StructureCost2026

Oregon: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,108 a year less than a sole proprietorship in Oregon. All figures are 2026 tax and fees.

$4,108 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Oregon, at these numbers. That includes the state's pass-through entity tax election.

More settings revenue, salary, filing status, payroll costs, PTET

Oregon, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $29,923 $0
Itemized: $29,923
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxoregon.gov, checked Oct 20, 2026$7,558
Yearly cost$29,923
Single-member LLC $29,984 +$61 $100
Itemized: $29,984
Annual Report (renewal)sos.oregon.gov, checked Oct 20, 2026$100
Self-employment taxirs.gov, 2026 rates$14,115
Federal income taxirs.gov, 2026 rates$8,219
State income taxoregon.gov, checked Oct 20, 2026$7,550
Yearly cost$29,984
LLC taxed as an S corp lowest $25,815 −$4,108 $100
Itemized: $25,815
Annual Report (renewal)sos.oregon.gov, checked Oct 20, 2026$100
Payroll tax on your salaryirs.gov, 2026 rates$7,282
State disability and paid leavepaidleave.oregon.gov, checked Oct 20, 2026$280
Payroll service and tax return (estimate)$1,800
Oregon S corporation minimum excise taxoregon.gov, checked Oct 20, 2026$150
Oregon pass-through entity tax, paid by the company (elected)oregon.gov, checked Oct 20, 2026$4,836
Federal income taxirs.gov, 2026 rates$8,575
State income tax, after the PTET creditoregon.gov, checked Oct 20, 2026$2,792
Yearly cost$25,815
S corporation $25,815 −$4,108 $100
Itemized: $25,815
Annual Report (renewal)sos.oregon.gov, checked Oct 20, 2026$100
Payroll tax on your salaryirs.gov, 2026 rates$7,282
State disability and paid leavepaidleave.oregon.gov, checked Oct 20, 2026$280
Payroll service and tax return (estimate)$1,800
Oregon S corporation minimum excise taxoregon.gov, checked Oct 20, 2026$150
Oregon pass-through entity tax, paid by the company (elected)oregon.gov, checked Oct 20, 2026$4,836
Federal income taxirs.gov, 2026 rates$8,575
State income tax, after the PTET creditoregon.gov, checked Oct 20, 2026$2,792
Yearly cost$25,815
C corporation $34,854 +$4,931 $100
Itemized: $34,854
Annual Report (renewal)sos.oregon.gov, checked Oct 20, 2026$100
Payroll tax on your salaryirs.gov, 2026 rates$7,282
State disability and paid leavepaidleave.oregon.gov, checked Oct 20, 2026$280
Payroll service and tax return (estimate)$2,000
State corporate income taxoregon.gov, checked Oct 20, 2026$3,543
Federal corporate income tax (21%)irs.gov, 2026 rates$10,528
Federal income taxirs.gov, 2026 rates$4,729
State income taxoregon.gov, checked Oct 20, 2026$6,392
Yearly cost$34,854
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Oregon

Electing S corp tax treatment for an LLC starts to pay in Oregon at about $55,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Oregon can elect to pay the state's income tax itself, a pass-through entity tax of 9% to 9.9%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totaloregon.gov.

ProfitSole propLLCLLC as S corpC corp
$30,000$7,047$7,118$9,145$9,455
$50,000$13,224$13,293$13,787$16,064
$75,000$21,020$21,089$18,159$24,231
$100,000$29,923$29,984$25,815$34,854
$150,000$49,363$49,424$42,737$57,926
$200,000$69,739$69,810$60,521$80,340
$300,000$112,430$112,467$98,072$125,310

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Oregon

LLCCorporation
Filing to form$100Articles of Organization$100Articles of Incorporation (Business/Professional)sos.oregon.gov
Yearly reportAnnual Report (renewal), $100 a yearAnnual Report (renewal), $100 a yearsos.oregon.gov
Report dueAnniversary date of registrationAnniversary date of incorporation
Oregon Corporate Activity Tax0.57% of gross receipts, none up to $1,000,000yesyesoregon.gov
Oregon S corporation minimum excise tax$150if taxed as S corpS corp onlyoregon.gov

Not in the calculator: TriMet (Portland area, 0.8237%) and Lane Transit (0.80%) charge employer payroll taxes. Portland has a 2.6% business license tax and Multnomah County a 2% business income tax, plus Metro and Multnomah County personal income taxes on higher earners.

Switching calculators for Oregon

By profession in Oregon

Questions

Is an S corp worth it in Oregon?

On these figures, from about $55,000 of profit. At $100,000 an LLC taxed as an S corp costs $25,815 a year against $29,984 for a plain LLC, $4,169 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Oregon?

The state charges Annual Report (renewal), $100 a year. LLCs can also owe Oregon Corporate Activity Tax. Forming one costs $100.

Does Oregon recognise the S corp election?

Yes. The federal election carries over with no separate state form. Oregon follows the federal S election. The S corporation pays only the $150 minimum excise tax (plus CAT if over $1 million).

What income tax does Oregon charge?

Oregon taxes personal income in 4 brackets, from 4.75% to 9.9% (2026, single filer). C corporations pay 6.6% to 7.6% of net income, with a minimum of $150.

Sources checked 2026-10-20. Each figure links to the state or IRS page it comes from.

Other states