Permits & Licenses for Restaurants: The Ultimate Guide

Permits and licenses are official documents issued by government agencies that authorize a business—like a restaurant—to perform a specific task or process. The permits and licenses for a restaurant ensure that your business is safe and legal. They vary depending on your location, type of restaurant, and construction plans.

You may need to secure dozens of permits and licenses for your restaurant from various local authorities, from the Department of Health to the Department of Business Affairs and Consumer Protection. The process of obtaining all the required permits isn’t difficult, but I won’t lie to you; it can take some time. If you are starting a new restaurant business, you should allow six to nine months to get all of your permits—up to a year if you have big renovation plans.

Some restaurant permits require in-person inspections, and some construction permits can only be issued to a licensed contractor, so you’ll need to secure those first.

Restaurant permits and licenses fall into four main categories:

Basic business licenses
Health and safety licenses
Operational permits
Construction permits

I’ll walk you through all the details below, including what permits you need, where to get them, and how much restaurant licenses and permits cost.

Basic Business Permits & Licenses for Restaurants

These are the foundational permits for your entire restaurant. They permit you to purchase items for your business from wholesale distributors, open business bank accounts, and apply for business loans. For those reasons, it is best to arrange these licenses before moving on to others.

Apply: Online, by fax, or by mail
Cost: Free
Where to apply: IRS.gov
Lead time: One day to two weeks
Penalties for operating without one: Fines associated with failure to pay taxes; inability to obtain additional necessary licenses

The first permit you need to open your restaurant business is an Employer Identification Number (EIN). An EIN is a nine-digit code issued by the Internal Revenue Service (IRS) that identifies your business when you file taxes. Businesses that have employees, even if those employees are family members, must have an EIN. Banks may also request your restaurant’s EIN when you open business bank accounts or apply for business loans.

Getting an EIN is extremely easy. The whole process takes as little as 15 minutes. Plus, obtaining an EIN is absolutely free, making it a uniquely satisfying license to start your permitting journey. Restaurant owners can apply for an EIN online, by fax, or by mail. The online application process is the easiest and fastest of the three.

The online application must be completed in a single sitting, and the IRS website will time out the application window after 15 minutes. So it is important to gather all of your relevant information before beginning your EIN application. You’ll need:

Business name and address
Name of the “Responsible Party” for the business (this is typically the restaurant owner)
Social Security number of the Responsible Party
Reason you are seeking an EIN
Type of business you are (e.g., LLC, partnership, corporation, etc.)
If you are an LLC, the number of members you have
Date the business started
Number of employees
The last month of your business’ accounting year

When applying for an EIN, you will also encounter a question on Form SS-4 asking if your estimated annual employment tax is under $1,000. This question, essentially, is to determine if your restaurant will pay your estimated employment taxes quarterly or annually, and which form you will complete at that time. For most restaurants, the answer to this question will be “no.”

Most restaurants’ estimated annual employment tax will exceed $1,000, and they also withhold income, Social Security, and Medicare taxes from employee wages. As a result, most restaurants pay these taxes on a quarterly, rather than annual, basis, using the appropriate IRS form.

The EIN is necessary to file your restaurant’s annual taxes. It is also used to report tips paid into your restaurant and pay employment taxes. Not having an EIN will prevent your business from performing these tasks, which can lead to troubles with the IRS.

Apply: Online, by mail, or in person
Cost: Free
Where to Apply: Your state Secretary of State’s office
Lead time: One day to two weeks
Penalties for operating without one: Fines associated with failure to pay payroll taxes; inability to obtain additional, necessary licenses

Some states require that small businesses register for a State Employer Identification Number (SEIN). This number is used to track state taxes paid by your business. Generally, a business that pays wages over $100 in a calendar quarter to one or more employees is subject to state payroll taxes.

The process to get a state tax ID number is similar to getting a federal tax ID number, but it varies by state. Most states do not charge an application fee. Most also offer an option to apply online. In most cases, you will want to gather the following information before beginning your application:

Name and Social Security numbers of all Responsible Parties
Copy of your Doing Business As (DBA), if applicable
Physical business address and mailing address
Business phone number
Valid email addresses for a contact person and the business itself
Date of first payroll when wages exceed $100
Your federal EIN
A brief description of the industry, product, or service that represents the greatest portion of your sales

Some SEIN applications request your “NAICS code.” This refers to the North American Industry Classification System, which applies numerical codes to identify different industries. The NAICS code for full-service restaurants is 722551. You can research NAICS codes on the NAICS website.

Apply: Online, by mail, or in person
Cost: $100 to $5,000
Where to apply: Your state’s Secretary of State’s office (usually)
Lead time: Two weeks to one month
Penalties for operating without one: Fines based on revenue generated while operating without a license; inability to obtain other, necessary licenses

A business license is a permit issued by the government of a particular state, city, or county that allows an individual to legally conduct business in that location. The issuing authority can vary from place to place. Check the website of your state Secretary of State’s office for information about requirements in your area. The Small Business Administration website also contains general guidelines.

There are two charges associated with obtaining a business license—a filing fee and the cost of the license itself. Filing fees are usually around $50. Some cities base the license fee on a percentage of your total sales, while others charge a flat fee. Costs can range from $100 to over $5,000, depending on your business type, business size, and location. Processing a business license application usually takes two weeks.

