How to start a business in Oregon in 14 steps (2025 guide)

Starting a business is an exciting adventure that’s full of opportunities to turn your ideas into reality and leave a lasting mark on your community. With the cost of living rising in the surrounding states of Washington and California, Oregon is seeing many new people transplanting to the state. If you're wondering how to start a business in Oregon, this guide has you covered. We'll walk you through every step —from choosing your industry and securing funding to filing the right paperwork and handling taxes.

Why start a business in Oregon in 2025?

Oregon is the best state for entrepreneurial success based on a recent study from DesignRush. The study revealed that the state experienced a 9.9% jump in business establishments between 2022 and 2023, amounting to over 18,000 new businesses. This kind of growth shows that Oregon offers a welcoming environment for fresh ideas and new ventures.

Beyond this impressive growth, Oregon is a great place to keep your overhead low while you grow since it has affordable business costs and no sales tax. According to Oregon’s official website, the state ranks in the top 10 for low electricity and workers' compensation costs.

The state’s prime location on the Pacific Rim also gives you access to global markets. Also, Oregon’s transportation infrastructure makes trading and logistics seamless, thanks to seven commercial airports and two seaports.

Here are the topics we’ll cover in this step-by-step guide: 

• 14 steps to starting a business in Oregon
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choose your business entity
• Step 5: Secure funds: Oregon small business funding, loans, and grants
• Step 6: Choose your Oregon business name and Oregon DBA
• Step 7: Pick a business location in Oregon
• Step 8: Find an Oregon registered agent 
• Step 9: Get an Oregon EIN and file your tax and employer identification documents 
• Step 10: Register as a small business in Oregon 
• Step 11: Register for your business license and permits in Oregon
• Step 12: Secure insurance for your Oregon small business 
• Step 13: Prepare to pay taxes on your business in Oregon
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions

14 steps to starting a business in Oregon

If you're ready to be an entrepreneur in the great state of Oregon, then it's time to get planning. Whether you’re opening a tech startup in Portland, launching an artisanal bakery in Bend, or setting up a vineyard in the Willamette Valley, Oregon provides the perfect blend of community support and small business resources to help get your venture off the ground. Follow the steps below and you’ll be one step closer to setting up shop in the Beaver State.

Step 1: Decide what type of industry is best for your business

Choose an industry that aligns with your skills and passions. There are many great industries in Oregon out there to choose from, including health and medicine, new car dealers, hospitals, manufacturing, and logistics. Focus on your strengths and consider the demand in your chosen field, as well as any industry gaps your business could fill.

Need some ideas to get started? Explore various small business ideas for inspiration.

Step 2: Conduct research in your business's industry

Take the time to research your chosen industry. Conduct a competitive analysis to see who else is in your space — both locally and across Oregon — and look for any gaps your business could fill. Check out market trends in popular Oregon sectors, like tech, healthcare, and outdoor recreation, to see how your idea fits in. Also, get familiar with any regulations, permitting, or licensing requirements that may apply to your industry. Local resources, like the Oregon Small Business Development Center (SBDC), can offer valuable insights to help you refine your business idea.

Step 3: Create a business plan

Next, construct a detailed business plan. This plan is your roadmap — it’s there to guide you through each stage of starting and growing your Oregon business. It’ll help you define your goals, identify your target market, and lay out how you plan to make money. Plus, most lenders and investors will want to see your business plan if you’re seeking funding.

Include these sections in your business plan:

• Executive summary: A brief overview that sums up your vision and key points.
• Company description: State your mission, any background on your company, and your specific goals.
• Market research and potential: Describe your target market and any key industry trends.
• Competitive analysis: Look at your competition and what sets you apart.
• Products and services: Explain what you’ll offer and the value it brings to customers.
• Marketing and sales: Outline your strategy for attracting and keeping customers.
• Business financials: Include income projections, cash flow, and a break-even analysis.
• Management and leadership: Highlight the skills and experience of your team.
• Funding request: If you need funds, detail how much and how you’ll use it.
• Appendix: Add any supporting documents and relevant details for potential investors.

Take your time with each section, and don’t rush the process. A thorough, well-researched business plan can help you stay focused on your goals and attract potential investors or partners. For extra guidance, use a free business plan template or reach out to the Oregon Small Business Development Center (SBDC).

Step 4: Choose your business entity: Types of business entities in Oregon

Choose your business entity type. In general, there are four main types of business structures that you can choose from. The one you pick is going to determine things like how you file your taxes and your liability for the business's debts. Let’s look at the most common types:

Sole proprietorship

This is a simple business structure where one person owns and operates the business. There's no legal separation between you and the business, meaning you're personally responsible for its debts and obligations.

