Massage Therapy Permits & Licenses in Portland, OR

Massage therapy services are generally NOT subject to Oregon sales tax because they are considered personal services. However, if the business sells tangible personal property (e.g., massage oils, lotions, CBD products) at retail, those sales may be taxable. Registration required only if selling taxable items.

The Oregon Commercial Activity Tax (CAT) applies to businesses with taxable commercial activity exceeding $1 million in the prior calendar year. Massage therapy businesses below this threshold are exempt. First $1 million is exempt. Rate is 0.517% of taxable commercial activity above $1 million.

Examples: Portland Business License ($75/year), Eugene Business License ($50–$200/year). Not all jurisdictions require this. Check with city clerk or county administrator. Massage therapy businesses are not exempt.

Employers pay UI tax on first $49,800 of each employee's wages (as of 2024). New employers typically pay 3.2% rate until experience rating is established.

Required for all LLCs. Annual report required separately (see below).

Applies to all LLCs; fee fixed regardless of size/revenue.

Required if using a trade name/DBA. Search registry first to confirm availability.

Prerequisites: 500 hours approved education, pass MBLEx exam (or state-approved equivalent), background check, CPR certification. Required for all practicing massage therapists in Oregon.

All therapy locations must be registered. Owner/manager must hold active LMT license or qualify for exception. Updated rules effective 2023.

Additional requirements include on-site manager (LMT), hygiene protocols, and inspections.

This is a prerequisite for other tax registrations. Required for all LLCs in Oregon regardless of business type.

This single registration covers state income tax withholding, employer withholding tax, and unemployment insurance tax where applicable. Required for all businesses in Oregon.

Includes obligation to withhold state income tax from employee wages. Filing frequency depends on tax liability (monthly or quarterly).

All LLCs must obtain an EIN regardless of employee status. Used for federal tax reporting, including income, employment, and excise taxes.

As an LLC, income passes through to owners' personal tax returns. The business itself does not pay state income tax, but must file Form OR-40 (or OR-40N) for each member. Applies to all Oregon businesses with taxable income.

Single-member LLCs are disregarded entities and report on Schedule C of owner's Form 1040. Multi-member LLCs must file Form 1065 and issue K-1s to members.

All individuals performing massage therapy in Oregon must be licensed. The business may be owned by non-licensed individuals, but services must be provided by a licensed therapist. Businesses must ensure all practitioners are licensed.

Required for all businesses; massage therapy specifically listed as needing license verification with state LMT certification

Home occupations allowed in residential zones with limits (e.g., no more than 25% floor area for business); massage therapy may require conditional use approval in some zones per Title 33 Zoning Code

Required for all businesses in unincorporated areas; must show state massage therapy license

Massage establishments often require plumbing/ADA modifications; see BDS Fee Schedule https://www.portland.gov/bds/development-services-fee-schedule

Required for wall, freestanding, or projecting signs per Chapter 32.48 Portland Zoning Code

Massage therapy spaces classified as Business (B) occupancy; requires exit signage, extinguishers per IFC

Issued after final building/fire inspections

Required for monitored systems

Specific to massage therapy; requires sinks, sanitization per Oregon Health Authority rules adopted locally; effective 2023 updates

Mandatory for all employers with one or more employees, including part-time and family members. Sole proprietors may elect out only if they file a Form 884 with WCD. Massage therapists are classified under risk class 8810 (Personal Services).

Not legally required by the State of Oregon for massage therapy businesses. However, landlords, clients, or professional associations may require it as a condition of contracts or leases. Strongly recommended for protection against third-party injury or property damage claims.

Not legally required by the Oregon Board of Massage Therapists for licensure or operation. However, it is strongly recommended for risk management. The Board does not enforce insurance requirements beyond workers' comp and bonding (if applicable).

