Opening a restaurant in California means securing restaurant permits and licenses from city, county, state, and federal agencies before you can legally serve a single meal. At minimum you’ll need a registered business entity, a federal EIN, a state seller’s permit, a local business license, zoning approval, building and fire permits, a county health permit, employer registrations once you hire staff, and an ABC license if you plan to serve alcohol. Getting the order right matters, because several permits require others to be in place first.
Register the Business and Get an EIN
Start with the legal entity. Most restaurant owners form an LLC or corporation through the California Secretary of State’s bizfile California portal, which returns confirmation and a tracking number immediately.1California Secretary of State. bizfile California An LLC filing needs the entity name, the street address of its initial office, and a registered agent to accept legal documents.2California Legislative Information. California Corporations Code 17701.02 A corporation filing also asks how many shares the entity is authorized to issue.
If the restaurant will operate under any name other than the exact legal name on your articles, file a Fictitious Business Name statement with the county clerk where the business is located. You have 40 days from the start of operations, and fees vary by county.3California Office of the Small Business Advocate (CalOSBA). Setting Up Your Business in California This is a county filing; the Secretary of State does not handle fictitious names.
Apply for a federal Employer Identification Number through the IRS. The online application processes immediately during business hours and asks for the Social Security number of the person controlling the business along with the entity’s tax classification.4Internal Revenue Service. Get an Employer Identification Number
Most California cities and counties also require a local business license or business tax certificate. If your restaurant is inside city limits, contact the city; if it’s in an unincorporated area, contact the county.5California Office of the Small Business Advocate (CalOSBA). Business Quick Start Guide – Restaurants, Bakeries, and Bars
Seller’s Permit for Sales Tax
Any business selling tangible goods in California, including prepared food, needs a Seller’s Permit from the California Department of Tax and Fee Administration. The application asks for projected monthly taxable sales and your primary suppliers. CDTFA uses those figures to decide whether to require a security deposit against future tax liabilities.6California Department of Tax and Fee Administration. Obtaining a Sellers Permit
The base state sales tax rate is 7.25%, but local district taxes add anywhere from 0.10% to 2.00% or more on top. Look up your city’s combined rate on the CDTFA website before setting menu prices.7California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information
Zoning, Building, and Fire Approvals
Before signing a lease, confirm with the local planning department that the property is zoned for food service. A location previously used as a restaurant doesn’t guarantee approval for your concept. Changing from a café to a full-service restaurant with a bar, for instance, can trigger different zoning requirements. If your intended use isn’t permitted outright, you’ll need a Conditional Use Permit from the local planning commission. CUP applications ask for a site plan, proposed floor plan with seating, operating hours, staffing levels, and parking analysis. The review adds months and can add significant expense.
Any construction, including tenant improvements like moving walls, adding plumbing, or upgrading electrical for commercial kitchen equipment, requires a building permit. The building department reviews plans for compliance with the California Building Code, and your project won’t pass final inspection without sign-off from both the building inspector and the fire department.
Commercial kitchens must have a UL 300 wet-chemical fire suppression system over cooking equipment, and most jurisdictions require automatic sprinklers throughout the building. The fire marshal also sets maximum dining room occupancy based on square footage, typically 15 square feet per seated patron. Because these rules directly shape your floor plan and construction budget, address them during design, not after.
County Health Department Permits
The county health department enforces the California Retail Food Code at every food facility in the state.8California Legislative Information. California Health and Safety Code 113700 Submit a plan review application to the environmental health division before construction. The packet usually includes three printed sets of facility drawings showing kitchen layout, storage, plumbing, ventilation, and waste disposal; manufacturer specification sheets for each piece of commercial equipment; and a draft menu so inspectors can evaluate preparation complexity and food safety risk.
Plan review fees vary by county and facility size. Expect $1,500 to $2,000 or more for a new full-service restaurant in many counties, with fees rising for larger spaces. Once plans are approved, you receive stamped copies: one for the contractor and one for the inspector to reference during the pre-opening inspection.
Food Handler Cards and Manager Certification
Every employee who prepares, stores, or serves food must obtain a California Food Handler Card within 30 days of hire. The training covers temperature control, cross-contamination prevention, and hygiene. You must keep records of each worker’s certification status and hire date.
Separately, every food facility handling unpackaged potentially hazardous food must have at least one owner or employee with a Food Protection Manager certification.9California Legislative Information. California Health and Safety Code Division 104 Part 7 Chapter 3 Article 2 The exam is offered by accredited providers, costs no more than $60, and the certificate is valid for five years. First-time operators often miss this one. Having Food Handler Cards for your staff doesn’t satisfy it.
Pre-Opening Inspection
Schedule the pre-opening inspection about one to two weeks before your target opening date. The inspector verifies the physical space matches the approved plans, all refrigeration and sanitation equipment is operational, and hot and cold holding stations maintain proper temperatures. Passing this inspection is what actually authorizes you to serve food to the public. Annual health permit fees apply going forward and vary by county.
ABC Liquor License
To serve alcohol, you need a license from the California Department of Alcoholic Beverage Control. Two license types cover most restaurants. A Type 41 authorizes beer and wine on-premises and off-sale at a bona fide eating place, and prohibits keeping distilled spirits on site except small amounts of brandy, rum, or liqueurs used for cooking. A Type 47 covers beer, wine, and distilled spirits.10California Department of Alcoholic Beverage Control. License Types
Type 47 licenses are capped by a population quota of one on-premises general license per 2,000 people in a county.11California Department of Public Health. Alcohol Outlet Density in California In counties at their quota, you can only obtain one by buying from an existing license holder on the secondary market, where prices routinely exceed $50,000 in competitive areas. Application and annual fees are adjusted for inflation each year.
