9+ Licenses and Permits You May Need to Open a Restaurant

Opening a restaurant is a dream for many aspiring entrepreneurs, but it's not just about creating a mouth-watering menu and a cozy ambiance. Behind the scenes, there is a multitude of legal requirements and paperwork that must be completed before the first customer can even step foot through the door. Navigating the world of licenses and permits can be overwhelming, but it's a crucial step in ensuring the success and longevity of your business. In this article, we will explore more than nine essential licenses and permits that you may need to obtain before opening your restaurant. From liquor licenses to health permits, we'll break down each requirement, explain its importance, and provide guidance on how to secure them. So, let's dive into the nitty-gritty of restaurant legality and make your culinary dream a reality.

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Written by:
Nick
Updated on:
April 17, 2023
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Table of Contents:

Our List of 9+ Licenses and Permits You May Need to Open a Restaurant:

Below is a list of possible Restaurant licenses and permits needed. Please note it will vary state by state, so please do extensive research before starting.

1. Business License.

A business license is a legal document that allows an individual or company to conduct business in a specific jurisdiction. It is required by law in most jurisdictions and is typically obtained from the local government or licensing agency.To start a restaurant, you will need a business license to legally operate your business. This license ensures that you comply with local regulations and laws governing food service establishments. It also allows you to collect sales tax, hire employees, and obtain necessary permits and certifications. Without a business license, you risk fines and legal penalties, and your restaurant may be shut down.

Check if your state requires a Business License.

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2. Food Service License.

A Food Service License is a permit issued by a government agency that allows a business to legally operate as a food service establishment. This license ensures that the restaurant meets all health and safety regulations and guidelines related to food preparation, storage, and service.You might need a Food Service License to start a restaurant because it is a legal requirement in most countries. Without this license, you cannot legally operate a food service establishment. Additionally, having a Food Service License can give customers confidence in the safety and quality of the food being served, which can help build a positive reputation for your restaurant.

Check if your state requires a Food Service License.

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3. Liquor License.

A liquor license is a legal permit that allows a restaurant or other establishment to sell alcoholic beverages. It is required by law in most states and countries in order to sell alcohol to the public. If you plan to serve alcoholic beverages in your restaurant, you will need to obtain a liquor license. This license will allow you to legally purchase and sell alcohol to your customers. Without a liquor license, you will not be able to serve any type of alcoholic beverages, which can significantly limit your restaurant's revenue potential. Additionally, serving alcohol without a license can result in fines, legal penalties, and even the closure of your restaurant.

Check if your state requires a Liquor License.

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4. Health Permit.

A Health Permit is a license issued by the local health department to ensure that a restaurant meets the health and safety standards required to operate. It is a legal requirement for any establishment that serves food to the public. To obtain a Health Permit, a restaurant must pass an inspection by the health department, which includes ensuring that the kitchen and food storage areas are clean and free from pests, that food is stored and cooked at the correct temperatures, and that employees are trained in food safety. Without a Health Permit, a restaurant cannot legally operate, and failure to comply with health and safety regulations can result in fines, closure of the business, or even legal action. Therefore, it is essential for any restaurant owner to obtain a Health Permit before opening their doors to the public.

Check if your state requires a Health Permit.

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5. Sign Permit.

A Sign Permit is a legal document that allows a business owner to install and display signs on their property. The purpose of a Sign Permit is to ensure that the signs are safe, compliant with local zoning and building codes, and do not create any hazards for the public.In order to start a restaurant, you may need a Sign Permit to display your restaurant's name, logo, and other signage. This is especially important if your restaurant is located in a commercial area where there are strict regulations on signage. A Sign Permit will help you avoid any fines or legal issues that may arise due to non-compliance with local regulations. Additionally, having an attractive and eye-catching sign can help attract customers to your restaurant and increase your visibility in the community.

Check if your state requires a Sign Permit.

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6. Employee Identification Number (EIN).

An Employee Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for tax purposes. It is also known as a Federal Tax Identification Number (TIN).You might need an EIN to start a restaurant for several reasons. Firstly, if you plan to hire employees, you will need an EIN to report taxes and other employment-related information to the IRS. Secondly, if you plan to incorporate your restaurant or form a partnership, you will need an EIN to open a business bank account and file tax returns. Additionally, some states require restaurants to have an EIN to obtain a business license or permit.

Check if your state requires a Employee Identification Number (EIN).

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7. Sales Tax Permit.

A Sales Tax Permit is a document issued by the state government that allows a business to collect and remit sales tax on taxable goods and services sold to customers. Sales tax is a percentage added to the price of goods and services and is collected by the business on behalf of the state government.If you are starting a restaurant, you will likely need a Sales Tax Permit to legally collect and remit sales tax on the food and beverages you sell. Depending on the state, sales tax rates and regulations may vary, so it is important to research and obtain the necessary permits and licenses before opening your restaurant. Failure to obtain a Sales Tax Permit can result in fines and penalties.

Check if your state requires a Sales Tax Permit.

8. Building Permit.

A building permit is an official document issued by the local government or building department that authorizes the construction, renovation, or alteration of a building or structure. It ensures that the proposed work meets the building codes, safety standards, and zoning regulations of the area.A building permit is required to start a restaurant because it involves significant construction, renovation, or alteration of the building. The permit ensures that the restaurant building meets the safety and health standards required for food service establishments. It also ensures that the building is compliant with the local zoning regulations, fire codes, and other building codes. Without a building permit, the restaurant may face legal consequences and may not be able to operate legally.

Check if your state requires a Building Permit.

9. Fire Department Permit.

A Fire Department Permit is a document issued by the local fire department that certifies that a building or business complies with fire safety regulations and standards. This permit is required for businesses that involve the use of flammable materials, such as restaurants.Restaurants may require a Fire Department Permit to ensure that their kitchen equipment, such as stoves and ovens, are installed and maintained correctly, and that the restaurant has adequate fire suppression systems, such as fire extinguishers and sprinkler systems, in case of a fire. The permit may also require regular inspections to ensure that the restaurant remains in compliance with fire safety regulations.

Check if your state requires a Fire Department Permit.

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This post is for information only. You are responsible for reviewing and using this information appropriately. This content doesn’t contain and isn’t meant to provide legal, tax, or business advice. Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax and business advisers, as needed. We’re reader-supported. When you buy through links on our site, we may earn an affiliate commission.
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Frequently asked questions

Everything you need to know about the business licenses.

What is the best business formation license for a Restaurant?

The best business formation license for a restaurant depends on the specific needs and goals of the business owner. However, the most common and recommended business structure for a restaurant is a Limited Liability Company (LLC). An LLC provides limited liability protection, flexible management structure, and potential tax benefits. It is relatively easy to set up and manage compared to other business structures like corporations. Before making a decision, it is advisable to consult with a business attorney or accountant to determine the best structure for your specific situation.

Is it required to have a general business license for a Restaurant?

Yes, it is generally required to have a general business license for a restaurant. However, the specific requirements may vary depending on the country, state, or local jurisdiction. In addition to a general business license, restaurants may also need to obtain permits related to food safety, liquor sales, and other aspects of their operations. It is essential to research and comply with all relevant regulations in your area.
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Nick

Founder and CEO

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.