A prospective restaurant owner needs to form a legal structure such as an LLC or a corporation for his business, obtain an Employer Identification Number from the IRS, obtain all necessary licenses and permits, comply with local health and safety codes, and carry all necessary insurance, according to the U. S. Small Business Administration and the Houston Chronicle. Required licenses, permits and insurance vary depending on the type of restaurant and the restaurant's location.Continue Reading
Most restaurants, regardless of type, need a food service establishment permit to legally operate, reports the Houston Chronicle. This permit, also called a food handler's permit, certifies that the owner and employees of the restaurant have been trained in food handling and sanitation. Other types of commonly required permits and licenses include a liquor license for establishments planning to serve alcohol, a general business license, and a zoning permit, as listed by the U. S. Small Business Administration.
For protection against expenses and lawsuits, restaurant owners also need to consider which types of insurance to carry. Property insurance, general liability insurance, and liquor liability insurance are often required for restaurants, according to the U. S. Small Business Administration. Depending on the state the restaurant is located in, the owner may also be required to carry workers compensation insurance, which pays wages and medical expenses for employees injured on the job.Learn more about Managing a Business