What licenses and permits are required to open a restaurant in California?

Jan 24, 2024 | 3 min read

Opening a restaurant in California requires obtaining several licenses and permits at the state, federal, and local levels. These include compliance with the California Retail Food Code, obtaining a Food Handler Card for all employees involved in food preparation, storage, or service, obtaining a license from the California Department of Alcoholic Beverage Control if you plan to sell alcohol, filing with the California Secretary of State depending on your business structure, filing State income tax with the Franchise Tax Board and Federal taxes with the Internal Revenue Service, and obtaining a Seller’s Permit from the California Department of Tax and Fee Administration if you will be selling tangible property. 

You will need to comply with laws establishing minimum standards for wages, hours, and working conditions if your business will have employees. At the local level, you may need a business license, zoning permits, a Fictitious Business Name or Doing Business As (DBA) statement, and possibly meet Charitable Solicitation Requirements. Lastly, you must comply with Proposition 65.

1. California Retail Food Code Compliance

2. Food Handler Card

3. Alcohol Beverage Control License

  • Purpose: If you plan to sell alcohol, you must obtain a license from the California Department of Alcoholic Beverage Control.
  • How to Register: You can apply for a new license from the Alcohol Beverage Control website.

4. California Secretary of State Filing

5. State Income Tax Filing

  • Purpose: All businesses are required to file State income tax with the Franchise Tax Board.
  • How to Register: You can file State income tax with the Franchise Tax Board website.

6. Federal Taxes Filing

  • Purpose: All businesses are required to file Federal taxes with the Internal Revenue Service.
  • How to Register: You can file Federal taxes with the Internal Revenue Service website.

7. Seller’s Permit

8. Local Business License and Permits

  • Purpose: At the local level, you may need a business license, zoning permits, a Fictitious Business Name or Doing Business As (DBA) statement, and possibly meet Charitable Solicitation Requirements.
  • How to Register: You can use the online permit assistance tool, CalGOLD, to identify local, state, and federal permit information for businesses.

9. Proposition 65 Compliance

  • Purpose: You must provide a clear and reasonable warning before knowingly and intentionally exposing anyone to chemicals that are known to cause cancer or birth defects or other reproductive harm.
  • How to Register: More information can be found at the OEHHA website.

For more detailed information, please refer to the following sources:

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About Otter

Otter helps your restaurant business grow. Here a few of our key results:
  • Increase revenue up to 10% with Marketing*
  • Reduce storefront downtime by up to 50% with Live Alerts*
  • Increase sales up to 50% with Digital Dine-In's QR code ordering*
  • Reduce missed orders to less than 1% with Order Manager's Auto-Accept feature*
  • Supercharge your food business with our all-in-one restaurant POS system*
* Results based on typical Otter customer performance

DISCLAIMER: This information is provided for general informational purposes only and the content does not constitute an endorsement. Otter does not warrant the accuracy or completeness of any information, text, images/graphics, links, or other content contained within the content. We recommend that you consult with financial, legal, and business professionals for advice specific to your situation.

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