Restaurant Licenses and Permits Cost: State-by-State Breakdown

It's hard enough to start a new restaurant business. You already have to worry about things like the cost of restaurant insurance, restaurant food cost, restaurant pricing, restaurant prime costs, restaurant franchise costs, and a variety of other expenses for a restaurant that could make or break your venture.

No issue is more tricky not navigate than the costs of restaurant licenses and permits. Every permit and license you may need is different for each state, and you need to know what you need to have down to the letter. (For a full account of the costs, check out our how much does it cost to open a restaurant blog.)

In this blog, we'll let you know what licenses and permits you may need, along with a state-by-state breakdown for each.

Let's get started!

What kind of licenses will I need?

The types of restaurant licenses and permits you'll need vary depending on the state you're in. In some cases, you may only need a general business license, while in others, you may need a more specific food service license.

Here are the types of licenses you may need:

• General business license: This is the most common type of restaurant license. You'll need this no matter what state you're in.

• Food service license: This type of restaurant license is specific to food service businesses. You'll need this if you're selling food to the public, and you'll need to follow all the necessary restaurant food safety regulations.

• Alcohol or liquor license: If you plan on serving alcohol at your restaurant, you'll need an alcohol license. For this reason, liquor licenses are very important. Most restaurants make most of their money from selling alcohol.

• Gaming licenses: Some restaurant owners want to offer various gaming options, like pool tables, dart boards, and gambling machines. If you want to offer this kind of entertainment, you may need a license

Be sure to check local government resources to find out what licenses you'll need.

What kind of permits will I need?

Like restaurant licenses, restaurant permits vary from state to state. In some cases, you may need a permit to simply open your restaurant doors, while in others, you may need a permit for specific activities, like serving alcohol or playing music.

Here are the types of restaurant permits you may need:

• Health permit: In order to serve food to the public, you'll need to get a health permit from your local health department. This permit ensures that your restaurant meets all the necessary health and safety standards.

• Zoning permit: Before you can open your restaurant, you'll need to make sure it complies with all the local zoning laws. To do this, you'll need to get a zoning permit from your city or county.

• Sign permit: A sign permit allows you to display or change permanent signage outside your restaurant. In many locations, aspects of signage are highly regulated, including brightness and size.

• Building permit: In some cases, you may need a building permit to make sure your restaurant meets all the necessary safety standards.

• Building health permit: You'll need this permit to show that your restaurant complies with restaurant building practices and sanitation regulations. This is usually needed if your building is a new construction.

• Employee health permit: An employee health permit, sometimes known as a food handler's permit, indicates that the holder of the permit has completed a course on health and safety standards. An employee health permit can usually be sourced from independent training providers. An employee health permit cost is usually determined by the location you're setting up your business.

• Alcohol permit: If you plan on serving alcohol at your restaurant, you'll need to get an alcohol permit from your state alcohol commission

• Live entertainment and music permit: If you plan on offering live entertainment to your customers, you'll need to get a permit from your local city or county.

• Seller's permit: A seller's permit, also known as a sales tax permit, tells the state that you will collect sales tax during customer purchases. In some state, you may also need a resale permit to operate.

• Resale permit: A resale permit, sometimes called a reseller permit or a resale license, prevent double taxation by letting taxes be charged only when a customer buys a product and not when the product is initially purchased by the seller. You'll only need a resale permit if you operate in a state with sales tax.

• Dumpster placement permit: A dumpster placement permit allow you to place dumpsters outside your restaurant for refuse pickup. The cost of a dumpster placement permit will usually depend on how much you throw out.

Be sure to check local government resources to find out what permits you'll need.

A state-by-state breakdown

Now that we've gone over the types of licenses and permits you may need, let's take a look at the restaurant permit cost and restaurant license cost in each state.

Alabama

In Alabama, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $180.

Alaska

In Alaska, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $235.

