Handmade Goods & Crafts

How to Sell Handmade Goods in Oregon

Your garage smells like sawdust. Your kitchen table is covered in candle wax. Your spare room has more yarn than furniture. People keep saying "you should sell these" at every craft fair, holiday party, and Instagram post.

The thing stopping most makers isn't talent — it's the fear that selling means paperwork, licenses, legal stuff, tax nightmares. In Oregon, it's actually pretty straightforward. No sales tax to collect. No general state business license. The barriers are lower than you think.

8 steps below — most people get through this in a weekend.

The Bottom Line

Startup cost

Depends on your craft, but the business side costs roughly $0–110 to set up (city business license + optional DBA registration)

Timeline

You can be legally selling within a few days

What you DON'T need

✕A state business license — Oregon doesn't have one (but your city likely does — see Step 2)
✕To collect sales tax — Oregon doesn't have one
✕A special maker's permit or artisan license — not a thing
✕A storefront — sell from home, at markets, or online
✕A big investment — start with what you already make

What you DO need

Depending on your city, a local business license. Possibly a home occupation permit. And the confidence to put a price on your work.

A note on taxes: Oregon has no sales tax, but your business income is subject to Oregon state income tax and federal self-employment tax. Keep records of your income and expenses for tax time.

The Steps

Know that Oregon is one of the easiest states for this

Oregon has no general state business license for selling goods. And Oregon has no sales tax — which means you never need to worry about collecting, reporting, or remitting sales tax on your products. That alone puts you ahead of makers in 45 other states.

If you're selling handmade goods that aren't food, cosmetics, or children's products with specific safety regulations, you're in the most lightly regulated category there is.

No sales tax setup needed (Oregon has no sales tax)

Check your city's business license requirement

Oregon doesn't have a state business license, but most cities do. Check with your city — it's usually a simple application and a small annual fee.

Portland: Business license tax required.
→ Portland Business Licenses

Hillsboro: General business license required for any business operating within city limits.
→ Hillsboro Business Licenses

Beaverton: Business license fee required per Municipal Code Section 7.01.
→ Beaverton Business Licenses

Unincorporated Washington County: Requirements vary. Contact Washington County at 503-846-2887.

Other cities: Search for "[your city] Oregon business license" or check the Oregon Secretary of State's business resources.

This is usually a simple application and a small annual fee. Don't let it intimidate you — it's not an approval process. It's more like registering that you exist.

Got my city business license (if required)

Register a business name (if you want one)

If you're selling under your own legal name, you can skip this step. If you want a business name (like "Westside Woodcraft" or "Aloha Candle Co."), register an Assumed Business Name with the Oregon Secretary of State.

Cost: $50
How: Online through the Oregon Business Registry
→ Oregon SOS: Starting a Business

You don't need an LLC to start. A sole proprietorship under your own name or a registered DBA is fine. An LLC offers liability protection and might make sense down the road, but it's not a day-one requirement.

Registered a business name with Oregon SOS — or decided to use my own name

Check zoning for your home-based business

If you're making products at home and selling from home (or storing inventory), check whether your zone allows home-based businesses. Most residential zones do, but there may be rules about:

Customer traffic to your home
Signage
Noise or odor from production
Percentage of home used for business
Deliveries and shipping volume

Washington County Zoning: 503-846-2887
Hillsboro Planning: Contact through city services

If you're only making at home and selling elsewhere (markets, online, delivery), zoning is usually a non-issue.

Checked zoning for home-based business (if making/selling from home)

Understand product-specific rules

Most handmade goods have no special regulations beyond basic consumer safety. But a few categories do:

Candles & soaps: No special Oregon license, but if you make health or therapeutic claims about your products (like "this soap cures eczema"), you may trigger FDA cosmetic regulations. Keep claims simple and honest.

Children's products: Items intended for children 12 and under may need to comply with CPSIA (Consumer Product Safety Improvement Act) testing requirements at the federal level. This mainly applies to toys and items children put in their mouths.

