10 permits · verified 2026-09-09
What permits do you need to open a contractor or trade in Salem?
In short
A contractor or trade in Salem, OR has 2 permits that apply to every business of this type, plus 8 more that depend on your premises, signage or how you are set up. City of Salem Community Planning and Development Department, Permit Application Center charges $379 flat — 'Land Use Verification, All Others' (FY2027 adopted rate); a government-agency requester other than the Department of Education pays $380, and a Department of Education requester pays $222 for the land use verification letter. 1 of the 10 are charged as a range or formula rather than a flat fee. Verified 2026-09-09 against the issuing agencies’ published fee schedules.
The permits at a glance
| Permit | Issuing agency | Fee | Renews | Last checked |
|---|---|---|---|---|
| No Separate Salem Contractor License Beyond the State CCBonly if it applies to you | City of Salem Community Planning and Development Department, Permit Application Center | No fee | not applicable | 2026-09-09 |
| Commercial Building Permit | City of Salem Community Planning and Development Department, Permit Application Center | Calculated from construction valuation in stacked tiers (FY2027 adopted rates): $0-$2,000 valuation is a flat $67.25 minimum; $2,000.01-$25,000 is $67.25 for the first $2,000 plus $8.00 per additional $1,000 or fraction; $25,000.01-$50,000 is $251.25 plus $6.25 per additional $1,000; $50,000.01-$100,000 is $407.50 plus $4.75 per additional $1,000; over $100,000 is $645.00 plus $3.95 per additional $1,000. A 12% State of Oregon surcharge is added to all building permit types. Building Plan Review is billed separately at 65% of the building permit fee. Electrical, mechanical and plumbing trade permits are billed separately under their own tables in the same fee schedule. | one-time, per project | 2026-09-09 |
| Land Use Verification Letteronly if it applies to you | City of Salem Community Planning and Development Department, Permit Application Center | $379 flat — 'Land Use Verification, All Others' (FY2027 adopted rate); a government-agency requester other than the Department of Education pays $380, and a Department of Education requester pays $222 | one-time, per request | 2026-09-09 |
| Articles of Incorporationonly if it applies to you | Oregon Secretary of State, Corporation Division | $100 one-time filing | perpetual, but an annual report is due every year | 2026-09-03 |
| Business Identification Number (payroll)only if it applies to you | Oregon Department of Revenue | No fee | one-time registration, with quarterly reporting after that | 2026-09-03 |
| Construction Contractor Licence | Oregon Construction Contractors Board | $400 for two years, plus a $60 examination | 2 years | 2026-09-03 |
| General Business Licence (local, not state)only if it applies to you | Oregon Secretary of State, Corporation Division | No fee | set by the city or county | 2026-09-03 |
| Articles of Organization (LLC)only if it applies to you | Oregon Secretary of State, Corporation Division | $100 one-time filing | perpetual, but an annual report is due every year | 2026-09-03 |
| Annual Reportonly if it applies to you | Oregon Secretary of State, Corporation Division | $100 a year for a domestic entity; $275 for a foreign one | annual — due on the anniversary of the original filing date | 2026-09-03 |
| Corporate Activity Tax Registrationonly if it applies to you | Oregon Department of Revenue | No fee | one-time registration, with annual returns after that | 2026-09-03 |
Fees shown as a range or formula are set that way by the issuing agency — we do not average them into a single number.
How much does it actually cost to permit a contractor or trade in Salem?
There is no single figure, and any site quoting one is rounding away the part that matters. Of the 10 records listed for a contractor or trade in Salem, OR, 2 apply to every business of this type and 8 are conditional. Adding every fee on the page together would overstate what most operators pay, because it would include permits they never need.
Of the 2 that always apply, 1 carry a flat fee, coming to $400.00. That is a floor, not a total. 1 of the 10 are charged as a range or a formula set by the issuing agency, and 4 have no fee published at all. The ones that vary:
Commercial Building Permit: Calculated from construction valuation in stacked tiers (FY2027 adopted rates): $0-$2,000 valuation is a flat $67.25 minimum; $2,000.01-$25,000 is $67.25 for the first $2,000 plus $8.00 per additional $1,000 or fraction; $25,000.01-$50,000 is $251.25 plus $6.25 per additional $1,000; $50,000.01-$100,000 is $407.50 plus $4.75 per additional $1,000; over $100,000 is $645.00 plus $3.95 per additional $1,000. A 12% State of Oregon surcharge is added to all building permit types. Building Plan Review is billed separately at 65% of the building permit fee. Electrical, mechanical and plumbing trade permits are billed separately under their own tables in the same fee schedule.
