Restaurant Licenses and Permits: The Complete Checklist (2026)
Every restaurant runs on a stack of licenses and permits — and the fastest way to blow your opening date (or inherit a problem when you buy) is to discover one you missed. There's no single "restaurant license." Instead you'll clear a set of federal, state, and local approvals, and the exact mix depends on your city, county, and whether you serve alcohol. This is the complete checklist, who issues each item, roughly what it costs, and the official sources to confirm the rules that apply to you.
Two things up front. First, requirements are local — the U.S. Small Business Administration's own guidance is that most licenses and permits are issued at the state, county, or city level, so always confirm with your jurisdiction (SBA: federal and state licenses and permits). Second, if you're buying an existing restaurant rather than starting one, several of these transfer differently than you'd expect — read how to buy a restaurant and our restaurant due-diligence checklist alongside this.
The restaurant licenses & permits checklist
Here's the core set most full-service restaurants need. Use it as a starting list, then verify each item with the issuing agency for your location.
| License / permit | What it covers | Who issues it |
|---|---|---|
| EIN (Employer ID Number) | Federal tax ID to hire staff, open a business bank account, and file taxes | IRS (free) |
| Business license / registration | Legal permission to operate a business in your city/county | City or county |
| Food service / health permit | Approves the kitchen to prepare and serve food after inspection | Local or state health department |
| Food handler & manager certification | Required food-safety training for staff and at least one certified manager | Accredited programs (e.g. ServSafe) |
| Certificate of occupancy | Confirms the building is safe and zoned for restaurant use | City building/zoning dept |
| Sales tax / resale permit | Lets you collect and remit sales tax (and buy inventory tax-free) | State Dept. of Revenue/taxation |
| Sign permit | Approval for exterior signage | City/county |
| Building / fire / fire-suppression permit | Hood, suppression system, occupancy, and fire-safety sign-off | Fire marshal / building dept |
| Liquor license (if serving alcohol) | Permission to sell beer, wine, and/or spirits | State ABC / beverage-control agency |
| Music licensing | Legal right to play recorded or live music publicly | PROs: ASCAP, BMI, SESAC, GMR |
| Dumpster / grease & waste permit | Grease-trap service and waste disposal compliance | City/county utilities |
Federal: your EIN
Almost every restaurant needs an Employer Identification Number — you'll use it to hire employees, open a business bank account, and file taxes. It's issued by the IRS, it's free, and you can usually get it online in minutes; beware third-party sites that charge for it. Apply directly at the source: IRS — Get an Employer Identification Number.
State: sales tax and alcohol
Sales-tax permit. Nearly every state that levies sales tax requires restaurants to register with the state Department of Revenue (or equivalent) to collect and remit it — and the same permit often lets you buy inventory for resale tax-free. Rates and rules vary by state, so register with your state's revenue agency.
Liquor license. If you'll serve alcohol, this is usually the longest lead-time item and is handled by your state's Alcohol Beverage Control (ABC) agency. License types, quotas, and costs vary enormously by state. We cover the mechanics in depth in buying a bar and the liquor license, and — critically for buyers — whether a liquor license transfers when you buy a restaurant (often it does not transfer automatically).
Local: the permits that gate your opening date
- Food service / health permit. Your local health department inspects the kitchen against food-safety standards before you can serve. Most jurisdictions base their rules on the FDA Food Code, which states and localities adopt and adapt — so read your local code, but the Food Code is the backbone.
- Certificate of occupancy. Confirms the building is safe and properly zoned for a restaurant. Buying a second-generation restaurant space can make this smoother because the use is already established — but never assume; verify.
- Building, fire, and fire-suppression permits. Hoods, the fire-suppression system, and occupancy limits all need sign-off from the building department and fire marshal.
- Sign and waste permits. Exterior signage and grease/waste disposal each have their own local approvals.
