{"id":5319,"date":"2024-09-24T10:50:43","date_gmt":"2024-09-24T15:50:43","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-to-open-a-restaurant.html"},"modified":"2025-06-26T13:00:00","modified_gmt":"2025-06-26T18:00:00","slug":"how-to-open-a-restaurant","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-open-a-restaurant.html","title":{"rendered":"How To Open a Restaurant"},"content":{"rendered":"\n<section data-testid=\"fl-simple-hero\"  class=\"fl-simple-hero\">\n    <div class=\"fl-simple-hero-container fl-container fl-flex fl-items-center\">\n                <div class=\"fl-simple-hero-title\" data-testid=\"fl-simple-hero-title\">How To Open a Restaurant <\/div>\n            <\/div>\n<\/section>\n    <div class=\"fl-container\">\n        <div class=\"updated-breadcrumb-list\">\n            <ol>\n                        <li>\n                <a href=\"https:\/\/www.findlaw.com\">FindLaw <\/a>\n                <span class=\"breadcrumb-separator\" aria-hidden=\"true\">\/<\/span>\n            <\/li>\n                                <li aria-current=\"page\">How To Open a Restaurant<\/li>\n            <\/ol>\n\n        <\/div>\n    <\/div>\n\n\n\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">How To Open a Restaurant in Ten Steps<\/h1>\n\n\n<figure class=\"wp-block-image fl-no-margin\"><img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/image\/upload\/ability-law\/wp-prod\/content-original-images-GettyImages-945578702.jpg\" alt=\"Chef Firing Up a Pan\"\/><\/figure>\n\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/natalie-moritz\/\">Natalie Moritz<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a>\n                | Last updated\n        <time>\n                            June 26, 2025\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>The critical steps to opening a restaurant include creating a <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_29478400\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"29478400\">business plan<\/span>, choosing a business name and legal structure, finding a prime location, securing funding, obtaining <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_29478407\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"29478407\">business licenses<\/span> and permits, and hiring employees.<\/p>\n\n    <\/div>\n\n\n\n<p><b><i>Form your LLC with confidence.\u202f<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-open-a-restaurant--in-content\" target=\"_blank\" rel=\"noopener\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n\n\n<div class=\"tableOfContent\">\n    <div class=\"table-of-contents\">\n        <span role=\"heading\" aria-level=\"2\" class=\"table-of-contents__title\">10 Steps To Open a Restaurant<\/span>\n                <ul class=\"table-of-contents__list\">\n                        <li><a href=\"#Type\" title=\"1. Decide the Type of Restaurant You Will Open\">1. Decide the Type of Restaurant You Will Open<\/a><\/li>\n                        <li><a href=\"#Name\" title=\"2. Name Your Restaurant\">2. Name Your Restaurant<\/a><\/li>\n                        <li><a href=\"#Structure\" title=\"3. Decide on a Business Structure\">3. Decide on a Business Structure<\/a><\/li>\n                        <li><a href=\"#Location\" title=\"4. Find Your Restaurant&#039;s Location\">4. Find Your Restaurant&#8217;s Location<\/a><\/li>\n                        <li><a href=\"#Secure\" title=\"5. Secure Business Licenses and Permits\">5. Secure Business Licenses and Permits<\/a><\/li>\n                        <li><a href=\"#Figure\" title=\"6. Figure Out Employment, Payroll, and Taxation\">6. Figure Out Employment, Payroll, and Taxation<\/a><\/li>\n                        <li><a href=\"#Learn\" title=\"7. Learn About Union Laws\">7. Learn About Union Laws<\/a><\/li>\n                        <li><a href=\"#Insurance\" title=\"8. Get Business Insurance\">8. Get Business Insurance<\/a><\/li>\n                        <li><a href=\"#Introduce\" title=\"9. Introduce Yourself to Local Safety Inspectors\">9. Introduce Yourself to Local Safety Inspectors<\/a><\/li>\n                        <li><a href=\"#Market\" title=\"10. Market Your Restaurant\">10. Market Your Restaurant<\/a><\/li>\n                    <\/ul>\n            <\/div>\n<\/div>\n\n\n<p>From imagining the restaurant concept to creating menu items, you will make countless decisions when opening your own restaurant. There are also many important legal decisions you&#8217;ll have to make. While not as exciting as some of the other aspects of opening a restaurant, these legal considerations will be the backbone of your business.