Apply: Online or in person
Cost: $0 to $100
Where to apply: Your state’s tax authority
Lead time: One day to two weeks
Penalties for operating without one: Fines associated with failure to pay sales taxes;inability to obtain other necessary licenses

A seller’s license enables you to collect state sales tax on your products. This license makes you, in essence, an agent for the state for the collection of sales tax. It is issued through whatever department handles taxes in your state. The names of these departments vary, but they tend to have the word tax as part of their title (as in the Department of Tax and Fee Administration, or Tax Authority).

It is in the state’s best interests to make these licenses easy to obtain, so a simple internet search for “seller’s license” alongside the name of your state will generally lead you to the right place. In addition to your basic business information, the seller’s permit application will ask for:

Projected monthly sales
Projected monthly taxable sales
Description of products you sell

In most states, the seller’s permit is free. Others may charge a fee of up to $100 for these licenses. Many states also set these licenses to automatically renew, or issue them with no expiration date. States that do require renewal tend to have a long period for renewal, usually two to five years.

Apply: In-person, by mail, or (in some states) online
Cost: Free
Where to apply: Your state’s tax authority
Lead time: One day to two weeks
Penalties for operating without one: Paying unnecessary taxes; may struggle to set up accounts with suppliers

The basic function of a resale license is to prevent double taxation, and you’ll need one to set up accounts with restaurant suppliers. A resale license allows your restaurant to make tax-free purchases of taxable products that you plan to re-sell. The certificate assures your suppliers that you are re-selling these items, so they are not liable for collecting sales tax on it themselves.

Resale licenses are issued from the same tax authority that issues Seller’s licenses. Some states actually combine the two licenses into one application and document. These licenses are generally free, though you usually need to renew them every one to two years.

Apply: Download online application, apply in person
Cost: $120 to $20,000
Lead time: Two to four weeks
Penalties for operating without one: Fines; inability to obtain other permits

A zoning permit is the proof of the city’s approval that your business is allowed to operate at your operating address. Zoning permits are issued by the local Planning Department or Zoning Board. These organizations review your proposed land use and check it against the town or county’s zoning table. Commercial zoning permits usually take two to four weeks to process and typically require an inspection of your restaurant property. Costs range from $120 to $20,000, depending on your location and the size of the building.

In most places, the zoning permit application can be downloaded from the local zoning board’s website and then must be filed in person in their offices. Most cities maintain searchable online maps where you can check the zoning codes in your area yourself before submitting your application. In some areas, there will be a public hearing to approve your zoning application. At this hearing, the public can comment on or oppose your application, especially if you are proposing to use your location in a way it hasn’t been used before.

A zoning permit is frequently required on applications for other permits like Building Permits and a Certificate of Occupancy (both discussed later in this guide). If you are performing any renovations or construction, your contractor will likely ask to see your zoning permit. Operating without the appropriate zoning permit can lead to fines and the removal of structures you have built.

Zoning codes and zoning permits govern land use in the same way that building codes and permits apply to the building structure itself. For example, say, you build a bar that perfectly adheres to the building code. If you build that bar on land that is not zoned for commercial liquor sales, though, you won’t be permitted to open for business.

Apply: Download application, apply in person
Cost: $20 to $200
Where to Apply: Varies; usually your state building permit office
Lead time: One day to two weeks
Penalties for operating without one: Fines; removal of signs

A sign permit is required for all permanent exterior signs, awnings, and interior signs that can be seen from the exterior of your restaurant. In some locations, alterations and relocation of existing signs also require a permit. Some cities waive the sign permit for small signs without electric features, as in NYC: “Signs that are painted or smaller than six square feet and not illuminated do not require a permit.”

In most places, a business owner can handle this permit for him or herself. There are cities, however—usually those prone to dramatic weather events—that will only issue sign permits to businesses using licensed contractors. Depending on where your restaurant is located, costs for a sign permit generally range from $20 to $200.

Apply: Download application, apply in person
Cost: $100 to $350
Where to Apply: Varies; usually your state building permit office or fire marshal
Lead time: One to six months
Penalties for operating without one: Business closure, inability to obtain other permits

A certificate of occupancy (C of O) is a sort of super-permit. It is sometimes also called an occupancy permit. A certificate of occupancy is a document issued by your local Building Department, to certify your building’s compliance with building codes and other safety laws. A C of O is issued after your restaurant location has passed all necessary building, fire, and safety inspections.

These certificates are usually handled by your local building department, though in some locations, the Fire Marshal issues C of Os. The procedure for obtaining a certificate of occupancy can vary from place to place. It usually involves downloading an application from your local Building Department (or Fire Marshal’s) website, and then filing this application with relevant fees in person at their offices. Costs range from $100 to $350.

New buildings must have a C of O, and existing buildings must have a current C of O when there is a change in use or type of occupancy. So if you are converting a retail space into a restaurant space, or renovating an existing restaurant, you’ll need a new C of O, even if the space already had one under the previous tenant. Your restaurant cannot open to the public until you have a current C of O.

If you are leasing your restaurant space, your landlord might assist you with obtaining a certificate of occupancy, but generally, commercial lessees take the lead on this process. Your local Building Department should be able to advise you on the best course of action.

Final approval for a C of O requires inspections from multiple building inspectors. Plumbing, electrical, and general building inspectors will check all of the systems in your restaurant. If they find code violations, they will give you a set timeframe to correct the violations—usually 30, 60, or 90 days—before scheduling a re-inspection. Re-inspections can delay your opening date considerably, so it is best to be sure that your systems are up to code before scheduling final inspections.

Operating without a certificate of occupancy is nearly impossible. Without one, you won’t be able to apply for specialized permits for liquor, music licensing, valet services, or sidewalk patios. Violation penalties include fines. But even worse, if you are found to be operating without a C of O, your business can be immediately shut down. And you’ll likely struggle to get approved for permits in the future.

