How to Start a Business in Oregon: 2026 Guide

Last updated: November 2026

If you want to know how to start a business in Oregon, the process is more straightforward than it first looks. The state runs most of its registration through one online portal, an LLC costs $100 to form, and Oregon has no sales tax and no general statewide business license. The steps below work for most new owners, whether you plan to open a shop in Portland, run a service business in Salem, or work from home in Eugene.

The headline numbers to know: forming an LLC in Oregon costs $100, the annual report costs $100, and registering an assumed business name costs $50. Oregon also has no sales tax, so you do not need to collect it from customers — but you do need to know about the state’s Corporate Activity Tax if your sales grow large enough.

Contents

• Pick a business idea and structure
• Name your business
• Pick a registered agent
• File your formation paperwork
• Write an operating agreement
• Get an EIN and a BIN
• Register for Oregon taxes
• Licenses and permits
• Open a business bank account
• Hiring employees
• Ongoing duties and costs
• Common mistakes
• Checklist
• Frequently asked questions

1. Pick a business idea and structure

Start with what you will sell and who will buy it. A clear idea makes every later step easier, from naming the business to picking the right licenses. You do not need a perfect plan, but you should know your product or service, your likely customers, and how you plan to charge.

Next, pick a legal structure. The three most common choices for small owners are:

• Sole proprietorship: You and the business are the same in legal terms. It is simple and cheap to start, but your personal assets are not protected if the business runs into debt or a lawsuit.
• LLC (limited liability company): The most popular choice for small businesses. It separates your personal assets from the business and keeps the paperwork light.
• Corporation: Best if you plan to raise outside money or issue shares. It comes with more formal rules and record-keeping.

If you are just starting out and want protection without heavy paperwork, an LLC is usually the right call. Oregon’s Small Business Development Centers offer free one-on-one counseling across the state, which is a good place to talk through the choice. If you are still unsure about the basics, read this beginner’s guide to starting a business first.

2. Name your business

Your business name must be different from every other business name already registered in Oregon. For an LLC, the name must also include a designator such as “LLC” or “Limited Liability Company” at the end.

Check name availability through the Oregon Business Registry’s business name search before you file. If you have a name you love but are not ready to file yet, you can reserve it while you get ready.

Pick a name that is easy to say, easy to spell, and easy to remember. Check that a matching domain name is free too, since most customers will look you up online first. If you plan to trade under a name other than your legal business name, you will need to register that name as an assumed business name, which costs $50 and is good for two years. See this guide on how to register a DBA for how that works.

3. Pick a registered agent

Oregon requires every LLC and corporation to have a registered agent: a person or company with a physical Oregon street address who can receive legal papers for your business during business hours. A P.O. box does not count.

You can act as your own registered agent if you have an Oregon address and are there during business hours. Many owners use a commercial registered agent service instead, mainly to keep a home address off the public record and to make sure nothing important gets missed.

4. File your formation paperwork

For an LLC, the filing is called the Articles of Organization. You file it with the Oregon Secretary of State, online through the Oregon Business Registry. The filing fee is $100, and online filings are usually processed in about one business day.

The filing asks for your LLC name, your registered agent’s name and Oregon address, and organizer details. Once the state accepts it, your LLC legally exists. A corporation files Articles of Incorporation instead, also for $100, and a nonprofit files for $50.

You can also file by mail, but online is faster and you get your confirmation back sooner. Keep the confirmation and your filing receipt with your business records.

5. Write an operating agreement

Oregon does not require you to file an operating agreement, but you should still write one. It sets out who owns what share of the business, how profits are split, how decisions are made, and what happens if an owner leaves. Without one, state default rules decide these questions for you, and those defaults may not match what you intended. This matters even more if you have a business partner.

6. Get an EIN and a BIN

An EIN (Employer Identification Number) is a free federal tax ID from the IRS. You need one if you hire employees, and banks usually ask for it when you open a business account. Even a single-owner LLC often gets one to keep business and personal finances separate. You can apply free on the IRS website; see this guide on how to get an EIN for the step-by-step process.

Oregon has a second number to know about: the BIN (Business Identification Number). When you register for Oregon taxes, the Oregon Department of Revenue gives you a BIN for your state tax accounts. The BIN is a state number. It is not the same as the federal EIN, so do not mix them up on your forms.

7. Register for Oregon taxes

Once you have your EIN, register for state taxes with the Oregon Department of Revenue. The main Oregon taxes to know are:

• Personal income tax: Oregon’s personal income tax rates run from 4.75% to 9.9%. Income that passes through from an LLC or S corporation to its owners is taxed at these rates, so set money aside as you earn it.
• Corporate Activity Tax: If your business has more than $250,000 in Oregon sales in a year, you must register for the Corporate Activity Tax. The minimum tax starts at $150. Most very small businesses stay under the threshold, but check the rule as you grow.
• Employment taxes: If you hire staff, you will owe unemployment insurance tax and workers’ compensation coverage, plus federal payroll taxes.
• No sales tax: Oregon has no general state sales tax, so you do not need a sales tax permit or collect sales tax from customers. This is one of the biggest differences between Oregon and most other states.

