incorporation
Oregon became a state of the Union in February of 1859. It was the 33rd state with its own constitution adopted by referendum. The residents of Oregon are known as Oregonians, of which there are approximately 3.5 million.
Located on the west coast of the continent, it has the Pacific Ocean as the western boundary. Other boundaries are with California, Idaho, Nevada and Washington State.
Oregon’s main export trading partners are its neighbors across the Pacific Ocean and include China, Japan and South Korea. The economy is based on forestry products which include lumber, plywood and paper industries; metal & metal fabrication; coal mining, agricultural and fisheries products and electronic equipment.
Oregon LLC Law
After the 1988 Internal Revenue Service (IRS) ruling, which gave pass-through tax status to the Wyoming Limited Liability Company (LLC); Oregon enacted its own LLC legislation which is now recognized for its various beneficial features.
Oregon LLC Incorporation Features:
An Oregon Limited Liability Company (LLC) is a hybrid business entity which utilizes the positive features of the Partnership and the Corporation.
- An Oregon LLC may have one member only, which is similar to the single shareholder for incorporation. (Not advisable for non-residents from a tax point of view).
- The LLC is recognized as a separate legal entity from its members.
- There are no shareholdings in an Oregon LLC. Owners become members with authority in proportion to the member’s contribution to the whole.
- Because the LLC has Limited Liability Status, the members have protection for their personal wealth. LLC alone is responsible for its debts and other liabilities.
- Meetings of members are not a requirement for an Oregon LLC.
- Management and control of the LLC is usually undertaken by its members and no Board of Directors is required.
- Voting rights of the LLC usually correspond directly with a member’s interest in profits.
- Membership cannot be transferred or new members admitted without the consent of the majority interest.
- An Oregon LLC has “pass-through” or “flow-through” tax status i.e. The LLC has no tax liability. The profit is taxed when distributed to the members as the personal income of the member.
- A member may be a non-resident alien in which case he does not pay US taxes on income not derived from the US.
- An Oregon LLC is organized or formed when the Articles of Organization is filed with the Secretary-of-State.
- An LLC must file Form 1065 with the IRS annually. This is just an informational return and sets out the name of each member and his share of the LLC profit or loss. The IRS will review the report to ensure US Residents properly report their income.
Oregon does not require disclosure of member information except at the time of the Annual Report. We provide Nominee Service to protect your privacy when required.
An Oregon LLC may be used in the same way as a Tax Haven registered IBC for conducting legitimate business outside of the US, once the members are Non-Resident Aliens.