General partnership

A general partnership involves two or more individuals who share ownership, profits, and management duties. Each partner is equally responsible for the business's financial obligations.

Corporation

A corporation is a separate legal entity from its owners. Shareholders have limited liability, meaning they're not personally responsible for the company’s debts. This structure offers more protection but comes with additional regulations.

Limited liability company (LLC)

An LLC combines the limited liability of a corporation with the tax advantages and flexibility of a partnership. It's a popular option because it provides protection from personal liability while offering tax benefits.

Step 5: Secure funds: Oregon small business funding, loans, and grants

Determine how you’ll get funds to start up your business. There are many financial commitments you'll need to make, from securing an operating location to obtaining equipment to registration fees. Plus, you may need specific permits or licenses, which can range from a few hundred dollars to over $1,000, depending on the type and your location.

Fortunately, there are various loan types to choose from to help meet your needs, including small business loans, grants, SBA loans, and self-funding.

You should also look into Oregon-specific funding options, including: 

Entrepreneurial Development Loan Fund (EDLF)

The EDLF is responsible for providing funding for startups and small businesses that struggle to find traditional business funding. Applicants can apply at any Certified Entity or Small Business Development Center.

The Local Small Business Expanded Repair/Restore Grant Program

This grant is designed to help Portland small businesses recover from any hardships caused by vandalism and break-ins due to their city location. This program offers up to $25,000 per entity to reimburse small businesses that have eligible expenses. 

Thriving Entrepreneurs Grant Program

This grant focuses specifically on funding nonprofit businesses within the state that offer support for entrepreneurs. From developing business plans and recruiting talented teams to raising money and reaching entrepreneurs in under-served communities, this grant provides funding for businesses to get help in all of these areas.

Step 6: Choose your Oregon business name and Oregon ABN/DBA

Choose a name that's easy to remember and links your business to its industry. Your business's name is going to have a huge impact on things like branding and recognition. In cases where you want to operate under a different name than your original business name, you'll need to obtain an assumed business name, known as a DBA.

Reserve your business name

Take time to run your anticipated business name through the state's database to determine if it's available. Oregon is fairly strict in regard to business names, as they require every entity name to be easily distinguishable from the rest. You can pay a $100 processing fee to reserve your name for 120 days. 

Filing an ABD (assumed business name) or DBA (doing business as)

Go through the same process of checking the state's database for your intended assumed business name. In many cases of sole proprietorships and partnerships, it's common for business owners to obtain an ABN so they're not operating under their personal legal name. The processing fee to register your ABN is $50.

Step 7: Pick a business location in Oregon

Select the right location for your Oregon business, as it can have a big impact on operating costs, taxes, and customer accessibility. Maybe you’re envisioning a tech startup in bustling Portland or a farm-to-table restaurant in the scenic Willamette Valley. Wherever you plan to set up, be sure to check local zoning laws, permits, and potential incentives that the area might offer to new businesses.

Depending on your type of business, consider running your business from home. This setup can help tremendously with overhead costs, and you may also qualify for the home office deduction that the IRS provides. However, if you’re interested in a physical space, here are some top locations to consider:

Portland

With one of the fastest-growing labor markets in the country, Portland offers a deep pool of educated talent. With 66 universities and colleges within 100 miles, Portland attracts young professionals who are ready to fill key roles in growing industries like tech, clean energy, and design. On top of that, Portland offers an attractive tax climate and competitive real estate costs, with office space up to 43% cheaper than other major West Coast cities.

Salem

As the capital of Oregon, Salem provides a central location along Interstate 5 with easy access to major markets in California and Washington. Salem also has plenty of affordable land available for development, giving you room to expand without the high costs of larger cities. Additionally, the city works hard to support businesses by offering financial incentives like tax abatements and streamlined permitting to make the setup process smoother.

Step 8: Find an Oregon registered agent

All businesses must have a registered agent. This is a person or registered business that is responsible for accepting the physical delivery of legal documents. A registered agent must have an address registered within the state. It's important to note that a specific entity cannot designate itself to be a registered agent. However, it can designate one of its owners to be.

Oregon trademark or service mark

If you choose, you can register for an Oregon trademark or service mark to protect your intellectual property. It's vital to realize that this service or trademark creates rights only through the state itself, not nationwide. You'll need to register for a federal trademark to receive nationwide rights.

Step 9: Get an Oregon EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although Oregon doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. You can apply for a free EIN through the IRS website.

