Oregon Business License in 2026: Secretary of State Registration, City Licenses, Portland Business Taxes and the CAT

Oregon is one of the simpler states to open a business in, and one of the easiest to misunderstand. There is no general state business license and no sales tax, so many owners assume there is nothing to register. In practice you still register with the Secretary of State, check the Oregon License Directory for activity-based licenses, sign up for any state taxes you owe, and deal with your city. In Portland that means registering for three local business taxes within 60 days. This guide explains each layer, the 2026 thresholds and rates, and how the numbers work for real businesses, using Oregon Secretary of State, Department of Revenue and City of Portland pages checked in October 2026.

Quick answer

Oregon has no general state business license and no sales tax (0%). Most businesses instead register with the Secretary of State (an LLC pays $100 to form and $100 a year to renew), get any activity-specific license listed in the Oregon License Directory, and follow city rules. In Portland, register for the 2.6% Business License Tax and 2% Multnomah County tax within 60 days. Businesses above $1 million of Oregon sales owe the Corporate Activity Tax.

• Sole proprietors trading under another name register an assumed business name ($50, renewed every two years)

• No seller's permit; buyers can use the Oregon Business Registry Resale Certificate with out-of-state suppliers

• Portland's gross receipts exemption rose to $75,000 for 2026 and goes to $100,000 in 2027

• Register for the CAT within 30 days of reaching $750,000 in Oregon commercial activity

• Contractors need a CCB license ($400 for two years)

Does Oregon require a business license?

Not a general one. Oregon never adopted a statewide license that every business buys, the way Washington or Nevada did. What it has is a business registry run by the Secretary of State's Corporation Division, a long list of licenses tied to particular activities, and local rules that vary by city and county. Whether you need anything beyond registration depends entirely on what you do and where.

The Secretary of State's Oregon License Directory, part of the Business Xpress portal, is the place to start. You search by activity or keyword, and it lists the state licenses, permits and registrations that may apply, along with the agency and any city or county links. A café, for example, will find food service licensing, a liquor license if it serves alcohol, and possibly a sign permit; a home inspector will find the Construction Contractors Board certification.

The other half is local. Cities and counties set their own business license or registration rules, zoning and home occupation limits, and in a few places their own business taxes. Portland and Multnomah County are the big example, but many other cities ask businesses to register or buy a license, so contact your city hall before opening.

Registering with the Secretary of State

LLCs, corporations, limited partnerships and limited liability partnerships register with the Corporation Division, usually online. An Oregon LLC files articles of organization for $100, and so does a business corporation. Both renew every year on the anniversary of registration for $100, which is how Oregon handles its annual report. A business formed in another state registers as a foreign entity for $275 and renews annually for the same amount. The division says online filings, new and renewal, take one to three business days.

Renewal notices go out about 45 days before the due date, and you can sign up for electronic notices. You renew online by retrieving your registry number, updating any information and paying by card, and the filed report comes back by email. Missing a renewal can lead to administrative dissolution, which then has to be reinstated before you can, for instance, get a certificate of existence for a lender.

A sole proprietor or partnership that trades under any name other than the owners' real names registers an assumed business name for $50. It lasts two years and is renewed for the same fee. An LLC that trades under a brand different from its registered name also files one. An assumed business name does not create a separate legal entity or give trademark rights; it simply puts the true owner on public record. Our DBA guide explains how this compares with other states.

No sales tax, but other state taxes

Oregon does not have a general sales or use tax, and the Department of Revenue says so plainly. You do not apply for a seller's permit, you do not charge sales tax to customers, and you file no sales tax returns. The main exception at state level is a vehicle use tax on new vehicles bought outside Oregon, paid before the vehicle is titled. A few local governments levy taxes on specific things such as lodging or prepared food, so check locally if you run a hotel or restaurant.

One practical wrinkle catches retailers who buy from out-of-state suppliers. Because Oregon issues no sales tax numbers, an Oregon business buying stock for resale gives the supplier the Oregon Business Registry Resale Certificate rather than a resale permit. You keep it on file and do not send it to the Department of Revenue. The supplier may accept it, but is not required to, so ask before you place a large order. If you sell into other states, you may still have to register and collect their sales tax once you pass their thresholds.