<\/p>\n<p>If you already have a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/creating-a-business-plan.html\">business plan<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/start-up-financing.html\">financing in place<\/a>, this article will guide you through the steps to help ensure your restaurant startup meets the necessary legal requirements.<\/p>\n\n\n\n<h2><a id=\"FAQ\"><\/a>10 Steps To Open a Restaurant<\/h2>\n\n\n<div class=\"general-step-component\">\n    <div class=\"steps-container\">\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            1\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Type\">Decide the Type of Restaurant You Will Open<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>One of your first choices will be whether to franchise, buy an existing restaurant, or start your eatery from scratch. When making this decision, consider the level of support you may need, as well as how much creative control you want. Each option has benefits and drawbacks.\n<\/p>\n<h3>Franchising<\/h3>\n<p>Under&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/buying-a-franchise-overview.html\" title=\"Buying a Franchise Overview\">franchise agreements<\/a>, you can own various franchise or chain restaurants. These include full-service, fast casual, and fast food establishments, like:<\/p>\n<ul>\n<li>Taco Bell and McDonald&#8217;s<\/li>\n<li>Panera Brand and Five Guys<\/li>\n<li>Applebee&#8217;s and Olive Garden<\/li>\n<li>Many other chain restaurants<\/li>\n<\/ul>\n<p>For franchises, the franchisor has already done most of the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/legal-advantages-and-disadvantages-of-buying-a-franchise.html\" title=\"Advantages and Disadvantages of Buying a Franchise\">legal work<\/a>&nbsp;for you. However, you are responsible for other legal requirements, including:<\/p>\n<ul>\n<li>Local&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/commercial-zoning.html\" title=\"Commercial Zoning\">zoning ordinances<\/a><\/li>\n<li>Labor laws and state&nbsp;<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/employment-law-employer.html\" title=\"Employment Law - Employer\">employment laws<\/a><\/li>\n<li>State taxation<\/li>\n<li>Employment taxation<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/injury\/product-liability\/food-poisoning-and-food-safety-resources.html\" title=\"Food Safety Resources\">Food safety<\/a>&nbsp;regulations<\/li>\n<li>Building safety and code<\/li>\n<li>Other local and state regulations<\/li>\n<\/ul>\n<p>As the franchisee, you&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/consumer-guide-to-buying-a-franchise.html\" title=\"Consumer Guide To Buying a Franchise\">run your business independently<\/a>&nbsp;while benefiting from the franchisor&#8217;s brand recognition and support. However, you have less control over how you wish to run your business.<\/p>\n<h3>Taking Over an Existing Business<\/h3>\n<p>Depending on where you want to start your business, there may be existing restaurant businesses for sale. If you want to&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/buying-an-existing-business.html\" title=\"Buying an Existing Business\">buy a restaurant already in business<\/a>, there are several areas you will need to consider.<\/p>\n<p>First, familiarize yourself with the restaurant. Eat there several times at different times and days of the week. Take note of the:<\/p>\n<ul>\n<li>Staff<\/li>\n<li>Building condition<\/li>\n<li>Quality of food<\/li>\n<\/ul>\n<p>Next, tell the owner you have an interest in buying their restaurant. Ask to review key pieces of business, including:<\/p>\n<ul>\n<li>A certified&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/the-basics-of-accounting-for-small-businesses.html\" title=\"The Basics of Accounting for Small Businesses\">audit of financial records<\/a><\/li>\n<li>Employee records (high employee turnover is a red flag, even when comparing restaurants to&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/starting-a-business-by-business-type.html\" title=\"Starting a Business by Business Type\">other industries<\/a>)<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-lawyer-resources\/small-business-forms-contracts.html\" title=\"Small Business Forms and Contracts\">Service contracts<\/a>, including all supplier contracts, leases, union contracts, clothing suppliers, and cleaning contracts<\/li>\n<li>Food, beverage, and health licenses should all be up to date<\/li>\n<\/ul>\n<p>All these areas should be in the contract for the restaurant sale. Ask for clarification on anything that isn&#8217;t clear.<\/p>\n<p>You will also want a solid understanding of the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/valuation-and-accounting-terms.html\" title=\"Valuation and Accounting Terms\">business&#8217;s value<\/a>. This includes stock, equipment, and goodwill such as customer loyalty, brand image, market position, and profit potential.