Cosmetics & skincare: If you're making lotions, lip balms, or anything applied to the body, federal FDA regulations apply. You don't need pre-approval, but you need proper labeling (ingredients, net weight, your business info) and your products must be safe. Oregon doesn't add extra requirements on top of federal.

Jewelry: No special licensing. If using precious metals, be honest about materials (don't call it sterling silver if it isn't).

Woodwork & furniture: No special licensing for handmade items. If you're doing construction or installation work, that's different — see our Services & Trades guide.

For most crafts — pottery, textiles, art, woodwork, leather goods, ornaments, birdhouses — you're good to go with just your city business license.

Reviewed product-specific rules (cosmetics, children's items, candles, etc.)

Consider liability insurance

Not legally required for most handmade goods in Oregon. But smart — especially if you sell at markets.

Why it matters:

Some farmers markets and craft fairs require vendors to carry general liability insurance
If someone claims your product injured them, insurance protects you from paying out of pocket
A basic general liability policy for a small craft business runs roughly $200–400/year

You can often get a policy through organizations like the Handmade Insurance Program or through a local insurance agent.

Price your work (and don't undersell yourself)

This isn't a legal step, but it's the one that trips up most makers. Pricing handmade goods is hard because you're emotionally attached to what you make.

A simple formula:
Materials + Time (at a fair hourly rate) + Overhead (packaging, labels, fees) + Margin (your profit) = Price

Don't price based on what a factory-made version costs at Target. You're not competing with that. You're offering something handmade, local, and real. Your neighbors understand that and will pay for it.

Get found by your neighbors

The hardest part of selling handmade goods isn't making them. It's getting people to know you exist.

Craft fairs happen a few times a year. Social media algorithms are unpredictable. But your neighbors are searching for local makers right now.

List on Marketless Farmer — local discovery, real people, Oregon-first.

$10/month for a producer listing. Cancel anytime.
→ Join Marketless Farmer

Launch Readiness

Chose a business name and identityHave a logo or wordmark (even simple — Canva, hand-drawn, whatever fits your brand)Took quality product photography (natural light, clean background, show scale)Wrote product descriptions that tell the story — not just specsWrote a short bio — who I am and why I make what I makeHave packaging that feels intentional (bags, boxes, tissue, hangtags, stickers)Created business cards or hangtags with my infoSet my prices using the formula (materials + time + overhead + margin)Have a way to accept payment (cash, Venmo, Square, Zelle — at least two)Looked into local craft fairs and farmers markets accepting handmade vendorsConsidered liability insurance (especially if selling at markets)Created my Marketless Farmer listingTold 10 people I'm sellingMade my first sale

Ready to start selling?

Create a seller listing on Marketless Farmer to get discovered by neighbors in your area. $10/month, cancel anytime. No contracts.

Create your listing

Common Questions

Correct. Oregon is one of five states with no general sales tax. You do not need to collect, report, or remit sales tax on goods sold in Oregon. If you sell online to customers in other states, those states' rules may apply — but for local Oregon sales, you're clear.

No. You can sell at markets, through word of mouth, on social media, or through Marketless Farmer. A website or Etsy shop can help, but plenty of successful local makers don't have one. Start where it's easy and expand later.

Many farmers markets across Oregon accept handmade goods vendors alongside food producers — including Portland, Hillsboro, Beaverton, Salem, Eugene, and smaller community markets. Check with each market's management — they'll have an application process and vendor fees. The Oregon Farmers Markets Association is a good starting point.

If you want to sell temporarily from a roadside location in a commercial or industrial zone, some cities offer a Street Side Sales license (up to 60 days/year). This is separate from your regular business license.

Just your city business license (if required). Taking orders on social media with local delivery/pickup is perfectly fine. No special e-commerce permit exists in Oregon.

Not required to start. An LLC provides personal liability protection (if someone sues your business, they can't take your house) and can look more professional. It costs $100 to form in Oregon. Worth considering as your business grows, but don't let it delay your first sale.