Restaurant Permits and Licenses: What You Need to Open, and How to Get Them

Before you can open your restaurant and serve your first guest, you’ll need the right restaurant permits and licenses. They’re how you prove your space is safe, your food is handled properly, and your business is legally allowed to operate. They cover everything from your kitchen to the signs and seats out front, and skipping them could lead to a delayed opening or fines.

These requirements come from your city, county, state, and sometimes the federal government, and they vary depending on where you open and what you’re serving. 

This guide walks you through every license and permit you might need when opening your new restaurant, including how to get each one, how long it takes, and what it costs. 

Key takeaways

• Permits and licenses prove your restaurant is safe, sanitary, and legally allowed to operate.

• Most restaurants need a business license, seller’s permit, zoning and building approvals, certificate of occupancy, health permit, food safety certifications, fire permit, and sign permit.

• Alcohol, music, outdoor seating, and other concept choices require additional permits.

• Requirements vary by location. Start with the SBA’s guide and your city’s business portal.

• Zoning relief and liquor licenses can take months, so start about a year before opening.

• Track every expiration date to avoid fines or lapses once you’re open.

Last updated November 2026. This article is for general informational purposes only and does not constitute legal, tax, or other professional advice. Licensing and permit requirements, fees, processing times, and renewal schedules vary by location and are subject to change. This guide may not cover every requirement applicable to your restaurant. Confirm current requirements with the relevant government agencies and licensing organizations, and consult qualified legal or tax professionals for guidance specific to your business.

What permits and licenses do you need to open a restaurant?

Most restaurants need the same main set of licenses and permits: a business license, a seller’s permit, zoning and building approvals, a certificate of occupancy, a health permit, food safety certifications, a fire department permit, and a sign permit.

Your restaurant concept will determine what else you need. If you’re planning to serve cocktails, book live music, or add sidewalk seating, each one will come with its own permit. Your exact list also depends on your state and city.

Licenses and permits every restaurant needs

• Business license

• Seller’s permit (sales tax license)

• Zoning and building permits

• Certificate of occupancy

• Food service establishment permit (health permit)

• Food manager certification and food handler cards

• Fire department permit

• Sign permit

Licenses and permits you might need (depending on your concept)

• Liquor license, if you serve alcohol

• Music licenses, if you play recorded or live music

• Live entertainment permit, if you host bands, DJs, or other performances

• Outdoor seating permit, if you seat guests on a public sidewalk or street

• Grease trap and wastewater (FOG) permit, if your city regulates kitchen grease

• Dumpster placement permit, if your dumpster sits on public property

• Catering license, if you serve food off-site

• Food truck permit, if you operate a truck

• Valet parking permit, if you offer valet on a public street

• Weights and measures permit, if you sell anything by weight

• Air quality permit, if you use high-volume grills or smokers in a regulated area

• Amusement device license, if you have pool tables or arcade games

Why restaurant permits and licenses matter

Without the necessary permits and licenses, you can’t legally serve guests, and operating without required licenses can lead to fines and put your business at serious risk.

The right licenses and permits also protect the people who’ll fill your dining room and kitchen. Health, fire, and building inspections confirm that food is handled safely, the space can hold the people in it, and everyone can get out fast in an emergency. Landlords, insurers, and lenders will often ask for proof of licensing, too.

The good news? Start early, and a missing permit won’t be the thing that pushes back your opening day.

What to do before you apply for restaurant licenses

Most restaurant license applications ask for your business name, legal structure, and federal tax ID. Getting these squared away first can help everything else move faster.

Choose your restaurant’s name

Your restaurant’s name is more than branding — it’s often a legal filing, too, that’s registered with your state before it’s officially yours to use. According to the SBA, there are four ways to register a business name: as a legal entity name, a DBA, a trademark, or a domain name.

• Who needs it: Every restaurant

• Where to do it: Your state’s business registration office, usually the Secretary of State

Pro tip: Check that the website domain and social media handles you want are available, and lock them in the same day you file your name.

Choose and register your business structure

Your business structure is the legal form your restaurant takes (e.g., a sole proprietorship, partnership, limited liability company, or corporation), and it affects your personal liability and the taxes you’ll pay. With an LLC or corporation, generally only the business can be sued — not you personally.

