Child Care / Day Care Permits & Licenses in Portland, OR

Employers must file federal Form 941 quarterly to report withheld income taxes and FICA. Also file Form 940 annually for FUTA. Oregon requires quarterly DE-9 filings. Child care providers with employees must comply.

Some Oregon cities (e.g., Portland, Eugene, Salem) require a local business license or impose a privilege tax. For example, Portland Business License Tax is 2.2% of gross receipts over $100,000. Child care providers must check with their city or county treasurer’s office.

Required for all businesses; child care LLCs must register regardless of type

Annual report required separately (see below). Fee current as of 2024.

Applies to all LLCs. Online filing available.

Required if using trade name/DBA. Published notice may be required in county.

Required for all certified child care facilities serving 7+ children (including provider's own). Includes background checks, inspections, training. Effective rules as of July 1, 2023.

Specific to center-based day care. Prerequisites: facility inspections, staff qualifications, CPR/first aid training.

Lower regulation than certified; still requires background checks, health/safety standards. For exempt home care (1-6 children), no state license needed but local rules may apply.

Mandatory 1-hour online training on regulations, abuse reporting. Prerequisite for licensing.

Required for all providers, employees, volunteers with access to children.

All businesses operating in Oregon must register for a Uniform Business Identifier (UBI) with the Oregon Secretary of State. This UBI is used by multiple state agencies including the Department of Revenue and Employment Department. Required for LLCs, including child care providers.

Child care services themselves are generally exempt from Oregon sales tax. However, if the business sells tangible personal property (e.g., food, supplies) to parents or third parties, a sales tax permit may be required. Most child care providers do not collect sales tax unless they sell taxable items separately.

Required for all employers in Oregon who pay wages. Employers must withhold state income tax from employee wages and remit it to the Oregon Department of Revenue. Applies to child care businesses with hired staff.

All employers in Oregon must register with the Oregon Employment Department and pay unemployment insurance tax. Applies to child care providers with employees. Household employers (e.g., nannies) may have different rules, but LLCs are treated as formal employers.

Oregon does not have a traditional franchise tax. Instead, LLCs are subject to an annual Corporate Excise Tax based on gross receipts. The minimum tax is $150/year. Due annually on April 15. Applies to all LLCs doing business in Oregon, including child care providers.

Required for all LLCs. Used for federal income tax, employment tax, and excise tax filings. Must be obtained from the IRS even if the business has no employees.

Applies to unincorporated areas; Portland city license supersedes within city limits

Limited to 16 hours/week traffic generation; child care limited to 8 children max without full commercial zoning

Child care centers require Commercial (C) or Employment (E) zoning; verify via Type II Land Use Review

Must comply with Oregon Residential Specialty Code + child care specific safety standards

Required for Day Care Centers (Group E occupancy); includes sprinklers, alarms, exits

Wall signs limited to 1.5 sq ft per linear foot of building frontage

Child care providers are considered public accommodations under Title III of the ADA. Must make reasonable modifications to policies, practices, and procedures to serve children with disabilities unless it fundamentally alters the program. Physical accessibility required for new construction or alterations. Applies regardless of number of employees or size.

If the child care facility is located in a pre-1978 building and any renovation (e.g., repainting walls, replacing flooring) disturbs more than 6 square feet indoors or 20 square feet outdoors, the contractor or business must be EPA-certified under the RRP rule. Does not apply to routine maintenance unless it disturbs painted surfaces.

Child care providers must ensure all advertising (websites, brochures, social media) is truthful and not misleading. Prohibited from making unsubstantiated claims (e.g., “best in Oregon,” “highest safety standards” without proof). Applies to all businesses offering services to consumers under Section 5 of the FTC Act.

Child care employees (teachers, aides, cooks) must be paid at least federal minimum wage ($7.25/hour) and overtime (1.5x regular rate) for hours over 40 per week. Some exemptions may apply, but most child care workers are non-exempt. Employers must maintain accurate time and payroll records.

Covered employers must provide eligible employees up to 12 weeks of unpaid, job-protected leave per year for specified family and medical reasons. Child care employees may qualify for leave to care for their own children or for serious health conditions.

All U.S. employers must complete Form I-9 to verify identity and work authorization for each new employee. Electronic versions allowed via authorized E-Verify systems. Applies to all employees regardless of citizenship status.

