Coffee Shop / Cafe Permits & Licenses in Salem, OR

Required for all LLCs. Annual report required separately (see below). Fees current as of 2024.

Applies to all LLCs. Renewal frequency is biennial based on formation year.

Required if using a trade name/DBA. Search availability first via SOS site.

General business license for most operations; obtained through Business Registry portal. Coffee shops require food service endorsement.

Coffee shops qualify as "full service" restaurants. Plan review required pre-opening (fee ~$200+). Fees per 2024 schedule.

Unlikely for standard coffee shop but included if applicable (e.g., outdoor patio spa).

Coffee shops typically do not sell these; conditional only.

Coffee shop sales of prepared food/beverages are generally exempt, but taxable if selling retail items. Register online.

Coffee shops selling prepared food and beverages must collect and remit sales tax. Oregon does not have a statewide sales tax; however, local jurisdictions may impose their own. See local taxes below.

Required for all employers in Oregon. Includes obligation to withhold state income tax from employee wages.

Employers must pay unemployment insurance tax on wages up to annual taxable wage base. New employers typically start at 2.9% rate.

Applies to all LLCs doing business in Oregon. This is Oregon's equivalent of a franchise tax. Must file Form 65 even if no income.

Required for all LLCs except single-member LLCs with no employees (may use SSN). However, banks typically require EIN.

Portland imposes a Business License Tax on gross receipts. Coffee shops classified under 'Restaurants and Caterers'. Other Oregon cities may have similar taxes; verify locally.

Only relevant if coffee shop operates lodging (e.g., café with attached inn). Not typical for standard cafes.

Oregon does not impose a statewide tourism, lodging, or hotel tax. Some cities (e.g., Portland, Bend) may have local transient lodging taxes, but these do not apply to coffee shops unless operating lodging.

Many Oregon cities (e.g., Eugene, Salem, Beaverton) require a local business license or privilege tax. Fee and filing method vary. Check with city clerk or county administrator.

Required for all businesses; coffee shops classified as retail food service

Confirms site complies with zoning for cafes (e.g., C zones allow food service)

Required for tenant improvements common in cafes

Wall signs for cafes typically allowed in commercial zones

Coffee shops with espresso/food need "Risk Level 2/3" permit

Required for cafes with >50 occupants or hood systems

Verifies compliance for food service occupancy

Common for cafes >3,000 sq ft

All businesses; no gross receipts tax

Coffee shops typically "Medium Risk

Cafes allowed in most commercial zones

Required for kitchen/counter installs

Required for all employers with one or more employees, including part-time and family members. Sole proprietors without employees are exempt from mandatory coverage but may elect to cover themselves. Administered under ORS 656.015–656.793.

Not legally required by the state of Oregon, but strongly recommended and often required by landlords, lenders, or third-party contracts. Covers slip-and-fall accidents, property damage, and other third-party claims.

Not legally required for coffee shops in Oregon. May be relevant if offering professional advice (e.g., coffee consulting), but not standard for retail operations. Considered optional.

No statewide surety bond requirement for general coffee shop operations. However, some cities or counties may require a business license bond. Not common for standard cafes unless involved in vending or mobile operations. Verify with local municipality.

Required for any vehicle used for business purposes. Personal auto policies typically exclude business use. Oregon law requires minimum liability coverage: $25,000 bodily injury per person, $50,000 per accident, $20,000 property damage (25/50/20). ORS 806.010–806.370.

Not legally required by Oregon law. However, coffee shops selling food and beverages face inherent product liability risks. Strongly recommended. Covers claims related to foodborne illness or foreign objects in food.

Required for any coffee shop that obtains an OLCC license to sell alcohol (e.g., espresso cocktails). The OLCC mandates proof of liquor liability insurance (typically $1 million per occurrence). This is a condition of licensure under ORS 471 and OLCC rules.

Not required statewide. For example, the City of Portland does not currently require a bond for a food establishment permit, but reserves authority to require one. Other jurisdictions may impose bonding as a condition of licensing. Always verify with local health department or business licensing office.

Mandatory for all food-serving operations. Requires inspection and proof of insurance.

While not required for all single-member LLCs with no employees, most coffee shops will need an EIN to open a business bank account or hire staff. This is a prerequisite for other federal compliance.

Single-member LLCs are disregarded entities for federal tax purposes and report income on Schedule C of Form 1040. Multi-member LLCs file Form 1065 and issue K-1s. All owners must pay self-employment tax on net earnings.

Coffee shop employers must provide a workplace free from recognized hazards, post OSHA Form 300A (if required), and maintain injury logs. Specific risks include slips, burns, and equipment safety. Employers with 10 or fewer employees are exempt from routine inspection but still must comply.

Coffee shops must ensure accessible entrances, counters, restrooms, and pathways. New construction or alterations must meet ADA Standards for Accessible Design. DOJ provides tax incentives for small businesses to comply.

Coffee shops that roast beans, brew coffee, prepare pastries, or serve food are considered food facilities and must register with the FDA. Registration must be renewed every two years during the renewal period (October 1–December 31).

Any packaged food sold must comply with FDA labeling rules, including ingredient list, allergen declaration (e.g., milk, eggs, wheat), net quantity, and business name/address. Bulk items (e.g., pastries in display cases) are exempt but must have allergen signage.

Coffee shops must comply with federal minimum wage ($7.25/hour), overtime pay (1.5x regular rate after 40 hours), and recordkeeping requirements. Most coffee shop employees are non-exempt and entitled to overtime.

Employers must complete Form I-9 for every employee, verify identity and work eligibility documents, and retain forms for 3 years after hire or 1 year after termination. E-Verify is not required federally unless state law mandates it.

Coffee shops must ensure all advertising (e.g., "organic," "locally sourced," "free Wi-Fi") is truthful and not misleading. FTC enforces against deceptive claims in menus, signage, and online content. Applies to all businesses engaged in commerce.

Small-scale roasting may be exempt, but larger operations may require New Source Performance Standards (NSPS) compliance under 40 CFR Part 60. State and local air quality agencies may have additional rules.

Coffee shops meeting the employee threshold must provide eligible employees up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Most small coffee shops are exempt.

Most coffee shops discharge wastewater and must comply with local pretreatment standards. Control grease, oils, and chemicals. Contact local sewer authority for requirements.