Health & Safety Restaurant Permits & Licenses

Health and safety permits are critical for restaurants. The whole restaurant business model is serving a product that customers actually consume. So naturally, your local health department wants to ensure you operate safely. Restaurants are also places where the public gather incredibly close to the open flames in your kitchen.

Restaurants have an important obligation to maintain a safe structure that adheres to fire safety codes and serve food that will not sicken customers. Authorities like the Department of Health and the fire department perform inspections to ensure that your restaurant operates safely. These departments then issue permits that let the public know of your restaurant’s compliance with local health and safety laws.

These are the essential health and safety licenses your restaurant needs:

Apply: Online or in person
Cost: $150 to $1500
Where to Apply: State or county health department
Lead time: One day to two weeks
Penalties for operating without one: Fines and penalties that can include shutting down your operation until you are in compliance

A food service vendor’s license (sometimes called a food service establishment license) authorizes your restaurant to serve the food you prepare to the public. A lot of restaurant folks simply call this their “health permit.” Whatever you call it, this is the foundational food safety license that covers your business and building itself. To be fully compliant, your restaurant will likely need one or more of the additional health and food safety licenses (discussed in the following sections).

Apply: Online; in-person testing is required in some locations
Cost: $25 to $120
Where to Apply: State or county health department; required training offered through various providers
Lead time: One day to one month (plus study time if needed)
Penalties for operating without one: Fines, or closing your restaurant until you are in compliance

In addition to the food service vendor license that covers your restaurant premises, almost every state requires that at least one person in a supervisory role have a food safety manager’s license. In some locations, this may be called a food protection manager’s license.

The food safety manager’s license is a food safety license that must be held by the restaurant owner or supervisor who oversees the food safety concerns of the restaurant. This certificate is an official document that demonstrates to health inspectors that you or your managers have completed a food safety training course approved by your state. It also demonstrates that you are knowledgeable about food safety regulations and that you regularly enforce them in your operation.

Obtaining this license usually requires passing a test administered by your state’s Department of Health. Every state varies in its requirements for food safety licenses, so you’ll need to check with your state’s Department of Health to learn the requirements in your state. In general, however, most states accept the completion of an online course and certification program through ServSafe. Costs range from $25 to $120, depending on whether the required tests can be completed online or must be completed in person.

Many states require that a supervisor with a food safety manager’s license be present at all times that the restaurant is in operation. When performing routine inspections of your restaurant, a health inspector will ask to see this license and meet the license holder. For this reason, most restaurants have several certified food safety managers on staff. The best guideline is to have enough certified supervisors so the person unlocking your restaurant every morning and the person locking it every night has a food safety manager’s license.

This food safety manager’s permit is separate from individual food handler’s permits, which are often required of food workers regardless of their place of employment (discussed in detail below).

Apply: Via a link on your local health department website, or via ServSafe
Cost: $15 to $25
Where to Apply: Contact your state or county health department for approved online courses
Lead Time: Typically two hours; you can print your permit directly from the web after completing a 2-hour online or in-person course and passing a multiple choice test.
Penalties for operating without one: You could be fined or shut down by the health department if your location requires food handler’s permits and your staff do not have them.

Some states further require a basic food handler’s permit from every restaurant employee who prepares or serves food. In these states, all line cooks, prep cooks, chefs, bussers, runners, servers, and bartenders must have a food handler’s permit. Food handler’s permits—like driver’s licenses—are attached to the individual. Your job as the restaurant owner to is ensure that your food handling staff have their food handlers permit within 30 days of their hire date.

Requirements vary a bit from state to state, but most require that restaurant employees take a two-hour food safety course (either in-person or online) and pass a multiple-choice food safety test. The permits themselves cost around $20. Typically, employees pay for this permit themselves, but you could offer to pay for the license as a perk for new employees. Food handler’s permits usually need to be renewed every three years.

Currently, Alaska, California, Hawaii, Illinois, New Mexico, South Carolina, Texas, Utah, Washington, and West Virginia all require food handlers permits statewide. Even if your state does not require food handlers’ permits, though, some counties or individual cities do. For example, the state of Kansas does not require individual food handlers permits, but the town of Leavenworth does. Check with your local health department for requirements in your area. Checking food handler’s permits is a key component in a health department inspection. If your area requires food handler’s permits, the health inspector will spot-check your staff during inspections.

If your location requires food handler’s permits, make a copy of all of your employee’s licenses and keep them in a central location, like a binder in your back office. This makes it easier to show health inspectors when they arrive. Go through the binder regularly to ensure everyone’s permits are up to date; you don’t want to show the health inspector a book of expired licenses.

Apply: In most states, applications can be found online, but must be filed in person or by mail
Cost: $125 to $3,000+
Where to Apply: Your local Fire Marshal’s office
Lead time: Two to four weeks
Penalties for operating without one: Fines, or closing your restaurant until you are in compliance

A fire safety permit certifies that your restaurant has taken the necessary precautions to prevent fire outbreaks, has all relevant fire alarm systems, and maintains safe emergency exits for your employees and customers. Adhering to that last one can be harder than it sounds; wide walkways are tempting spaces to add additional seating or storage. This permit requires an in-person inspection by your local fire marshal.

Some states charge a flat fee for fire safety permits, while others base their fees on the square footage of your business, as well as the type and number of fire alarm and suppression systems you have. It is important to be honest in your figures. If the inspector finds that the numbers on your application don’t match your physical space, he or she may demand a re-inspection. Not only is a re-inspection an additional charge (usually $30 to $50), but it will delay your restaurant’s opening.

