How to Obtain a Small Business License in Oregon

Oregon is a beautiful place to live and work.

If you plan to start a small business in this state, you must follow some basic guidelines to operate within federal, state and local requirements.The majority of these can be accomplished online.

Things You'll Need

• Federal Employer Identification Number (EIN)
• Application for business license
• Permits
• Money for fees

Instructions

1. Contact the U.S. Internal Revenue Service and obtain an EIN or Employer Identification Number. You will need this number for all tax-related purposes. Visit www.irs.gov and "click" on the link titled "Businesses" and select the topic "Employer I.D. Numbers." "Click" the link "Apply for an EIN Online" to complete the free application.

2. Apply for an Oregon business license by visiting www.licenseinfo.oregon.gov. Click the link "Business -- starting or expanding." Select the link "Business Wizard" to begin the online license application. Depending on the type of business you plan to operate, you may be required to register for tax-specific identification in addition to the Federal EIN. The application process will alert you should this be necessary.

3. Pay the license registration filing fee upon completion of the application. Although the fees vary depending on the type of business, the starting rate is $50 as of May 2010.

4. Consult with the clerk of courts for your local city or county government to determine if you need to apply for additional permits or licenses. (See Resource 1 for a listing of all Oregon counties) This can include health or zone permits, as well as a signage permit if you plan to erect a billboard or sign advertising your business. There will be fees to obtain these permits and the price depends on the county or city in which you do business.

Tips & Warnings

• When you start your new business, please remember that the IRS requires you to keep a record of the employment taxes for a minimum of four years.

• Always keep a copy of all documents involved with starting your new business.

• Starting a new business can be a complicated legal matter. Be certain to consult with an employment tax professional or the Oregon Department of Revenue to ensure you are following all procedures accurately. Unless you are completely confident with your actions, hire a professional accountant or attorney to help you get started correctly.

References

• U.S. Census Bureau: State and County Quick Facts
• Internal Revenue Service: Employer ID Numbers (EIN)
• Oregon: License, Permits and Registrations

Resources

• Oregon.gov: Oregon County Webpages and Phone Numbers
• Oregon Business Registry Forms and Fees Schedule