Starting a restaurant business seems an overwhelming task to do. In the aim of starting a restaurant business, you must have to carry out certain tasks in an appropriate manner which can not be ignored or denied such as selecting the restaurant concept, location for your restaurant, hiring high-quality staff, getting licenses and permits and then promoting and marketing the restaurant just after that. Here you will go through to licenses required for a restaurant business.
When you are going to start your restaurant business, you should not forget to explore the importance of required permits and licenses. Taking caring of the necessity for license and permits should be your first priority before you start your restaurant business. And make sure to adjust the cost for licenses and permits in your start-up business budget as well.
In order to get authorization through which we will be able to operate any restaurant business under the government jurisdiction where the government is entitled to make decisions and judgments.
Let’s look at the most required permits and licenses that you will need for authorization of your restaurant business.
Obtaining a business license has got top priority in the list of fulfilling the legal requirements for starting a business. The business license is what lets you have the authorization within the particular geographical government. Getting a business license includes some paperwork to complete such as registration of your business name with an application fee.
The Business license legitimates the businesses as legal entities. Depending on the specific location of your restaurant, you must have to pay some amount or percentage of your total sales. Let’s look at the process of how to get a business license.
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The cost of registration is approx $50 and the actual cost of the license from $25 to $7,000 which will be depending upon the type of the business and expected business profit.
Just like a business license, the employer identification number is also required to operate a business in the city, state or country. Business owners must have to think about obtaining an employer identification number which declares the federal government that you are an employer. Let’s know about EINS in more detail.
The employer identification number is also known as the tax identification number. EIN is a nine-digit number which is issued by Internal Revenu Service to businesses for identification purposes. You can apply for the tax id number through the IRS website or by phone, mail, fax.
Learn how to get an Employer Identification Number or tax ID number in depth.
For opening a new restaurant you just have to get occupancy certification in order to show that the building is a safer place for customers and employees. The local building or zoning department in your city issues a certificate of occupancy to make sure that the building is properly structured and maintained.
Well, getting a certification for occupancy differs from the government to government and especially on the building structure.
It will cost you around $100 or it can be different from jurisdiction to jurisdiction.
If your restaurant specializes in serving drinks or liquor, then you must obtain a liquor license to get the approval from your state government. In case you serve liquor without having the proper license, you will have to pay for a huge penalty and you can also be forced to shut down your restaurant permanently.
The cost of obtaining a liquor license can be different depending upon the state. Liquor license ranges from $12,000 to $400,000
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Let’s learn how to get a liquor license in more explicit ways.
FSSAI license or Foodservice license is one of the important licenses required for a restaurant business that is obtained by the health department of the country. No restaurant can run without a food license. The license ensures that your restaurant follows all the food preparations, food storage, and food safety rules and regulations. While in some case some employees are required to complete food safety training programs to get the license.
The restaurant with the music system sounds great, so to avail the music while eating at the restaurant, you must get a music license that is issued by Phonographic performance limited. If you ever try to play music at your restaurant without a license, you will have to suffer big legal penalties. Make sure you have got music license before you host DJ night.
The cost of music license will depend upon whether the music is live or recorded. But for background music, it will cost you around $250 to $500.
In order to promote your restaurant, you must need to have a sign permit from the municipal corporation or from the local authorities. Sign permit gives legal permission to use posters, banner, graphic, and painting to market or promote your restaurant. Simply we can say sign permit came to advertise your restaurant or business.
Cost For Sign Permit
The sign permit will include the cost between $20 and $50.
To get the identity of the sales tax collector, the restaurant business or any other business always need a seller’s permit. The seller’s permit allows the businesses selling their products or services and collecting taxes. Simply we can say you agree to pay sales tax on any taxable sales. And you will get the tax id number.
Getting a seller’s permit will be based on your state. You can get it from your state board’s of equalization, Franchise tax board, sales tax commission. The IRS provides the website through which you can apply for the seller’s permit.
Applying for the seller’s permit you don’t need to submit the fee but you have to submit the security deposit in case your restaurant closes.
The idea of opening a restaurant takes much more to be accomplished in itself just than start-up cash or money. It requires you to fulfill all the legal criteria with proper paperwork. And obtaining licenses and permits is one of its important legal tasks that must be completed in an appropriate manner with top priority. Above is the complete list of permits and licenses required for a restaurant business.
We hope this informative blog for licenses and permits will be beneficial for you to run the restaurant in a proper authorized way.