Complete guide to permits and licenses required to start a plumber in Salem, OR. Fees, renewal cycles, and agency contacts.
Annual report required separately ($100 fee). All LLCs must register.
Required for all active LLCs to maintain good standing.
Required for all plumbing contractors performing work over $1,000 or requiring permit. LLC must be licensed; responsible managing individual (RMI) must complete 8-hour pre-licensure course and bond ($20,000 min).
Requires 4 years experience or approved apprenticeship + exam (75% pass). Business owner/supervisor typically needs this if supervising plumbing work.
LLC must hold this to pull plumbing permits. Requires qualifying journeyman plumber + $100,000 liability insurance proof + bond.
Required if using trade name/DBA. Publication required in county of principal office ($50-200 cost varies).
Plumbers in Oregon are generally not required to collect sales tax on labor for repairs or installations unless they sell and install taxable tangible personal property (e.g., fixtures). If such items are sold, the business must collect sales tax on the item. Registration is done through the Oregon Business Registry. See ORS 321.015 and OAR 150-315-0160 for taxability rules.
Effective January 1, 2020. The CAT applies to all business entities operating in Oregon, including LLCs, that exceed $1 million in annual revenue. Filing frequency is monthly or quarterly based on revenue. Form CAT-100 is used. See OAR 150-253-0000 series for details.
Required for all employers in Oregon. Includes withholding state income tax from employee wages. Registration is completed via the Oregon Business Registry. Employers must file Form OR-W-4V and deposit taxes based on payroll frequency (monthly or semi-weekly).
All employers in Oregon must register with the Employment Department. New employers typically pay a standard rate of 2.7% on the first $55,000 of each employee’s wages (as of 2024). Rate adjusts based on claims history. Registration is via the Oregon Employer Tax Registration application.
Even single-member LLCs without employees may need an EIN if they file pension or excise tax returns. Obtained via IRS Form SS-4 online. Not required solely for state-level operations, but often needed for banking and tax compliance.
LLCs may also elect corporate taxation (Form 8832) which would require filing Form 1120.
Employers must keep the OSHA 300 Log of work‑related injuries and illnesses and report severe incidents within 8 hours.
Ensures that service calls, communication methods, and any physical locations are accessible to individuals with disabilities.
Certification levels (Type I, II, III, Universal) depend on the equipment serviced.
Contractors must follow EPA guidance on lead‑free materials and may need to submit lead‑service‑line replacement reports.
Claims about pricing, guarantees, or service quality must be substantiated.
Employers must also post the required labor law posters.
Examples: Portland requires a Business License ($100–$500/year); Eugene requires a Business Registration ($75/year); Salem requires a Business License ($75/year). Fees and requirements vary. Check with local city clerk or county recorder. Not all jurisdictions require a license for home-based or small contractors.
Oregon does not issue a state plumbing license, but many cities require plumbers to register or be licensed. Work involving gas piping often requires additional certification. Check with local building department.
Required for all businesses; plumbers must register even if no tax due. Cite: Portland City Code Chapter 7.24.
Plumbers allowed as home occupation if no on-site storage of hazardous materials. Cite: Portland Zoning Code 33.815.025.
Applies outside city limits; plumbing contractors specifically listed. Separate from state CCB license.
Required for any permanent sign >12 sq ft. Cite: Portland Sign Code Chapter 32.32.
Plumbing businesses with propane torches or solvents may trigger. Cite: Portland Fire Code based on IFC 2021.
Structural changes or plumbing rough-in require permit. Cite: Portland Building Code CBC 2021.
Required post-building permit approval and final inspections. Cite: Portland Zoning Code 33.810.110.
Plumbing shops typically allowed in commercial/industrial zones (CS, M-1). Type II review process.
Separate zoning review required for home-based plumbing business. Cite: Washington County Code Chapter 16.
Sole proprietors without employees are not required to carry workers' comp for themselves unless they elect coverage. However, if the LLC has any W-2 employees (including part-time), coverage is mandatory. Partners in a partnership must be covered unless they formally opt out.
While not mandated by Oregon state law, general liability insurance is strongly recommended and often required by third parties such as property owners, general contractors, or municipalities for permitting. It covers third-party bodily injury, property damage, and advertising injury.