Arizona

In Arizona, you will need a general business license and a food service license. The cost of these licenses is $265.

Arkansas

In Arkansas, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $110.

California

In California, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $180.

Connecticut

In Connecticut, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $170.

Delaware

In Delaware, you will need a general business license and a food service license. The cost of these licenses is $180.

Florida

In Florida, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $180.

Georgia

In Georgia, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $160.

Idaho

In Idaho, you will need a general business license and a food service license. The cost of these licenses is $180.

Illinois

In Illinois, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $220.

Indiana

In Indiana, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $230.

Iowa

In Iowa, you will need a general business license and a food service license. The cost of these licenses is $200.

Kansas

In Kansas, you will need a general business license and a food service license. The cost of these licenses is $270.

Kentucky

In Kentucky, you will need a general business license and a food service license. The cost of these licenses is $200.

Louisiana

In Louisiana, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $180.

Maine

In Maine, you will need a general business license and a food service license. The cost of these licenses is $250.

Maryland

In Maryland, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $230.

Massachusetts

In Massachusetts, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $240.

Michigan

In Michigan, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $200.

Minnesota

In Minnesota, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $270.

Mississippi

In Mississippi, you will need a general business license and a food service license. The cost of these licenses is $210.

Missouri

In Missouri, you will need a general business license and a food service license. The cost of these licenses is $200.

Montana

In Montana, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $250.

Nebraska

In Nebraska, you will need a general business license and a food service license. The cost of these licenses is $230.

Nevada

In Nevada, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $250.

New Hampshire

In New Hampshire, you will need a general business license and a food service license. The cost of these licenses is $240.

New Jersey

In New Jersey, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $270.

New Mexico

In New Mexico, you will need a general business license and a food service license. The cost of these licenses is $230.

New York

In New York, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $280.

North Carolina

In North Carolina, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $200.

North Dakota

In North Dakota, you will need a general business license and a food service license. The cost of these licenses is $280.

Ohio

In Ohio, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $270.

Oklahoma

In Oklahoma, you will need a general business license and a food service license. The cost of these licenses is $200.

Oregon

In Oregon, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $250.

Pennsylvania

In Pennsylvania, you will need a general business license and a food service license. The cost of these licenses is $200.

Rhode Island

In Rhode Island, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $300.

South Carolina

In South Carolina, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $250.

South Dakota

In South Dakota, you will need a general business license and a food service license. The cost of these licenses is $210.

Tennessee

In Tennessee, you will need a general business license and a food service license. The cost of these licenses is $200.

Texas

In Texas, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $300.

Utah

In Utah, you will need a general business license and a food service license. The cost of these licenses is $200.

Vermont

In Vermont, you will need a general business license and a food service license. The cost of these licenses is $230.

Virginia

In Virginia, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $250.

Washington

In Washington, you will need a general business license, a food service license, and a health permit. The cost of these licenses and permits is $300.

West Virginia

In West Virginia, you will need a general business license and a food service license. The cost of these licenses is $230.

Wisconsin

In Wisconsin, you will need a general business license and a food service license. The cost of these licenses is $270.

Wyoming

In Wyoming, you will need a general business license and a food service license. The cost of these licenses is $240.

Final thoughts

Setting up a restaurant can be incredibly confusing and stressful. Any tool that makes the process of running a restaurant easier is an investment well worth the cost.

The Epos Now restaurant POS system is such a tool. With this state-of-the-art point of sale system, you'll be able to:

• Use customizable table plans to improve table turnover

• Sync with leading food delivery apps to reach new customers and boost revenue 

• Manage inventory, easily monitor sales and margin performance

• Manage your menus, employees, and more

• Track time-at-table to maximize cover capacity and revenue

• Use tools like Workforce to manage your scheduling and labor cost for restaurant

• Connect to over 100 leading business tools, including CRM and accountancy software to figure out the variable costs for a restaurant

Want to find out more? Get in touch below!