Legal02/15/2026
Legal & Permits
Don't open without the right paperwork
6-10 types Required Permits2-6 months Registration Time$2,000-$10,000 Legal Costs
Required Permits
Business Entity Formation (LLC or Corp)1-4 weeksLLC is most common for restaurants. File with the Secretary of State. Some states allow online filing in 24 hours.
EIN (Employer Identification Number)1 day (online)Apply free on IRS.gov. Required for hiring, bank accounts, and tax filing. Takes minutes online.
Food Service / Health Permit2-8 weeksIssued by local health department after facility inspection. Must be obtained BEFORE opening. Requires plan review in most jurisdictions.
Fire Safety Inspection1-4 weeksLocal fire marshal inspects sprinklers, extinguishers, hood suppression systems, emergency exits, and occupancy signage per NFPA codes.
Food Handler Certifications1-2 daysServSafe or equivalent required in most states. At least one certified food protection manager per shift. Some states require all food handlers to be certified.
Certificate of Occupancy2-6 weeksConfirms the space is zoned for restaurant use and meets building codes. Required before opening. Apply through local building/zoning department.
State & Local Business Licenses1-3 weeksVaries by state and city. Register with the state tax authority for sales tax collection. Some cities require a separate business license.
Liquor License1-6 monthsRequired if serving any alcohol. Process varies dramatically by state — some states have limited licenses that are expensive ($50K+). Apply early.
Registration Timeline — Work in Parallel
- >Weeks 1-2: Form LLC/Corp + obtain EIN (done simultaneously). Open a business bank account.
- >Weeks 2-4: Submit health department plan review and food service permit application (requires entity formation). Simultaneously: enroll staff in ServSafe certification.
- >Weeks 2-4: Schedule fire marshal inspection. Ensure hood suppression system, sprinklers, fire extinguishers, and emergency exit signage are installed per NFPA codes.
- >Weeks 3-6: Apply for certificate of occupancy and any required building permits for your build-out.
- >Weeks 4-8: Register for state sales tax, apply for liquor license (if applicable). Set up payroll and accounting systems.
- >Weeks 6-12: Await final health inspection and fire clearance. Meanwhile: train staff, conduct soft opening, finalize menu.
Legal Risks
Operating without a food service permit
Health department can shut you down immediately. Fines range from $500-$10,000+ depending on jurisdiction. Not worth the risk — wait for your permit.
Misclassifying employees as independent contractors
IRS and state labor departments aggressively enforce this. Penalties include back taxes, FICA contributions, overtime, benefits, and fines of $50 per misclassified W-2.
Lease not reviewed by an attorney
Commercial leases heavily favor landlords. Without legal review, you may be locked into unfavorable terms with no exit options. ALWAYS have a restaurant-experienced attorney review before signing.
Selling alcohol without a license
Criminal offense in all states. Fines from $1,000-$10,000+, possible jail time, and permanent disqualification from obtaining a license. Never serve alcohol without proper licensing.
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