How To Start A Business In Portland, Oregon In 2027: Licenses, LLC And City Taxes

Quick answer: To start a business in Portland Oregon, pick a legal structure, register it with the Oregon Secretary of State (a domestic LLC costs $100 to file and $100 a year to renew), check the Oregon License Directory for any license your trade needs, then register with the Portland Revenue Division within 60 days of opening. Most businesses that operate in Portland owe the Portland Business License Tax (2.6% of net income) and the Multnomah County Business Income Tax (2%), with gross receipts exemptions for small firms. If you hire, you also register for a Business Identification Number and buy workers’ compensation insurance. There is no sales tax to collect.

Starting a business in Oregon is fairly simple at the state level and a bit more involved at the city level. The state has no general business license, but Portland and Multnomah County run their own business taxes, and the greater Portland area adds a regional housing tax for larger firms and high earners. This guide walks through each step in order, with fees and rates taken from official sources: the Oregon Secretary of State, the Oregon Department of Revenue, the Oregon Employment Department and the City of Portland Revenue Division.

Figures below were current in late 2026. Fees and thresholds do change, so confirm the numbers on the linked official pages before you file.

Step 1: Choose A Business Structure

Your structure decides how you register, how you are taxed and how much personal liability you carry. The Oregon Secretary of State’s structure guide describes the main options:

• Sole proprietorship: one owner who is personally liable for the business. You only register with the state if you trade under a name other than your own.
• General partnership: two or more owners, all personally liable. Registration is needed if the business name does not include every partner’s name.
• Limited liability company (LLC): one or more members, managed by members or managers under an operating agreement. The name must include “Limited Liability Company,” “L.L.C.” or “LLC.”
• Corporation: a separate legal entity owned by shareholders and run by a board, which files its own tax returns. Oregon also offers nonprofit and professional corporations.
• Limited partnership and limited liability partnership: mostly used for investment vehicles and licensed professional firms such as law and accounting practices.

For most founders, the choice comes down to a sole proprietorship or an LLC. An LLC adds a liability shield and looks more established to clients, at the cost of a filing fee and an annual renewal. Corporations make sense when you plan to raise equity from investors. Because Portland and Multnomah County tax business net income for every entity type, the local tax bill does not change much with the structure you choose. Talk to an accountant about federal tax elections such as S corporation status.

Step 2: Register With The Oregon Secretary Of State

How To Start An LLC In Oregon

If you are wondering how to start an LLC in Oregon, the process runs through the Oregon Business Registry, the online filing system of the Secretary of State’s Corporation Division. You file Articles of Organization, name a registered agent with a physical Oregon street address, and pay the fee. According to the Secretary of State’s listing for the Oregon LLC in the Oregon License Directory, the fee is $100 and the LLC must be renewed every year to stay active. Online filings take about 1 to 3 business days to process, and mail or fax filings take about a week.

Before you file, search the Business Registry to confirm your name is available. After the state approves your LLC, write an operating agreement for your members, since banks and investors often ask for one, and get a free Employer Identification Number from the IRS.

Oregon Business Registry Fees

Filing	Fee	Renewal
Domestic LLC, Articles of Organization	$100	$100 every year
Domestic business corporation, Articles of Incorporation	$100	$100 every year
Foreign LLC (formed in another state)	$275	$275 every year
Assumed business name	$50	$50 every 2 years

Sources: Oregon Secretary of State Business Registry fee schedule and License Directory listings. Confirm current amounts on the Secretary of State’s registration page before filing.

Assumed Business Names

An assumed business name (often called a DBA) is any name that does not include the real and true name of each owner. A sole proprietor called Maria Lopez who trades as “Rose City Bookkeeping” must register that name. According to the Secretary of State’s assumed business name listing, registration costs $50 and must be renewed every 2 years. An LLC or corporation that does business under its exact registered name does not need one, but if your LLC trades under a different brand, register that brand as an assumed business name.

Step 3: Check For An Oregon Business License

A common search is “Oregon business license,” but the answer surprises many founders. According to the Secretary of State, “The state of Oregon doesn’t have a general business license.” Instead, specific activities need specific licenses, permits or certifications from state boards and agencies. Contractors register with the Construction Contractors Board, food businesses deal with health and agriculture rules, and licensed professions such as nursing, law and accounting go through their own boards.

The Oregon License Directory is the place to check. It lists more than 1,100 licenses, permits and certifications and lets you search by activity. A software consultancy, marketing agency or online store usually needs no state license at all, while a salon, restaurant or construction firm will need several.

