Salem, OR Business License Guide

Last updated: September 2025

This guide shows exactly how to get legally set up to do business in Salem, Oregon—what license you need, how to apply, what it costs, realistic timelines, common mistakes, and who to contact. Every important claim is linked to official, trusted sources.

Quick Help Box

• If you’re opening or running a business inside Salem city limits, first check whether you need a City of Salem business license, a specialty license, or both. Use the city’s licensing pages: City of Salem — Business licensing and permits. Look for Business > Licenses and Permits. If you can’t find your category, call the city’s main line on the contact page or use the site’s service request tool to reach Licensing.
• Oregon doesn’t have a general statewide business license. Most businesses need to register their name and entity with the Oregon Secretary of State, then add industry licenses if required. Source: Oregon Secretary of State — Start a Business.
• Expect to file with the Oregon Secretary of State (LLC or corporation filings generally $100; assumed business name registration $50 for 2 years), get a federal EIN (free), and register for Oregon payroll and withholding if you have employees. Sources: Secretary of State Business Registry, IRS — Apply for an EIN, Oregon Combined Employer Registration.
• Restaurants, food trucks, and caterers in Salem are licensed by the county health department (Marion County for most of Salem; Polk County if you’re in West Salem). Start here: Marion County Environmental Health — Food Licensing, Polk County Environmental Health. Fees vary by seating and operation type.
• If you sell or serve alcohol, you must be licensed by the Oregon Liquor and Cannabis Commission (OLCC). The city may also require local approvals. Start here: OLCC — Alcohol Licensing.
• Hiring in Oregon? You must register for payroll taxes, provide workers’ compensation insurance, follow Paid Leave Oregon rules, and comply with Oregon’s minimum wage. Start with: Oregon Department of Revenue — Businesses, Oregon Employment Department — Employers, Paid Leave Oregon — Employers, Oregon OSHA, BOLI — Wage and Hour.
• Oregon has no sales tax, but many businesses owe the Corporate Activity Tax (CAT) if Oregon commercial activity exceeds $1,000,000. CAT is $250 plus 0.57% of taxable Oregon commercial activity above $1,000,000, after a subtraction. Source: Oregon Department of Revenue — Corporate Activity Tax.
• Need help fast? Try: Oregon Small Business Navigator (Business Xpress), Oregon Secretary of State — Corporation Division, City of Salem — Contact & Services.

What License Do You Actually Need in Salem? Start Here

The first, most practical step is to confirm whether your business needs a City of Salem license, a county permit, a state license, or a combination. Do this before you sign a lease or spend on build-outs.

• Go to the city’s official site and find the Licensing/Permits area: City of Salem — Business & Permits.
• Use Oregon’s state directory to find industry licenses: Oregon Business Xpress License Directory.
• Verify zoning for your location or home address with the City of Salem Planning/Permit Center before signing a lease: City of Salem — Planning & Permits.
• If food is involved, confirm which county you’re in (most of Salem is Marion County; West Salem is Polk County) and contact that county’s environmental health office for a food license. Marion County Environmental Health, Polk County Public Health.

Why this order? Because city zoning and specialty licensing can change your floor plan, equipment, parking, signage, fire/alarm needs, and even whether you can operate at a specific address.

What to do if this doesn’t work:

• If you’re still unsure, request a zoning verification letter or pre-application meeting with the City of Salem planning/permits team. If the online structure is confusing, use the city’s contact page to request direct help: City of Salem — Contact. For state licenses, contact the Business Xpress Navigator through Oregon Business.

Salem Business Licensing Snapshot (At a Glance)

Below is a quick reference of where things typically happen. Always check the current rules and fees directly.

Sources: City and state agency pages linked throughout.

City of Salem: Do You Need a City Business License?

Most local governments in Oregon require licenses for certain activities. Salem’s rules can include:

• General city business license or registration for operating within city limits.
• Specialty licenses for specific trades (for example, secondhand dealers, short-term rentals, mobile vendors), safety-sensitive businesses, or regulated activities.
• Alarm permits, special events, or solicitation/peddler licenses for door-to-door sales.

Action first:

• Go to the official city licensing area: City of Salem — Business Licensing & Permits.
• Search for “business license,” “home occupation,” and your industry (e.g., “food cart,” “short-term rental,” “secondhand dealer,” “special event”).
• If you’re still unclear, request help using the city contact page.