• Who needs it: Every restaurant

• Where to do it: Your state’s business registration office (sole proprietorships can often skip this step)

Pro tip: An accountant or attorney can help you weigh the trade-offs, and it’s worth the call. Switching structures later can mean refiling with your state and getting a new EIN. 

Get an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is your business’s federal tax ID from the IRS — think of it as a Social Security number for your restaurant. It’s free, and you’ll get your number immediately when you apply online.

• Who needs it: Any restaurant with employees, plus most LLCs, partnerships, and corporations

• Where to do it: The Internal Revenue Service (IRS)

Pro tip: Get your EIN early. You’ll need it to run payroll, open a business bank account, and fill out several license applications.

File a DBA (if you need one)

A DBA (“doing business as”) lets you operate your restaurant under a name that’s different from your legal business name. Most states require you to register a DBA if you use one, but registering it doesn’t legally protect the name on its own.

• Who needs it: Restaurants whose sign doesn’t match their legal name (e.g., an LLC called “Smith Hospitality LLC” operating as “Harbor Table”)

• Where to do it: Your state, county, or city, depending on where you’re located

Pro tip: If you’re planning more than one concept under the same LLC, a DBA for each one keeps their branding separate without forming a new company.

Consider a trademark (optional)

A trademark gives your restaurant’s name, logo, or tagline federal protection so other businesses can’t copy or closely imitate them. Filing starts at a base fee of $350 per class of goods or services.

• Who needs it: Optional, but useful if you plan to expand to new locations, states, or formats like a food truck

• Where to do it: The U.S. Patent and Trademark Office (USPTO)

Pro tip: Registering with your state won’t stop someone across the country from opening under the same name. In fact, several businesses can share one DBA in the same state. A quick search of the USPTO’s trademark database now can save you from reprinting menus and rebranding later.

Restaurant licenses and permits every new restaurant needs

Regardless of your restaurant concept, plan on getting every license and permit in this section. Names, fees, and timelines vary by state and city, but each one has a local version.

Business license

A business license (sometimes called a business operating license or business tax registration) gives your restaurant permission to operate at its address.

• Who needs it: Every restaurant

• Who issues it: Your city or county, usually through the clerk’s office or a finance department

Pro tip: Ask your city which other permits it’ll want to see before it issues your license. Some cities, like Los Angeles, issue a temporary certificate right away while the permanent one is processed. They might also flag related permits, like police or fire permits, as you register.

Seller’s permit (sales tax license)

A seller’s permit (also called a sales tax license or sales tax permit) lets your restaurant collect sales tax from guests and pay it to the state. Many states also offer a resale certificate, which lets you buy ingredients for resale without paying sales tax up front.

• Who needs it: Nearly every restaurant, since most menus include taxable items

• Who issues it: Your state’s tax or revenue department

Pro tip: Have your permit in hand before your first sale (including soft openings and friends-and-family nights).

Zoning and building permits

Zoning approval confirms a restaurant is allowed at your address, and building permits cover any restaurant construction or renovation inside.

• Who needs it: Restaurants moving into a new space (especially one that wasn’t a restaurant before) or doing any build-out

• Who issues it: Your city or county’s planning, zoning, and building departments

Pro tip: Confirm zoning before you sign a lease — it’s the one check that can rule out a space entirely. If restaurant use is conditional or forbidden at a location, you’ll need approval from your city’s zoning board, which can add several months with no guarantee of success.

Certificate of occupancy (CO)

A certificate of occupancy (CO) is your building department’s confirmation that the space meets building codes and is approved for restaurant use. You’ll need it before guests can walk in the door — and if you’re moving into a former store or office, you’ll usually need a new one.

• Who needs it: Every restaurant

• Who issues it: Your city or county building department, after a series of inspections

Certificate of occupancy vs. zoning permit — what’s the difference? While zoning confirms that a restaurant is allowed at your address, a CO confirms that the space itself is safe and built to code to operate as a restaurant. You’ll usually need zoning approval before you can get your CO.

Food service establishment permit (health permit)

A food service establishment permit — often called a health permit, food service license, or restaurant license — is your health department’s approval to prepare and serve food to the public. Requirements vary by state, since each one decides how to adopt the FDA’s model Food Code.

• Who needs it: Every restaurant

• Who issues it: Your state, county, or city health department, depending on where you are

Pro tip: Plan for two checkpoints: a plan review before construction and an inspection before opening. It’s also worth learning how to get your restaurant ready for an inspection before the inspector shows up. 

