Top 10 Permits and Licenses for Restaurants

One of the most important steps in starting a restaurant is getting the proper documentation to show you’re following local health, safety and other regulations. If you’re not sure what’s needed, this list of the top 10 permits and licenses for restaurants discusses the ones that are most commonly needed for new foodservice establishments.

General Business License

While not mandated in all locations, some jurisdictions require all entrepreneurs, no matter the industry, to obtain a general business license if they want to do business in that area. Even though the vast majority of states don’t require a general operating license, many cities and counties do, so be sure to check with your local government to see what’s needed.

Building Permit

If your new restaurant location needs renovations, you’ll need a building permit, official permission for major construction or remodeling. Although simple repairs like painting the walls don’t require approval, making changes to the building’s structure or mechanical systems do, so be sure to contact your local authorities if you’re not sure whether or not you need a permit.

Signage Permit

According to a SuneshineSign.com article, local governments often require signage permits to make sure that all outdoor signs fit in with the neighborhood and follow rules regarding size, design and other specifications. Some sign permits must be renewed every year, so check with your local governmental agencies to find out what’s required.

Certificate of Occupancy

A certificate of occupancy is proof that the space where your establishment is located complies with local building codes. An occupancy permit is usually needed before a business can open, so it’s one of the most important permits and licenses for restaurants. In order to obtain this certificate, you’ll need to not only pay a fee but also pass inspections to ensure things like your HVAC system is working correctly and drains are functioning properly, among other things.

Fire Inspection Permit

Fire inspection permits allow the local fire department to conduct regular inspections of your restaurant to make sure you’re following local fire safety regulations. During these inspections, they’ll be looking for a functioning sprinkler system, portable fire extinguishers and visible street address, as well as making sure that exits aren’t blocked and that wires aren’t exposed.

Liquor License

When getting a liquor license for your restaurant, it’s important to keep in mind that there are multiple types of licenses–some are “all liquor” while others are just for wine and beer–so you might need more than one. It’s also important to know that some cities and states limit the number of valid licenses, so you might have to wait until a competitor goes out of business before you can get one.

Food Service License

Also known as a food facility health permit, a food service license is required for any business that prepares food on site. This license requires paying a fee, filling out an application and then passing an inspection to ensure that you’re following food safety guidelines. Most localities require an annual inspection in order to renew the license, so make sure you’re practicing proper food storage and effective pest control measures to avoid failing the inspection.

Seller’s Permit

As explained by Forbes.com, a seller’s permit is sometimes called a sales tax permit because it allows businesses to collect sales tax on goods and services. Even though some states like Oregon and Alaska don’t collect sales tax, certain local jurisdictions do, so be sure to check with your state’s department of revenue to determine if you need a seller’s permit.

Employee Health Permits

Besides permits and licenses for your restaurant business, you’ll also need food safety certifications for your kitchen staff. While requirements vary by location, most localities require that servers, cooks and other staff obtain a food handlers certificate to learn the basics about food safety and that managers get a food managers certification to deepen their knowledge. 

Music License

Did you know that playing or streaming music in your restaurant might not be legal? If the songs aren’t licensed for public performance through a performing rights organization (PRO), you can be sued for hundreds if not thousands of dollars. So, make sure you have a restaurant music license through a PRO such as the ASCAP or BMI in order to avoid legal trouble.