Complete guide to permits and licenses required to start a general contractor in Salem, OR. Fees, renewal cycles, and agency contacts.
Required for all LLCs. Annual report required separately (see below).
Filing due by end of anniversary month in applicable year.
Required for all general contractors performing construction work. Must designate a Responsible Managing Individual (RMI) who meets experience requirements (4 years supervisory experience).
RMI must demonstrate 4 years construction experience (1600 hours/year supervisory). Exam not required for general contractors.
Required if using trade name/DBA different from registered LLC name. County-level registration repealed effective 1/1/2016.
UBI number automatically assigned to all LLCs for state tax purposes.
Bond protects consumers; cost is surety premium (typically 1-3% of bond amount).
All LLCs must register with the Oregon Secretary of State. This includes obtaining a Unified Business Identifier (UBI), used across state agencies for tax and regulatory reporting.
Required for all businesses operating in Portland city limits; general contractors included. Cite: Portland City Code Chapter 7.24.
General contractors must register if in unincorporated areas. Portland businesses exempt from county license. Cite: Multnomah County Code Sec. 6.04.
Ensures compliance with zoning for contractor office/yard. Type II or III land use review often required. Cite: Portland Zoning Code Title 33.
Limited to low-impact activities; storage of equipment restricted. Cite: Portland City Code 33.815.025.
Required for interior buildout, additions. General contractors familiar with process. Cite: Portland City Code Uniform Building Code adoption.
Freestanding, wall, or projecting signs require permit. Cite: Portland Sign Code Chapter 32.48.
Required for most commercial buildings over certain size. Cite: Portland Fire Code (IFC adoption).
Verifies building code compliance for intended use. Cite: Portland Building Code Sec. 110.
Common for general contractors. Cite: Portland Transportation Code.
Nuisance complaints common; variance needed for early/late work. Cite: Portland City Code 18.12 (Noise Control).
Required for contractor operations outside cities. Cite: Clackamas County Code Chapter 4.
Zoning approval also required. Cite: Washington County Code Sec. 2.40.
Oregon requires workers’ comp for any employer with at least one employee. The coverage limit is set by the insurer; the state does not prescribe a minimum dollar amount.
CCB requires a minimum of $1 M per occurrence and $2 M aggregate general liability coverage for all Class A, B, and C contractor licenses.
All Oregon‑licensed general contractors (Class A, B, C) must post a $15,000 contractor license bond with the CCB.
The CCB does not require E&O for contractors who only perform construction without design. The requirement is triggered by offering professional design services.
Oregon law requires all registered vehicles to carry minimum liability coverage ($25,000 bodily injury per person, $50,000 per accident, $20,000 property damage). Commercial vehicles typically carry higher limits.
Oregon does not mandate product liability insurance for contractors, but it is strongly recommended when selling products to limit exposure to third‑party claims.
Only applicable if the contractor’s business activities include the sale or service of alcoholic beverages; otherwise not required.
Even single-member LLCs without employees may need an EIN to open a business bank account or if they elect to be taxed as a corporation. General contractors often need an EIN due to subcontractor reporting (Form 1099).
By default, a multi-member LLC is taxed as a partnership (Form 1065), and a single-member LLC is disregarded (income reported on Schedule C). General contractors must report all income and may deduct business expenses. Estimated quarterly taxes (Form 1040-ES) are required if expecting $1,000+ tax liability.
General contractors must provide a workplace free from recognized hazards, comply with OSHA construction standards (29 CFR 1926), train employees on hazard communication, fall protection, and PPE, and maintain OSHA Form 300 logs if 10+ employees. Oregon has its own OSHA-approved state plan (OR-OSHA), but federal OSHA sets baseline requirements.
General contractors performing renovations must comply with ADA Standards for new construction or alterations. If the business operates from a physical location open to the public (e.g., office), it must ensure accessibility. Contractors advertising services must ensure websites are accessible under current DOJ interpretation.
General contractors disturbing more than 6 square feet of painted surfaces in pre-1978 housing must be EPA-certified, follow lead-safe work practices, and provide EPA-approved renovation pamphlet. Required even for LLCs without employees. Certification is through EPA or an EPA-authorized state (Oregon is not authorized; federal rule applies).
General contractors must avoid deceptive advertising (e.g., false claims about licensing, pricing, or completion times). Must disclose material connections in endorsements. Applies to websites, social media, and printed materials. FTC also enforces the 'Do Not Call' provisions under the Telemarketing Sales Rule if cold calling consumers.
General contractors must verify identity and work authorization for every employee using Form I-9. Employers must retain forms for 3 years after hire or 1 year after employment ends, whichever is later. Applies even to small LLCs with one employee.
General contractors must pay federal minimum wage ($7.25/hr) and overtime (1.5x regular rate) for hours over 40/week. Most construction work qualifies as interstate commerce due to use of materials from other states. Independent contractor classification must meet FLSA criteria to avoid misclassification penalties.
If threshold is met, general contractors must provide eligible employees up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Oregon has its own family leave law (OFPA), but federal FMLA sets baseline for covered employers.
General contractors frequently hire subcontractors and must issue Form 1099-NEC. Applies regardless of LLC structure. Failure to file can trigger penalties even if the contractor is compliant with state licensing.
The report updates the LLC’s address, members/managers, and registered agent. Must be filed online via the Business Registry portal.
Renewal must be completed online; proof of workers’ compensation coverage and a current bond are required.
At least 2 CE hours are required every two years. Credits must be from an approved provider and documented in the CCB portal.
License must be posted in a conspicuous location at the contractor’s primary place of business.
Required posters include Minimum Wage, Workers’ Compensation, OSHA, Anti‑Discrimination, and Paid Family Leave notices.
Employers must maintain OSHA 300 Log throughout the year and post the summary (OSHA 300A) annually.
Payments are made electronically via the Oregon Revenue Online portal.
Form OR‑20 must be filed electronically via Revenue Online.
Payments and reports are filed through the Oregon Business Registry’s UI portal.
Report includes payroll totals and premium payments.
Includes time cards, wage statements, tax withholdings, and benefit records.
Applies to all tax filings, including income, sales, and payroll taxes.
Includes all documents related to construction contracts, permits, and inspections.
Schedule inspections through the local permitting portal; failure to obtain required inspections can result in a stop‑work order.
The report includes total contract value, number of employees, and safety statistics.
While no specific federal *license* is required for general contractors, there are compliance obligations with agencies like the FTC and IRS that may have associated costs, which vary depending on the specific requirement and your business’s circumstances.
The Federal Trade Commission (FTC) requires adherence to truth-in-advertising and consumer protection laws, including the Home Improvement Rule, to ensure fair business practices and transparency with customers.
Most federal compliance requirements, such as FTC and IRS obligations, are one-time requirements, but ongoing adherence is necessary; there isn’t a standard renewal schedule for these.
An EIN is a unique tax identification number assigned by the IRS to businesses operating as LLCs; it’s required for tax reporting and opening a business bank account.
Non-compliance with IRS regulations, such as failing to pay self-employment taxes or maintain proper records, can lead to penalties, interest charges, and even legal action.
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