Food safety certifications: food manager certification and food handler cards

Food safety certifications show your team is trained to handle food safely. Your managers get a food manager certification, and the rest of your staff get food handler cards.

• Who needs it: At least one manager, and in many states, every employee who handles food

• Who issues it: Accredited training programs, with requirements set by your state or local health department

Pro tip: In some states like California, food handler cards stay valid when employees change jobs. If your state has a similar rule, be sure to ask new hires if they already have one.

Fire department permit

A fire department permit (often called a place of assembly permit) confirms that your restaurant meets applicable fire codes for the number of people it holds.

• Who needs it: Typically, restaurants that hold 50 or more people

• Who issues it: Your local fire department or state fire marshal

Pro tip: Your seating plan might impact your fire department permit. Many cities only require this permit for restaurants above a certain capacity, so check the threshold before you finalize your layout.

Sign permit

A sign permit is your city’s approval for exterior signage, including its size, placement, and lighting.

• Who needs it: Most restaurants with a sign visible from the street

• Who issues it: Your city’s zoning or planning department, sometimes along with the building department

Pro tip: Window and temporary signs can count, too. San Rafael, California, for example, requires a permit for interior signs within 10 feet of an exterior window, and grand opening banners might need a short-term permit of their own.

Restaurant licenses and permits you might need, depending on your concept

The permits below depend on your concept, like whether you’ll serve alcohol, host live music, or add outdoor seating. 

Liquor license

A liquor license (also called an alcohol license) lets your restaurant sell beer, wine, or spirits. It’s usually issued by your state’s alcohol control agency, with local sign-off, and you’ll also need to register with the federal TTB before your first sale.

• Who needs it: Any restaurant serving alcohol

• Who issues it: Your state, plus a federal registration with the Alcohol and Tobacco Tax and Trade Bureau (TTB)

Pro tip: Apply as early as your state allows. Some states cap how many licenses exist, like Massachusetts, so new restaurants may have to wait for one or buy one from an existing business.

Music licenses

A music license is permission to play songs in your restaurant. It comes from the people who own the music, not the government.

• Who needs it: Most restaurants that play recorded or live music

• Who issues it: Performing rights organizations, which represent songwriters and publishers (you might need more than one)

Pro tip: Plan your music before you plan your sound system. A federal exemption lets restaurants under 3,750 square feet play radio or TV broadcasts without a license, but it doesn’t cover playlists or live music. Your square footage and speaker count decide whether it applies.

Live entertainment permit

Booking a band, DJ, comedian, or karaoke night? You’ll typically need a live entertainment permit (or entertainment license) from your city. It’s separate from music licensing, so a live band typically needs both.

• Who needs it: Restaurants with live performances, and in some cities, TVs or jukeboxes

• Who issues it: Your city or town

Pro tip: One-off events can need their own permit, even if you already hold an annual license.

Outdoor seating permit (sidewalk café permit)

Putting patio tables and chairs on the public sidewalk or street outside your restaurant takes an outdoor seating permit (which is also called a sidewalk café permit or outdoor dining license).

• Who needs it: Restaurants with seating on public property

• Who issues it: Your city, often its transportation or public works department

Grease trap and wastewater (FOG) permit

A grease trap permit (also called a wastewater or FOG permit, for fats, oils, and grease) covers how your kitchen keeps cooking grease out of the public sewer. The EPA outlines ways restaurants can control grease, but many local utilities set their own requirements on top of that.

• Who needs it: Most restaurants that cook with oil, butter, or meat

• Who issues it: Your local water, sewer, or public works department

Pro tip: Ask about grease requirements before you finalize your kitchen plans.

Dumpster placement permit

If your dumpster sits on a public street, alley, or sidewalk, you’ll need a dumpster placement permit.

• Who needs it: Restaurants with dumpsters on public property (and in some cities, any dumpster)

• Who issues it: Your city’s public works, sanitation, or inspections department

Catering license

A catering license lets you prepare food for events or serve it off-site. Whether you need a separate one depends on your state — in Florida, for example, the standard seating food service license already covers catering.

• Who needs it: Restaurants that cater or deliver large orders for events

• Who issues it: Usually your state or county health department

Pro tip: Alcohol at off-site events can follow its own rules, so find out whether your liquor license covers catered events or if you’ll need a separate permit.

Food truck permit

A food truck permit (also called a mobile food vendor license) lets you prepare and sell food from a vehicle.

