When you open a restaurant business, there are many permits and licenses you will be required to have. The type of business license you will need will be different in each city, county, and state. There are some who require each business to register yearly, and they collect a fee from each registration. There are others that do not require a business to register if the business is not incorporated, unless you will be operating under an assumed or fictitious name.
To learn what type of licenses and permits you will need for the area your business will be located in, you need to talk to your county or city clerk. You will also want to check out the zoning ordinances and sign regulations that may apply to the type and location of your business.
Before you even think about obtaining licenses and permits, you will need to apply for a Federal Employer Identification Number or EIN. You can do this by visiting the IRS website. They will ask a few questions and you will be issued an EIN. This number identifies you to the government (IRS) as a business owner. Everyone who owns a business must have an EIN.
Below are some of the licenses and permits that you may need for your restaurant business.
1. A License for Business- Depending on your restaurant business location, you may be charged a percentage of your gross sales, or a simple yearly fee to operate your business.
2. A Food Handler's License or Permit- This is necessary for the selling of edible goods. Each state and county have their own set of rules and amount of fee charged. You will be inspected regularly by health inspectors to make sure you are running a clean restaurant business.
3. A Liquor License- having a liquor license will allow you to sell alcohol. It is essential to have one if you plan on selling any alcohol in your restaurant business. The type of license you apply for will depend on what sort of alcohol your restaurant will serve. Many states will require that you obtain a one license for beer, another for wine, and yet another for hard liquor. The state only allows a certain number of liquor licenses for an area. If none are available you, you will need to purchase the license from someone who already has one and is willing to sell. These can be renewed yearly, unless you have committed an illegal offense such as, selling liquor to a minor, or selling liquor you do not have a license for.
4. A Sign Permit- Before you put up any signs for your restaurant business, contact your city officials to see if there are restrictions on the type of sign, size, location, and how the sign is lit. You should also get written approval from your landlord before you put up any sort of sign.
5. A Music License- Any establishment that plays copyrighted music, will need one of these. Whether you have a band, DJ playing CDs, or Karaoke. The fines can be steep for not having a music license. They usually run from ,000 to ,000, so it's a good idea to obtain this license.
6. Fire Certificates- You will undoubtedly be inspected by the fire department before you open your restaurant business. They will educate you on all regulations you will need to follow, and will do routine inspections on your business.
Other permits you may need include: a Police Permit, a Sellers Permit (allows you to buy wholesale goods without paying sales tax), and a Building or Zoning Permit.
The laws and regulations of any area are subject to change, it will be important to join your local and National Restaurant Association. Keep informed on the changes in local government also.
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