Fees and renewal:

• Local license fees and renewal schedules can change. Always confirm the current fee schedule and renewal cycle directly with the city on its fees/licensing pages. If you cannot find the current fee number, use the city contact form to ask for the fee schedule link.

Required documents (typical):

• Basic contact and ownership information.
• Business name and Oregon registry number (if registered with the Secretary of State).
• Business location and zoning confirmation (or a Home Occupation approval for a home-based business).
• For food-related businesses: health license/approval from county Environmental Health.
• For alcohol: OLCC application and local approvals.
• For mobile units: commissary, vehicle documentation, and route/operating locations.
• Fire alarm/hood suppression inspection approvals if applicable.

Real-world example:

• A home bakery on the South Salem side wants to sell directly and at farmers markets. They check the city’s home occupation rules and secure a county food license for home baking (if allowed; sometimes a commercial kitchen is required depending on product risk), confirm zoning, and then add a city license if the activity is covered. They register a business name with the state, get a BIN for payroll if hiring a helper, and confirm cottage food rules and labeling with the county/state.

Timeline reality check:

• City approvals can be quick for straightforward cases, but if your use triggers fire/life-safety, parking, ADA access, or tenant improvements, plan extra weeks or months.

What to do if this doesn’t work:

• Ask the City of Salem Permit Center for a pre-application meeting or zoning verification. If you’re borderline between Marion and Polk County, call the relevant county to verify which environmental health office will license your food business.

Verify Zoning Before You Commit (Lease or Home)

Zoning mistakes are costly. Confirm that your intended use is allowed at the address.

• Check zoning with the City of Salem Planning/Permit Center via the planning pages: City of Salem — Planning & Permits.
• For home-based businesses, read the Home Occupation rules and apply for required approvals. There may be limits on employees, customer visits, signage, parking, and noise.
• If you need tenant improvements (e.g., new walls, hoods, egress changes), you will likely need permits, plan review, and inspections.

Documents to have ready:

• A simple floor plan with exits, restrooms, fixtures, and any cooking or manufacturing equipment.
• Parking count and any shared parking agreements.
• For food operations: equipment list; grease interceptor/hood plans if applicable.

Typical timelines:

• Over-the-counter questions: immediate.
• Simple permits: days to a few weeks.
• Full plan review with fire/life-safety: several weeks to a few months depending on backlog.

Source: City of Salem — Planning & Permits.

What to do if this doesn’t work:

• If your use isn’t allowed, ask Planning about conditional use options or consider a different location. If construction costs are too high, look at a shared commercial kitchen or a different space with existing infrastructure.

Register Your Business With Oregon (Entity + Name)

Oregon requires business entities and business names to be registered with the Secretary of State unless you’re operating under your exact personal legal name as a sole proprietor with no assumed name.

Key filings and current known fees:

• Assumed Business Name (ABN): $50 for a 2-year registration and $50 to renew. Source: Oregon Secretary of State — Business Registry.
• Domestic LLC — Articles of Organization: $100 to file; Annual Report $100 each year on the anniversary date. Source: Oregon Secretary of State — Business Registry.
• Domestic Corporation — Articles of Incorporation: $100 to file; Annual Report $100. Source: Oregon Secretary of State — Business Registry.

Note: Foreign entity registrations, nonprofit fees, or specialized filings have different fees and requirements. Check the official Secretary of State fee list linked above for your case.

Name search:

• Use the Secretary of State’s business name search to find available names and existing registrations. Start here: SOS — Business Registry (Find/Name Search) and navigate to “Find a Business.”

EIN (Federal Tax ID):

• Get your EIN from the IRS online. It’s free and immediate for most applicants: IRS — Apply for an EIN.

Documents typically required:

• Business name and address.
• Registered agent (for LLC/corporation).
• Manager/member/officer information.
• NAICS activity description.

Processing timelines:

• Online filings are often processed same day to a few days.
• Paper filings may take longer.

What to do if this doesn’t work:

• If your preferred name is taken, choose a variant or add a unique descriptor. If you’re not sure about entity type, talk with a CPA or attorney before filing. The Secretary of State cannot give legal advice.

