Permits and Licenses for a Restaurant

Understanding the permits and licenses involved is an important part of opening a new restaurant. The food service industry is heavily regulated, requiring licenses from the local health department, compliance with fire safety regulations, tax permits, and more.

​However, what makes restaurant licenses especially challenging is the fact that food safety regulations vary significantly from state to state. Many cities and counties have their own local-level requirements, too. What the restaurant serves can also affect permit requirements; businesses that serve alcoholic beverages often need alcohol licenses, too.

​And those are just a few examples. The rest of this article discusses several categories of common permits that restaurants typically require. Permit requirements also vary by location and operation, and the examples below reflect common categories rather than a complete list of requirements for every restaurant.

Business License Requirements for Restaurants

In any discussion of licenses, a general business license is a good place to start. It’s not uncommon for a restaurant to need a general business license, but that license could be issued at the state, county, or city level (or even a combination of those three). Whether a general business license is required depends a lot on local rules.

​Sometimes, a general restaurant business license might have a different title. For example, some jurisdictions might refer to this license as a business privilege license, a business tax certificate, or a general operating license.

The costs to obtain a general business license vary by jurisdiction, as do the renewal terms for those licenses, and these expenses typically factor into overall restaurant startup costs. Requirements often vary by state, county, and city, so general business license rules are typically handled at multiple levels of government. Many restaurant owners choose to structure their business as an LLC to protect their personal assets while navigating these licensing requirements. Learn more about starting an LLC for restaurant owners to understand how this business structure can benefit your restaurant venture.

Food Service and Health Department Permits

Naturally, food service businesses are expected to obtain permits from the health department because they prepare and serve food to the public. Sometimes these permits are handled at the state level, and other times at the local level (or perhaps both). Most entrepreneurs will need to research where to get health permits and food service licenses for their location.

​Often, health permits cover aspects of the restaurant business like sanitation, food storage, and more. These could cover employee health permits, building health permits, and other requirements. It’s also common for health departments to conduct regular inspections to monitor the restaurant’s ongoing compliance.

Food Handler and Food Safety Certifications

Many jurisdictions have certification requirements that require certain restaurant staff members to obtain food safety certifications or food-handling licenses. When required, these certifications address issues like safe food preparation and handling, temperature control, kitchen hygiene, cross-contamination prevention, and more.

​Different states and counties may have different requirements for these permits, such as requiring managers to have more robust food safety certifications. Food service license costs vary, too.

Additionally, different areas will likely have unique standards for obtaining those certifications, how long they last, and the procedure for renewing them. These requirements often include specific certification standards, renewal periods, and training expectations that vary by jurisdiction.

Sales Tax and Seller’s Permits

Many restaurants serve food and beverages that are considered taxable sales, so they may need to get a sales tax permit from their state’s tax department. A sales tax permit (sometimes called a sales tax license) gives the business the authorization it needs to collect sales taxes (and pay them when they’re due, of course). It’s not unheard of for cities or counties to add a local surcharge to the state tax rate, too.

State and local tax rates and filing requirements can differ, depending on how food and beverages are classified for tax purposes. For example, some restaurants might be expected to pay their sales taxes monthly, quarterly, or even annually, depending on their revenue. Some states even have different tax expectations for certain food categories, such as distinguishing between prepared foods, dine-in meals, takeout, and beverages for taxability.

Alcohol Licenses for Restaurants

If a restaurant serves beer, wine, spirits, or other mixed drinks, there’s a good chance that it will need an alcohol license or liquor license. Many states issue these licenses through their state-level alcohol control authority. Local regulations may also apply in addition to state-level alcohol licensing rules.

​Some jurisdictions have different licensing requirements for different types of alcohol service, such as restaurants that serve only beer and wine versus those with a full-service bar. Local zoning laws can also come into play.

Alcohol licensing is often one of the more complex aspects of restaurant permitting. Restaurants that plan to serve alcohol often review both state and local requirements before applying for a license.

Zoning and Land Use Permits

When someone thinks of restaurant licenses and permits, zoning permits probably aren’t at the top of their list. But they’re still important to address. Zoning rules dictate whether a restaurant is allowed to operate at a specific address. Often, cities and counties review a property’s zoning classification to determine whether a restaurant can operate there. Some properties are zoned for commercial use, some permit only residential use, and others are mixed-use areas. Throughout this process, the restaurant may also need to obtain a certificate of occupancy.

​Zoning standards can also dictate parking availability and operating hours. Even noise considerations can come into play; for example, a food establishment that hires live performers might need to operate in a zone where the subsequent noise levels won’t be an issue.

Zoning permit requirements are typically outlined by local planning or zoning authorities.

Building, Fire, and Safety Permits

Meeting fire and safety codes is another important aspect of restaurant permitting. It’s also common for restaurant owners to need building permits if they’re constructing a new space, remodeling an existing one, or installing new commercial kitchen equipment. As with many restaurant permits, the restaurant’s location significantly affects which local regulations it’s subject to.

​For example, the local fire department may need to check that the building has the appropriate sprinkler systems, fire exits (and extinguishers), and occupancy limits in place. A building permit might help ensure that a restaurant remodel maintains the proper ventilation systems. In short, these permits help ensure that a restaurant is safe before it opens to the public.

Signage and Outdoor Seating Permits

How big a sign can a restaurant have? Some aspiring restaurant entrepreneurs might be surprised to learn that even their sign might be regulated. Sign permits often govern the size of the sign, where it’s placed, whether or not it’s lit, or even how it’s designed. Restaurant owners may want to understand these requirements before investing heavily in signage.

​Cities sometimes have rules about outdoor seating, which can affect sidewalk cafes and restaurants with patios. These rules vary from place to place, but they’re especially common in areas with heavy pedestrian traffic or protected historic districts.

Permits Based on Restaurant Operations and Services

Permit needs often change based on how a restaurant prepares food, serves customers, or uses its space. A full-service restaurant that cooks meals on-site usually encounters different food permit requirements than a café that offers prepackaged items.

Factors such as seating capacity, commercial kitchen equipment, and even the chef’s cooking methods can influence which permits apply to the restaurant. Some restaurants also offer services like catering, live entertainment, or food truck operations. Those businesses could need a music license, a mobile food service license, and more. Some restaurants might even need a valet parking permit or a dumpster placement permit. In short, additional services could require additional permits depending on how the business functions day to day.

Ongoing Compliance and Renewal Considerations

Many permits tied to restaurant operations come with renewal timelines or ongoing compliance expectations. Business licenses, food handler’s permits, alcohol approvals, and safety-related certifications typically follow annual or biennial renewal schedules, depending on the jurisdiction.

Local authorities may also conduct inspections to confirm that health, safety, or zoning rules continue to be met. Renewal requirements can change when a restaurant remodels its space, expands its services, or updates its ownership structure. Because each locality manages its own process, the steps and timing vary by region.

Understanding Restaurant Permit Requirements by Location

Restaurant permit requirements differ from one place to another because state, county, and city governments each set their own rules. Even two restaurants offering similar menus may face different approval processes when opening a restaurant if they operate in separate municipalities. These variations reflect local approaches to food safety, land use, alcohol service, and business oversight. Many restaurant owners review official state or local government websites to understand which agencies handle permits and what rules apply in their area.