Not required unless the massage therapy business holds an OLCC license to serve or sell alcohol. This is highly uncommon in massage therapy settings. If alcohol is served, a liquor liability policy would be required as part of OLCC compliance. No such mandate applies to standard massage businesses.

Oregon treats LLC members as employees unless they file Form 884 to elect non-coverage. Even if not paid a salary, active members must be covered unless exempt. Misclassification is a common audit target.

Required for all LLCs, especially if they have employees or operate as a partnership/corporation for tax purposes. Even single-member LLCs without employees may need an EIN if they elect corporate taxation or open a business bank account.

As an LLC, massage therapists are typically taxed as sole proprietors (single-member) or partners (multi-member), requiring Schedule C and Form 1040. Must pay self-employment tax (Social Security and Medicare) via Schedule SE.

Applies only if the LLC has employees. Requires compliance with OSHA’s General Duty Clause (Section 5(a)(1) of the OSH Act), which mandates a workplace free from recognized hazards. Relevant hazards in massage therapy include ergonomic strain, bloodborne pathogens (if handling bodily fluids), and slip/trip/fall risks. No specific OSHA standard for massage therapy, but general industry standards apply.

Required only for businesses with 11 or more employees. Massage therapy businesses with fewer than 11 employees are exempt from routine recordkeeping but must report any work-related fatality within 8 hours and any hospitalization, amputation, or loss of an eye within 24 hours.

Applies to all places of public accommodation, including massage therapy studios. Requires physical accessibility (e.g., entrances, restrooms), policy modifications, and effective communication. Existing facilities must remove barriers if "readily achievable." New construction or alterations must comply with ADA Standards for Accessible Design.

Most massage therapy practices do not generate regulated medical waste. However, if the business uses acupuncture or handles bodily fluids beyond typical massage (e.g., wound care), it may be subject to RCRA hazardous waste rules. Standard massage using lotions/oils does not trigger EPA medical waste rules.

FTC enforces truth-in-advertising laws. Massage therapy businesses must ensure all claims (e.g., "relieves chronic pain," "detoxifies body") are substantiated by scientific evidence. Prohibited from deceptive pricing, fake testimonials, or unsubstantiated health claims. Applies to websites, social media, and printed materials.

Required for all U.S. employers, including LLCs. Must verify identity and employment authorization using Form I-9. Employers must retain forms for 3 years after hire or 1 year after termination, whichever is later. Applies regardless of business size.

Requires payment of federal minimum wage ($7.25/hour) and overtime (1.5x regular rate for hours over 40/week). Applies to employees, not independent contractors. Massage therapists classified as employees must be paid accordingly. Misclassification can lead to significant liability.

Requires covered employers to provide up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons. Most small massage therapy LLCs will not meet the 50-employee threshold. However, if the business grows, compliance becomes mandatory.

Massage lotions and oils are considered cosmetics under FDA jurisdiction. Must be safe, properly labeled, and not adulterated. Massage tables are general wellness devices not requiring premarket approval, but must be safe. Claims that products or devices treat disease (e.g., "cures arthritis") can trigger drug/device regulation.

A $10,000 surety bond is required for all massage therapy establishments (businesses) licensed by the Oregon Board of Massage Therapists. This is a condition of licensure under ORS 659A.425 and OAR 817-015-0035. The bond ensures compliance with state laws and regulations. Sole proprietors operating under their own license without employing others still require this bond if operating as a business entity (LLC).

Required under Oregon law for any vehicle used primarily for business purposes. Personal auto policies exclude business use. If the LLC owns or operates a vehicle for massage therapy (e.g., mobile services), commercial auto insurance is legally required. Oregon follows financial responsibility laws under ORS 806.070–806.150.

Not legally required by Oregon for selling retail products (e.g., lotions, oils). However, if the business sells tangible goods, product liability coverage is strongly recommended to protect against claims of defective or harmful products. No state mandate exists, but federal product liability laws (under FDA/CPG) may apply to misbranded or adulterated products.