Oregon Tax Registrations You May Need (BIN, Payroll, Transit)

Oregon uses a “Combined Employer Registration” to set up your Business Identification Number (BIN) with the Department of Revenue and Employment Department.

• Register online for withholding and payroll: Oregon Department of Revenue — Combined Employer Registration.
• If you pay employees in Oregon, you must withhold Oregon income tax and register for Unemployment Insurance (UI) contributions. See: Oregon Employment Department — Employer Taxes.
• Statewide Transit Tax (employee-paid): Oregon requires employers to withhold 0.1% of wages for the statewide transit tax. Source: Oregon Department of Revenue — Statewide Transit Tax.
• Local Transit Payroll Tax (employer-paid) if within a transit district boundary (e.g., Salem Area Mass Transit District/Cherriots): Some Oregon transit districts have employer payroll taxes. Use the official DOR transit tax pages to confirm district applicability and rate by address: Oregon DOR — Transit Taxes. Always check the current rate table on DOR’s transit pages for Salem-area employers.
• Corporate Activity Tax (CAT): Applies if your Oregon commercial activity exceeds $1,000,000 in a calendar year. CAT is $250 plus 0.57% of taxable Oregon commercial activity above $1,000,000, with a subtraction based on 35% of the greater of cost inputs or labor (subject to limitations). Source: Oregon Department of Revenue — Corporate Activity Tax.

Filing deadlines:

• Deadlines vary (monthly/quarterly payroll deposits, annual reconciliations, CAT estimated payments/annual return). Always confirm current due dates on each DOR program page, as deadlines can change. Source: Oregon DOR — Businesses.

What to do if this doesn’t work:

• If your registration is stuck, contact DOR via their business contact pages. For tricky multi-location payroll or transit boundaries, request written guidance from DOR so you can rely on it later in an audit.

Table: Oregon Start-up Filings and Typical Fees

Note: Fees can change. Always confirm on the linked pages.

Industry Licenses and Permits Common in Salem

Some lines of business need state or county licensing in addition to any city license.

• Food service (restaurant, bar, food cart, commissary, caterer): Licensed by county health departments after plan review and inspection. Start with: Marion County Environmental Health — Food Licensing. For West Salem, check Polk County Public Health.
• Alcohol sales/service: OLCC license is required; the city is involved in local approvals for your premises. Start with: OLCC — Alcohol Licensing.
• Cannabis: State licensing through OLCC for recreational marijuana businesses; local zoning and local tax rules apply. Start with: OLCC — Marijuana. Confirm Salem’s local rules on the city website.
• Contractors/Construction: State licensing through the Oregon Construction Contractors Board (CCB) and electrical/plumbing through the Building Codes Division (if specialty). Start with: Oregon CCB — Licensing, Building Codes Division.
• Child care: State licensing via the Oregon Department of Early Learning and Care. Start with: Early Learning & Care — Child Care Licensing.
• Transportation (taxis/for-hire): Confirm city rules and state requirements; check the city for local for-hire permits, and ODOT for any state rules. Start with: City of Salem — Permits & Licensing, ODOT.
• Professional services (e.g., architects, accountants): State boards handle licensing. Use the Oregon License Directory at Oregon Business Xpress.

What to do if this doesn’t work:

• If the license category is unclear, use the Business Xpress License Directory and contact the listed agency for the final word. Keep a record of who you spoke to and when.

Table: Common Oregon/Salem Licenses and Where to Start

Taxes in Salem: The Big Picture

Oregon taxes are different than many states.

• No state or local sales tax. Source: Oregon DOR — Businesses.
• Corporate Activity Tax (CAT): If Oregon commercial activity exceeds $1,000,000, CAT of $250 plus 0.57% of taxable activity above $1,000,000, after a subtraction. Source: Oregon DOR — CAT.
• Payroll: Withhold Oregon income tax; pay Unemployment Insurance; withhold the Statewide Transit Tax (0.1% of wages). Sources: Oregon DOR — Businesses, Statewide Transit Tax, Employment Department.
• Local transit payroll tax (employer-paid) may apply if your employees work inside a transit district boundary. Confirm the rate and boundaries for the Salem area on DOR’s transit tax pages: Oregon DOR — Transit Taxes.
• Local city business license fees: Paid to the City of Salem if required. Fees and categories can change annually. Check the city’s license pages for current fee amounts: City of Salem — Business Licensing.