• Who needs it: Standalone food trucks, and restaurants adding a truck to their business

• Who issues it: Usually a state health or licensing agency, plus local permits for where you park and sell

Pro tip: Buying a used truck? Verify the existing license first. And look at what your license covers — in some states, licensed trucks can also cater and work short events without extra fees.

Valet parking permit

Offering valet on a public street means reserving curb space — and that requires a valet parking permit, whether the valet service is ongoing or for a one-day event.

• Who needs it: Restaurants offering valet on a public street

• Who issues it: Your city’s transportation or parking department

Weights and measures permit

A weights and measures permit covers any scale you use to price food, which usually means registering it with your county or state. State inspectors test commercial scales to make sure they’re accurate.

• Who needs it: Restaurants that sell anything by weight (e.g., a salad bar, deli counter, or bulk items)

• Who issues it: Your state or county weights and measures office

Pro tip: When selling anything by weight, guests can’t be charged for the container. Your scale must subtract the packaging weight, known as “tare.”

Air quality permit

An air quality permit is approval to run cooking equipment that produces smoke or emissions, like high-volume charbroilers or smokers.

• Who needs it: Mainly restaurants with high-volume grills, charbroilers, or smokers.

• Who issues it: Your regional air quality district

Amusement device license (pool tables, arcade games)

An amusement device license lets your restaurant offer games like pool tables, pinball, or arcade machines. Some cities, like Boston, license arcade games and pool tables separately.

• Who needs it: Restaurants and bars with coin-operated or pay-to-play games

• Who issues it: Your city or town licensing office

Pro tip: Planning a game room? Ask your city whether there’s a limit on how many machines you can have.

How to get restaurant permits and licenses, step by step

The exact license and permit paperwork depends on where you open your restaurant, but the process follows the same basic order in most places.

• Confirm your location allows a restaurant. Check zoning and the building’s current certificate of occupancy before committing to a space.

• Set up your business. Register your name and business structure with your state, get your EIN from the IRS, and file a DBA if you need one. Most license applications ask for all three, so it helps to have your business plan mapped out before you start filing. 

• Build your local permit list. Start with the SBA’s licenses and permits guide, then check your city’s business portal. Many portals point you to related permits as you register. 

• Submit plans for review. Building or remodeling? Your building and health departments will review your plans before construction starts. 

• Apply for your licenses in the right order. Some permits depend on others. Start long-lead items like your liquor license early, and have your seller’s permit and federal alcohol registration in place before your first sale.

• Pass your inspections. Building, fire, and health inspections usually happen near the end of construction.

• Post your licenses and track renewals. Display the licenses your city requires, keep copies of everything, and put every expiration date on your calendar. 

How long does it take to get restaurant licenses and permits?

While some restaurant licenses take minutes, others can take months. The sample timeline below shows when to start each one, so you can build your schedule around the slowest permits (usually zoning and alcohol). 

Sample restaurant permitting timeline

Use this as a starting point, then adjust it for your city, your concept, and how much construction your space needs.

How much do restaurant permits and licenses cost?

The cost of restaurant permits and licenses depends on where you open and what you’re serving, since every state and city sets its own fees. Many core registrations are free or cost a few hundred dollars, like your EIN, which the IRS issues for free. Alcohol is usually the biggest expense, followed by approvals tied to construction.

What can impact your total restaurant permits and licenses costs?

• Concept: Serving alcohol, hosting live music, or adding outdoor seating each adds permits and fees.

• Size: Some fees scale with seats or capacity.

• Location: In towns that cap liquor licenses, you might need to buy an existing license from another business, which can cost far more than applying for a new one.

• Space: A space that was already a restaurant often needs fewer approvals than one that’s changing use and might require new building permits, a new certificate of occupancy, and sometimes zoning relief.

Don’t forget additional one-time and recurring costs. These can include professional help with your business setup or liquor license, changes that plan reviews or inspections require, annual renewal fees once you’re open, and more. For the full picture, see how much it costs to open a restaurant.

Restaurant license requirements by state

Every state handles restaurant licensing a little differently, and many leave the details to cities and counties. Here’s who issues the main restaurant license in four states. 

• California: Your county environmental health department issues the health permit your restaurant needs to open, and inspectors enforce the California Retail Food Code. Read our full guide to California restaurant licenses and permits.