In addition to basic business information, fire safety applications frequently request information about:

The total square footage of your restaurant
The number of floors in your restaurant
Number of heads on your sprinkler system
Number of fire alarms
Whether your fire alarm system is monitored by an alarm company
The presence of garbage or laundry chutes

Most fire safety permits must be renewed annually. Applications can usually be found online, but most locations require you to file them in person or by mail, with payment attached.

As with your health department permits, keeping your fire safety permit active requires annual, unannounced inspections. If a fire safety inspector finds violations, you may be charged fines, or—if the violations are particularly dangerous—the fire inspector can close your restaurant until you correct the issues.

In addition to annual inspections, most fire marshals require a test and re-inspection of automatic extinguishing systems (sometimes called “ANSUL” systems) after they activate, even if the activation was from a false alarm. In most cases, you can’t reopen your restaurant until this test and re-inspection is complete.

Apply: Download online application to file in-person, by mail, or fax
Cost: $100 to $200
Where to apply: Your local sewerage or sanitation department
Lead time: One day to two weeks
Penalties for operating without one: Fines from $50 to $5,000+

If you have not previously operated a commercial kitchen, the term “grease trap” may be unfamiliar. A grease trap, or grease interceptor, is a plumbing device that prevents oils and solids from entering wastewater systems. These tanks connect to a restaurant’s ware-washing sinks, floor drains, and dishwashers to prevent fats, cooking oils, and grease from damaging public sewage systems.

The trap further requires the regular attention of a licensed grease disposal company to dispose of its contents. A health inspector or environmental health officer will ask to see your maintenance records when they visit.

A permit is required for any grease trap that is in active use. These are typically issued by a city or county Sewerage and Water Board or Environmental Health Department. Typical costs for this permit range from $100 to $300. If the grease trap is newly installed, you usually need to include professional, engineer-signed plans for its installation along with your construction permit applications.

In most locations, you can find the grease trap discharge permit application online. Though, after downloading and completing the application you must file it in person, by mail, or by fax. Fees are usually within the $100 to $200 range.

Failure to register your grease trap with local authorities can carry a steep penalty. There is usually a nominal fee of $50 to $100 dollars for failing to file the permit. Then, many locations charge each day that you operated without the permit as a separate offense—which can add up. If your grease trap is in disrepair or you fail to have it serviced regularly by a licensed grease disposal company, your local environmental health department can fine you from $500 to $10,000.

Apply: Online, or over the phone
Cost: $10 to $100 per week
Where to apply: Local sanitation authority (your waste management company may handle this)
Lead time: One day to two weeks
Penalties for operating without one: Typically around $200 per day

Dumpster Placement Permits are not required in all locations. When they are required, they may be issued by a local sanitation or fire department. If you contract with a commercial waste hauler to remove your waste, they frequently handle any necessary permits and roll the cost into their fees. On the other hand, if your dumpster impedes foot or vehicle traffic in your area, you may be required to get additional permissions from your neighborhood or city.

In locations that require dumpster placement permits, the cost is determined by the size of the receptacle and the location. If the placement of your dumpster impedes the flow of traffic or removes parking spaces from the street or a lot, the fees tend to be higher. In most cases, you can apply for this permit online or over the phone.

To find out if your location requires a dumpster permit for commercial buildings, reach out to your local Public Works, Engineering, or Building Department. If you are searching on your local government website, it may help to know that some local governments do not list “dumpster permits.” They instead call them “right-of-way permits,” or “road occupancy permits.” In the case of dumpsters, “road occupancy” can also refer to alleyways. You can also just contact local waste hauling companies to find out the requirements in your location; you’ll likely contact them anyway to initiate a waste-hauling contract for your business.

If you need a temporary dumpster due to renovations or construction, that is a separate matter. A construction dumpster typically always requires a construction-specific permit. If you are working with a contractor, they typically include the cost of the construction dumpster and necessary permits in their proposal.

If your restaurant is located in a protected historical area, it would also be smart to reach out to the governing landmark preservation authority to ensure your waste management plans are in compliance. If you are contracting with a private waste hauling company, they should be able to advise if you need a permit for your dumpster.

Apply: Download online application; file in person, by mail, or fax
Cost: $125 to $700, depending on equipment type
Where to apply: Your local building department
Lead time: Two to four weeks
Penalties for operating without one: Up to $1,000 per elevator; unintended delays in service and potential customer or employee injury

Elevators that serve the public need to be licensed and registered with the proper safety authorities. Restaurants that have elevators need to have those elevators inspected annually. According to the Occupational Safety and Health Administration (OSHA), an elevator is “any platform moving vertically in guides and serving two or more floors of a structure.” This definition encompasses commercial wheelchair lifts and even manual or electric dumbwaiters that some restaurants use to move items between floors.

Elevator permits are usually issued by your local Building Department. In some locations, it is the Building and Safety Department. Costs vary depending on the type of equipment, and range from $125.00 for small manual lifts, up to nearly $700 for escalators. Failure to keep your permits updated can result in fines of up to $1,000 per elevator.

According to OSHA, all elevators must be inspected annually, with additional monthly inspections as needed. The records of those results must be posted inside each elevator and signed by the inspector who performed the work.

Restaurant Construction Permits

Construction permits are required for any new additions to your restaurant space, as well as any major repairs or renovations. Your local Building Department—sometimes called a Building and Safety Department—handles these permits. Most permits related to construction have expiration dates; typically, the relevant project must be begun within 12 to 18 months from the permit’s issue date.