What to do if this doesn’t work:

• If your tax situation is complex (multi-location, e-commerce, marketplace facilitator, interstate revenues), consult a CPA familiar with Oregon CAT and payroll. You can also request written advice from Oregon DOR on specific questions.

Table: Taxes to Register For (Salem-Area Employer)

If You Will Have Employees in Salem

Oregon has detailed employment rules. Set these up before your first payroll.

• Workers’ compensation insurance is required. You can buy through any authorized carrier or SAIF (state-chartered), see: SAIF — Workers’ Compensation.
• Paid Leave Oregon: Most employers must participate. The contribution rate is set annually; employees pay most of it, and large employers contribute a portion. Confirm the current 2025 rate, wage cap, and employer share at: Paid Leave Oregon — Employers.
• Oregon minimum wage changes every July 1 and varies by region. Salem is in the “Standard” region (not Portland Metro). Check the current wage for the Standard region: BOLI — Minimum Wage Rates.
• Required postings and new hire reporting: See BOLI Employer Guides and Oregon New Hire Reporting (Department of Child Support).
• OSHA safety rules: Oregon OSHA — Employer Resources.

What to do if this doesn’t work:

• For compliance questions, contact BOLI’s employer assistance resources or Oregon OSHA consultation (no-cost, non-enforcement consults). For Paid Leave Oregon mechanics, contact the Paid Leave employer support listed on their site.

Realistic Timeline for a Typical Salem Business Launch

Every project is different, but this gives a grounded outline. The critical path often runs through zoning, build-out permits, inspections, and any health/OLCC approvals.

Source pages throughout this guide. Your timing will vary based on staffing, backlog, and the complexity of your space and operations.

What to do if this doesn’t work:

• Consider a phased opening (e.g., retail without food; pop-up before full build-out; shared kitchen while your space is built).

Required Documents (By Stage)

• City licensing:
  • City application form(s).
  • Zoning/home occupation approval.
  • Fire/inspection sign-offs if needed.
  • For mobile vendors: route, commissary, and unit details.
• County health (food):
  • Menu/process.
  • Floor plan/equipment list.
  • Commissary agreement (if applicable).
  • Plan review documents and fees.
• State filings:
  • Articles/ABN details.
  • Registered agent info.
  • Members/managers/officers.
• Payroll and insurance:
  • EIN and entity info.
  • Payroll provider setup.
  • Workers’ comp binder/certificate.

What to do if this doesn’t work:

• Ask each agency for a document checklist. Many agencies publish them; if not, request one by email and verify current versions.

Common Mistakes to Avoid (Salem-Specific Reality)

• Signing a lease before a zoning check:
  • You find out later your use needs a conditional use permit, extra parking, or major fire protection. Fix: do a zoning verification first.
• Underestimating build-out time:
  • Hood systems, grease interceptors, ADA bathrooms, and egress updates often add weeks or months. Fix: get a pre-application meeting with the city and include contingency in your timeline and budget.
• Missing the county vs. city health split:
  • Food licensing is county-level. Many first-time owners assume it’s the city. Fix: contact Marion County (or Polk if West Salem) early.
• Skipping the Oregon CAT discussion:
  • Retailers and service businesses crossing $1,000,000 revenue can owe CAT even without profit. Fix: talk to a CPA as you approach that threshold; plan quarterly estimates.
• Not setting up Paid Leave Oregon and workers’ comp:
  • Payroll compliance is layered (withholding, UI, transit, paid leave, workers’ comp). Fix: use the Combined Employer Registration and a reputable payroll provider.
• Assuming “no sales tax” means “no taxes”:
  • Payroll taxes, CAT, and transit obligations still apply. Fix: map your full tax calendar.
• DIY permitting on complex projects:
  • Restaurants, daycares, and breweries are not ideal first-time DIY permit projects. Fix: hire a designer/engineer with local code experience.

What to do if this doesn’t work:

• If a mistake has already happened (e.g., lease signed), meet with the city to find a workable path or exit clause. If you’re behind schedule, consider temporary strategies (pop-up, delivery-only, shared kitchen) while finishing construction/licensing.