Which offices issue these permits in Salem?
Permits for a contractor or trade in Salem, OR come from 4 separate offices: City of Salem Community Planning and Development Department, Permit Application Center, Oregon Secretary of State, Corporation Division, Oregon Department of Revenue, Oregon Construction Contractors Board. No single office issues them all, which is why an opening means filing in several places rather than one.
- City of Salem Community Planning and Development Department, Permit Application CenterIssues 3 permits on this page: No Separate Salem Contractor License Beyond the State CCB, Commercial Building Permit, Land Use Verification Letter440 Church St SE, 5th Floor, Salem, OR 97301 (mailing: PO Box 14300, Salem, OR 97309-3986) · (503) 588-6256www.cityofsalem.net/business/building-in-salem
- Oregon Secretary of State, Corporation DivisionIssues 4 permits on this page: Articles of Incorporation, General Business Licence (local, not state), Articles of Organization (LLC), Annual Report255 Capitol Street NE, Suite 151, Salem, OR 97310 · (503) 986-2200sos.oregon.gov/business
- Oregon Department of RevenueIssues 2 permits on this page: Business Identification Number (payroll), Corporate Activity Tax Registration955 Center Street NE, Salem, OR 97301 · (503) 945-8005www.oregon.gov/dor/programs/businesses/Pages/corporate-activity-tax.aspx
- Oregon Construction Contractors BoardIssues 1 permit on this page: Construction Contractor Licence201 High Street SE, Suite 600, Salem, OR 97301 · (503) 378-4621www.oregon.gov/ccb/pages/ccb%20license.aspx
Is anything about these requirements changing?
'Contractor' and 'general contractor' do not appear on SRC Chapter 30's exhaustive list of business types that need a city license (see the general no-business-license record above), and the City's own ePermitting guidance for contractors describes only the State of Oregon's process — 'only licensed contractors can register to apply for permits' through the state's ePermitting site, with the state Construction Contractors Board (CCB) credential as the qualifying license. No separate municipal contractor registration or fee is charged; a contractor pulling a Salem permit still needs the state CCB license (and, for electrical work, the state Building Codes Division credential) recorded at the state layer. There is no fee to disclose.
Issued by the Building and Safety Division of the Community Planning and Development Department, through the Permit Application Center. Valuation is set using the current ICC valuation table multiplied by square footage, or the applicant's stated cost, whichever is greater, with final determination made by the Building Official.
Documents the zoning designation of a property and/or whether a proposed use is compatible with its zoning — the City's own page says this is 'commonly needed for business licensing, lending purposes, and state regulatory requirements related to land use compliance' (for example, supporting an OLCC liquor license or a state childcare license application). Not every business needs one; a preliminary zoning check can be obtained informally from the Planning Division (503-588-6213) before paying for a formal letter.
The same $100 as an LLC — Oregon prices by domestic against foreign rather than by entity type, so the choice between an LLC and a corporation costs nothing either way at formation or at renewal. A foreign corporation is $275, a nonprofit $50.
There is no fee, and one number covers everything: state withholding, unemployment insurance, the statewide transit tax, Paid Leave Oregon, the workers' benefit fund assessment and the TriMet or Lane Transit district payroll taxes where they apply. You must have it before paying anyone, and a corporation with no other staff still needs one to report what it pays its own officers. Register online rather than on paper — the revenue department warns that paper takes substantially longer, which matters when the deadline is your first payroll.
Four hundred dollars for two years, raised from $325 — for renewals from July 2024 and new applications from July 2025 — plus sixteen hours of pre-licence training and an eighty-question examination passed at seventy per cent. The licence fee is the smallest part of the cost, because the endorsement you choose sets a bond and an insurance floor: a residential general contractor posts a $25,000 bond and carries $500,000 of liability cover, a residential specialty $20,000 and $300,000, a commercial general at level one $80,000 and $2 million. The split turns on the structure rather than the customer — a residential endorsement also reaches small commercial work, meaning a non-residential building under ten thousand square feet and twenty feet high, or any size of structure where the whole contract is $250,000 or less. Large commercial always needs the commercial endorsement, and holding both means two bonds but a single insurance policy at the higher limit. Commercial endorsements also require certified key employee experience, eight years at level one and four at level two, with substitutions for apprenticeships and relevant degrees. Treat the fee and bond figures on the state's general licence directory as stale — it still shows the superseded $250 and $20,000.