Food safety training
Most states require food handlers to hold a food handler card and restaurants to have at least one certified food protection manager on staff. The National Restaurant Association's ServSafe program is the most widely accepted certification, and the National Restaurant Association is a useful reference for industry-wide compliance and operating standards. Confirm exactly which certifications your state and county require.
The one most owners forget: music licensing
Playing music in your dining room — even a streaming playlist or the radio — is a public performance, and performing-rights organizations (PROs) license it. If you play music publicly, you generally need licenses from the major PROs: ASCAP, BMI, SESAC, and — as of 2026 — GMR. In practice, many operators sidestep the per-PRO paperwork by paying for a licensed background-music service built for businesses, which bundles the rights into one bill. Either way, it's a small line item that's easy to overlook and occasionally expensive to ignore.
If you're buying, not building
When you buy an existing restaurant, don't assume its licenses come with it. The health permit and certificate of occupancy may need to be reissued under your ownership, the liquor license frequently does not transfer automatically, and you want to confirm there are no open violations or back taxes you'd inherit. Make your purchase contingent on securing the licenses you need, and fold this checklist into your diligence — see the restaurant due-diligence checklist and what to know about restaurant back taxes.
Budget and timeline
Licensing costs range from free (your EIN) to thousands of dollars (a liquor license in a quota state), and the health, fire, and alcohol approvals are usually the slowest — build weeks of lead time into your plan. In practice, the two dates that actually set your opening are the health inspection and the liquor-license approval, so start both while the build-out is still underway, not after it wraps. Before you commit to a space, ballpark the full cost of opening or taking over with our free restaurant affordability calculator — or, if you're buying an existing business, size up the price with our restaurant valuation calculator.
The bottom line
There's no shortcut around the paperwork, but there's no mystery either: get your EIN, register for state sales tax, clear your local health, building, and fire permits, handle alcohol and music licensing if they apply, and keep your food-safety certifications current. Verify every item with the issuing agency, because the details are local.
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Frequently Asked Questions
What licenses and permits do you need to open a restaurant?
Most restaurants need a federal EIN, a local business license, a food service/health permit, food handler and manager certifications, a certificate of occupancy, a state sales-tax permit, and building/fire/fire-suppression sign-offs. Add a liquor license if you serve alcohol and music licensing if you play music publicly. The exact mix is set by your city, county, and state, so confirm each item with the issuing agency.
How much do restaurant licenses and permits cost?
It ranges widely. An EIN from the IRS is free, local business licenses and health permits often run from under a hundred to several hundred dollars, and a liquor license can cost anywhere from a few hundred dollars to many thousands depending on your state and whether it's a quota license. Budget for renewals, and give the slowest approvals — health, fire, and alcohol — several weeks of lead time.
Do restaurant licenses transfer when you buy a restaurant?
Not reliably. The health permit and certificate of occupancy may need to be reissued under the new owner, and a liquor license frequently does not transfer automatically — in many states the buyer must apply for their own. Make your purchase contingent on obtaining the licenses you need, and confirm there are no open violations or back taxes attached to the business.
Do I need a permit to play music in my restaurant?
Generally yes. Playing recorded or live music in a public space like a dining room is a public performance, so you typically need licenses from performing-rights organizations such as ASCAP, BMI, and SESAC — even for a streaming playlist or the radio. It's a commonly overlooked requirement that can carry penalties if ignored.
Where do I verify the exact permits my restaurant needs?
Requirements are local, so confirm with the issuing agencies: the IRS for your EIN, your state Department of Revenue for sales tax, your state ABC agency for alcohol, and your city or county for business, health, building, fire, and sign permits. The SBA's licenses-and-permits guide and the FDA Food Code are good national starting points, but your jurisdiction has the final word.
About the author
Written by the ListingLedge editorial team — we cover restaurant sales and leasing, commercial kitchens, event spaces, hotels, and hospitality operations. ListingLedge is the marketplace where hospitality businesses are bought, sold, leased, and booked.