Step 4: Get A Portland Business License (Register With The Revenue Division)

What people call a “Portland business license” is really a tax registration. The City of Portland Revenue Division administers the Portland Business License Tax, the Multnomah County Business Income Tax and the Metro Supportive Housing Services Business Income Tax. According to the Portland Revenue Division, businesses operating in the City of Portland or Multnomah County must register for a Revenue Division tax account within 60 days.

You can register online through Portland Revenue Online (PRO) or with a paper Business Tax Registration Form. The city says online registration takes about 15 minutes. You will need your tax ID (SSN or EIN), entity type, business locations and owners. The registration page lists no registration fee.

Portland And Multnomah County Business Tax Rates

Both taxes apply to apportioned net income, and each has a gross receipts exemption for small businesses. According to portland.gov, the current rates and exemptions are:

Tax	Rate	Who Is Exempt
Portland Business License Tax	2.6% of net income	Gross receipts under $75,000 (tax years starting in 2026); under $100,000 (tax years starting on or after January 1, 2027)
Multnomah County Business Income Tax	2% of net income	Gross receipts under $100,000
Metro SHS Business Income Tax	1% of net income	Gross receipts of $5 million or less

The Portland exemption counts gross receipts from all business activity, wherever earned, so a firm based outside the city with large national sales is not exempt just because its Portland sales are small. Returns are due with your federal and state returns, which is April 15 for calendar year filers. A six month extension to file is available, but there is no extension to pay. For tax years 2026 and later, the Revenue Division requires quarterly estimated payments when you expect to owe $1,000 or more in combined city and county tax.

Large retailers can also owe the Portland Clean Energy Surcharge, a 1% charge on Portland retail sales that applies only to businesses with $1 billion or more in total retail sales and $500,000 or more in Portland. It will not affect a new small business.

Step 5: Understand The Regional Taxes

Metro Supportive Housing Services Taxes

Metro, the regional government for the Portland area, funds homeless services through two taxes. The business tax described above applies only to businesses with more than $5 million in gross receipts that operate inside the Metro district. Sole proprietors do not pay the business version and instead fall under the personal version. The personal tax is 1% of taxable income above an exemption threshold. According to the Revenue Division’s personal tax page, the threshold is $128,000 for single filers and $205,000 for joint filers in 2026, rising to $132,000 and $211,000 in 2027, with annual inflation adjustments going forward.

Preschool For All Personal Income Tax

Multnomah County residents and people who earn income in the county pay the Preschool for All tax on higher incomes. It is 1.5% of taxable income above $125,000 (single) or $200,000 (joint), plus another 1.5% above $250,000 (single) or $400,000 (joint). The Revenue Division notes that the rate is scheduled to rise by 0.8% in 2028. Neither the Metro personal tax nor Preschool for All is a business tax, but founders who pay themselves well and businesses with highly paid staff should plan for both.

Oregon Corporate Activity Tax

Oregon’s Corporate Activity Tax (CAT) is a gross receipts tax that applies to all entity types, including LLCs and sole proprietors. According to the Oregon Department of Revenue, businesses must register within 30 days of reaching $750,000 in Oregon commercial activity for the year, and must file and pay once taxable Oregon commercial activity passes $1 million. The tax is $250 plus 0.57% of taxable commercial activity above $1 million, after a subtraction of 35% of the greater of cost inputs or labor costs. Most new businesses will sit well under these thresholds in their first years.

Step 6: Register As An Employer

If you plan to hire, set up payroll accounts before the first paycheck. The Oregon Department of Revenue and the Oregon Employment Department share one registration process that issues a Business Identification Number (BIN). According to the Department of Revenue’s payroll tax page, there is no fee, and you can register online or with the Combined Employer’s Registration form. One BIN covers:

• State income tax withholding
• Unemployment insurance tax
• The Workers’ Benefit Fund assessment
• TriMet transit payroll tax (0.8237% of wages for work in the TriMet district, according to TriMet)
• The Statewide Transit Tax and Paid Leave Oregon contributions, which are reported through the Employment Department’s Frances Online system

Corporations with no employees still register to report officer pay. The Employment Department also requires you to post the unemployment insurance notice where staff can see it. Note that the TriMet tax also applies to net self-employment earnings for work done in the district, so sole proprietors in Portland should budget for it too.

