Key Takeaways

  • Oregon does not require a general state-level business license, but most cities and counties do.
  • Specific licenses and permits depend on the business type and location.
  • State registration is mandatory for LLCs, corporations, and DBAs.
  • The Business Xpress License Directory helps determine needed licenses.
  • Certain professions and regulated industries require special state licenses.
  • Home-based businesses may require zoning or occupancy permits.

Business Licenses in Oregon

While businesses are not required to obtain general business licenses in Oregon at the state level, Oregon businesses are required to obtain a general business license from each municipality for those unincorporated areas where you operate your business.

If you operate a limited liability company (LLC), partnership, or corporation, you must register your business with Oregon’s Secretary of State using the Central Business Directory.

City Spotlight: Salem Business License

In Salem, Oregon, all businesses—whether home-based or commercial—must apply for a city business license. The application process includes submitting a completed form and paying a fee based on gross receipts. Exemptions may apply to certain nonprofits and small-scale activities, but verification with the city is required.

You can apply:

  • Online through the City of Salem’s Business License Portal
  • In person at Salem City Hall
  • By mail using a printed application form

For compliance, businesses in Salem must renew their license annually and update the city with any changes in ownership or location.

Specialty Licenses and Permits in Oregon

Certain types of businesses in Oregon are subject to state-level oversight and must obtain special licenses or certifications before operating. Examples include:

  • Restaurants and food carts – Need food handler permits and health department inspections
  • Contractors – Must be licensed by the Oregon Construction Contractors Board (CCB)
  • Child care providers – Must register with the Office of Child Care
  • Alcohol sellers – Require approval from the Oregon Liquor and Cannabis Commission (OLCC)
  • Cannabis businesses – Must follow strict OLCC licensing and security rules

Failure to secure the proper specialty license can result in fines or business closure.

Oregon Business Xpress License Directory

The Oregon Business Xpress License Directory is a helpful tool to determine the exact licenses or permits your business may need. By entering your business type and location, you can generate a customized list of local, state, and federal requirements.

This directory covers:

  • Professional and occupational licenses
  • Health and safety permits
  • Environmental compliance
  • City and county business license links

Using this tool can save time and help ensure compliance with all applicable regulations.

When a Business License Is Required in Oregon

While Oregon does not issue a general state business license, most cities and counties require a local license to legally operate. For example, Portland, Eugene, and Salem each have their own business license programs. Requirements vary depending on business location, activities, and size. Businesses in unincorporated areas may be subject to county licensing rules.

Common triggers for requiring a local Oregon business license include:

  • Operating from a commercial location
  • Selling products or services to the public
  • Hiring employees
  • Using a business name different from the owner's personal name

Always check with the city or county where your business will operate to verify licensing obligations.

Types of Business Licenses in Oregon

While Oregon does not require a general business license at the state level, many business activities still require licenses or permits at the local level. Depending on your business type and location, you may need permits related to alarms, building codes, taxes, health and safety, specific occupations, signage, or zoning. It’s important to consult with your city or county to determine the specific requirements that apply to your operations.

How to Determine Which Licenses You Need

To find out which licenses or permits your business requires, you should contact the city and county where you plan to operate. Oregon also offers an online tool—the Business Xpress License Directory—that can help you identify relevant requirements based on your industry and location. This resource is especially useful for navigating state, county, and municipal regulations.

Additional Requirements for Starting a Business

Beyond licensing, your business may need to meet other regulatory or legal obligations before launching. Common requirements include registering intellectual property such as trademarks or copyrights, securing wholesale permits, and ensuring compliance with environmental standards or the Americans with Disabilities Act (ADA), depending on your business’s nature.

Registering Your Business in Oregon

All businesses operating in Oregon—whether as a sole proprietorship, LLC, corporation, partnership, or under a DBA—must be registered with the Oregon Secretary of State. Registration can be completed online or by mail, and the standard filing fee is $50. This step is mandatory even if you don’t need a separate local business license.

Local Business License Applications

If you are operating in a city or county that requires a business license, you may need to complete several forms. These could include a City Business License Application, City Exemption Request Form, and Business Income Tax Form. Because requirements vary by municipality, it’s important to confirm what documentation is needed with your local licensing office.

Documentation Based on Business Type

Different business structures require different forms. For example, commercial entities typically need only a business license application. Home-based businesses, especially those operating under an assumed business name, may also need to complete a home occupation worksheet in addition to the standard application.

Tax Registration Requirements

Businesses with employees must register for federal and state tax purposes. An Employer Identification Number (EIN) from the IRS is required, along with registration for applicable state tax accounts. Depending on your business activities, you may need to comply with additional tax obligations such as sales and use tax, unemployment insurance tax, and income tax withholding.

DBA Registration in Oregon

If you plan to operate your business under a name other than your legal name, you must register a DBA (Doing Business As), also known as an Assumed Business Name. This is required by Oregon law for any individual or entity conducting business under a fictitious name.

Employer and Hiring Requirements

Business owners who hire employees have several federal obligations. These include submitting IRS Form W-4 (Employee’s Withholding Certificate) and providing each employee with a W-2 Wage and Tax Statement annually. Employers must also complete Form I-9 to verify employee eligibility to work in the United States and comply with all relevant immigration regulations.

New Hire Reporting

Oregon law requires that all newly hired and rehired employees be reported to the state within 20 days of the hire date. This helps the state track employment data and enforce child support orders, among other functions.

Mandatory Business Insurance in Oregon

Businesses operating in Oregon must carry certain types of insurance coverage. This typically includes unemployment insurance, disability insurance, and workers’ compensation insurance. These policies help protect both employers and employees and ensure compliance with state labor laws.

Common Local Fees and Penalties

Local business license fees in Oregon typically range from $50 to several hundred dollars annually, depending on revenue, location, or business activity. Late renewal or operating without a license may result in penalties or code enforcement actions.

Some cities apply progressive fees based on:

  • Annual gross receipts
  • Number of employees
  • Business square footage

Frequently Asked Questions

1. Do I need a business license for a home-based business in Oregon? Yes, many cities require a business license even for home-based businesses. Additional zoning or occupancy permits may be needed depending on the type of activity.

2. What happens if I operate without a local business license? Operating without a required license can result in fines, forced closure, and legal penalties. Always check with your local jurisdiction before launching.

3. Are there industries exempt from licensing in Oregon? Some low-risk sole proprietors or nonprofits may be exempt, depending on the city. However, exemptions are rare and should be verified with your local authority.

4. How do I know which permits I need in Oregon? Use the Oregon Business Xpress License Directory to identify applicable state and local licenses based on your business activity and location.

5. How long does it take to get a business license in Oregon? Processing times vary by city. Some offer immediate approval online, while others may take days to weeks depending on required reviews or inspections.

There are many requirements and steps to take when obtaining a business license for any type of business, whether it is a sole proprietorship, corporation, LLC, LLP, general partnership, or DBA. If you need help obtaining business licenses for your Oregon business, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.