There are various licenses and permits from federal, state, and local governments required for one to start a business. For example, suppose you are planning to open a bar and grill in the Portland metro area, you will need to get all the necessary licenses and permits from the city of Portland, the state of Oregon and the United States government.
Below are some of the standard licenses and permits required when starting a business in Oregon.
Business operational licenses
Most businesses require a basic business operational license to run. You can acquire a business operating license from the city government or the local county if you plan to operate your business outside the city limits.
Property use permits
You may be required to obtain a property use permit from the city or county’s zoning department if you are planning to establish a manufacturing company or if you want to start a home business.
Building permits
You will require a building permit for any new constructions, alterations and additions to existing buildings. You can contact your local building department to enquire about their permitting requirements.
Food safety licenses
You will need a food safety license if you plan to operate a restaurant, a mobile food cart or host temporary food service events. The Oregon Department of Agriculture issues licenses for bakeries, food processing and warehousing, meat home kitchen processing and baking, dairy, pet food and non-alcoholic beverages.
Employer identification number
The Internal Revenue Services issues businesses with Employer Identification Number (EIN), also known as a federal tax identification number, to help identify taxpayers who are needed to file business tax returns.
Sales tax licenses and numbers
The sales tax is applied to retail, retail sites, purchasing use of the property and rental services. Oregon does not have a general sales tax but has a vehicle use tax that applies to new cars bought outside the state. A dealer is required to pay the tax before the car is registered in Oregon.
According to the Oregon law, you cannot reduce your Oregon taxes as you have paid the sales taxes in another region. Oregonians shopping online are not entitled to sales tax from another region, but they may be charged federal taxes on online airline tickets. Oregon businesses selling items online may need to collect and pay sales taxes if their customers are in sales tax states.
