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 Oregon. 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. Like most states, Oregon has no general state business license, 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 at the city, county and federal levels.
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 your city’s website or business license office 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.
| Item | Cost |
|---|---|
| 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, Portland charges a business license tax of 2.6% of adjusted net income (minimum $100) instead of a flat fee. Businesses with less than $50,000 in gross receipts are exempt. Multnomah County adds a 2% business income tax, with an exemption under $100,000. Registering is free. |
| Temporary business license | If you’re just doing business for a short time in Oregon, different rules apply. Short-term and seasonal vendors may need a temporary license or event permit from the city. |
| License renewal | Renewal costs vary widely. In Portland, you file an annual business tax return instead of renewing a license. Hillsboro charges a $105 application fee plus $5 per person in the business, including owners, with the per-person fee capped at $725. |
| Professional license | Professional licenses depend on your field. If you are a doctor, for instance, the Oregon Medical Board, which licenses most types of doctors, charges MD and DO applicants a $375 application fee. 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. Renewing an active medical license costs $756 every two years. For law licenses, contact the Oregon State Bar for current fees. |
| State-level specialty licenses | Some fields are regulated by the state. For instance, a brewery license costs $1,000 a year, and a brewery-public house license costs $500. 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. You’ll need to research the subject for your industry and location. 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 form 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.
FAQ
To get the licenses you need to legally operate, you’ll need to contact your city or county to determine what they require. You should also check any state boards that govern your activities and look to the federal level to see if you need specific licensing in your industry.
There is no standard amount of time to get a business license in Oregon, because there is no standard licensing path. Instead, timing will vary from a few days to a few weeks (or more) depending on the type of license you need.
If your city or field requires licensing, then yes, you’ll need a license even if you have an LLC, or limited liability company.
No, forming an LLC is not the same as meeting business license requirements in Oregon. An LLC is a legal business structure registered with the state, while a license is permission to carry out certain activities in a city or industry. You may need both.
If you want to start a business in Oregon and fail to get the appropriate licensing, you may face fines, penalties or orders to stop operating until you’re licensed.