While not universally required, federal contractors must use E-Verify for all new hires. Most child care providers not contracting with federal agencies are exempt. However, if providing services under a federal grant or contract (e.g., Head Start), E-Verify may be mandatory.

Child care/day care businesses in Oregon do not require federal licenses from FDA, ATF, FCC, or DOT. Food served is incidental and not sold; no alcohol served; no interstate transportation; no radio spectrum use. This is a negative finding based on SBA and federal agency guidance.

Federally funded program requiring adherence to meal patterns, recordkeeping, and audits. Reimbursement rates vary by income level of families served. Required for many licensed day care centers in Oregon.

The report updates the LLC’s principal office address, registered agent, and members/managers.

Renewal requires submission of updated staff qualifications, health records, and a renewal fee.

All staff members who provide direct care to children must complete at least 6 hours of approved professional development annually.

Inspection covers sanitation, food handling, illness policies, and overall health safety.

Inspection verifies working smoke detectors, fire extinguishers, evacuation plans, and occupancy limits.

A certificate of occupancy must be current and posted.

Required if preparing/serving food beyond simple snacks; annual operating permit also needed

Direct connect to Portland 911 required for Group E occupancies

Verifies compliance with building, fire, zoning codes for Group E (educational) occupancy

Child care specifically listed as requiring license

Required for all employers with one or more employees in Oregon, including part-time, minor, and family members over age 18. Sole proprietors may opt out only if they have no employees. Child care businesses typically fall under classification code 8806 (Day Care Centers).

Not mandated by statute directly, but required as part of the licensing process by Oregon DHS. Required to meet minimum standards under OAR 411-032-0000 series. Minimum $1 million general liability coverage recommended and typically enforced during licensing.

A $10,000 surety bond is required for all licensed child care providers (including center-based and group homes) as a condition of licensure. The bond protects against failure to comply with state child care laws. Bond must be issued by a surety licensed in Oregon.

LLC taxed as partnership files Form 1065; if elected to be taxed as corporation, file Form 1120.

Required if the LLC expects to owe $1,000 or more in tax for the year.

LLC members report pass‑through income on their personal returns; corporations file Form Corporation Income Tax Return.

Report total wages, state income tax withheld, and unemployment insurance contributions.

Includes Social Security, Medicare, and federal income tax withholding.

Required records include attendance logs, immunization records, incident reports, staff qualifications, and health inspection reports.

Include Federal Minimum Wage, FLSA Child Labor, OSHA Workplace Safety, Oregon Minimum Wage, Oregon Paid Sick Leave, and any other applicable notices.

The posted license must be legible and include the expiration date.

Report total enrollment numbers, staff‑to‑child ratios, staff qualifications, and any changes in operation.

Any injury, illness, or safety incident involving a child must be reported to the licensing office within 24 hours; the quarterly summary aggregates these reports.

Required for any vehicle registered to the LLC. Oregon law mandates minimum liability coverage: $25,000 bodily injury per person, $50,000 per accident, $20,000 property damage. Applies regardless of business type if vehicle is used commercially.

Not legally required by Oregon state law or licensing rules, but strongly recommended for child care providers to protect against claims of negligence, injury, or improper supervision. Not enforced by any agency.

Not mandated by Oregon for child care providers unless selling tangible goods. If products are sold, coverage may be necessary to protect against claims of harm. Not enforced by state child care licensing.

Only applicable if the child care business serves alcohol, which is extremely rare and generally prohibited in licensed child care settings. No child care provider would typically meet this condition. Required only if business holds OLCC license.

While not all single-member LLCs without employees need an EIN, child care businesses typically hire staff and must obtain an EIN. Required for tax reporting, opening business bank accounts, and compliance with federal tax obligations.

Multi-member LLCs are taxed as partnerships and must file Form 1065; single-member LLCs are disregarded entities unless they elect corporate taxation. Child care income is subject to self-employment tax (Schedule SE). Employers must withhold and pay payroll taxes (Social Security, Medicare, federal income tax).

Employers must provide a workplace free from recognized hazards. Required to report work-related fatalities within 8 hours and hospitalizations, amputations, or loss of an eye within 24 hours. While child care facilities are not heavily industrial, OSHA covers indoor air quality, emergency preparedness, bloodborne pathogens (if handling bodily fluids), and injury reporting.