What the Application Requires
Anyone holding 10% or more of the business must complete an Individual Personal Affidavit disclosing criminal history and financial background.12Department of Alcoholic Beverage Control. Individual Personal Affidavit You’ll also file a premises diagram on ABC form 257 showing the floor plan with room dimensions and the licensed area outlined in red.13Alcoholic Beverage Control. ABC-257 Licensed Premises Diagram
California law requires you to mail notice of the application to every resident and real property owner within 500 feet of the premises, and to post a “Notice of Intention to Sell Alcoholic Beverages” at the location. A 30-day protest period runs from whichever happens later, the posting or the mailing. During that window, community members can file objections, and ABC investigates your background and the location’s suitability.14California Department of Alcoholic Beverage Control. ABC-207 Instructions The full timeline from application to approval routinely runs 60 to 90 days, longer if protests are filed. Start early.
Responsible Beverage Service Certification
Since July 2022, every on-premises alcohol server and their manager must earn Responsible Beverage Service certification within 60 days of hire. Training is provided through ABC-approved providers and covers identifying intoxication and checking IDs.15California Department of Alcoholic Beverage Control. RBS Training Program RBS is separate from and in addition to the Food Handler Card. Bartenders and servers need both.
Employer Registration and Workplace Rules
Once you hire your first employee, register with the California Employment Development Department by filing form DE 1. The form asks for entity type, federal EIN, the date you first paid wages exceeding $100, and your industry description. This establishes your employer account for state unemployment insurance, disability insurance, and paid family leave contributions.16California Employment Development Department. Commercial Employer Account Registration and Update Form DE 1
Workers’ compensation insurance is required even if you have only one employee. When applying for a policy, you’ll provide employee job classifications and estimated annual payroll, because premium rates vary by classification. Operating without coverage triggers a stop-work order from the Division of Labor Standards Enforcement and a penalty equal to the greater of twice the premiums you should have paid or $1,500 per employee for the entire uninsured period. Violating a stop-work order is a misdemeanor punishable by up to 60 days in jail, a fine of up to $10,000, or both.17California Department of Industrial Relations. DWC Answers to Frequently Asked Questions About Workers Compensation for Employers
Every California employer must also maintain a written Injury and Illness Prevention Program under Title 8, Section 3203 of the California Code of Regulations, covering hazard identification, employee training, communication, accident investigation, and recordkeeping.18California Department of Industrial Relations. Section 3203 – Injury and Illness Prevention Program Restaurants with fewer than 20 employees in low-hazard classifications have reduced documentation requirements, but the program itself is still mandatory.
As of January 1, 2026, the California minimum wage is $16.90 per hour for all employers. Fast food restaurant employees covered by AB 1228 must be paid at least $20.00 per hour.19California Department of Industrial Relations. Minimum Wage Many cities and counties set higher local minimums, so check your local ordinance before setting pay.
Accessibility Compliance
Your restaurant must comply with the federal Americans with Disabilities Act and the California Building Code’s accessibility standards, which in some respects are stricter than the ADA. Requirements govern door widths, restroom layouts, counter heights, pathway clearances, and parking. These are enforced during the building permit process, but the real ongoing exposure is litigation: statutory damages can reach $4,000 per visit where a plaintiff was denied full and equal access.
Hiring a Certified Access Specialist for a voluntary inspection before opening is the best preventive step. If a CASp inspects your property and you have a report and compliance schedule in place before any lawsuit is filed, you qualify for “qualified defendant” status, reducing minimum statutory damages to $1,000 per occasion when you correct all violations within 60 days, and getting a 90-day stay plus an early evaluation conference. Restaurants with 50 or fewer employees may also receive a 120-day grace period from statutory damages for violations identified in the CASp report if corrected within that window.20California Department of General Services. CASp Property Inspection
Small businesses earning $1 million or less (or with 30 or fewer full-time employees) can claim the federal Disabled Access Credit for accessibility expenditures, and any business can deduct up to $15,000 per year for removing architectural barriers.21Internal Revenue Service. Tax Benefits for Businesses Who Have Employees With Disabilities
Grease Interceptor and Organic Waste
The California Plumbing Code requires commercial kitchens to install grease interceptors. For most restaurants the minimum size is 750 gallons, with a maximum of 1,500 gallons unless the local sewer authority approves a larger unit. The interceptor sits downstream from kitchen fixtures like pot sinks, mop sinks, and food-prep floor drains. Dishwashers and other fixtures discharging water above 140°F must bypass it entirely. The local sewer district reviews the installation as part of the building permit process, and failing to install one blocks plumbing sign-off.
Under SB 1383, restaurants with 250 or more seats or a total facility of 5,000 square feet or more are classified as commercial edible food generators. They must contract with a food recovery organization, keep records of donations by type and weight, and report recovery data to the local jurisdiction on request.22CalRecycle. Food Recovery Questions and Answers Smaller restaurants still face general organic waste recycling requirements through their local waste hauler. Either way, build composting or organics collection into your waste setup before opening.
Where to File Each One
Business entity filings go through the Secretary of State’s bizfile California portal.1California Secretary of State. bizfile California Seller’s Permit applications go through the CDTFA online portal. EIN applications go through the IRS website. These digital filings return confirmation quickly.
Health department permits are the exception. In most counties, plan review still requires an in-person visit with physical copies of facility drawings, equipment specs, and menu. The pre-opening inspection follows once construction is done.
ABC applications carry the most moving parts: the filing, the personal affidavits, the 500-foot mailing to neighbors, the on-site posting, the 30-day protest window, and the background investigation.14California Department of Alcoholic Beverage Control. ABC-207 Instructions If alcohol is part of your concept, the ABC application should be one of the first things you file, in parallel with entity formation and lease negotiations, because everything else can finish well before ABC does.