Construction permits can be dependent on one another—meaning that you must secure the preliminary permit before applying for the next permit. For example, most projects that require a zoning permit require some kind of building permit. In that case, you must have an approved zoning permit before applying for your building permit.

If you are working with a contractor, they will usually secure the relevant building permits and simply add the cost of them to their invoice. But you should always ask if the permits are included; securing permits is definitely a time when you want to overcommunicate. As a restaurant owner, you should understand restaurant building permits so you know what charges to expect, and what information your contractor may need from you to file for the correct permits. Knowing how these pieces fit together can also help you prevent unnecessary delays.

Apply: Download application, apply in person
Cost: $250 to $1,000
Where to apply: Your local building department (Your contractor usually handles this)
Lead time: Four weeks
Penalties for operating without one: Fines, stop work orders, construction delays

A building permit is a document issued by the local Building Department that allows you or your contractor to proceed with the construction or remodeling of your restaurant. It is intended to ensure that the project plans comply with local standards for land use, zoning, and building codes. Building permits are required for any construction, electrical, plumbing, or heat, ventilation and air conditioning (HVAC) work you plan to perform.

Like many construction-related permits, building permits tend to be issued to licensed contractors. Restaurant owners will be involved in the process and can help keep the project organized, but the contractor will generally be the person who submits the application and receives the physical permit. Generally, the permit fees will be paid by the contractor, who then bills you.

Some cities, like Los Angeles, have designed integrative websites that allow you to apply for building permits online. In most places, however, you have to file building permit applications in person at the local Building Department. You can frequently find the applications themselves online, though. Building Departments have a reputation for being busy and understaffed. The application process usually takes about a month, and costs range from $250 to $1,000.

It may be tempting to start building before your permit is finalized. If you are discovered building without a permit, however, it can lead to fines, stop work orders, and removal of any work that has been done without a permit. It can also jeopardize your permit application. So don’t do it. And don’t work with a contractor who plans to work without a permit. It’s just not worth it.

Apply: Download application; apply in person
Cost: Around $100
Where to apply: Your local building department (Your contractor usually handles this)
Lead time: One day to two weeks
Penalties for operating without one: Fines, stop work orders

Demolition permits are sometimes required when you plan to remove all or part of an existing structure. Some locations only use demolition permits for projects that plan to demolish an entire building while others require a deconstruction permit for any demolition (even just removing a wall).

When a demolition permit is required, the application typically requests that you include a demolition plan noting which structures you plan to remove. Building authorities ask this to ensure that any electrical, plumbing, or mechanical systems are safely removed. It is also typical that you won’t get approval for a building permit until the demolition permit is approved.

If you are working with a contractor, they will handle this permit and application, and then bill you for the fees. A demolition or deconstruction permit fee is typically less than $100. If your construction project requires the demolition of an entire building you’ll likely pay more.

Penalties for operating without a demolition permit are the same as for operating without a building permit—fines and stop work orders which can delay your renovation. The greatest risk of operating without this permit, however, is safety. Demolishing parts of commercial buildings can uncover hazardous materials, or sensitive systems that can injure you or the workers who are performing the demolition.

Apply: Download online application, file online (in some cities), in person, or by mail
Cost: Around $70
Where to apply: Your local fire deparment
Lead time: One week to one month
Penalties for operating without one: You could be forced to remove a wood burning oven that does not have the appropriate ventilation system

Conversationally, most restaurant folks mention a “wood burning oven permit” or a “pizza oven permit.” In reality, the permit you need when you install a wood burning oven in your restaurant is a commercial cooking sstems permit, sometimes called a “Class 1 Type 1 Hood Permit.” This is issued by your local fire department and usually costs around $70.

Adding a wood-burning oven to your restaurant plan also overlaps with other building permits and licenses. It requires, for example, a more elaborate ventilation system called a Type 1 Hood, that can add $10,000 to $50,000 to your construction budget. A Type 1 Hood installation also requires an additional permit from your city’s building department. This building permit usually costs between $50 and $75.

The presence of a wood burning oven further leads to increased scrutiny during the building permit, fire, and health inspection phases of your permitting journey. This can increase your construction timeline and lead to adjustments and re-inspection requests. While this can be frustrating, it is important to remember that these inspections exist for your safety. Wood burning ovens have led to fires, so state and city regulators are naturally cautious about them.

The health department and fire department inspectors will regularly check on your oven during their rounds. Wood fuel can harbor pests, and is, of course, highly flammable. These inspectors can tell you the local regulations governing where and how your wood can be sourced and stored.

Apply: Download application; apply by fax, mail, or in person
Cost: Varies according to the scope of work; $100 to $5,000
Where to apply: Your local fire department
Lead time: One day to two weeks
Penalties for operating without one: Licensing authorities can halt your construction plans until you get the appropriate permits, and in some cases may require that you remove unpermitted work

In most locations, plans for newly installed, renovated, or repaired fire alarm, sprinkler, automatic extinguishing systems, and hood/duct systems must be filed with and approved by the local Fire Marshal’s Office. The purpose of filing a fire system permit in addition to a general building permit is to ensure that your fire suppression plans adhere to local building codes as well as accommodate any specialized equipment you plan to install.

These permits must typically be filed by the licensed technicians who install these items in your restaurant. Applying for fire suppression system permits usually requires that your restaurant supply a current building permit, multiple copies of detailed system plans, details of your business including business licenses, and the applicable fees.