Step-by-Step: How to Apply (City + State)

• Confirm your business location and allowed use with the City of Salem Planning/Permit Center: City of Salem — Planning & Permits.
• Form your entity or register your business name with the Oregon Secretary of State: SOS — Start a Business.
• Get your EIN (free) from the IRS: IRS — EIN application.
• Apply for your City of Salem business license(s) as required: City of Salem — Licenses & Permits.
• If you’re a food business, start county health plan review: Marion County Environmental Health or Polk County Public Health.
• If you’re serving alcohol, file with OLCC and coordinate local approvals: OLCC — Alcohol Licensing.
• Register as an employer (if hiring): Oregon DOR — Businesses, OED — Employers, Paid Leave Oregon.
• Set up workers’ comp coverage: SAIF or another authorized carrier.
• Prepare your tax calendar (withholding, UI, transit, CAT) and internal compliance (posters, policies, OSHA, Paid Leave Oregon): BOLI, Oregon OSHA.

What to do if this doesn’t work:

• If any step rejects your application, ask for the specific code section or policy causing the issue and what remedy is allowed (alternate design, variance, or different license type). Document all communications.

Documents & Evidence You’ll Commonly Need

• Proof of right to occupy space (lease, deed) or home occupation approval.
• Floor plans (even hand-drawn with dimensions for simple reviews).
• Food facility: menus, equipment specs, commissary, waste disposal, water/sewer details.
• Corporate documents (articles, operating agreement or bylaws, registered agent info).
• Insurance certificates (workers’ comp, general liability if required for permits/leases).
• For OLCC: background disclosures, control plans, floor plans with controlled areas.

What to do if this doesn’t work:

• Ask the reviewing agency for a sample plan set or past approved example to use as a model. Many will share anonymized examples.

Real-World Examples (Salem)

• Retail boutique downtown:
  • Zoning allowed retail with no special approvals. The biggest time sink was accessibility adjustments and securing a sign permit. They registered an LLC ($100) and an ABN ($50) for branding. No health license was needed. They registered for payroll and statewide transit tax once they hired staff. Sources: SOS, DOR, OED.
• Food cart operating near a commissary kitchen:
  • County health required plan review and a commissary agreement. City needed zoning confirmation for the cart location and possibly a mobile vending permit. Build-out was minimal, but the hood and fire extinguishers were reviewed during inspection. Timeline was mostly driven by county health scheduling. Sources: County EH; City of Salem permits.
• Small brewery taproom:
  • OLCC manufacturing and on-premises service licensing; city zoning allowed use; building permits for taproom finish and restrooms; county health oversight for food-service if serving food; Paid Leave Oregon and workers’ comp when staff were hired; CAT exposure considered once revenues approached $1,000,000. Sources: OLCC, City of Salem, County EH, DOR CAT.

Table: Who to Contact (Official Directories)

Fees and Budgets: What to Expect

Here’s a planning list of fees many Salem businesses encounter. Always verify current amounts before paying or budgeting.

• Secretary of State filings:
  • ABN: $50 for 2 years; renewal $50. Source: SOS.
  • LLC formation: $100; annual report $100. Source: SOS.
  • Corporation formation: $100; annual report $100. Source: SOS.
• City of Salem licenses:
  • City fees vary by business type and can change annually. Check the current fee schedule: City of Salem — Business Licensing.
• County health (food):
  • Fees vary by facility type (e.g., full-service restaurant, limited service, mobile unit). Check the current fee schedules with your county: Marion County Environmental Health or Polk County Public Health.
• OLCC:
  • License fees vary (manufacturing, retail, service). Check the latest fee schedule: OLCC — Alcohol Licensing.
• Payroll setup:
  • Registration is free; you’ll have ongoing withholding/UI/transit/paid-leave costs. Check DOR and Paid Leave Oregon for current rates and deposit schedules.
• Workers’ comp:
  • Premiums vary by payroll and class code; get quotes from carriers like SAIF.

What to do if this doesn’t work:

• If costs are too high, consider a phased opening, alternate license type (e.g., limited service instead of full service), or operating as a pop-up/market vendor to start generating revenue while you finalize a permanent site.

