commenda-logo
Book a demo
Login
Talk to an expert

Doing business in

Oregon

Navigate Oregon’s business landscape with ease—whether you’re incorporating, expanding, or managing tax compliance. Commenda helps you stay ahead with automated solutions for incorporation, compliance, and tax filings.
Book a demo
oregon

Business Overview

Oregon offers diverse business opportunities in technology, advanced manufacturing, agriculture, and renewable energy. The state provides access to Pacific Rim markets, specialized workforce development, and no sales tax. Its quality of life factors help businesses attract and retain talent.

Key Facts & Figures

Category Details
Capital Salem
Major Cities Portland, Salem, Eugene, Gresham, Hillsboro
State Sales Tax Rate No state sales tax
Local Sales Tax Rate No local sales tax
Corporate Income Tax 6% flat rate
Physical Nexus Threshold No sales tax nexus requirements (no sales tax)
Economic Nexus Threshold No economic nexus laws (no sales tax)

Did you know?

Oregon is home to Nike’s global headquarters and has a thriving technology and sustainable business ecosystem.

Setup & Compliance

Oregon offers business-friendly formation with unique tax advantages.

Oregon Business Setup Process:

  1. Choose Your Business Structure: Consider Oregon’s tax advantages, including no sales tax.
  2. Register Your Business: File formation documents with the Oregon Secretary of State.
  3. Obtain Required Licenses: Research and secure necessary state and local business licenses.
  4. Register for Tax Accounts: Register with the Department of Revenue for applicable taxes.
  5. Register as an Employer: Register with the Employment Department if hiring employees.

Unique Oregon Compliance Considerations:

  • Annual Reports: Oregon entities must file annual reports with the Secretary of State.
  • No State Sales Tax: Oregon is one of five states without a state sales tax.
  • Corporate Activity Tax: Businesses with commercial activity over $1 million pay CAT.
  • Corporate Income Tax: Corporations pay 6.6% on first $1M of income, 7.6% on income above $1M.
  • Employment Taxes: Employers must register for unemployment insurance and workers’ compensation.

Hiring & Payroll

Oregon provides comprehensive worker protections with several state-specific regulations.

Oregon Payroll Requirements:

  • Unemployment Insurance: Rates from 0.7% to 5.4% on first $47,700 of wages.
  • State Income Tax Withholding: Required with progressive rates.
  • Paid Family and Medical Leave Insurance: Mandatory starting 2023.
  • Workers’ Compensation: Required for all employers.

Oregon Employment Laws:

  • Minimum Wage: Varies by region ($12.50 to $14.75 per hour).
  • Paid Sick Leave: Up to 40 hours annually.
  • Mandatory rest and meal breaks.
  • Final Paycheck: Due immediately upon termination.
  • Oregon is not a right-to-work state.

State Incentives

Oregon offers comprehensive economic incentives to support business innovation and growth.

Key Business Incentives:

  • Oregon Investment Advantage: Tax credits for job creation and investment.
  • Strategic Investment Program: Support for large-scale business investments.
  • Research and Development Tax Credit: Supports innovative company development.

Small Business & Startup Support:

  • Oregon Small Business Development Center: Comprehensive business consulting.
  • Business Oregon Microloan Program.
  • Creative Sector Grants: Support for creative industries.

Regulatory Considerations

Oregon maintains a progressive regulatory framework supporting sustainable business practices.

Key Business Regulations:

  • Data Privacy: Comprehensive laws protecting consumer and business information.
  • Environmental Compliance: Stringent regulations supporting green initiatives.
  • Professional Licensing: Mandatory for various professional services.

Additional Regulatory Areas:

  • Sustainable Business Practices.
  • Technology and Creative Industry Compliance.

Explore Tax & Compliance Topics

Join hundreds of cross-border businesses growing fast with Commenda

Talk to an expert