The fees vary depending on how much work is needed. For example, a permit for a kitchen hood repair will generally cost less than a permit for a new sprinkler system. Costs range widely, so it is best to reach out to the fire marshal who oversees your location to get full information. A full service restaurant that plans a complete kitchen renovation with an upgraded fire suppression system may spend $3,000 to $5,000 on related permits.

Operational Permits

Just about any operation you want to add to your restaurant beyond cooking and serving food requires some type of permit. These permits won’t apply to every restaurant; the ones you need will depend on your restaurant’s operational style. The most common operational permit is a liquor license, which you’ll need for serving any type of alcoholic beverage.

A restaurant in a city center will usually attract more customers by offering valet parking services. Cafes in tourist destinations tend to offer tables on the sidewalk. Changes like these that shift the flow of traffic in a neighborhood require permits. Though subtle changes like hosting live music performances or installing a pool table may also interest your local authorities. Expand the sections below for more information.

Apply: Download application online; file by mail or in person
Cost to File Application: $100 to $150
Where to apply: Your local liquor control board (sometimes called “ABC Commission”)
Cost for License: $300 to $250,000
Lead time: Two to six months

Penalties for operating without one: Fines; jail time; prohibited from obtaining a license in the future

Any restaurant serving alcohol is required to obtain a liquor license. The class of liquor license you need will vary depending on the type of alcohol consumed on your premises. The operative word there is “consumed” (not “sold”).

Some cities offer a liquor license for restaurants that choose not to sell wine and beer on their premises, but allow customers to bring their own wine and beer to consume at the restaurant. This is referred to as a BYOB—Bring Your Own Bottle—license, and it is very popular in cities like Philadelphia where obtaining a full liquor license is difficult.

Obtaining a liquor license begins with contacting your state’s Alcoholic Beverage Commission to determine what kind of liquor license you need. The types of liquor licenses vary depending on:

Your Restaurant type (full service, hotel restaurant, tavern, etc.)
The type of alcohol you plan to serve (full bar, only wine and beer, or BYOB)
The hours and days you plan to sell alcohol
Whether or not you manufacture alcohol on your premises

You will also need to make sure that your restaurant is in a neighborhood that is zoned for alcohol sales. In some states, if your restaurant is within 200 feet (or 500 feet in some counties) of a school or place of worship, you could be out of luck. Once you have determined the type of license you need, and that your business is in a zone that permits alcohol sales, the next step is finding out if a license is available.

Many states set a quota for liquor licenses which can make new licenses hard to find. If that is the case in your state, you may have to purchase your license from another business, likely one that has recently shuttered. This is where the costs can vary greatly.

When buying a liquor license from an existing business, the cost will be based on the market value. In some competitive markets like San Francisco, you may find available liquor licenses priced as high as $250,000.

Whether you are able to obtain a new license or are buying one from another business, you must apply for a license with your state’s Alcoholic Beverage Commission.

In addition to your basic business information liquor license applications typically require:

Health permit
Building permit
Zoning permit (that shows your restaurant is in an approved zone for liquor sales)
EIN and SEIN
Business license
Seller’s license
Food service permits from your state’s health department
Certificate of occupancy
A full set of fingerprints from the restaurant owner

Some states also ask to see proof of a music licensing permit if you plan to play copyrighted music in your establishment. Others will request drawings of your restaurant floor plan.

The liquor license application can generally be found on your local liquor control board’s website, then filed either by mail or in person. There is also usually a filing fee of $100 to $150 to process your application. Once your license application is approved, you will pay the license fee, which can range from $300 to $250,000, depending on your location.

Liquor licenses must be renewed every one to three years. Maintaining an active liquor license depends on your business adhering to all the laws that govern the sale of alcohol in your state. Violations like serving minors can lead to an immediate suspension or revocation of your license.

Selling alcohol without a liquor license in most states is a misdemeanor. Penalties can include fines of $1,000, or up to six months in jail. If your restaurant is caught selling alcohol without a license, it is unlikely you will ever get approved for one in the future.

Apply: Download online application; apply by fax or in person
Cost: $200 to $19,000
Where to apply: Local zoning board (usually; this can vary)
Lead time: Two to four weeks
Penalties for operating without one: Fines, closing your patio operation

Some cities require special permits for outdoor seating areas. Others consider outdoor dining spaces in the zoning phase. Some cities require permits for any outdoor seating while others only require approval for sidewalk seating that disrupts the flow of foot traffic on public walkways. Both of these permits deal with the impact your use of outdoor space may have on the neighboring community. So it makes sense that they are typically issued by local city (or sometimes even neighborhood) departments.

In some locations, outdoor seating operations are only approved for specific seasons, as in a sidewalk cafe in a beach community that only operates in the summer months. They may also be limited by the hours they can operate. For example, a restaurant near a residential neighborhood may have to keep its patio closed before 11 a.m. and after 10 p.m.

Patio and sidewalk use permits are not related to the building of the structure. If you are altering your building in order to incorporate a patio or use a public sidewalk as outdoor seating you will likely need additional construction permits.

Costs of outdoor dining permits are usually based on the size of the seating area and whether it is fully or partially enclosed. In the case of sidewalk seating areas, the application may require that you obtain the written consent of the property owner if you are leasing your restaurant. If your restaurant is in a designated historic district, you may also be asked to obtain the written consent of the local landmark preservation department.

The costs here can vary widely. A sidewalk cafe license in Austin, Texas, can cost as little as $200. While a sidewalk patio in a high-profile New York City neighborhood can set you back up $19,000. operating a patio without necessary permits can lead to fines, and almost always leads to local authorities shutting down your patio operation.