Renewal Calendar and Ongoing Compliance

• Secretary of State annual reports: Due each year by your anniversary date. LLC and corporation annual report fees are $100. Source: SOS — Business Registry.
• ABN renewals: Every 2 years for $50. Source: SOS.
• City license renewals: City-set renewal cycles; confirm your specific license’s renewal date with the city.
• Payroll filings: Monthly/quarterly deposits and annual reconciliations. Due dates are on the DOR and OED sites; these can change year-to-year.
• Paid Leave Oregon, workers’ comp, and OSHA compliance are ongoing. Reassess as your staffing changes.

What to do if this doesn’t work:

• If you miss a deadline, pay/renew as soon as possible and request penalty relief if allowed by the agency. Keep proof of reasonable cause (e.g., hospitalization, natural disaster, system outage).

Accessibility, Inclusivity, and Certification Resources (Oregon/Salem)

• Oregon Certification Office for Business Inclusion and Diversity (COBID):
  • Certifications: WBE (Women), MBE (Minority), SDV (Service-Disabled Veteran), and ESB (Emerging Small Business).
  • Certification can help with public-sector contracting and visibility.
  • Start here: Oregon DAS — COBID Certifications and follow to “COBID.”
• Veteran-owned business resources:
  • Oregon Department of Veterans’ Affairs (ODVA) business resources and links to procurement opportunities: ODVA.
  • COBID SDV certification as above.
• Disability-owned businesses:
  • Consider national Disability:IN certification for supplier diversity programs and use COBID ESB if you qualify: Disability:IN Supplier Diversity.
• LGBTQ+ owned businesses:
  • NGLCC national certification is recognized by many corporate and some local supplier diversity programs: NGLCC — Certification.
• Immigrant-owned businesses and language access:
  • State resources and many agency pages offer translation/interpretation. For business licensing steps, use the Oregon Business Xpress portal which links to agencies with language assistance options.
  • City of Salem and Marion County offer language access resources on their sites. Start at their main pages and search for “Language Access” or “Español.”
• Women-owned business support:
  • COBID WBE certification, plus statewide small business support via Business Oregon (state economic development).
• Technical assistance and counseling:
  • Oregon SBDC Network (Small Business Development Centers) offers free advising and training. Find your local center (Chemeketa SBDC serves the Salem area): Oregon SBDC Network.

What to do if this doesn’t work:

• If certification seems complex, attend a COBID orientation webinar or get help from the SBDC. For language access, ask the agency for interpreter services—agencies must accommodate.

Table: Grants, Loans, and Technical Help (Quick Map)

Troubleshooting and Plan B Options

• If a site won’t approve your use, explore nearby zones where the use is allowed, or seek a conditional use if available.
• If construction budget is tight, consider a “vanilla shell” space, a location with a previous similar use, or a shared kitchen.
• If OLCC timelines are long, plan a dry opening (no alcohol) to start operations, if viable.
• If payroll compliance is overwhelming, hire a payroll provider familiar with Oregon or use the Oregon Business Xpress Navigator to find vetted assistance.
• If you’re denied a license, request the written reason with code citations and the appeal/variance process.

10 Oregon-Specific FAQs (Salem Focus)

• Do I need a City of Salem business license to work from home?
  • Many home-based businesses need a home occupation approval and may need a city license depending on activity. Start with the city’s planning and licensing pages: City of Salem — Planning & Permits.
• Is there a state “general business license” in Oregon?
  • No. Oregon has no statewide general license. You register your entity/name with the Secretary of State and then get any industry licenses needed. Source: SOS — Start a Business.
• How much does it cost to form an Oregon LLC?
  • Filing the Articles of Organization is $100, and the annual report is $100. Source: SOS — Business Registry.
• Do I owe Oregon sales tax?
  • Oregon has no sales tax. Some businesses still owe CAT and other taxes. Sources: Oregon DOR — Businesses, DOR — CAT.
• What is the Oregon statewide transit tax rate?
  • 0.1% withheld from wages. Source: DOR — Statewide Transit Tax.
• I’m near West Salem. Which county handles my food license?
  • West Salem is in Polk County; most other Salem areas are Marion County. Confirm your address and contact the right county health office: Marion County Environmental Health, Polk County Public Health.
• Do I need OLCC approval to serve wine at my café?
  • Yes. Any alcohol service/sales require OLCC licensing plus local approvals. Start here: OLCC — Alcohol Licensing.
• What’s the Oregon minimum wage in Salem right now?
  • Salem is in the “Standard” region. Oregon updates minimum wage every July 1. Check the current Standard rate on BOLI’s page: BOLI — Minimum Wage Rates.
• Do I have to pay the Corporate Activity Tax (CAT) if I’m not profitable?
  • CAT is based on Oregon commercial activity, not profit. If you exceed $1,000,000, you may owe CAT even without profit. Source: DOR — CAT.
• Where do I get help with the City of Salem process if I’m stuck?
  • Use the city’s main contact and services pages to reach licensing, planning, or permits: City of Salem — Contact & Services. For state-level questions, use Oregon Business Xpress.

