Opening and running a restaurant involves a significant amount of work, and one crucial aspect is obtaining the necessary licenses and permits to legally operate in your state, county, and city.
Below, we provide an overview of some of the most common licenses and permits required to open a restaurant in California. Please note that this list is not exhaustive—specific cities and counties may have additional requirements and permits for opening a new restaurant in California.
Getting Started
Depending on your chosen business structure, you may need to register with the Secretary of State (SOS). For instance, sole proprietors are not required to register, but corporations, limited liability companies (LLCs), and partnerships must do so. This ensures that your business name complies with legal requirements and is not already in use.
An EIN, also known as a federal tax ID number, is required to identify your business for tax purposes. You can apply for an EIN through the Internal Revenue Service (IRS).
Fictitious Business Name (FBN) or “Doing Business As” (DBA)
If your business operates under a name different from its legal one, you must file for a fictitious business name (FBN), often called a DBA. This is done through the city or county clerk where your business is located.
Certificate of Occupancy
Issued by your local building or zoning department, this certificate confirms that your restaurant’s building is safe to occupy and suitable for its intended use.
If you plan to hire employees, you’ll need a payroll tax account number to file and pay payroll taxes. You can apply through the Employment Development Department (EDD).
Business License
A business license, or business tax registration, is required to conduct business within city or county limits. It must be renewed periodically, and the requirements can vary by location, so check with your local authorities for specifics.
A seller’s permit is needed to sell food and beverages and to collect sales tax. Applications are submitted to the California Department of Tax and Fee Administration (CDTFA).
Food Facility Permit
Typically issued by the local health or environmental health department, this permit requires an inspection to ensure that your restaurant complies with health and safety regulations. If you're building a new restaurant or making significant modifications to an existing one, additional requirements may apply.
Food Safety Certifications and Food Handler’s Card
All restaurant employees must complete accredited food safety training and pass an exam within 30 days of hire to receive a food handler’s card. As of January 1, 2024, employers are required to cover the cost of this training and compensate employees for the time spent in training and taking the exam.
Additional Business Licenses to Explore for restaurant licensing
If you plan to serve alcohol, you'll need to obtain a license from the California Department of Alcoholic Beverage Control, which must be renewed annually. The process can take up to 90 days, so apply early. If you’re taking over an existing restaurant, check if the liquor license can be transferred.
Live Entertainment Permit
If you intend to offer live entertainment, such as bands or performances, you may need an entertainment permit, which can be obtained through your local city or police department.
Final Notes
Licensing and permit requirements vary depending on your location. For more detailed information based on your business's location, you can refer to CalGold’s website, which provides guidance on the specific permits needed and the relevant agencies to contact.
Here are some other useful site for aiding you in getting your restaurant permits going in the state of California.
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