Apply: Online
Cost: $369 to $3,000
Where to apply: Via a music licensing service; BMI, ASCAP, SESAC (some music streaming services handle this for you)
Lead time: None; these licenses are offered online, instantaneously
Penalties for operating without one: Fines of up to $30,000; lawsuits

Music is a great way to create ambiance in your restaurant. Playing recorded music from a playlist, CD, or streaming service in a business is considered public performance. To avoid penalties for copyright infringement, you must obtain a music licensing permit before playing copyrighted music in your business. Bars and restaurants must also pay these licensing fees if they feature live music performances, and those bands perform copyrighted music.

You have a few options to meet the music licensing requirements. The first option is to purchase a license directly from a performing rights organization (PRO). PROs handle music licensing for most major artists—from Bon Jovi to Justin Bieber. PROs charge businesses for the right to play their artists’ copyrighted music, and then use these funds to compensate the artists. The three big PROs are Broadcast Media Inc. (BMI), the American Society of Composers, Authors, and Publishers (ASCAP), and the Society of European Stage Authors and Composers (SESAC).

A permit from any of these PROs only covers music from their affiliated artists. To cover the spectrum of music, you would need to get a permit from each of them. All three PROs have permit applications on their websites and allow you to manage your account and pay licensing fees online. The fees from each are based on:

The size of your restaurant
What type of music performances you feature (background music, DJ, karaoke, live performances)
Whether you charge a cover charge
Your level of business

Each of the PROs has their own charges. You’ll need to contact them directly for pricing; I’ve seen annual fees for small restaurants range from $400 to $3,000 annually. It’s pricier for venues that charge cover charges and host multiple live performances. BMI and SESAC both offer discounts for members of state and national restaurant associations, so be sure to mention that to the licensing representatives.

You may be wondering, why bother with the tedious business of music licensing? Who would know? Just ask restaurants that have been hit with lawsuits for doing just that. Fines for businesses using copyrighted music without permission can cost from $750 to $100,000; more if your infringement is proved to be willful. If live music is part of your business plan, get these licenses. It’s simply too costly not to.

If your restaurant simply streams background music and you have no plans for live performances of cover bands, karaoke, or charging cover charges, you can work with a music delivery platform like Soundtrack (i.e., Spotify for businesses), RockBot, or CloudCover. These companies provide streaming music that is fully licensed with the three major PROs, for a low monthly fee (usually from $25 to $50 per month, depending on whether you want to build your own playlists).

Apply: Download online Application, file in person
Cost: $1,800 to $3,000+
Where to apply: Your local Department of Transportation
Lead time: Two weeks to four months
Penalties for operating without one: Fines, possible misdemeanor charges

A valet permit allows restaurants to set aside curb space on a public street for valet parking. These permits are usually issued by a local transportation department and may require a public hearing where neighboring residents and businesses can comment on your plans.

In most cases, applying for a valet parking permit requires:

Basic business information about your restaurant and the company running the valet parking service
Location and size of the valet parking zone
Days and hours the valet service will run
Estimate of how many cars you think you will valet park
How many valet attendants you need
A plan and description of how your valet attendants will get cars to the parking lot
A letter from the owner of the off-street parking location you’re using for your valet service that says you have an agreement. The letter needs to include the location of the parking lot, the number of parking spots, and the number of spaces at the parking lot that will be set aside for the valet service.

Valet licenses must be renewed annually. Renewal requests will usually consider how well your valet operation worked in the previous year, so it is important to ensure your valets are kind to neighbors—especially in residential neighborhoods—and abide by parking laws.

Fees are usually $10 to $40 per square foot of your valet area. Imagine that your valet area requires the space of two parking spaces in the street in front of your restaurant. The standard parking space is 180 square feet. If you need two parking spaces and your city charges $10 per square foot, your licensing fee would be:

360 feet x $10 per square foot = $3,600

Many cities also charge a one-time fee of around $100 to $250 to replace parking meters with “Valet Parking Only” signs. This covers the official, city-issued placards that designate your valet parking area. If you contract with a valet company to run your valet service, they may be able to help you with the permitting process or handle the whole thing and pass on the costs to you; be sure to ask.

The cost of obtaining a valet permit may be steep, especially in city centers where parking is scarce. Operating a valet stand without a permit can lead to hefty fines as well as keep you from getting approved for a permit in the future. In some cities, operating an unpermitted valet is treated as a misdemeanor, which could lead to some jail time.

Apply: Download online application, apply in person
Cost: $200 to $3,500
Where to apply: Varies; check with local authorities
Lead time: Two weeks to two months
Penalties for operating without one: Penalties can be steep, ranging from fines of $1,000 for each infraction up to jail time for repeated violations.

Almost every city requires a special license if your business plans to feature live entertainment or offer a place for patrons to dance. The cabaret license applies to live bands, karaoke, as well as dance floors. The department that issues these licenses varies wildly from place to place. In California, for example, cabaret licenses are issued through the police department, while New York cabaret licenses are processed by the NY State Liquor Authority.

As with liquor licenses, there are various levels of cabaret license that cover activities from acoustic live performances without patron dancing, all the way up to performance arenas. The level of license you need will depend on your business needs. Costs vary for each level of license and range from about $200 to $3,500.

A cabaret license application typically requires that you provide:

A lease or deed to the business premises
A diagram of the restaurant
A full set of fingerprints

The licensing entity will also likely perform a basic background check or request a personal history form that lists personal and professional contacts as well as your financial information.

