Almost all of Oregon’s businesses are small businesses. As of 2023, small businesses represent 99.4% of all businesses in the state—that’s nearly 400,000 small businesses. And a lot—but certainly not all—start with an Oregon business license.
Depending on where you begin your own small business journey in Oregon, you may need local licenses, occupational certifications, federal agency approval, and more. Here’s what to know about licensing in the Beaver State.
Do you need a business license in Oregon?
Oregon does not require business licenses on the state level. On the municipal level, however, many cities and counties in Oregon do require a business license. Regulated professions like food service and health care, as well as those dealing with regulated products like alcohol and firearms, also require additional, industry-specific licenses.
Businesses generally must also register through the Secretary of State’s business registry. (Sole proprietorships don’t need to register, unless they choose an assumed business name, hire employees, or are in a line of work that requires special licenses or permits to operate.)
Eli Krueger, an attorney at Northwest Corporate Law, works with entrepreneurs and small businesses and recommends starting with the state of Oregon’s Business Xpress site. It helps owners navigate registering a business, creating a business plan, hiring employees, determining tax obligations or special licensing requirements, and more.
“This is a nice central repository of a lot of business-related information, who to contact, and the sites to look at,” Eli says. “It’s a solid place to start getting your bearings.”
Types of business licenses in Oregon
Although not all businesses require licenses on the local, state, or federal level, business owners should be aware of possible steps at each level of government:
State requirements and resources
When starting a business in or expanding operations to Oregon, the initial step is generally to register with the Secretary of State office’s Oregon Business Registry. This is not a general business license, but rather a state-level registration that establishes your business entity.
Local requirements and resources
Research whether the city or county where your company is located requires a local business license, permit, or zoning considerations. Check your city’s and county’s sites—Oregon maintains a list of cities along with contact information—and if you see nothing specific about business licenses, call the city’s information number.
For home-based businesses, these local requirements may include a home occupation permit to ensure you’re operating within zoning regulations.
Specialized state and federal requirements
Specific licenses or permits are required for some companies based on both state and federal laws. Think health permits for restaurants and liquor licenses for bars, as well as special licenses for business activities like health care, cosmetology, and contracting.
The US Small Business Administration provides a list of federally regulated professions and the entities that issue these licenses; Oregon maintains its own License Directory at the state level.
When in doubt, seek advice from expert resources like small business associations, chambers of commerce, city employees, or lawyers.
How to apply for a business license in Oregon
- Determine your business structure
- Register your company
- Research local requirements
- Meet specialized state requirements
- Confirm local zoning compliance
- Obtain federal licenses and permits
- Renew registration and licenses
While requirements vary depending on the type of business and the laws in your jurisdiction, here are the general steps to apply for a business license in Oregon:
1. Determine your business structure
Start by choosing the appropriate business structure. Here are the main categories, increasing in complexity:
- Sole proprietorship. A sole proprietorship is a structure in which a single individual owns the business and is legally responsible for everything related to it, including debts, losses, and liabilities.
- Partnership. When two or more parties share responsibility for the profits and liabilities, the business is a partnership.
- Limited liability company (LLC). With a limited liability company (LLC), there is a more complicated legal structure than a sole proprietorship or partnership but reduced personal liability.
- Corporation. A corporation has a complex structure that often requires outside legal counsel to incorporate, but as a separate legal entity, owners are shielded from the corporation’s debts and any legal actions against it.
At this stage, you’ll also need to decide on a name for your business. You can check whether the name is available at Oregon’s Business Name Search database.
2. Register your company
Next, you’ll register your business with the state (sole proprietorships that don’t hire employees and don’t need licenses or permits to operate can skip this step). The Secretary of State’s office allows you to submit online, in person at the state’s capital in Salem, or via fax or mail. Online is the fastest method, but if you choose another method, the forms are available on the Secretary of State’s website. They’ll ask you to complete straightforward information like your business name, contact information, address, and number of employees.
If you have employees, or if your business is a partnership or corporation, these forms will ask you for an employer identification number (EIN). You can obtain one from the Internal Revenue Service via its website.
Note that this is a registration, not a business license, but it’s the first step for any business in Oregon. As of January 1, 2024, most new businesses in Oregon must also report ownership information to the Financial Crimes Enforcement Network within 90 days.
3. Research local requirements
If you’re within city limits, check your city’s municipal site first. Portland, for example, operates its own Bureau of Licenses. If you don’t see a specific listing for business licenses—or find yourself with remaining questions—pick up the phone and call the local city hall information number. Some counties, too, have licensing requirements.
"Most of the time, the people at your local government office are very happy to talk to a person who asks them a polite question."
“Most of the time, the people at your local government office are very happy to talk to a person who asks them a polite question,” Eli says. “Some of those folks have been there 30 years and can save you a lot of time if you can’t find the answer after clicking around a city website for more than a few minutes. Even if they can’t tell you the exact answer you need to know, they can often point you in the right direction of additional resources or contacts.”
4. Meet specialized state requirements
Several specialized occupations and business activities do require licenses, permits, or certifications from state agencies or self-regulating industry boards. For example, contractors must be licensed by Oregon’s Construction Contractors Board.
If you’re unsure about the requirements of your occupation, check the state’s License Directory tool, which allows you to filter results by industry categories.
5. Confirm local zoning compliance
If your business operates out of a physical location, you’ll need to ensure your activity complies with local zoning rules. If you operate your business out of your home, you may be required to obtain a special home occupation permit, especially if customers will come to your home.
Again, many city and county sites include information about zoning regulations—and some larger cities may have dedicated planning or zoning departments to contact.
6. Obtain federal licenses and permits
Business activities regulated by a US federal agency require a federal license or permit; this includes agriculture, transportation, alcohol, broadcasting, and more. The US Small Business Administration provides a list of federally regulated professions and the entities that issue these licenses.
If you work in an industry that isn’t regulated by the federal government, this step does not apply.
7. Renew registration and licenses
Periodically you must renew your business registrations and licenses. In Oregon, the registration for most types of businesses renews every year on the anniversary date of the original filing. The state automatically sends renewal notices about 45 days in advance.
How much does it cost to get a business license in Oregon?
Oregon has no state business license requirement, but most companies must register with the state. Registration fees vary but are relatively nominal. For an LLC based in Oregon, for example, you’ll pay $100 to register and renew each calendar year.
Some types of business activities may require a local business license or specialized permit. Fees vary, but in several industries, these cost no more than a few hundred dollars, Krueger says.
Oregon business license FAQ
Does Oregon require a business license?
Oregon does not offer a state-level business license, but many businesses operating in the state must register with the Oregon Secretary of State. On the local level, several cities and counties have their own license requirements. Certain regulated industries also require licenses, permits, or certifications from state and federal agencies.
Can you run a home-based business in Oregon?
Yes. Some municipalities may require you to obtain a home occupation permit to comply with zoning laws, so check with your local planning or zoning department.
How do you start a business in Oregon?
Develop a business plan; choose a business structure and register your business with the Oregon Secretary of State if needed; obtain required licenses from the city or county where you operate, if applicable; obtain special industry licenses, permits, or certificates from state or federal agencies, if applicable; open a business bank account; understand your tax obligations; establish a physical or online presence; and market your business.