Starting a New Business in Molalla?

Step 1 – Land Use

The first step is to gain land use approval for your proposed use.

• Home-Based: In order to preserve the residential nature of neighborhoods, the number of business uses allowed in a residential setting is limited. Molalla Municipal Code section 17-2.3.120 provides the use prohibitions and standards for home-based businesses.
  • You must obtain an approved Home Occupation Permit prior to operating a business in a residential setting.
• Commercial & Industrial Land: We recommend determining whether your use is approvable in the zone by reviewing Molalla Municipal Code Table 17-2.2.030.
  • Once you determine that your use is approvable—or if you're unsure—please contact Molalla Community Development to determine the appropriate process for your proposal and your site.
  • A pre-application meeting, change of use, site design review, conditional use permit, or any combination thereof may be required.

Step 2 – Permitting

Once you have land use approval, you will need to obtain building permits for new structures or remodeling existing ones.

• City staff will advise you during the land use process whether building permits are required.
• If no land use approval is needed, please contact Molalla Community Development to determine if a building permit is still required.
• In Molalla, building permits are handled in a 2-part process:
  • City Application: Covers planning standards (private side) and engineering standards (public side).
  • Clackamas County Application: Covers structural specialty codes (fire, mechanical, electrical, plumbing, etc.).

Step 3 – Licensing

All businesses in Molalla are required to obtain a City of Molalla business license and any other licenses required by the state or federal government.

• You must obtain an approved City of Molalla Business License prior to operations.
• Mobile Food Units: Must provide their Health Department license and Molalla Fire District inspection approval upon application.
• For more information on City of Molalla business licenses, please review Molalla Municipal Code Chapter 5.24.

Step 4 – Open Your Business!

Just a reminder… when in doubt, contact Molalla Community Development for assistance.