<\/p>\n<p>If everything checks out, hire&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-lawyer-resources\/when-do-i-need-a-business-lawyer-for-my-small-business.html\" title=\"Do I Need a Business Lawyer for My Small Business\">legal help<\/a>&nbsp;to review the contracts and negotiate the rest of the purchase.<\/p>\n<h3>Starting a New Restaurant<\/h3>\n<p>Unlike buying a franchise or taking over an existing restaurant, starting a brand-new restaurant offers you the freedom to bring your vision to life. Starting from scratch will have higher&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/start-up-costs-overview.html\" title=\"Startup Costs Overview\">startup costs&nbsp;<\/a>and a greater time investment. You also won&#8217;t have a built-in customer base.<\/p>\n<p>You will have to work harder to&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/the-basics-of-marketing-a-small-business.html\" title=\"The Basics of Marketing a Small Business\">build a loyal customer base<\/a>&nbsp;in a competitive market. While this option involves the most financial risk, it allows you more creativity and flexibility with how you operate your restaurant.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            2\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Name\">Name Your Restaurant<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>You&#8217;ll need to pick a unique&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/choosing-your-business-name.html\" title=\"Choosing Your Business Name\">business name<\/a>&nbsp;for your restaurant. Your name should be memorable yet simple. Imagine how your name sounds and how it will look on your sign, branding, and menu.<\/p>\n<p>Next, visit your&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/state-guide-corporations-offices.html\" title=\"State Guide for Corporation Offices\">state&#8217;s Secretary of State website<\/a>&nbsp;to see if the name is already in use by another business. If your selected name is available,&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/register-your-business-name-state-resources.html\" title=\"Register Your Business Name - State Resources\">register it with your state<\/a>.<\/p>\n<p>You will also want to secure the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/choosing-a-domain-name.html\" title=\"Choosing an Internet Domain Name\">internet domain name<\/a>&nbsp;for your business.<\/p>\n<p>Registering your business name and buying the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/intellectual-property\/registering-for-a-domain-name-trademark-what-you-should-know.html\" title=\"Registering for a Domain Name\">domain name<\/a>&nbsp;doesn&#8217;t make it your intellectual property. You still need to protect your business name&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/intellectual-property\/trademarks.html\" title=\"Trademarks\">with a trademark<\/a>.<\/p>\n<p>You can&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/intellectual-property\/trademarks-and-business-names.html\" title=\"Trademarks and Business Names\">trademark your restaurant&#8217;s name<\/a>&nbsp;at both state and federal levels. This process can take a significant amount of time. Figure around&nbsp;<a href=\"https:\/\/www.uspto.gov\/trademarks\/application-timeline\" title=\"Trademark Application Timeline - USPTO.gov\" target=\"_blank\" rel=\"noopener\">eight months<\/a>&nbsp;for a federal trademark. You can&nbsp;<a href=\"https:\/\/www.uspto.gov\/trademarks\/apply\" title=\"Apply for a Trademark - USPTO.gov\" target=\"_blank\" rel=\"noopener\">apply for federal trademark rights<\/a>&nbsp;through the United States Patent and Trademark Office (USPTO).<\/p>\n<p>You can also register your trademark on the state level. Find your&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/intellectual-property\/state-trademark-information.html\" title=\"State Trademark Information\">state&#8217;s trademark information here<\/a>.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            3\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Structure\">Decide on a Business Structure<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Your first significant decision on the legal side of opening a restaurant will be to decide what\u00a0<a title=\"What Structure Is Best for Your Business?