Employers register with the Department of Revenue through Revenue Online for state income tax withholding and the statewide transit tax, and with the Employment Department for unemployment insurance. An FEIN from the IRS is required for LLCs, corporations and partnerships; a sole proprietor needs one only if it has employees or files certain non-income taxes. The Department of Revenue does not list a fee for registering.

The Corporate Activity Tax

Oregon's Corporate Activity Tax, or CAT, is a tax on gross receipts, and despite its name it applies to almost every type of business entity, including sole proprietors, partnerships and S corporations. A business must register with the Department of Revenue within 30 days of having $750,000 or more of Oregon commercial activity in a calendar year. It must file a return once Oregon commercial activity exceeds $1 million, and pays tax once its taxable commercial activity exceeds that amount.

The calculation starts from Oregon commercial activity, then subtracts 35% of the greater of your cost inputs or your labor costs, apportioned to Oregon. The tax is $250 plus 0.57% of taxable commercial activity above $1 million. Returns are due on the 15th day of the fourth month after the tax year ends, April 15 for calendar-year filers, and a seven-month extension to file is available for tax years beginning in 2024 or later. If you expect to owe $5,000 or more, you make quarterly estimated payments.

Oregon state thresholds at a glance (2026)

0%

State sales tax

No seller's permit

$750,000

CAT registration

Within 30 days

$1 million

CAT filing threshold

$100

LLC annual renewal

Portland, Multnomah County and Metro business taxes

Portland does not sell a traditional business license with a flat fee. Instead, the City of Portland Revenue Division administers three business income taxes on one combined return: the City of Portland Business License Tax at 2.6%, the Multnomah County Business Income Tax at 2%, and, for larger businesses, the Metro Supportive Housing Services Business Income Tax at 1%. All three are based on net income apportioned to the area, not on gross sales. Any business operating in Portland or Multnomah County must register within 60 days of starting.

The exemptions are based on gross receipts. For tax years beginning in 2025, businesses with less than $50,000 of gross receipts were exempt from the Portland tax. That threshold rose to $75,000 for tax years beginning in 2026 and is set to reach $100,000 for tax years beginning in 2027. The Multnomah County exemption is $100,000. The Metro SHS tax only applies to businesses with gross receipts over $5 million that operate in the Metro region, which covers most of the Portland area across Multnomah, Washington and Clackamas counties.

Returns are generally due when your federal and state income tax returns are due, April 15 for calendar-year filers. You can get a six-month extension to file, but not to pay, so estimate and pay by the original date. Portland also has separate permits for some activities, such as food carts and short-term rentals, on top of the business tax registration.

How to get set up in Oregon, step by step

The sequence below works for most small businesses. Start with your name and structure, then licenses, then taxes, and only then open the doors. Keep copies of every confirmation, because lenders, landlords and local permit offices often ask for them.

Getting set up in Oregon

1. 1

   Choose a structure and check the name

   Search the Oregon Business Registry. LLCs and corporations file with the Secretary of State ($100); sole proprietors with a trade name file an assumed business name ($50).

2. 2

   Get an EIN

   Free from the IRS; required for LLCs, corporations, partnerships and any business with employees.

   EIN guide
3. 3

   Search the Oregon License Directory

   Find any state license, permit or registration for your activity, such as a CCB license, food license or liquor license.

   Oregon License Directory
4. 4

   Register with your city and county

   Ask city hall about business licensing and zoning. In Portland or Multnomah County, register for the business taxes within 60 days.

5. 5

   Register for state taxes you owe

   Payroll taxes through Revenue Online and the Employment Department if you hire; the CAT within 30 days of reaching $750,000.

