How Much Does a Business License Cost in Oregon?

They say you’ve got to spend money to make money. While you should treat this advice with a grain of salt, there’s some truth to it, because there really is a cost of doing business. One of the main costs you’ll need to consider: How much is a business license in Oregon?

The good news is, Oregon doesn’t have a blanket business license for just anyone operating within the state. However, there are plenty of other requirements, specifically licenses and permits, if you want to start a business in the state. Those costs vary depending on business type, location, and licensing level.

If you want to understand the nuances of the Oregon business license cost, what the fees are for the different possible licenses and permits, and whether you need one to operate legally, you’ve come to the right place.

Do you need a business license in Oregon?

Business license costs vary state by state. In Oregon, you do not need a state-level business license. Unlike many other states, Oregon has no flat business license cost, so you’ll instead need to look to the city, county, and federal levels for license costs when you start a business in Oregon.

Moreover, you’ll need to check permits, which may apply at the state level (for instance, the Oregon liquor license), as well as the other 3.

How much does a business license cost in Oregon?

While there is no flat Oregon business license cost, the costs of getting the right licenses at the city, county, state, or federal level can stack up considerably. For small businesses operating online, you may only pay a few hundred dollars, while larger companies in industries regulated by the federal government may pay thousands. In many cases, you’ll need to plan not only for application fees, but also for yearly renewal fees.

The bottom line is that you must make sure you’re on top of licensing, regardless of cost. Failure to obtain appropriate documentation can mean you’re not legally allowed to do business in Oregon.

Types of business licenses in Oregon and their cost

There are a few types of Oregon business license cost to consider:

City business licenses

Many cities in Oregon, if not most, require you to have a business license specific to that city. Check out your city’s chamber of commerce to learn more.

Pro Tip: Your local municipality is a great place to start when looking for information on necessary licenses and permits. They’ll not only know what’s required in your city, but can also advise on potential county, state, and federal licenses that apply to you.

County business licenses

Like cities, counties may require business licenses. Again, you’ll need to contact your county seat to figure out what the requirements are for your area.

State-level permits

Some professions, such as childcare, alcohol and food, construction, or law, will require licenses from the state. Look into your industry to determine if this affects you.

If you’re not sure what licenses you might need, check Oregon’s Business Xpress License Directory for more information. There, you can input keywords that relate to your business and determine whether you need licensing to do business or not.

Note that there is no seller’s permit because Oregon doesn’t have sales tax.

Federal licenses

Some industries are regulated by the federal government, such as fisheries, maritime transportation, broadcasting, or nuclear energy. You can see a complete list and their requirements on the U.S. Small Business Administration website.

Type of license/permit	Cost/rules
Business registration	While not a license, registering is a necessary first step in doing business in Oregon. It costs $100, and you can find the necessary information on the Oregon Secretary of State website.
City or county license	Most cities in Oregon require a business license. Sometimes you will also need to have a county license or, if you live in unincorporated areas, you’ll be governed only by the county.The cost of a city or county license varies. For example, instead of a flat licensing fee, the City of Portland charges a 2.6% tax on annual revenue for those whose gross receipts exceed $50,000. License application is free.
Temporary business license	If you’re just doing business for a short time in Oregon, different rules apply. For instance, if you are a seasonal vendor in Portland, you will have to pay $10/day per location up to a total of $100 per location.
License renewal	Renewal costs vary widely. In the Portland area, your license is renewed as long as you pay your taxes and keep your other licenses and permits current.In Hillsboro, on the other hand, you must pay a base fee of $25, plus $5 per person after 2 and before 147 people, for a max licensing cost of $725.
Professional license	Professional licenses depend on your field. If you are a doctor, for instance, you must pay $1,171 to apply for your license, per the Oregon Medical Board, which licenses most types of doctors.For lawyers, the Oregon State Bar governs licensing. Your first-time license involves a number of fees depending on your situation, so you’ll need to contact them.
Professional license renewal	Again, this depends on your field. To renew a medical license costs $376. To renew a law license currently costs $683 in Oregon.
State-level specialty licenses	Some fields are regulated by the state. For instance, it costs $1,000 to operate a brewery in Oregon. Other Oregon liquor licenses cost different amounts.

As you can see, the total Oregon business license cost depends on a wide variety of factors, from your industry to your jurisdiction, to whether you’re applying for a first-time license or renewing it.

Pro Tip: When calling or researching what licenses you need, take the opportunity to ask anyone you speak with about applicable permits as well. While they might not be an expert outside their jurisdiction, they can usually point you in the right direction.

Types of businesses that require a license in Oregon

An important factor in Oregon business license cost is which field you’re in. While the types of businesses that require a business license in Oregon are too numerous to be mentioned here, there are certain regulated fields that will always need one. These include:

• Medicine, dental, or veterinary care
• Law
• Food and alcohol service
• Childcare
• Construction
• Regulated products (e.g., cannabis)

The best way to determine if you need a license depends on your current situation. If you’re still in school, let your professors or counselor guide you. If you’re starting a business at any other time, you’ll need to research the subject on your own. Calling your municipality can help you cut to the chase.

Renewing your business license in Oregon

The rules for renewing business licenses are listed on the applicable websites of each governing body. Make sure you stay on top of renewals, because late fees and penalties can stack up quickly.

Pro Tip: When you first apply for your license, make sure to ask about the requirements for renewal. Write them down somewhere, then set a date on your calendar for renewal. If the governing body offers reminders, you might consider signing up for them as well.

Get help starting your business in Oregon

If you’re stressed out just thinking about how to figure out your Oregon business license cost or the other requirements to start a business in Oregon, it’s okay to get some help. Here at Tailor Brands, that’s exactly what we do: Help small business owners just like you to figure out what’s needed and get the job done. If you’re at the very beginning of the process, you can also read our guide on how to start an LLC in Oregon to set up your business properly before tackling licenses and permits.

Want to learn more? Get in touch with us today!

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