\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/business-structures-which-one-is-best-for-your-business.html\">type of business structure<\/a>\u00a0to form:<\/p>\n<ul>\n<li>Limited Liability Company (LLC)<\/li>\n<li>Corporation<\/li>\n<li>Sole Proprietorship<\/li>\n<li>Partnership<\/li>\n<\/ul>\n<p>Most small businesses, including restaurants, start as a\u00a0<a title=\"LLCs\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/limited-liability-corporation-faq.html#:~:text=A%20limited%20liability%20company%20(also,liability%20that%20comes%20with%20corporations.\">Limited Liability Company (LLC).<\/a>\u00a0The flexible structure and tax advantages that LLCs offer often work well for a restaurant business model.<\/p>\n<p>Often,\u00a0<a title=\"Franchises as Corporations\" href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/corporate-law.html#:~:text=A%20corporation%20is%20a%20legal,own%20stock%20in%20the%20company.\">franchises are corporations<\/a>. If you are a franchisee, you will not choose a structure unless you create a\u00a0<a title=\"Holding Company\" href=\"https:\/\/dictionary.findlaw.com\/definition\/holding-company.html\" target=\"_blank\" rel=\"noopener\">holding company<\/a>.<\/p>\n<p>If your restaurant is a small food truck with no employees beyond your family, you could consider a\u00a0<a title=\"Sole Proprietorships\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/how-to-set-up-a-sole-proprietorship.html#:~:text=In%20its%20simplest%20form%2C%20a,to%20set%20up%20and%20maintain.\">sole proprietorship<\/a>.<\/p>\n<p><a title=\"Partnerships\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/types-of-partnerships.html#:~:text=A%20partnership%20arises%20whenever%20two,%2C%20corporations%2C%20and%20nonprofit%20corporations.\">Forming a partnership<\/a>\u00a0is a good idea if you&#8217;re going into the restaurant business with a partner or partners.<\/p>\n<p>Keep in mind that LLCs and corporation structures offer\u00a0<a title=\"What To Expect - Business Liability\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-to-expect-business-liability.html\">personal liability protection,<\/a> which means your personal assets are safe from your restaurant&#8217;s debts and obligations. If a customer sues your restaurant for a <a title=\"Slip-and-Fall Accidents\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/the-small-business-owner-and-slip-and-fall-accidents.html\">slip-and-fall accident<\/a>, their claim is limited to your business assets, not your personal ones.<\/p>\n<p>Sole proprietorships and partnerships do not offer protection from personal liability.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            4\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Location\">Find Your Restaurant&#8217;s Location<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Choose a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/how-to-find-commercial-property-to-rent.html\" title=\"How To Find Commercial Property To Rent\">commercial space<\/a>&nbsp;with steady vehicle and foot traffic. This will help with your restaurant&#8217;s visibility to the public. Consider where your target market is, customer and supplier access, competition, and neighborhood sustainability.<\/p>\n<p>Several other factors can vary by location:<\/p>\n<ul>\n<li>Local licensing<\/li>\n<li>Health regulations<\/li>\n<li>Rent<\/li>\n<li>Unionization<\/li>\n<\/ul>\n<p>Thoroughly research these before you decide&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/how-to-rent-business-space-the-top-ten-things-to-consider.html\" title=\"How To Rent Business Space\">on a home for your restaurant<\/a>.<\/p>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/commercial-lease-agreement-overview.html\" title=\"Commercial Lease Agreements\">A commercial lease is an enforceable contract<\/a>, so pay close attention to the contract clauses. Make sure you understand all terms and clauses before signing.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            5\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Secure\">Secure Business Licenses and Permits<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Restaurants have several licensing requirements. These requirements can vary&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/state-guide-obtaining-licenses-permits.html\" title=\"State Guide for Obtaining Licenses\">depending on where your restaurant operates<\/a>&nbsp;and what it serves and provides. You may be responsible for:<\/p>\n<ul>\n<li>A state and local&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-licenses-and-permits.html\" title=\"Business Licenses and Permits\">business license<\/a><\/li>\n<li>A&nbsp;<a href=\"https:\/\/www.findlaw.com\/legalblogs\/small-business\/do-i-need-a-lawyer-to-get-a-liquor-license\/\" title=\"Do I Need a Lawyer To get a Liquor License\">liquor license<\/a>&nbsp;if you are selling alcohol and a separate license for carry-out alcohol<\/li>\n<li>A