A $15,000 surety bond is required for all licensed contractors, including plumbing contractors, registered with the CCB. This bond protects consumers from fraud, misrepresentation, or failure to complete work. The bond must be issued by a surety licensed in Oregon.
Oregon law requires all vehicles operated on public roads to carry liability insurance. If a business vehicle is used for plumbing services, commercial auto insurance is required. Personal auto policies typically exclude business use. Minimum coverage: $25,000 bodily injury per person, $50,000 per accident, $20,000 property damage.
Oregon does not mandate professional liability insurance for plumbers. However, it is strongly recommended, especially for businesses offering design or consulting services. Some clients or general contractors may require it as a condition of contract.
Includes minimum wage, overtime pay, and child‑labor provisions.
Most typical plumbing services do not involve DOT hazardous‑material transport, but the requirement applies if such activities occur.
All Oregon LLCs must file an Annual Report each year to remain in good standing. The report updates business contact information and confirms active status.
Plumbers operating as contractors in Oregon must register with the CCB. Registration is required even if the business is an LLC. The renewal is biennial and based on the individual qualifier's birth month.
Includes 4 hours of law and business practices, and 4 hours of technical training. Must be completed through CCB-approved providers.
Not a renewal, but ongoing compliance with federal tax obligations using EIN is required. Applies to payroll, income, and excise taxes.
LLCs taxed as pass-through entities file Form OR-40P. Due date aligns with federal tax deadlines. Oregon does not have a separate corporate income tax for LLCs unless elected.
Self-employed individuals, including LLC owners, generally must make quarterly estimated tax payments for income and self-employment taxes using Form 1040-ES.
Employers must withhold Oregon income tax from employee wages and file Form OR-W-3 and remit payments on schedule determined by DOR.
Employers must file Form UI-3X and pay unemployment tax quarterly. New employers typically start with a standard rate of 2.7%.
Plumbing is considered a high-risk industry. Employers must maintain OSHA Form 300 (Log), Form 301 (Incident Report), and post Form 300A annually. Records must be kept for 5 years.
The CCB registration certificate must be displayed at the business’s principal place of business. Also required to provide registration number on all advertising and contracts.
Employers must display current state and federal labor law posters, including minimum wage, OSHA rights, and anti-discrimination notices. BOLI provides a free printable poster pack.
Many Oregon cities require a local business license. Requirements and fees vary. Example: Portland requires a Business License from the Office of Community & Economic Development.
Contractors must retain copies of contracts, change orders, warranty documents, and other CCB-related records for at least 3 years from project completion.
Employers must keep employment tax records (Forms 941, W-2, W-4, etc.) for at least 4 years from the date the tax becomes due or is paid, whichever is later.
All CCB registrants must maintain a $20,000 surety bond to protect consumers. Bond must be renewed every two years and filed with CCB.
Not mandated by Oregon law. However, if the plumbing business sells and installs products (not just labor), product liability exposure exists. Coverage is typically included in broader general liability policies but may require endorsement. Recommended for risk mitigation.
Not relevant to standard plumbing operations. Only required if the business obtains an alcohol license (e.g., for a retail storefront with tasting events). Most plumbing LLCs do not need this coverage.
A single‑member LLC without employees may use the owner’s SSN, but obtaining an EIN is recommended for banking and payroll.
Required for all plumbers performing plumbing work in Oregon. Must be obtained through OSBELS or via CCB-approved certification. Includes journeyman and master plumber classifications.
While there isn't a specific federal license for plumbers, you'll need to comply with IRS requirements for tax filing and record retention, and FTC rules regarding advertising and consumer protection. These aren’t permits in the traditional sense, but are mandatory compliance items.
Some federal requirements have associated fees, such as varying fees for FTC compliance and Federal Income Tax Returns. However, many requirements, like obtaining an EIN or adhering to record retention policies, have no direct fee.
Renewal frequency varies; some requirements are one-time (like obtaining an EIN), while others are annual (like filing your Federal Income Tax Return). FTC compliance is generally a one-time initial setup.
The FTC’s Home Improvement Rule protects consumers by requiring clear and accurate information about the costs and terms of home improvement projects. This applies to plumbers because plumbing work often qualifies as a home improvement.
The IRS requires plumbers to maintain records of all business transactions, income, and expenses. This includes invoices, receipts, bank statements, and tax returns, and is crucial for accurate tax filing and potential audits.
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