Register before you make your first sale or your first hire, not after. Late registration can mean penalties on taxes you should already have been paying.

8. Licenses and permits

Oregon has no general statewide business license that every business must hold, which surprises a lot of new owners. That does not mean you need nothing. Check three layers instead: your city license, your county requirements, and any industry-specific permits.

A restaurant needs health permits, a contractor needs trade licensing, and a home-based business may need local zoning approval. The best place to check is the License Directory on Oregon Business Xpress, the state’s one-stop portal. You can search it by business type and location to see which licenses apply to you. This guide on how to get a business license explains the general process.

If you do business in Portland, check the city’s own rules too. Portland has a business license tax that applies to most businesses operating in the city, and it is separate from anything the state asks for.

9. Open a business bank account

Open a separate business bank account as soon as your LLC is formed. It keeps your personal and business money apart, which protects your liability shield and makes tax time far simpler. Bring your Articles of Organization, your EIN letter, and your operating agreement; most banks ask for at least the first two.

10. Hiring employees

If you plan to hire, there are a few registrations to handle before your first payday. Register as an employer with the Oregon Employment Department for unemployment insurance tax, and set up workers’ compensation coverage, which Oregon requires for nearly every employer. You will also need to withhold federal income tax and pay federal payroll taxes, and report new hires to the state.

Post the required workplace notices, keep payroll records, and check whether your city has its own rules. Portland, for example, has local requirements on top of the state ones.

11. Ongoing duties and costs

Staying in good standing in Oregon is straightforward, but the dates matter:

• Annual report: Every LLC and corporation must file an annual report with the Secretary of State. The fee is $100 for a domestic business ($275 for a foreign one). The report is due each year on the anniversary of your original filing date, and the state sends a reminder about 45 days before it is due.
• Assumed business name renewal: If you registered an assumed business name, it lasts two years. Renew it for $50 before it expires, or the name becomes free for someone else to take.
• Tax filings: File your Oregon income tax and, if it applies, your Corporate Activity Tax on the schedule the Department of Revenue assigns you.
• License renewals: City and specialty licenses renew on their own cycles; keep a list with dates.

Total state cost for a typical first year: $100 to form the LLC, plus $100 for the annual report when its anniversary comes around. A registered agent service, if you use one, is extra.

12. Common mistakes

• Missing the annual report date: The report is due on your filing anniversary, not at the end of the year. Put the date in your calendar the day you form the business.
• Assuming no license means no rules: There is no general state license, but city and industry permits still apply — and Portland has its own business license tax.
• Mixing up the EIN and the BIN: The EIN is federal, from the IRS. The BIN is from the Oregon Department of Revenue. Use the right number on the right form.
• Forgetting the Corporate Activity Tax: No sales tax does not mean no business tax. Once your Oregon sales pass $250,000, the CAT applies.
• Mixing personal and business money: One shared account can weaken the liability protection you formed the LLC to get.
• Using a P.O. box as a registered agent address: The state requires a physical Oregon street address.

13. Checklist

• Choose your business idea and structure
• Pick and check your business name (reserve it if needed)
• Pick a registered agent with an Oregon street address
• File the Articles of Organization ($100) through the Oregon Business Registry
• Write an operating agreement
• Get a free EIN from the IRS
• Register for Oregon taxes and get your BIN
• Check the License Directory on Oregon Business Xpress
• Check Portland or other city rules if they apply to you
• Open a business bank account
• Register as an employer if you hire staff
• File your $100 annual report on your filing anniversary each year

Frequently asked questions

How much does it cost to start a business in Oregon?

Forming an LLC costs $100 in state filing fees. Add $50 if you need an assumed business name, and $100 for the annual report when it comes due. Most owners can get started for a few hundred dollars in state fees.

Is $3,000 enough to start a business?

For many service and home-based businesses, yes. $3,000 covers the state fees with plenty left over for a website, basic tools, and your first marketing. A shop, restaurant, or business that needs stock or equipment will usually need more, so work out your real startup costs before you commit.

What is the first thing to do when starting a business?

Pick a clear idea and check that the name is free. Once you know what you will sell and that you can legally use the name, the rest — structure, filing, taxes, licenses — follows in order.

Does Oregon have a general business license?

No. Oregon does not issue a general statewide business license. You still need to check city licenses and any permits for your industry, and Portland has its own business license tax.

When is the Oregon annual report due?

The annual report is due each year on the anniversary of the date your business was first filed with the state. The fee is $100 for a domestic LLC or corporation, and the state sends a reminder about 45 days before the due date.

Can I start a business in Oregon from home?

Yes. Many Oregon businesses start from home, and the state filing is the same. Check your city or county zoning rules first, since some home-based businesses need local approval, and a few types of business cannot run from a home address.

This article is general information, not legal or tax advice. Fees and rules change, so confirm the current details with the Oregon Secretary of State and the Oregon Department of Revenue before you file.