separate license to deliver food, depending on your jurisdiction<\/li>\n<li>A food service license<\/li>\n<li>A&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/intellectual-property\/copyright-definitions.html\" title=\"Copyright Definitions\">music license<\/a>&nbsp;if you play recorded or streamed music<\/li>\n<li>A separate live music license from the city, if applicable<\/li>\n<li>Ongoing fire inspections so you can obtain a&nbsp;<a href=\"https:\/\/dictionary.findlaw.com\/definition\/certificate-of-occupancy.html\" title=\"Certificate of Occupancy\" target=\"_blank\" rel=\"noopener\">certificate of occupancy<\/a><\/li>\n<\/ul>\n<p>Depending on the jurisdiction, you might also need a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/sales-and-use-tax.html\" title=\"Sales and Use Tax\">sales tax license<\/a>, a sign permit, a valet parking permit from the city, a dumpster permit, and a pool table license.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            6\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Figure\">Figure Out Employment, Payroll, and Taxation<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>You must be diligent with your restaurant&#8217;s taxation and employment paperwork.<\/p>\n<p>If hiring staff, you must obtain a federal&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/employer-identification-number-ein-faq.html\" title=\"Employer Identification Number (EIN) FAQ\">Employer Identification Number<\/a>&nbsp;(EIN). Sole proprietors can use their Social Security numbers instead of an EIN. Get your EIN at no cost by applying through the&nbsp;<a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/apply-for-an-employer-identification-number-ein-online\" title=\"Get Your EIN Online - IRS.gov\" target=\"_blank\" rel=\"noopener\">Internal Revenue Service (IRS) website<\/a>. This is an instant process.<\/p>\n<p>Depending on your restaurant&#8217;s concept, you may need to hire:<\/p>\n<ul>\n<li>Front-of-house staff like servers and hosts<\/li>\n<li>Back-of-house staff like cooks and dishwashers<\/li>\n<li>Head chef and sous chef<\/li>\n<li>Janitorial and maintenance<\/li>\n<li>Marketing and administrative professionals<\/li>\n<\/ul>\n<p>Restaurants employing tipped wait staff have special&nbsp;<a href=\"https:\/\/www.irs.gov\/taxtopics\/tc761\" title=\"Tax Rules - IRS.gov\" target=\"_blank\" rel=\"noopener\">taxation rules and regulations<\/a>&nbsp;for the restaurant and the employees. There is also a tipped employee minimum wage. If allowed in your business budget, consider hiring an accountant to handle this area.<\/p>\n<p>The&nbsp;<a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/restaurants-tax-center\" title=\"Restaurant Tax Center - IRS.gov\" target=\"_blank\" rel=\"noopener\">Restaurant Tax Center<\/a>&nbsp;on the IRS website is a great resource for restaurant owners and tipped staff.<\/p>\n<p>All employees must be&nbsp;<a href=\"https:\/\/www.findlaw.com\/immigration\/visas\/working-in-the-u-s-.html\" title=\"Working in the U.S.\">legally able to work<\/a>&nbsp;in the United States. Ensure they complete the&nbsp;<a href=\"https:\/\/www.uscis.gov\/i-9\" title=\"I-9 Requirements - USCIS.gov\" target=\"_blank\" rel=\"noopener\">required paperwork<\/a>&nbsp;upon hire.<\/p>\n<p>Potential employees should fill out an application, even those you know on a personal level. Everyone should have proper identification with a copy kept on file. Your employees should also pass a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/performing-an-employee-background-check.html\" title=\"Performiong an Employee Background Check\">background check<\/a>, particularly those who will handle money.<\/p>\n<p>Your local health departments may require food safety certifications for your employees. Some states require food handler permits.<\/p>\n<p>There are also many federal and state&nbsp;<a href=\"https:\/\/www.findlaw.com\/employment.html\" title=\"Employment Laws\">employment laws<\/a>&nbsp;you must follow.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            7\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Learn\">Learn About Union Laws<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Few small restaurants outside of large metropolitan areas have employee&nbsp;<a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/what-is-a-labor-union.html\" title=\"What Is a Labor Union?\">labor unions<\/a>. Prominent cities like New York City may have a strong union presence in restaurants, including the&nbsp;<a href=\"https:\/\/www.ufcw.org\/\" title=\"United Food and Commercial Workers Union (UFCW) - UFCW.org\" target=\"_blank\" rel=\"noopener\">United Food and Commercial Workers<\/a>&nbsp;Union (UFCW).