How to Start a Business in Lafayette

If you are looking to start or relocate a business, Lafayette may be the place for you!

The City sits at the junction of several major transportation routes in the heart of Oregon's wine Country, just a short commute to the Portland metro area or to Salem. Lafayette is a rapidly growing City with affordable commercial real estate and plenty of drop-in customer potential from the highways passing through town that makes it the perfect place to launch or grow your business. The City Council has also recently approved an Urban Renewal District that will help revitalize the City's commercial core in the coming years.

So, how would someone open a business in Lafayette?

Step 1: Location, location, location

The first step in opening a business is deciding where you will be located. If you will be opening a storefront business or a business with lots of customers in and out you will most likely need to be located in one of our commercial zones (C-1, C-2 or RC). Businesses with low or no customer traffic (freelance programmer, photographer, CPA, etc.) can be operated from a home in one of our residential zones, under certain circumstances. If you are opening a business in one of the commercial zones please go to step 1-a. If you would like to operate a business out of your home please go to step 1-b.

Step 1-a: Opening in a Commercial Zone

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If you are planning on opening a business in a commercial zone the first step is making sure that the business you would like to open is allowed in that zone. Lafayette, like all Oregon cities, has specific rules about what types of businesses are allowed in which zone. For example, a doctor's or lawyer's office is allowed in the C-1 zone but a cabinet factory is not.* A car lot would not be allowed, the lots currently in operation are what are called "non-conforming use" and can remain unless they become vacant for a year. Our Lafayette Zoning and Development Ordinance dictates which type of business can be located in which zones. You can find the LZDO here.

*Small scale fabrication is allowed only if it is secondary to and related to the primary retail use on the same property.

RC - Residential-Commercial Zoning

C-1 Commercial Zoning

C-2 Commercial Zoning

Step 1-b: Home based Businesses

The City allows certain types of businesses to be operated out of a person's home in the residential zones; however, that business must be compatible with the surrounding residential use. For instance, an accountant who travels to their clients or has very few meetings at their home would likely be compatible. On the other hand, a retail antique shop operated from a garage that draws lots of visitors would most likely not be compatible because it would increase traffic and negatively impact a residential neighborhood. Before a person opens a business out of their home they must complete and submit a Home Occupation permit, which can be found here. City staff will evaluate the use and determine if it is compatible with the neighboring residential use.

**NOTE: Short term rentals (airbnb, vacasa, etc.) are not allowed at this time in the residential zones.

R-1 and R-2 Zoning

Step 2: Business License

Now that you have your location, the second step is getting your business license. The license helps the City understand what businesses are in the City so it can plan and zone the city effectively and also provides a way for the City to contact business owners if there is a need for their input or if the City has information or programs that might benefit businesses. The license is only $10.00 per year and is renewed annually. You can download the form here.

Step 3: Signs, signs, everywhere a sign....

Step 4: Join the Community

The final step is opening your business and joining the Lafayette Community! You may want to join the Lafayette Downtown Association or apply for a Façade Grant to improve your building. You might also reach out to our Mayor and Councilors to let them know you're here and open for business!

As always, if you have questions please contact City staff, our goal is to help our residents and the City succeed. Staff can be reached through the "Contact Us" for or by using the City's "OurLafayette" mobile app, which is available in the Google Play and Apple store.