No fee, because Oregon issues no general business licence, and unusually the registering agency says so outright rather than leaving it to be inferred: the state does not issue a general business licence, and your business registration serves that purpose. Cities and counties are another matter — Portland and Multnomah County, Salem, Eugene and Beaverton all impose their own, and for most Oregon businesses that local licence is the only thing resembling a general business licence they will encounter.
A hundred dollars, and a corporation costs the same. The number that catches people out is the foreign one: registering an out-of-state company to do business in Oregon costs $275, nearly three times the domestic fee, and the same premium applies every year at renewal. A nonprofit is $50. An assumed business name is $50 and renews every two years. Because Oregon has no sales tax there is no seller's permit to obtain after this — the registration is the whole of the entry step for a business with no employees and modest revenue.
Oregon charges as much to keep a company alive each year as it charged to create it, which puts it among the more expensive states to maintain an entity in. The due date is the anniversary of your own filing, not a fixed date shared by everyone, and the notice goes out about forty-five days ahead. The penalty structure is the unusual part: there is no late fee. Miss the report and the entity is administratively dissolved, and the way back is reinstatement plus every missed year's fee. That can be done online if the dissolution is less than five years old; beyond five years it needs special forms and documentation. The reinstatement fee itself is not published on the fee schedule, so budget for it as an unknown rather than a figure — and file on time, which is cheaper by definition.
There is no fee to register, and the two thresholds are constantly confused. Seven hundred and fifty thousand dollars of Oregon commercial activity triggers a duty to register, within thirty days of hitting it. One million triggers the duty to file a return and pay. A business between the two must register and owes nothing — and failing to register anyway costs $100 a month up to $1,000 a year. Above a million the tax is $250 plus 0.57 per cent of taxable commercial activity over that first million. It is a gross receipts tax, not an income tax, which means it is owed on turnover regardless of whether the year was profitable.
Sources
Every figure above was read from one of these government pages on the date shown. Confirmed by Editorial Team.
- ePermitting Information for Licensed ContractorsCity of Salem · primary source · retrieved 2026-09-09
- Determine if You Need a Business LicenseCity of Salem · primary source · retrieved 2026-09-09
- City of Salem Fee Schedule, Fiscal Year 2027 (effective July 1, 2026)City of Salem · primary source · retrieved 2026-09-09
- Get a Land Use Verification LetterCity of Salem · primary source · retrieved 2026-09-09
- Oregon Secretary of State — business registry fee scheduleOregon Secretary of State · primary source · retrieved 2026-09-03
- Oregon Business Xpress licence directory — business corporation registration, confirming the $100 feeOregon Secretary of State · primary source · retrieved 2026-09-03
- Oregon Department of Revenue — business identification number and combined payroll tax registrationOregon Department of Revenue · primary source · retrieved 2026-09-03
- Oregon Construction Contractors Board — the fee increase from $325 to $400, effective for renewals in 2024 and new applications in 2025Oregon Construction Contractors Board · primary source · retrieved 2026-09-03
- Oregon Construction Contractors Board — licence requirements, pre-licence training and examinationOregon Construction Contractors Board · primary source · retrieved 2026-09-03
- Oregon Construction Contractors Board — endorsement chart with bond and insurance amounts by endorsementOregon Construction Contractors Board · primary source · retrieved 2026-09-03
- Oregon Secretary of State — starting a business, stating that the state does not issue a general business licenceOregon Secretary of State · primary source · retrieved 2026-09-03
- Oregon Business Xpress licence directory — limited liability company registration, confirming the $100 feeOregon Secretary of State · primary source · retrieved 2026-09-03
- Oregon Secretary of State — annual report renewal, due on the anniversary of the original filingOregon Secretary of State · primary source · retrieved 2026-09-03
- Oregon Secretary of State — reinstating a business administratively dissolved for failing to file an annual reportOregon Secretary of State · primary source · retrieved 2026-09-03
- Oregon Department of Revenue — Corporate Activity Tax, with the $750,000 registration threshold and $1 million filing thresholdOregon Department of Revenue · primary source · retrieved 2026-09-03
Related
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Commercial Compliance Hub publishes information, not legal advice. Requirements change — confirm anything you rely on with the issuing agency before you file.