<\/p>\n<p>All restaurant owners should understand labor laws, including the&nbsp;<a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/what-is-the-nlrb.html\" title=\"What Is the NLRB? \">National Labor Relations Act<\/a>&nbsp;(NLRA).<\/p>\n<p>Negotiating&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/unions-basics.html\" title=\"Union Basics\">with a union<\/a>&nbsp;can be difficult, even for those with experience. Hire a professional negotiator rather than trying this yourself. If you are a franchisee, the franchisor will already have a negotiation team in place.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            8\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Insurance\">Get Business Insurance<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Restaurant businesses require <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-business-insurance-.html?fli=latl_biz_howto:diy_biz_ins:txt\" title=\"Business Insurance\">necessary insurance coverage<\/a>, including the following:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/why-you-need-business-insurance.html\" title=\"Why You Need Business Insurance\">Business liability<\/a>&nbsp;insurance<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/injury\/workers-compensation\/workers-compensation-basics.html#:~:text=The%20Purpose%20of%20Workers%27%20Compensation&amp;text=The%20system%20involves%20a%20trade,employer%20wasn%27t%20at%20fault.\" title=\"Worker&#039;s compensation\">Worker&#8217;s compensation<\/a>&nbsp;insurance<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/injury\/car-accidents\/automobile-insurance-policy-coverage.html\" title=\"Auto Insurance Policy Coverage\">Automobile insurance<\/a>&nbsp;if you have delivery drivers<\/li>\n<\/ul>\n<p>You may want to consider&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/insurance\/umbrella-insurance-policies.html\" title=\"Commercial Umbrella Insurance Policies\">commercial umbrella insurance<\/a>. Your lease may also require you to have specific&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/insurance\/understanding-insurance-limits.html\" title=\"Understanding Insurance Limits\">insurance limits<\/a>&nbsp;for a loss or damage to the real estate.<\/p>\n<p>Consider the needs of your business and its potential liabilities to determine the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/small-business-insurance-plans.html\" title=\"Small Business Insurance Plans\">appropriate insurance coverage<\/a>&nbsp;for your restaurant.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            9\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Introduce\">Introduce Yourself to Local Safety Inspectors<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Starting a business in the restaurant industry means you&#8217;ll have to deal with&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-licenses-and-permits.html\" title=\"Business Licenses and Permits\">several safety regulations<\/a>. As early on as possible, establish personal contact with local regulators. This includes:<\/p>\n<ul>\n<li>The fire inspector<\/li>\n<li>The health inspector<\/li>\n<li>Any other government officials who may interact with your business<\/li>\n<\/ul>\n<p>Tell the regulators you want to cooperate with them and ask if you can contact them with any questions. Building a positive working relationship allows you to address potential issues before they flare up. If an inspector identifies areas for improvement, you can work together to implement corrective actions, minimizing the risk of penalties.<\/p>\n<p>Some restaurant owners&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/10-reasons-to-contact-an-attorney-before-starting-a-business.html\" title=\"Reasons To Contact a Lawyer When Opening a Business\">hire a lawyer<\/a>&nbsp;for help applying for, receiving, and conforming to local regulations.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            10\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Market\">Market Your Restaurant<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Franchising or\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/buying-a-business.html\" title=\"Buying a Business\">purchasing an existing restaurant<\/a>\u00a0comes with built-in brand recognition and sometimes even a loyal customer base. Marketing a brand-new restaurant will take more effort and ingenuity. Regardless, you need to get the word out about your restaurant.<\/p>\n<p>Your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/contents-of-a-written-business-plan.html\" title=\"Having a Written Business Plan\">business plan<\/a>\u00a0should be the backbone of your marketing plan. The\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/your-target-market.html\" title=\"Your Target Market\">target market<\/a>\u00a0and market analysis sections of your business plan should inform how you promote your restaurant.