Business License & Home Occupation

Business License

One of the requirements of operating a business within the city limits is to acquire a Lake Oswego Business License, prior to the operation of the business.

City of Lake Oswego Ordinance LOC 20.02.025 requires that anyone conducting business within the City of Lake Oswego must obtain a business license unless specifically exempted by state law (Real Estate Agents, Insurance Agents).  This requirement includes working out of your home and those doing door to door solicitation in Lake Oswego.

Planning Dept. reviews business license application for compliance with zoning and parking requirements.  Please check with Planning before applying for a business license.

Home Occupations

The City recognizes the needs and desires of people to engage in small-scale business ventures.  Zoning regulations may allow a person to operate a business out of his or her home, depending on the type of business activity and how the business is operated.  At the same time, the City understands that business uses, if not carefully regulated, may be incompatible with the purposes of residential zones.  A home occupation is always secondary to the use of the dwelling as residence, and  must be operated by a resident of the dwelling.

What types of businesses are allowed as home occupations?

There are three types of home occupations:
Type A. A home occupation where a portion of the home is used to operate a business but no customers come to the site. A Type A home occupation may also involve a home that is used as a business address, but is not used for business operations.
Type B. A home occupation where a portion of the home is used to operate a business and customers may come to the site.
Type C. A short-term rental, as defined in LOC 50.10.003.2.

A Type A, Type B, or Type C home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously met:

(1) A current and valid business license is maintained.
(2) No persons other than family members who reside at the dwelling may be employed or otherwise work in the home occupation, except persons performing housekeeping, yard maintenance, or other domestic services for the dwelling where the business occurs.
(3) No outdoor storage of goods or materials.
(4) The City's public nuisance rules (LOC Art. 34.08, LOC Art. 34.10) apply to home occupations, and any complaints of a public nuisance related to a home occupation shall be treated the same as any other public nuisance.
(5) No more than 25% of the aggregate floor area on the lot is devoted to nonresidential use, except that an entire dwelling unit or portion thereof may be used for short-term rental lodging; an accessory structure may be used, provided the provisions of this subsection are met.
(6) Marijuana facilities, psilocybin service centers, and psilocybin production are prohibited.
(7) A Type B home occupation shall meet the following additional standards:
   (a) The home occupation shall not create a pattern of parking or queuing that is visibly inconsistent with surrounding residential uses.
   (b) Outdoor activities involving clients or customers are not permitted, except limited outdoor activity as provided below:
         (i) Instructional or demonstration uses directly led by the home occupation operator such as art, gardening, or yoga classes, limited to five clients or participants at one time are permitted. No more than two outdoor sessions are permitted per day, and no more than six outdoor sessions are permitted per week. Outdoor business activities may only occur between 9:00 am and 7:00 pm. No outdoor business activity is permitted on Sundays or public holidays.
         (ii) Use of outdoor space for events, rentals, parties, weddings, performances, markets, or other commercial gatherings is prohibited.
         (iii) Use of devices that amplify noise, including but not limited to a speaker of any kind, is prohibited.
(8) Type C home occupations, short-term rentals shall meet the following additional standards:
   (a) A person who owns a lot containing a short-term rental (primary or secondary dwelling unit) must maintain their primary residence on the lot. The owner is not required to be on the lot when the dwelling is rented.
   (b) No other commercial uses are allowed in conjunction with or accessory to a short-term rental. The short-term rental shall not be marketed or used for group events such as weddings, classes, or similar events, for example.

The following uses are exempt from the regulations of this section, except that a business license is still required:
   (a) Registered or certified family child care homes that also meet the State's requirements of ORS 329A; and
   (b) Licensed adult foster homes that also meet the State's requirements of OAR 309-040-0330.

A Business License can be revoked if the permit holder does not comply with the home occupation conditions listed above.

Do I need a permit for a home occupation?

Yes, the City Code requires that any person doing business within Lake Oswego obtain a valid City business license. Business License applications can be obtained from the City Finance Department or on-line. As part of the review of the Business License application, City staff will verify that the home occupation is located in a residential district. Additionally, the resident business owner must sign a statement agreeing to abide by the home occupation conditions listed above.

Application Procedure

The business owner planning to conduct the home occupation applies for the Business License using the forms provided by the Finance Department. Staff reviews the application for compliance with zoning regulations; review typically takes a week. Business licenses must be renewed every year.

What types of signs may I have?

Signage is regulated under the Sign Code (LOC Article 47). The following signs are allowed without permit or fee on a developed residential lot [LOC 47.06.205]:

• Sign Attached to the Building: One sign not exceeding one square foot in area.
• Free-Standing Sign: One non-illuminated sign not exceeding two square feet in area