• Florida: Most restaurants get their food service license from the state’s Department of Business and Professional Regulation (DBPR), not a local health department. Read our full guide to Florida restaurant licenses and permits.

• Massachusetts: Restaurants typically need two local approvals: a common victualler license and a food service permit from the local board of health. Read our full guide to Massachusetts restaurant licenses and permits.

• New York: Your food service establishment permit comes from your local health department, which is the NYC Department of Health and Mental Hygiene in the five boroughs or your county health department everywhere else. Read our full guide to New York restaurant licenses and permits.

How to display and renew your restaurant licenses

To display and renew your restaurant licenses, post any licenses your state or city requires in a visible spot, keep copies of the rest on file, and track every expiration date so you can renew before anything lapses.

Displaying your licenses

Some licenses have to be posted where guests can see them, and others just need to be on hand when an inspector asks. The SBA notes that most states and cities require businesses to display their licenses prominently.

Pro tip: Keep a binder in the back office with copies of every license and permit so managers can find them fast during an inspection. Save digital copies in the cloud, too, as a backup you can pull up from anywhere.

Renewing your licenses

Most restaurant licenses don’t last forever, and each one renews on its own schedule. Many renew every year, others (like food safety certifications) renew every few years, and some (like a seller’s permit) usually stay active as long as you’re in business.

Renewals can also come with extra steps, like paying any outstanding fines, filing notices, or passing another inspection.

Pro tip: Put every expiration date on a shared calendar, with reminders a few months ahead. That way, you’ll have time to handle any paperwork before a deadline sneaks up on you.

How often restaurant licenses and permits renew

Here’s a quick summary of each license and permit covered above. Renewal schedules vary by state and city, so treat these as common examples.

What happens if you operate without the right permits and licenses?

Skipping a permit (or letting one lapse) can cost a lot more than the fee. Here are some examples of the risks:

• Fines and penalties: The SBA warns that operating without required licenses can lead to expensive fines, and some fines add up daily.

• Suspension or closure: Regulators can suspend or revoke the licenses you already have, or shut you down until you’re compliant.

• Criminal charges: In some states, serious health code violations can be treated as misdemeanors.

• Blocked renewals: Unpaid fines can hold up renewals for your other permits.

• Damage to your reputation: Violations and closures can become public record, where guests can see them.

• Trouble with insurers, landlords, and lenders: Many will want proof that you’re properly licensed before they’ll work with you.

Next steps for opening your restaurant

With your licenses and permits squared away, you’re one step closer to opening day. Next up is choosing the tools that will carry you through your first service and every busy shift after it.

New restaurants on Toast are 12% less likely to close in their first year. Toast POS lets you go from unboxing hardware to processing payments in a single shift, with 24/7 support, Offline Mode, and special offers for new restaurants to help keep overhead low. Get the POS that sets you up to stay open.

Restaurant permits and licenses FAQs

What’s the difference between a license and a permit?

People often use the two terms interchangeably, though they are actually different. A license gives you permission to run your business or a regulated activity, like serving alcohol. A permit approves something more specific, like construction, signage, or outdoor seating. 

Can I open my restaurant before all my permits are approved?

No. You’ll need your core licenses and permits, including your health permit, certificate of occupancy, and business license, before you can serve guests. Permits tied to specific parts of your concept, like outdoor seating or live music, need to be in place before you start offering those things.

Do licenses transfer if I buy an existing restaurant?

Usually, not automatically. Many licenses are tied to the owner, the address, or both, so a new owner typically has to apply for their own health permit and business license. Some liquor licenses can be transferred, but only through your state’s approval process. Verify every existing license before you buy.

How long does it take to get a liquor license?

It depends on your state and the type of license, but plan for at least a few months to get the liquor license for your restaurant. Many states require public notice periods, background checks, or community review before approval. In areas that cap the number of licenses, it can take much longer.

Do restaurants need a license to play music?

Usually, yes. Playing recorded or live music publicly typically requires licenses from the performing rights organizations that represent songwriters and publishers. Federal copyright law includes a narrow exemption for smaller restaurants playing radio or TV broadcasts, but it doesn’t cover your own playlists or live performances.

¹Based on the US National Restaurant Association’s 2015 report citing a 30% failure rate as the norm in the US restaurant industry, compared to Toast restaurants in the US continuing payment processing on Toast 13 months after opening (between January 1, 2022 and April 1, 2023).