<\/p>\n<p>Be flexible with your marketing strategy. You may need to try several ideas to see what resonates with your target market.<\/p>\n<p>Your marketing plan can include:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/build-a-business-website.html\" title=\"How To Build a Business Website\">Creating a website<\/a>\u00a0and social media pages<\/li>\n<li>Digital marketing like search engine optimization (SEO) and targeted ads<\/li>\n<li>Engaging with your local community<\/li>\n<li>Local media coverage (public relations)<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/essential-advertising-rules-for-your-businesses.html\" title=\"Essential Advertising Rules\">Traditional and digital advertising<\/a>, like direct mail, flyers, and ads in local publications and on social media websites<\/li>\n<li>Soft opening and grand opening parties<\/li>\n<\/ul>\n<p>One of the best ways to\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/the-basics-of-marketing-a-small-business.html\" title=\"The Basics of Marketing a Small Business\">promote a new restaurant<\/a>\u00a0is through word-of-mouth. Encourage patrons to post pictures of their meals on Instagram or leave a Yelp review in exchange for a discount to use on their next visit.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<h2>What Does It Cost To Open a Restaurant?<\/h2>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/sample-estimate-of-start-up-costs.html\">Startup costs<\/a>\u00a0for a restaurant vary depending on location, operating costs, and restaurant concept.<\/p>\n<p>Your most significant expense will likely be your commercial lease and any renovations or build-outs. Restaurant equipment and furnishings will also make up a substantial portion of your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/start-up-costs-overview.html\">startup costs<\/a>. These include:<\/p>\n<ul>\n<li>Kitchen equipment (like ovens, warming cabinets, and grills)<\/li>\n<li>Point of sale technology (POS system)<\/li>\n<li>Tables, chairs, and other furniture<\/li>\n<li>Food and beverage inventory<\/li>\n<li>Dining utensils<\/li>\n<\/ul>\n<p>You should also factor in staffing, marketing, licensing, and insurance. If you get\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/top-10-reasons-to-contact-an-attorney-before-choosing-a-business.html\">help from an attorney<\/a>, you&#8217;ll also need to include legal fees.<\/p>\n<p>Most restaurant owners take out a small business loan or\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/sources-of-small-business-financing.html\">secure other financing<\/a>, like a business line of credit, which functions like a business credit card.<\/p>\n<h2>Resources for Restaurant Owners<\/h2>\n<p>The\u00a0<a href=\"https:\/\/restaurant.org\/home\" target=\"_blank\" rel=\"noopener\">National Restaurant Association<\/a>\u00a0offers personalized support from mentors in the restaurant industry. Some cities also have local restaurant associations.<\/p>\n<p>The U.S.\u00a0<a href=\"https:\/\/www.sba.gov\/\" target=\"_blank\" rel=\"noopener\">Small Business Administration<\/a>\u00a0(SBA) provides various resources for small business owners. Find guidance on funding, registering your business, your restaurant business plan, and more.<\/p>\n<h2>Need More Help With Your New Business? Talk to an Attorney<\/h2>\n<p>Breaking into the highly competitive restaurant industry is no small feat. Even experienced entrepreneurs in this industry get help with certain aspects of their business. First-time restaurant owners may need even more guidance and support, especially with the legal aspects of opening a food service business.<\/p>\n<p>You can work with a\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">business organizations attorney<\/a>\u00a0in your area for legal help. An experienced attorney will understand the laws and local regulations involved. Startup costs for even a small restaurant can be steep, and you&#8217;ll want to get licensing, permits, and financial planning right the first time.<\/p>\n<p>Or you can let our\u00a0<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-open-a-restaurant--custom-content\" target=\"_blank\" rel=\"noopener\">trusted partner LegalZoom<\/a>\u00a0handle your business formation filing for $99 plus filing fees.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              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class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div 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