How to Start a Restaurant Business
Starting a restaurant business means registering it like any other business, choosing a structure and filing with the state, then adding what's specific to food service: a local health department permit, food safety practices based on the FDA Food Code, which most state and local health departments adopt, and typically a certified food protection manager on staff, plus insurance and a liquor license if alcohol will be served.
By LLC Register · Last reviewed October 2, 2026
Comprehensive Guide
Register the Business Like Any Other
A restaurant starts the same way any business does: choose a structure, file formation paperwork with the state if it's an LLC or corporation, and get a free EIN from the IRS. See our guides on how to choose a business structure and how to register a new business for those general steps, which apply to a restaurant the same as any other business.
Get Licensed Through Your Local Health Department
Food service licensing and inspection are handled at the state and local level, not directly by the FDA. The FDA Food Code is a model code the agency offers for adoption by state, local, tribal, and territorial governments, which then administer and enforce it through their own health departments. Contact your local health department early in the planning process, since its specific permit application, fees, and plan review for your kitchen layout typically need to happen before you can open.
Put a Certified Food Protection Manager in Place
Per the FDA Food Code, the person in charge of a food establishment should be a certified food protection manager who has demonstrated proficiency by passing a test through an accredited program. Because the Food Code is adopted locally, confirm with your specific health department whether this certification is required in your jurisdiction and which accredited programs it accepts.
Build Food Safety Practices Around the Code's Core Areas
The FDA Food Code addresses time and temperature control for safety, proper cooling procedures for cooked foods, allergen management (including major allergens like sesame), safe handling of foods like shellfish, and chemical safety and sanitization in the kitchen. Build your kitchen's standard procedures and staff training around these categories, since they're also what a health inspector will typically check during an inspection.
Get a Liquor License if You'll Serve Alcohol
Serving alcohol requires a separate liquor license from your state's alcohol control agency, with its own application process, fee, and rules around hours, server training, and sometimes a cap on the number of licenses available in your area. This licensing runs separately from your restaurant's business registration and local health permit, so budget time and cost for it as its own step if alcohol service is part of the plan.
Carry Insurance That Fits a Restaurant's Risks
Beyond general liability insurance, a restaurant commonly carries commercial property coverage for its building and equipment, and if it serves alcohol, often a separate liquor liability policy covering claims related to intoxicated patrons. See our guide on how to choose business insurance for how these coverages fit together, and talk to a licensed agent about what's specific to food service.
Register for Sales Tax and Employment Obligations
Most restaurant sales are subject to state sales tax, so register with your state's revenue agency before opening. Once you hire employees, which most restaurants do quickly, you take on state unemployment insurance registration, workers' compensation in most states, and federal and state payroll tax withholding.
Practical Considerations
Requirements Vary Significantly by State and County
Because the Food Code is a model adopted locally rather than a single uniform federal rule, exact permit requirements, inspection frequency, and certification rules differ by state and even by county. Confirm the specific requirements with your local health department rather than assuming a neighboring jurisdiction's rules apply to you.
Health Inspections Continue After You Open
A restaurant's health permit isn't a one-time approval; expect regular, sometimes unannounced, inspections after opening, with the ability to lose the permit or be shut down for serious violations. Build ongoing compliance with the Food Code's practices into daily operations, not just the opening preparation.
Liquor Licensing Can Take Significant Lead Time
Some states cap the number of liquor licenses available in a given area or require a lengthy application and approval process. If alcohol service is part of the business plan, start that application well before your target opening date.
Staff Turnover Means Ongoing Training, Not a One-Time Session
Because restaurant staff turnover tends to be high, food safety training and certification need to be part of onboarding every new hire, not a single effort completed when the restaurant first opened.
This Is Not Legal or Tax Advice
Which specific permits, certifications, and insurance a restaurant needs depend on its state, county, and whether it serves alcohol. Confirm requirements directly with your local health department and state alcohol control agency, and talk to a licensed insurance agent about coverage specific to food service.
Sources
The official sources used for this article.
FDA: Food Code | fda.gov/food/fda-food-code/food-code-2022 |
|---|---|
FDA: Retail Food Safety Initiative | fda.gov/food/retail-food-protection/retail-food-safety-initiative |
SBA: Apply for licenses and permits | sba.gov/business-guide/launch-your-business/apply-licenses-permits |
SBA: Get business insurance | sba.gov/business-guide/launch-your-business/get-business-insurance |
Created by: LLC RegisterLast reviewed October 2, 2026
Updated: October 2, 2026
Frequently Asked Questions
Does a restaurant need a certified food protection manager?
The FDA Food Code calls for the person in charge of a food establishment to be a certified food protection manager who has passed an accredited test. Because the Food Code is adopted locally, confirm with your specific health department whether it's required and which certification programs it accepts.
Who enforces food safety rules for restaurants, the FDA or the local health department?
The local health department does. The FDA Food Code is a model that state, local, tribal, and territorial governments can adopt, and those local agencies then administer permits and conduct inspections themselves.
Do I need a liquor license to serve alcohol at my restaurant?
Yes. Serving alcohol requires a separate license from your state's alcohol control agency, with its own application, fee, and rules, in addition to your restaurant's general business registration and health department permit.
What happens if my restaurant fails a health inspection?
Consequences depend on the severity and your local health department's rules, ranging from a required follow-up inspection for minor issues to suspension of the permit for serious violations. Ongoing compliance with food safety practices, not just a one-time fix, is what keeps a permit in good standing.
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