Operating without a cabaret license can lead to the usual penalty—hefty fines. Such a violation typically involves shutting down your operation until you are in compliance, but having a record of violation may prevent you from getting approved for a cabaret license at all. In some locations, repeated violations can lead to criminal charges and possible jail time.

Apply: Online
Cost: $80 to $650
Where to apply: Varies; check with local authorities
Lead time: Varies by location and issuing authority
Penalties for operating without one: Fines, removal of pool tables

Restaurants and bars that have pool tables must have licenses for those tables. In most cases, the cost of the license is determined by how many tables you have. The application is similar to the cabaret license application; it requests much more personal information about the business owner/s. Some locations request a form stating clearly whether or not the business owner is under an obligation to pay child support.

A pool table license application also typically requires that you provide:

A lease or deed to the business premises
A diagram of the restaurant
A certificate of occupancy

Permits are issued from a wide range of agencies from consumer affairs divisions, entertainment commissions, or sometimes police departments. In most cases, however, you can apply online. This license needs to be renewed on either an annual or bi-annual basis. Be sure to set a reminder for yourself. Operating without a license here will generally result in fines and demands that your business remove the pool tables.

Cost: $30 to $300 annually
Lead time: Two weeks to one month
Where to apply: Varies; check with local authorities
Penalties for operating without one: In most places, restaurants that sell tobacco products without a license are subject to fines, imprisonment up to one year, or both

Any business other than a wholesaler that wants to sell tobacco products is considered a cigarette retailer, regardless of their industry. Bars and restaurants that sell cigars or install a cigarette vending machine fall into this category.

In most states, every retailer who plans to sell cigarettes or tobacco products is required to obtain a retail cigarette license before starting to sell any tobacco products. These include cigarettes, cigars, smokeless tobacco, and pipe tobacco.

Generally, the application for this license can be found online, though in many cases the application must be filed by fax, mail, or in person. The actual department that issues these licenses varies.

In New York, for example, the New York City Department of Consumer and Worker Protection (DCWP) issues retail cigarette licenses, while the appropriate department in Illinois is the Business Affairs and Consumer Protection Department. Check with your city offices to determine the appropriate issuing authority in your area.

In virtually all cases, the license must be renewed annually, and costs range from $30 to around $300. Tobacco is a highly regulated and controlled substance. Selling tobacco products without the appropriate permits will definitely lead to fines, but can also lead to jail time.

Tips for Restaurant Permits & Licenses

The process of getting all the necessary permits and licenses for restaurants may seem like a daunting process. The greatest tool that you can have in your journey is patience. There are, however, others like retaining the services of a business attorney, using licensing lookup services, working with a permit expediting service, or even using a simple checklist to keep yourself organized.

Plan for Long Lead Times

Permits and licenses are issued by government agencies, which are not exactly known for their speed. There is a good reason for that, though. The main point of all these permits and licenses is to ensure that restaurants are serving food that is safe to eat, in a building that isn’t prone to fires or collapses and is accessible to able-bodied people as well as those whose movement is impaired. This can be a time-consuming process. Depending on your level of construction, the process of opening a new restaurant can take six months to a year.

It is easy to take it personally when inspectors are slow to respond or request re-inspections. Inspectors and permitting agencies are not your enemies; they are resources to help you ensure that your business is safe. Taking out your frustrations on an inspector isn’t likely to speed things up for you. If your restaurant is successful, you will be interacting with these permitting agencies and inspectors for many years. It is a good idea to keep the relationship positive.

Work With a Business Attorney

Many restaurants rely on attorneys who specialize in restaurant or business law to help navigate the permitting process. If you worked with a restaurant attorney to incorporate your business or draw up agreements with your investors, he or she may also be able to assist with securing licenses. There are also attorneys who specialize in business licensing as a practice area.

Use License Look-up Services

Many legal services websites offer license lookup services. Incfile, for example, offers two tiers of license look-ups: one free and one paid. Other websites offer different packages. These searches will provide you with a list of the basic permits and licenses that you need to start your business, which can save you some administrative bandwidth in the permitting process.

Use Permit & License Expeditors

Most major metropolitan areas have permit expediting companies. These are businesses that understand the various permitting offices and, for a fee, work with those offices and inspectors on behalf of your restaurant. Expeditors’ fees vary depending on the location and the scope of work you need them to perform. In New York City, for example, expeditor fees can range from $1,500 to $7,500.

That price may sound steep, but if an expeditor can keep your construction timeline on track and negotiate the best deal on a liquor license, you could save thousands of dollars. Besides saving money, using a permit expediting service can save you time and keep you organized. If cost is an issue, many restaurants choose to work with an expediting service only for those permits that are difficult to obtain (like liquor licenses) or require lots of steps (like construction permits).

The best way to find a good permit expeditor in your area is to ask your contractor or architect for a recommendation. It is likely that they have worked with various permit expeditors on other projects and will have a sense of which companies are best. You can also start by simply performing an internet search for permit expediting services in your market.

Bottom Line

Getting all the necessary licenses and permits to open a restaurant requires focus and patience. It can help to remember that all the regulations are in place to ensure that your business is safe for you, your employees, and your guests. If the restaurant permit process feels overwhelming, tools like online license lookup services, permit expediting companies, or attorneys who specialize in business licensing can help keep you on track.

Permits & Licenses for Restaurants: The Ultimate Guide

Basic Business Permits & Licenses for Restaurants

Health & Safety Restaurant Permits & Licenses

Restaurant Construction Permits

Operational Permits

Tips for Restaurant Permits & Licenses

Plan for Long Lead Times

Work With a Business Attorney

Use License Look-up Services

Use Permit & License Expeditors

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