Licenses and Permits You'll Need
Opening a restaurant typically requires 10–15 different permits and licenses. The exact requirements vary by city, but here's what virtually every restaurant needs:
Step 1: Business Foundation
- Form your business entity (LLC recommended for restaurants)
- Obtain Federal EIN from the IRS
- Register with your state's Secretary of State
- Get a general business license from your city
Step 2: Food Service Permits
- Food service establishment permit (health department)
- Food handler's certificates for all employees
- Food manager certification (ServSafe or equivalent)
- Commercial kitchen inspection and approval
Step 3: Alcohol Licensing (If Applicable)
- State liquor license (costs range from $300 to $14,000+)
- Local liquor license or permit
- Server alcohol training certifications
Step 4: Safety and Compliance
- Fire department inspection and permit
- Building occupancy permit
- ADA compliance verification
- Signage permit
- Music/entertainment license (ASCAP/BMI/SESAC if playing music)
- Dumpster/waste disposal permit
- Grease trap permit
Step 5: Employment
- State employer registration
- Workers' compensation insurance
- Unemployment insurance registration
- OSHA compliance
Estimated Total Costs
Budget $5,000–$25,000 for all permits and licenses combined, depending on your city and whether you serve alcohol. The liquor license alone can be the single largest expense, ranging from a few hundred dollars in some states to tens of thousands in others.
Timeline: Start the licensing process 3–6 months before your planned opening. Liquor licenses alone can take 2–4 months to process in many states.