How to Get an Oregon Business License

Do you need a business license in Oregon?

Whether or not you need a business license in Oregon depends on a number of factors, including where you intend to operate your business, what industry you’re in, and how your business is structured. Depending on your specific needs and intentions, you might have to navigate state, local, and federal licensing requirements before you can start doing business.

Oregon state

Oregon doesn’t have a general business license, but almost every industry has one or more licensing requirements for businesses operating within the state. The Oregon Secretary of State’s office manages a searchable directory for business licenses which contains entries for more than 1,100 different types of business licenses, permits, or certifications.

Whether you’re opening a hair salon, a mechanic’s shop, an engineering firm, or any other type of business in Oregon, it’s a good idea to check the directory for a relevant license—the odds are good you’ll find an entry for your proposed business.

Local

Certain municipalities have additional, local business licenses for those wishing to conduct business activities within their city limits. These types of licenses will vary from city to city, so it’s best to check with your county or municipal licensing agency to determine whether your business is subject to additional requirements.

The Oregon Secretary of State’s office offers licensing resources for businesses opening in Portland, Salem, Eugene, and Medford on its business license requirement page, and suggests calling the city’s information number and the county administrative offices in other locations to determine the appropriate regulatory body for your location.

Federal

Federal business licenses are required for certain industries and can be identified and secured through the U.S. Small Business Administration’s online portal. These licenses cover a large number of industries, including agricultural businesses, mining and drilling operations, firearm manufacturers and sellers, and businesses involved in the production and sales of alcoholic beverages, among many others.

Just like with state licensures, it’s important to double check the list of federal licenses for an entry relevant to your business to ensure your bases are covered at all regulatory levels.

How to get a business license in Oregon in 5 steps

Securing licenses for your Oregon business is a five step process, starting with the development of a business plan and ending with fulfilling state, local, and federal regulatory requirements.

Step 1: Finalize your business plans

Before you apply for business licenses, you’ll need to solidify your plans for your business and its structure. This includes things like choosing a name, choosing a business structure, and appointing any key stakeholders and leadership positions within the company.

The types of licenses you’re required to hold might depend on how the business is set up—what’s required from a limited liability company (LLC) might differ substantially from the requirements for a corporation or some other business structure. Finalizing these key details will give you a clearer path forward with regards to licensing and permit requirements.

Step 2: Assemble administrative and financial documents

Once you know how your business will be structured and what types of services or products it will offer, the next step is to determine how your business will file taxes and draft articles of incorporation or organization (if necessary for your business structure). These documents outline things like your business’ executive officers, registered agent, and other critical administrative information.

You’ll also need to determine whether you plan to hire employees, open a business bank account, or operate under any assumed business names besides your primary company name.

Step 3: Apply for an Oregon business license

Once you have all the necessary paperwork and have done your administrative due diligence, it’s time to apply for your business license. In the state of Oregon, this can be done through the state’s online Business Xpress portal. This utility will help you identify which state licenses apply to your business and what license fees are associated with starting a business in your field of choice.

Step 4: Check for local licenses

Once your state licenses are taken care of, it’s important to check what municipal and county licenses are required for the city or town in which your business is located. This process can be accomplished through the same Business Xpress portal as your state licenses, but it’s also a good idea to check with your local city hall or county administrative offices if you’re unsure which licenses are required for your business.

Step 5: Apply for federal licenses

The final step in securing your required business licenses in Oregon takes place at the federal level. Not all businesses are required to hold federal licenses, but you should always check for your business to ensure you aren’t missing any important credentials. This process can be done through the U.S. Small Business Administration or through an option like LegalZoom’s business licensing services.

After getting your Oregon business license

Once you have all your necessary licenses, you’ll need to stay on top of renewing them and submitting the necessary reports to keep your business in good standing. In Oregon, business licenses are renewed on a yearly basis contingent on the business’ submission of an annual report. Other types of business licenses vary in their renewal periods, and you should check with the corresponding licensing agencies for more information on the renewal process and its frequency.

Certain types of licenses must be displayed publicly in your place of business, and others require certain information to be publicly available when your business is operating. Always double-check for ongoing requirements when applying for and renewing licenses, and ensure those requirements are met before starting to operate your business.

It’s also a good idea to check on your licenses’ requirements anytime there is a significant change to the structure of your business, or if your location changes from one county or municipality to another. A change in structure or location may necessitate new licenses, or updates to existing ones. You may find that your new structure or location requires fewer licenses, or that your licenses remain completely unchanged.

Getting an OR business license the easy way

With so many varying types of licenses required for Oregon businesses, it can become overwhelming trying to determine which ones are necessary for your type of business and location. In order to streamline the process and ensure all the necessary licenses are secured with local and state agencies as well as the federal government, LegalZoom offers an all-in-one licensing search and registration tool for Oregon business owners.

This utility identifies any and all licenses required for your business, taking into account your business structure, location, and industry, and presents the licenses and their applications in one place so you can be sure you’re submitting the right paperwork at the right time, no matter what your business needs might be. 

FAQs

What should I do before getting a business license?

There’s a great deal of work to be done before securing your Oregon business license, from business plans and initial marketing concerns to administrative work and product development. A good place to start once you’ve decided to make your business official is with an Oregon business search to ensure your business name hasn’t already been claimed.

How much is a business license in Oregon?

Because there is no general business license in Oregon, there’s no one-size-fits-all price for licenses in the state. 

Industry-specific licenses and local regulations can vary substantially, with some industry licenses costing under $100 and others costing more than $200 yearly. Local requirements vary as well, with certain municipalities charging yearly fees in excess of $100. Generally, Oregon business owners can expect to spend anywhere from $100 to $400 on licensing each year, although there are exceptions on either end of this range.

How long does it take to get a business license in Oregon?

As with the cost, the turnaround time for an Oregon business license approval can vary from industry to industry and place to place. Some licenses will be ready within a few days, while others might take 2-3 weeks to process. Generally speaking, licenses submitted online will usually be processed faster than those submitted by mail.

What happens if I don’t get the necessary business licenses in Oregon?

Proper licenses are required by state law in Oregon, and failure to obtain them can come with serious consequences. Without the right licenses, your business could face fines or even closure if the issues aren’t addressed in a timely manner. Operating a business without a license can also leave your business vulnerable to lawsuits if something goes wrong with your products or services.