Starting a service business in Oregon

Form your business in Oregon

You form an Oregon LLC by filing Articles of Organization with the Corporation Division, online through the Oregon Business Registry or by mailing the paper form with a check payable to the Corporation Division. The processing fee is $100 as listed by the Secretary of State in October 2026. The division says processing of an online filing typically begins within one business day after you submit it.

Ongoing state filings

Oregon LLCs renew every year by the anniversary date of the original filing. The renewal fee is $100 as listed on the Corporation Division's fee schedule in October 2026. Oregon also has a Corporate Activity Tax: a business with $750,000 of Oregon commercial activity must register, and one with more than $1 million must file a return, per the Department of Revenue. Most new service businesses are far below those lines, but track your gross receipts once you add crews.

Using a business name (DBA)

Oregon law requires anyone doing business under an assumed name to register it with the Secretary of State as a public record. An assumed business name costs $50 to register and $50 to renew every two years, as listed on the Corporation Division's fee schedule in October 2026. Your CCB license and your advertising should match the names on file.

Not sure whether you need an LLC at all? Read LLC vs sole proprietor for contractors, then get your free EIN from the IRS.

Licensing for service trades

The Construction Contractors Board (CCB) requires a license for anyone who works for compensation in any construction activity involving improvements to real property, and its examples include painting and handyman services. The CCB does not require a license for cleaning-only work such as gutter cleaning, power and pressure washing for cleaning siding and sidewalks, or yard and job-site debris cleanup. Tree servicing is on its list of work that does need a license. The only small-job exemption (ORS 701.010) covers casual, minor work under $1,000 on one structure, and it does not apply if you advertise as a contractor. Getting licensed takes 16 hours of pre-license training, an exam, a surety bond and liability insurance, and the CCB lists a $400 application fee for applications after July 1, 2025, with processing in 6 to 8 weeks and a two-year license term. Painting or renovation that disturbs more than 6 square feet of painted surface per room inside, or 20 square feet outside, triggers the CCB's lead-based paint rules, including 8-hour renovation, repair and painting training for at least one owner or employee. Electrical and plumbing contractors need both a CCB license and a Building Codes Division contractor license. A separate state board, the LCB, licenses landscaping construction such as planting trees, while mowing, edging, weeding, small pruning and adjusting sprinkler heads are not regulated by the state. Pesticide applications for hire need Oregon Department of Agriculture licenses, with a narrow exemption for small residential maintenance jobs.

• Oregon Construction Contractors Board: Residential and commercial contractors, including painters and handymen
• Oregon Building Codes Division: Electrical and plumbing contractor and individual licenses
• Oregon LCB, the state board for landscaping contractors: Landscaping construction and tree planting (routine maintenance is not regulated)
• Oregon Department of Agriculture, Pesticides Program: Commercial pesticide applicator and operator licenses

Workers' compensation

The Workers' Compensation Division of the Department of Consumer and Business Services says Oregon employers with one or more employees, full or part time, must carry workers' compensation insurance or be self-insured. If you have no employees, there is no requirement. You can buy coverage from any insurer authorized to write workers' comp in Oregon, of which the division says there are more than 300, or from SAIF Corporation, the state-owned insurer. The CCB also asks about workers' comp during licensing, so set up coverage before your first hire.

More on coverage: business insurance for contractors.

Sales tax on services

The Oregon Department of Revenue states that Oregon does not have a general sales or use tax, so you do not register to collect sales tax on mowing, cleaning, washing or repairs. The tax to watch instead is the Corporate Activity Tax: registration at $750,000 of Oregon commercial activity, and a return plus tax of $250 plus 0.57% of taxable commercial activity over $1 million.

Recording business calls in Oregon

Oregon splits the rule. For telephone calls, ORS 165.540 requires the consent of at least one participant, so you may record calls you are on. For in-person conversations, every participant must be specifically informed that the conversation is being recorded, and ORS 165.535 counts video conferencing as a conversation. Announce recording on site visits and video estimates; see our guide to recording business calls.

See our guide to recording business calls before you turn on call recording or an AI receptionist.

How the seasons shape the work

West of the Cascades, Oregon's long wet season grows moss on roofs, decks and siding, which makes roof and exterior cleaning a big part of the year and pushes exterior painting into a short dry window from roughly June to September. East of the mountains the climate is drier with real winters. Wildfire smoke in late summer can stop outdoor crews for days at a time, and occasional ice and snow storms in the Willamette Valley bring tree and frozen-pipe calls.

Required contracts and notices

For residential work over $2,000, the CCB requires a written contract (ORS 701.305) and delivery of three notices: the Information Notice to Owner About Construction Liens, the Consumer Protection Notice, and the Notice of Procedure. Keep proof of delivery for two years. If a job under $2,000 grows past that amount, the written contract is due within five days.

Pick the right CCB endorsement

The CCB's endorsement chart sets bond and insurance amounts by the work you do. A Residential Limited Contractor, intended for work like handyman services, is capped at $40,000 in gross annual sales and $5,000 per contract and needs a $15,000 bond and $100,000 per-occurrence insurance. A Residential Specialty Contractor needs a $20,000 bond and $300,000 insurance, and a Residential General Contractor a $25,000 bond and $500,000 insurance.

Then set up the back end that gets you hired

The paperwork makes you legal. Customers still have to find you, reach you and pay you. Before your first job, set up a business phone number, email on your own domain, a Google Business Profile, a simple website, and a way to send quotes and take card payments. The launch checklist lays out the order.

Oregon questions