What to Do Before You Spend Money (Priority Checklist)

• Confirm zoning/home occupation with the City of Salem.
• If food or alcohol is involved, talk to the county health office and OLCC early.
• File your business with the Secretary of State and get your EIN.
• Map your permits: city building/fire, signage, and county health.
• Build your tax calendar: payroll, transit, CAT.
• Price out insurance and workers’ comp.
• Plan realistic timelines including inspections and reviews.

What to do if this doesn’t work:

• If your location or budget hits a wall, pivot to a different site or staged opening plan. Use SBDC advisors for free help: Oregon SBDC Network.

Table: Quick Compliance Roadmap (Salem)

What If You Operate Only Online From Salem?

• Home occupation approval may still apply if you store inventory, have deliveries, or customers visit your home. Check with the City of Salem planning pages.
• You still must register your business name/entity with the Secretary of State.
• Payroll and CAT may still apply, depending on your revenues and employees.
• No Oregon sales tax, but if you ship to other states, you may have out-of-state sales tax obligations. Talk to a multistate tax professional.

What to do if this doesn’t work:

• If home occupation limits your operations, consider a co-warehousing or micro-fulfillment space zoned for storage/fulfillment.

What To Keep on File (Audit-Ready)

• All licenses and permits, plus inspection reports.
• Lease, zoning/home occupation approvals, and building permits.
• Payroll records, tax filings, workers’ comp proof.
• Food safety logs (if applicable) and employee training records (OLCC server permits, food handler cards).
• Corporate records (minutes, operating agreement or bylaws).

What to do if this doesn’t work:

• If you’ve lost records, pull copies from original agencies (SOS filings, DOR transcripts, OLCC records) and implement a document management system going forward.

Reality Checks and Warnings

• Budget and time creep:
  • Expect costs to rise during build-out and inspections. Plan a 10–20% contingency.
• Staffing and training:
  • You’ll need time for food handler cards, OLCC server permits, safety training, and Paid Leave Oregon communications.
• Insurance requirements from landlords:
  • Many leases require minimum liability limits and additional insured endorsements. Budget for this.
• ADA compliance:
  • Barrier removal and access may be required in alterations. It’s not optional.

What to do if this doesn’t work:

• If a specific requirement’s cost is too high upfront, ask the city if phased compliance is allowed or whether a different design can achieve the same code intent.

About This Guide

This is a practical guide for businesses in Salem, Oregon, with direct links to official state, county, and city sources. Official numbers cited (e.g., SOS filing fees, Oregon CAT and statewide transit tax) come from the Oregon Secretary of State and Oregon Department of Revenue pages. Other fees (city license fees, county health fees, OLCC license fees, transit payroll tax specific to Salem-area employers) change over time and can be different by activity; those should be verified on the official links provided. If you need something not covered here, use Oregon’s Business Xpress Navigator and the City of Salem contact pages to get answers directly from the agencies that regulate your business.

Disclaimer

Rules, fees, deadlines, and benefit levels change. Local programs, license categories, and transit tax rates can be updated during the year. This guide is for general information and is not legal or tax advice. Always verify current requirements with the relevant agency:

• City of Salem: Business Licensing & Permits
• Oregon Secretary of State: Start a Business
• Oregon Department of Revenue: Businesses
• Oregon Employment Department: Employers
• County Health (Food): Marion County Environmental Health, Polk County Public Health
• OLCC: Alcohol Licensing
• Paid Leave Oregon: Employers
• Oregon OSHA: Employer Resources

If you spot an outdated link or change, check the agency’s homepage and site search to find the current page name and fee schedule.