What License Do You Need to Own & Operate a Restaurant?

Starting a business requires the completion of a great deal of paperwork. Some of this paperwork will satisfy application requirements for certain licenses and permits you need to legally operate a food and/or beverage establishment.

Business License

• Visit your local municipality to obtain a business license and seller's permit. Depending on the state in which your business operates, you may be required to obtain a business license from the city, county and/or state.

Health Permit

• Contact your local health department and arrange for a health inspection. If your establishment passes a rigorous inspection, you will be granted a health permit you must display in plain sight for patrons to view.

Liquor License

• Apply for a liquor license from your local municipality if you plan to serve any alcoholic beverages. Complete an application, provide supporting documentation like a business license or health certificate and pay an application fee. According to DUMMIES.com, there are several classes of liquor licenses; the kind you are granted depends on the type of establishment, type of alcohol served and your percentage of alcohol sales. For example, some states require that establishments applying for a restaurant license receive approximately 40 percent of their sales from alcohol. If your establishment serves food, but 50 percent of the sales come from alcohol, you may be required to apply for a tavern license. Establishments with beer and wine licenses only cannot sell liquor or distilled spirits.