10 Permits and Licenses Needed To Open A Butcher Shop

We’ve seen the ebbs and flows of the food industry in recent years, but one surprising area was mostly spared the chaos: butcher shops. Nothing can keep consumers away from a good steak, delicately sliced prosciutto, and handmade sausages. Our desire for ethically sourced meats and sustainably minded stores is another driver of the boom in independent butchers. Of course, an infusion of cash from the government doesn’t hurt either. The Biden administration has invested $700 million in small, independent meat processors to encourage competition and shore up supply chains.

Any way you slice it, it’s a great time to enter the market and open your own small butcher shop. But launching any small business — especially one requiring knives and breaking down large carcasses — is not for the weak. As you sit down to plot out your success, it becomes clear very quickly that there are many details to take care of when opening and running a successful butcher shop. Developing a memorable brand, launching a website, and hiring skilled employees are just a few. 

Perhaps the least thrilling tasks to tackle are butcher shop licenses and permits. Unless you’re the type to nerd out on rules and regulations — we won’t judge — applying for the various business licenses essential to your success would probably come in dead last if this were a popularity contest. 

You might be shocked to learn most states (all but nine) don’t require companies to have general business licenses to operate. But you’re not off the hook: your city, county, and industry will all have unique applications and requirements. And there are many other licenses beyond that. It’s a lot to navigate when you already have so much to consider.

That’s what we’re here for. We’ve identified the ten general licenses and permits that most small butchers should be familiar with, and we’ve mapped out a timeline for you to complete them.

What Licenses Do You Need to Open a Butcher Shop?

1. General Business License

This license or permit is required by a government entity to conduct business. It seems simple enough, but the process can get complicated thanks to the muddling of local, state, and federal jurisdictions, and there is no one-stop-shop online where you can do your research. The ultimate reason for a business license is to ensure your small business is safe for the public. That’s why certain “riskier” businesses have stricter requirements. For instance, a street vendor might not need a license to sell baseball caps, whereas a deli or carniceria, which inherently has the chance of food poisoning, certainly will.

How to Get a General Business License?

Check out your local city or county’s zoning office to find the business license application. If you Google “Your State + Business License Application,” you should be able to find it along with any requirements. You can also call your mayor’s office, county administrator, or Secretary of State.

How Much Does a General Business License Cost?

The cost varies depending on the region and your business type. That said, most business licenses cost $25 to $400 depending on the type of business, and there is often a registration fee of $50. Keep in mind you’ll probably have to renew your business license at least once a year.

2. Employer Identification Number (EIN)

Think of the EIN as the Social Security Number for your butcher shop. It will be used for tax purposes; all businesses need one, except for sole proprietors with no employees. This should be one of the very first licenses you secure since you will likely need this on applications for business licenses and other permits. 

How do I get an EIN? 

You can get your EIN through the IRS online, but they only issue one per day. The application portal is open Monday through Friday, 7 a.m. to 10 p.m. EST, so you should jump on this first thing in the morning. 

How much does an EIN cost? 

Obtaining an EIN is free! 

3. Certificate of Occupancy 

A certificate of occupancy is a legal document that proves a structure, such as an office building or storefront, is safe to inhabit. It serves as proof that your business property is up to code and that the location is being used as intended. Without a CO, a small business cannot legally operate. 

How do I get a Certificate of Occupancy? 

Contact your local building or zoning inspection office and ask what documentation you'll need to provide to secure your CO. The information will most likely be posted on your local government's website.  

How much does a Certificate of Occupancy cost? 

The cost varies from jurisdiction to jurisdiction, but they typically run around $100 plus an additional fee for every square foot in the building. 

4. “DBA” or “Doing Business As” Permit

This also goes by a mysterious name: The Fictitious Business Name Permit. Any business that uses a business name different from the owner’s legal name may need this. When you form a business, its legal name automatically defaults to the name of the person who owns it unless you launch it as an LLC.

How Do I Get a DBA Permit? 

Just like the general business permit, DBA requirements vary by jurisdiction. You can file your paperwork with your county clerk’s office or your state government. 

How Much Does a DBA Cost?

You can expect filing fees in the range of $10 to $100, and some states may ask you to place a fictitious name ad in a local newspaper for a set amount of time to fulfill a public notice requirement. 

5. Meat and Poultry Handler’s License 

Any business that stores, transports, or handles meat and poultry must secure this license. Its purpose is to protect the “public health” by guaranteeing that your shop and storage facility are in tip-top shape, that you have appropriate cooling equipment to keep your products at a safe temperature, and that all of your meat products are marked and labeled correctly — and, most importantly, wholesome.

Your state’s Department of Agriculture typically issues meat handler’s licenses and will require in-person visits to ensure compliance with regulations by either a state or county health inspector or an expert from the USDA Food Safety Inspection Service (FSIS). The health inspector will continue to visit your butcher shop periodically throughout the year to ensure compliance with high standards. 

Remember that the meat you source must be slaughtered in a facility that also has been inspected and approved by the USDA. 

How to Get a Meat Handler’s License

You can start by researching the food vendor requirements for your state with the U.S. Food and Drug Administration. When applying for a meat handler’s license, you'll need the name of the butcher shop, your business address, and the owner's personal information. 