Worked examples

A freelance graphic designer in Portland expects $70,000 of gross receipts in 2026. That is under the $75,000 Portland exemption and the $100,000 county exemption, so she owes neither business tax for 2026, but she still registers with the Revenue Division within 60 days of starting. Had she earned the same amount in 2025, the old $50,000 threshold would have put her over the line for the Portland tax. She trades as "Northwest Pixel", so she registers that assumed business name for $50.

A Portland gift shop run as an LLC has $400,000 of gross receipts and, in a simplified case, $60,000 of net income apportioned entirely to Portland. Its Portland Business License Tax is $60,000 × 2.6% = $1,560, and its Multnomah County Business Income Tax is $60,000 × 2% = $1,200, before any deductions or credits the city and county allow. It is well below the Metro SHS threshold and the CAT threshold. It collects no sales tax, and it renews its LLC each year for $100.

A wholesale distributor in Salem has $3,000,000 of Oregon commercial activity, $2,000,000 of cost inputs and $600,000 of labor costs. It subtracts 35% of the larger figure, cost inputs, so $700,000, leaving $2,300,000 of taxable commercial activity. Its CAT is $250 plus 0.57% × ($2,300,000 − $1,000,000) = $250 + $7,410 = $7,660. Because that is over $5,000, it also makes quarterly estimated payments.

Add up your Oregon registration and license costs

Registration, Legal & LicencesEquipment & Fit-outOpening InventoryLaunch MarketingMonthly Operating CostRunway Needed

One-Time Costs₹7,00,000.00

Working Capital Reserve₹10,80,000.00

Recommended Buffer (10%)₹1,78,000.00

Total Capital Required₹19,58,000.00

Open the full Startup Cost Calculator (PDF, save, compare)

Contractors and other state licenses

Construction is the most common licensed activity. Oregon requires anyone who works for pay on construction that improves real property to hold a Construction Contractors Board license. That covers general contractors and remodelers, and also roofers, painters, electricians, plumbers, HVAC installers, tree services, home inspectors and handymen. Gutter cleaning, pressure washing and debris clean-up do not need one.

The CCB license lasts two years and costs $400. The fee rose from $325, which had been unchanged since 2010, for renewals from July 1, 2024 and for new applications from July 1, 2025. Applicants must be at least 18, complete 16 hours of pre-license training and pass an open-book exam, and then carry a surety bond and liability insurance. A residential general contractor, for example, needs a $25,000 bond and at least $500,000 of liability insurance per occurrence.

Many other activities have their own regulators. Restaurants and food carts need licensing from the county health department or the state Department of Agriculture, alcohol sellers need an Oregon Liquor and Cannabis Commission license, and health and personal care professions, real estate brokers, property managers and many trades answer to their own boards. The License Directory links each one.

Oregon setup checklist

0/8

• Entity registered with the Secretary of State, or assumed business name filed
• EIN from the IRS (if required)
• Oregon License Directory searched for your activity
• City business license or registration and zoning approval
• Portland / Multnomah County business tax registration within 60 days (if applicable)
• Payroll registrations if you hire
• CAT registration if Oregon commercial activity reaches $750,000
• Annual renewal date for your entity in the calendar

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Common mistakes and how to fix them

The first mistake is assuming no sales tax means no registration. You still register your entity or trade name with the Secretary of State, and local registrations and state licenses still apply. If you have been trading under a brand without an assumed business name, file one now; it costs $50.

The second is skipping Portland's registration because you are under the exemption. The exemption decides whether you owe the tax, not whether the city expects to know you exist. Register within 60 days, and watch the threshold: it moved from $50,000 to $75,000 for 2026 and rises again in 2027.

The third is ignoring the CAT until the first return. Registration is due within 30 days of reaching $750,000, before you are required to pay anything, and businesses that will owe $5,000 or more must pay quarterly. Track Oregon commercial activity from the start of the year so you are not caught out in the autumn.

The fourth is letting the annual renewal lapse. Oregon's entity renewal replaces the annual report. Missing it can lead to administrative dissolution, which then has to be fixed by reinstatement before you can get a certificate of existence or, in some cases, renew other licenses.