Step 10: Register as a small business in Oregon

Register your small business with the Secretary of State. The Oregon government requires any business that’s operating under a fictitious or assumed name to be legally registered. While the registration process is fairly similar for all business entities, there are varying prices depending on the specific type of business structure you decide to go with.

Step 11: Register for your business license and permits in Oregon

While there’s no specific general business license necessary to operate within the borders of Oregon, many occupations and business activities require licenses and permits when starting a business.

Do you need a business license in Oregon?

There’s no general business license in Oregon. However, you may need an individual license for your business activities or occupation. Research the necessary licensing requirements using the state's licensing search. Also, cities and counties in Oregon may have their own licensing requirements, so reach out to your city’s licensing or permitting office to confirm any local requirements.

Popular Oregon business licenses

• Alcohol beverage control license: Necessary if you sell alcoholic beverages
• Public pesticide applicator license: Necessary for an employee applying or supervising the application of pesticides

Oregon business permit

You may need a business permit if you conduct certain activities. For example, let's say that your business will need to put wastewater into rivers or streams, dispose of wastes on land, or produce stormwater runoff due to clearing or other construction activities. You'll need to apply for specialized operating permits from the Oregon Department of Environmental Quality (DEQ).

Step 12: Secure insurance for your Oregon small business

As a business, there are many different types of insurance policies that you can purchase to protect your overall financial well-being. There’s insurance that’s mandated by the state for your business to have, and there’s insurance you can openly choose to obtain or not, depending on your business's specific needs.

Types of small business insurance in Oregon

Here are the common types of Oregon small business insurance:

Step 13: Prepare to pay taxes on your business in Oregon

Oregon charges various taxes on business profits. As an entrepreneur, it's imperative to understand the specific taxes that affect your business.

Here are the frequent types of Oregon business taxes:

State sales tax

Oregon does not have a state sales tax.

Income tax

Sole proprietors, partnerships, and limited liability companies must pay income tax on any business profits. Oregon has a progressive income tax system with rates ranging from 4.75% to 9.90%.

Income and excise tax

S corps and corporations are taxed under Oregon's corporation excise tax. When taxed at this level, it's very helpful to have digital records from an accounting platform like QuickBooks Payroll.

Unique Oregon tax situations

There are some unique tax situations you may encounter depending on your specific business operations. These include taxes like recreational marijuana tax, amusement device tax, and cigarette tax and tobacco products tax.

Tax credits and incentives for Oregon employers

Oregon offers some useful tax credits and incentives for its employers. The Work Opportunity Tax Credit (WOTC) is offered to businesses that hire veterans and people who have been unemployed for an extended period of time. The Health Care Tax Credit is designed to help lower the cost for a small business to offer healthcare to its employees.

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records.

Step 14: Set up your business bank account

An essential product for your new business will be to open a small business bank account, as it will separate your personal and business finances. Follow the steps below to get started.

1. Gather all your essential paperwork — like your EIN, business formation documents, registrations, permits, and licenses — before opening a small business bank account 
2. Select a bank or credit union that fits your needs, whether it’s loans, checking accounts, or high-yield savings.
3. Use a business credit card for purchases and expenses to start building business credit.
4. Choose the right accounting software for setting up and organizing your financial records. 
5. Consider hiring a professional accountant who knows Oregon tax laws and your industry to handle your bookkeeping and financial needs.

Additional resources to get your business started 

There are several state and federal resources that can support your business with guidance, training, potential funding and more. 

State resources

Business Oregon: Business Oregon is the state's economic development agency that offers support for businesses through loans, grants, and tax incentives.

Oregon Secretary of State: The Secretary of State’s website is your go-to for registering your business, filing annual reports, and ensuring you're compliant with state laws.

Oregon Small Business Development Center (SBDC): The Oregon SBDC provides free, confidential business advising, training, and market research to help businesses thrive.

Oregon Enterprise Zones: If you’re looking for tax incentives, Oregon’s enterprise zones offer property tax exemptions for up to five years. These zones are set up to make business growth easier by reducing your upfront costs and encouraging investments.

Federal resources 

Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.

Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 

SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.   

U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America.

Frequently asked questions

How long does it take to start a small business in Oregon?

While you can complete all the registration for your new business within a singular day, it will take between two and three business days for the state to process your business registration paperwork.

How much is an LLC in Oregon?

It costs $100 to open an LLC in the state of Oregon.

Do I need a local business license if I only operate online in Oregon?

Oregon doesn’t have a statewide business license. However, cities or counties might require one, even for online operations. Check with your local government to see if they have specific rules for businesses in your area.

Disclaimer: 

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