You and your employees should also obtain food handlers permits, which can be easily done through ServSafe, Learn2Serve, and StateFoodSafety, all providing online training and exams. Most food handler cards are good for at least two to three years. 

How Much Does A Meat Handler’s License Cost? 

The fee for a meat and poultry license, which can vary by location and number of employees, ranges from $100 to $1000. Food handlers’ permits run around $10 to $15. 

6. Building permits 

Even if you’re taking over an established butcher shop, a change in ownership is rarely plug-and-play. You might be renovating the interior, changing walls, or building a new business from the ground up. No matter what your situation, you’ll need building permits to ensure you comply with local codes. Classic trouble spots are electrical, plumbing, and HVAC, which are notorious for being outdated in older buildings. You’ll need to bring everything “up to code” and in compliance with current standards. 

Also, check into zoning permits to ensure your location is zoned for commercial use (zoning is why you’ll never see a liquor store next to a school). There may be zoning regulations on parking and loading areas as well.   

How To Get a Building Permit 

Start with the website of your local city or town, which typically provides relevant documents and application forms online. If you’re making significant changes, like removing support walls or changing the footprint of your space, plan on providing documentation from a licensed engineer or architect. Once the permit is obtained, the work covered must be inspected by the Building Department. Each permit will include a list of the required inspections. 

How Much Does it Cost to Get a Building Permit?

Building permits can range from $50 for minor changes to more than $2,000 for total remodels. 

7. Health Permits 

Every new butcher shop will need some form of a health permit, even if you’re taking over an existing store, because the devil is in the details. The safety of your shop comes down to all the little decisions you, the owner, will make — among them, lighting, ventilation, proper sanitation, and even bathroom configurations. The city or county where a business operates administers food facility health permits, so the process will vary widely. 

How to Get a Health Permit 

Check with your County Health Department for rules and application forms. To obtain this permit, you’ll need a detailed floor plan indicating room dimensions, occupants, and emergency exits. You should also have a list of all materials used for your butcher shop, including cleaning products and any special equipment. 

How Much Does It Cost to Get a Health Permit? 

The cost of obtaining a health permit varies by certification area, so it’s best to check with your local health department for further information. In California, for instance, it can range from $700 to $2000.

8. Commercial Sign Permit 

For small businesses, signage could be the cornerstone of your marketing strategy. After all, it’s an inexpensive but highly effective way to entice new customers to your business. Before you install a sign, you’ll need a permit from the city, which will have restrictions on the size, style, and lighting intensity. Elon Musk learned this the hard way when he installed a giant flashing “X” sign atop his San Francisco headquarters after acquiring Twitter. When complaints flooded in from nearby residents, the city discovered he didn’t have a permit, and he was forced to take it down after a few days (a permit might be required for dismantling, too). 

How to Get a Commerical Sign Permit 

Outdoor signs often need to be approved by the local government. In San Francisco, for instance, you can research the sign rules on the city’s website and then visit the permit center in person to complete the appropriate application. Business owners may need to submit construction drawings drafted by a licensed architect, engineer, or contractor. Check with your city about awning permits as well. 

How Much Does a Commercial Sign Permit Cost? 

A sign permit can cost between $20 and $50. 

9. Sales Tax License 

Some states call this a “seller’s permit,” its function is to allow the state to identify your butcher shop as a sales tax collector. It’s needed to sell almost all products and services. Most businesses, especially in the food and beverage industry, need to obtain a seller's permit as well as a resale certificate (more on that next). 

How to Get a Seller's Permit 

You can register online for a seller's permit by visiting your state’s Department of Revenue. Online registration, phone assistance, and in-person assistance are often available.

How Much Does a Seller's Permit Cost?

Applying for the sales tax license is free, but you may have to leave a security deposit if you have unpaid taxes. The amount of this deposit will be determined when you apply. 

10. Resale Permit 

No small business wants to pay unnecessary taxes. If you buy goods from other suppliers solely for resale purposes, you’ll need a resale permit so that you only pay sales tax once on these products. In other words, it enables you to make specific non-taxable purchases (wholesale beef, for instance) if they are used in products for resale (delicious beef jerky). Without a resale permit, you’ll be paying tax twice: first, when you buy the meat from a supplier, and then again when you sell the jerky to a customer. Instead, goods purchased exclusively for resale will be subject to sales tax only when they are finally sold to a customer for personal use. 

How to Get a Resale Permit

Each state has its own rules about resale permits, and not all of them require one. To get started, visit the Department of Taxation and Finance for the state in which you conduct business. Typically, the forms and documents are available online. Keep in mind that if you conduct business in other states, you’ll need to apply for “nexus” permits in each state where your goods or services are sold. You’ll be asked to provide your bank account numbers and projected monthly sales.

How Much Does a Resale Permit Cost?

This permit can cost from $0 to $50.

Timeline for Opening a Butcher Shop 

12 Months Out

First things first, you’ll want to make sure your butcher shop actually exists in the real world (and not just in your wildest dreams). This means filing and registering your business with the Federal Government, the state, and your local municipality. 