Workers’ Compensation Insurance

According to the Oregon Department of Consumer and Business Services, “In almost all cases, if you employ workers, you must buy workers’ compensation insurance.” Businesses with no employees have no requirement but can buy an “if any” policy. Coverage comes from a private insurer or SAIF, the state-chartered carrier. Check the minimum wage too: for July 1, 2026 to June 30, 2027, the Bureau of Labor and Industries sets the Portland metro rate at $16.80 per hour.

Step 7: Sales Tax, Income Tax And Ongoing Filings

Oregon has no sales tax. The Department of Revenue states that Oregon “doesn’t have a general sales tax or a transaction tax,” so you will not collect sales tax on in-state sales. That is a real advantage for retailers and ecommerce shops, though you may still need to collect tax for buyers in other states that require it.

The tradeoff is a high personal income tax. Under ORS 316.037, Oregon’s rates run from 4.75% to 9.9%, with the top rate starting at $125,000 of taxable income for single filers. Pass-through business income from an LLC or sole proprietorship flows onto your personal return, so plan quarterly estimates for state tax alongside city and county taxes.

A simple annual calendar for a small Portland LLC looks like this:

Task	Agency	Timing
LLC annual report and $100 renewal	Oregon Secretary of State	Each year on the anniversary of filing
City and county business tax return	Portland Revenue Division	April 15 for calendar year filers
Estimated city and county payments	Portland Revenue Division	April 15, June 15, September 15, December 15 if you expect to owe $1,000 or more
Quarterly payroll reports (Form OQ)	Department of Revenue and Employment Department	April 30, July 31, October 31, January 31
Annual withholding reconciliation (Form WR)	Department of Revenue	January 31
Assumed business name renewal	Oregon Secretary of State	Every 2 years

Step 8: Build Your Launch Team

Once the paperwork is done, most new businesses need the same handful of outside partners. A website is usually first; our list of top web design companies in Portland, Oregon covers local studios, and our guide to web design costs in Portland helps you set a budget. For customer acquisition, compare the top digital marketing agencies in Portland.

As you add staff, outsourced IT keeps laptops, accounts and security in order without a full-time hire; see the top managed IT services providers in Portland. If you need to hire quickly, the top staffing agencies in Portland can fill temporary and permanent roles. If you are relocating or budgeting for a team, our Portland cost of living guide covers rent, salaries and office costs.

Frequently Asked Questions

How Much Does It Cost To Start A Business In Portland, Oregon?

The government filing costs are low. A domestic LLC costs $100 to form with the Secretary of State and $100 a year to renew, and an assumed business name costs $50. Portland Revenue Division registration lists no fee, and BIN registration for employers is free. Any trade licenses, insurance and professional help are extra and vary by industry.

Do I Need A Business License To Work From Home In Portland?

Oregon has no general statewide business license, so a home-based consultant or freelancer usually needs no state license unless the work is a regulated profession. You still need to register with the Portland Revenue Division within 60 days if you do business in the city. Whether you owe tax depends on your gross receipts and net income.

Does Oregon Have A Sales Tax?

No. Oregon has no general sales tax. Businesses with large Oregon revenue instead pay the Corporate Activity Tax once taxable commercial activity passes $1 million, and Portland applies a 1% Clean Energy Surcharge only to very large retailers.

Is A Small Business Exempt From The Portland Business License Tax?

Businesses with gross receipts below the exemption level owe no Portland Business License Tax. The exemption is $75,000 for tax years beginning in 2026 and $100,000 for tax years beginning on or after January 1, 2027. The Multnomah County exemption is $100,000. The city counts receipts from all business activity, not just Portland sales.

How Long Does It Take To Form An LLC In Oregon?

The Secretary of State estimates 1 to 3 business days for online filings through the Oregon Business Registry and about a week for mail or fax filings. You can usually go from idea to registered LLC, EIN and city tax account within a week if you file online.

Conclusion

Starting a business in Oregon takes four core registrations: your entity with the Secretary of State, any activity license from the Oregon License Directory, a tax account with the Portland Revenue Division, and, once you hire, a BIN plus workers’ compensation coverage. The state side is cheap and quick. The local side matters more over time, because Portland, Multnomah County and Metro taxes stack on top of Oregon’s income tax as your business grows.

Keep a calendar of renewal and filing dates, check the official pages each year for updated thresholds, and bring in an accountant before your first city and county return. With those basics in place, you can put your time into customers rather than paperwork.

This guide is general information, not legal or tax advice.