The fifth is forgetting where the work happens. The Portland and Multnomah County taxes follow business activity in the area, not just your mailing address, so a contractor or consultant based in a suburb who regularly works for clients inside Portland should check with the Revenue Division whether it needs to register and apportion income there. The same thinking applies to city licenses elsewhere in Oregon: a business that sends crews or trucks into several cities may need to register in each.

When you close, tell every agency you registered with. File articles of dissolution or cancel the assumed business name with the Secretary of State, file final payroll and CAT returns with the Department of Revenue, and close your Portland business tax account, so renewal fees and filing reminders stop.

Official Oregon links

• Secretary of State — Register a businessBusiness Registry, online filing
• Business Registry fee schedule (PDF)
• Oregon License DirectoryState licenses by activity
• Department of Revenue — Sales tax in Oregon
• Department of Revenue — Corporate Activity Tax
• City of Portland — Business taxesPortland, Multnomah County and Metro SHS
• Construction Contractors Board — How to get a license

What to do next

Pick your structure with our LLC registration guide, check your name with the LLC name checker, and search the Oregon License Directory for your activity. If you are in Portland, register with the Revenue Division as soon as you start. For a comparison with the state next door, which does have a general license, see our Washington business license guide, and for a food cart start with the food truck license guide.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Does Oregon require a business license?

Oregon has no general statewide business license. Instead, you register your entity or assumed business name with the Secretary of State, get any state license your activity needs (found in the Oregon License Directory), register with the Department of Revenue for payroll or the Corporate Activity Tax if they apply, and follow your city's rules, such as Portland's business tax registration.

Does Oregon have a sales tax?

No. Oregon has no general sales or use tax, so there is no seller's permit to apply for and nothing to collect at the register. Out-of-state suppliers can accept the Oregon Business Registry Resale Certificate when you buy goods for resale. The main exception is a vehicle use tax on new vehicles bought outside the state.

What is the Portland business license tax rate?

The City of Portland Business License Tax is 2.6% of net income, and the Multnomah County Business Income Tax is 2%. For tax years beginning in 2026, businesses with gross receipts under $75,000 are exempt from the Portland tax, and under $100,000 from the county tax. Larger businesses in the Metro region may also owe the 1% Metro SHS tax.

Who has to pay Oregon's Corporate Activity Tax?

Any business entity, including sole proprietors and pass-through entities, with more than $1 million of taxable Oregon commercial activity in a year. You must register within 30 days of reaching $750,000. The tax is $250 plus 0.57% of taxable commercial activity above $1 million, after subtracting 35% of the larger of cost inputs or labor costs.

How much does it cost to register an Oregon business?

An Oregon LLC pays $100 to file articles of organization and $100 each year to renew. A domestic business corporation pays the same. An assumed business name costs $50 and is renewed every two years. Online filings are usually processed in one to three business days.

Do contractors need a license in Oregon?

Yes. Anyone paid to do construction work that improves real property, including roofing, painting, handyman work and home inspections, needs a Construction Contractors Board license. The two-year license costs $400, and applicants complete 16 hours of training, pass an exam, and carry a bond and liability insurance.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Sales Tax in Oregon — Oregon Department of Revenue · accessed 9 October 2026
2. 2.Corporate Activity Tax — Oregon Department of Revenue · accessed 9 October 2026
3. 3.Register my business with Oregon tax programs — Oregon Department of Revenue · accessed 9 October 2026
4. 4.Business Registry Fee Schedule — Oregon Secretary of State · accessed 9 October 2026
5. 5.Register a Business / Renewal Help — Oregon Secretary of State · accessed 9 October 2026
6. 6.Oregon License Directory — Oregon Secretary of State (Business Xpress) · accessed 9 October 2026
7. 7.Business taxes — City of Portland Revenue Division · accessed 9 October 2026
8. 8.Portland City Code 7.02.400 — Exemptions — City of Portland · accessed 9 October 2026
9. 9.How to Get a CCB License — Oregon Construction Contractors Board · accessed 9 October 2026
10. 10.CCB Fee Increase — Oregon Construction Contractors Board · accessed 9 October 2026