DBA - Doing Business As 

The name of your business is the bedrock of your brand and must be established before you can even think about things like marketing, signage, and a website. Top priority? Check your state's official database to find out if the name you want is available. Once your DBA is established, you can open a business bank account, undertake transactions for your company, and search for a killer domain name for your website.

In some states, you’ll need to publish a statement in a local newspaper near your place of business within a month of filing and let the ad run for several weeks. You may also be required to file an affidavit after the last publish date. Check with your local Registrar-Recorder/County Clerk’s Office for specific requirements.  

EIN 

A tax ID number (EIN) is another crucial piece to have in place early on. Without it, your butcher shop simply won’t get off the ground. You’ll need it to file federal tax returns, to open a business bank account, or to apply for a credit card. When it comes to invoicing, many companies won’t even pay you without an EIN. It’ll also come in handy when you apply for your General Business License (up next), as many states require this number on applications. 

You can apply online or using IRS Form SS-4 (“Application for Employer Identification Number”).  You’ll need to provide basic information about your business, including your industry type and projected number of employees.  

General Business License 

Since you need this to conduct business legally, it’s best to get the ball rolling on this stat as soon as you have your business plan in hand. You’ll be asked for basic info, including your business name, EIN, business type (for instance, LLC), and anticipated revenues and expenses. Gathering your key details could take a while, so we recommend checking these requirements well in advance. 

Nine Months Out 

Now that you’ve established your butcher shop in the eyes of the government, it’s time to tackle the most notorious licenses and permits: Building, Food, and Health. While the lucky few sail through these easily, we won’t mince words: these three licenses have a reputation for delays. You’ll want a lot of lead time before your launch. 

Building Permits 

As soon as you secure your location, you’ll need to get the ball rolling on the building permits. Though we recommend starting nine months out, some businesses begin the process a year or two in advance if they’re making significant renovations or building a brand-new property. The timing all depends on your situation. Once approved, the city or county will also require in-person inspections to ensure your space and processes are up to code. It’s not until your business passes the final inspection that you’ll get your permit to open. 

Meat and Poultry Handling Licenses 

There is no one clearinghouse for meat handling licenses, so you’ll need to do some digging to find the requirements in your area. Since some permits are city and county-based while the state administers others, processing times can vary widely. Call the U.S. Department of Agriculture's Meat and Poultry Hotline for the phone number of your state health department: 888-MPHotline (888-674-6854). 

At the Federal level, meat products are heavily regulated by the FDA or the USDA, which require various registrations depending on the nature of your business. For instance, food facilities must register with the FDA under the Bioterrorism Act of 2002. 

Health Permits 

All food-related ventures require health permits to ensure the safety of customers and employees. When you apply for a health permit, which can often be done online with your County Health Department, you’ll need an inspection to ensure your space and practices will fit all applicable codes and ordinances. That’s where problems and delays can potentially arise.  You may be asked to revise your layout or change your building. You will receive your health permit once your business is deemed safe to operate. 

6 Months Out

Resale Permit 

If you’re buying goods from a wholesaler or supplier to resell them, you’ll need this permit to avoid being double-taxed. While you may not be stocking up your inventory just yet, it’s great to get this off your plate so you can focus on the permits to come. You’ll need basic personal information for every partner or owner in your business. This ranges from easy stuff (like your EIN) to projected monthly sales, which you can pull from your business plan. 

Sales Tax License 

The resale permit and the sales tax license go hand-in-hand. Every state with a sales tax requires businesses to register for a sales tax permit before collecting or paying taxes. Most states encourage businesses to register online, and you’ll be asked to provide similar information to the resale permit. You’re required to hold a seller permit in states where you have “nexus,” which is a fancy way of saying that you have a connection with a state that’s significant enough to trigger a sales tax obligation. Registration for your sales tax license, or “seller’s permit,” can take up to a month. 

3 Months Out 

Certificate of Occupancy 

Your small business can’t fling open its doors to the public unless the “C.O.” is in place. A building inspector will review your city permits and conduct an interior and exterior inspection of your property to ensure you comply with all building codes.  You’ll typically have 60 days to make changes to avoid additional fees if any violations are noticed. 

Commercial Sign Permit 

It’s up to you how far in advance you want your sign on your building. Installing a sign early can create excitement and curiosity in your community, and people drive by. The average time for a sign permit is 10 to 30 days, but it can be shorter or longer depending on what you need to do. Heads up: many cities require plans from a licensed architect or consultant, so you’ll need to have your brand identity locked in and a designer on board well before you apply. Remember that historic districts may take longer than other areas because of stricter regulations. 

Food Handlers Permit 

Once the tricky licenses come through — building, food, and health — it’s also important to ensure that all employees at your butcher shop are certified for safe handling. Generally, new employees have 30 days from the date of hire to get a card, and the process takes only a few hours.

*** 

Navigating business permits and licenses is no easy feat, and in the end, you may feel like you’ve earned a Ph.D. in government administration.  However, it’s a challenge that all business owners must face. Once you’ve tackled this, you can focus on the good stuff: mastering the economies of scale, driving down costs, and growing your incredible new business.