Restaurant permits and licenses in California

Forming an LLC or corporation is optional, but the $800 minimum franchise tax catches new owners off guard: California bills it every year whether or not the restaurant turns a profit. A sole proprietor or general partnership skips the Secretary of State entirely, but anyone trading under a name that is not the owner's legal name files a Fictitious Business Name with the county clerk within 40 days and publishes it in a local newspaper.

Issued by

California Secretary of State (entity formation) and the county clerk where you are based (Fictitious Business Name)

Fee

$70 to file LLC Articles of Organization or $100 for a stock corporation, then a $20 Statement of Information ($25 for a corporation) due within 90 days and on a recurring cycle. California also charges an $800 minimum annual franchise tax through the Franchise Tax Board, regardless of revenue. A Fictitious Business Name (DBA) is filed with the county clerk, commonly $23 to $57, plus newspaper publication.

Renewal

Formation is one-time; a Statement of Information every 2 years for an LLC or yearly for a corporation, the $800 franchise tax every year, and a Fictitious Business Name every 5 years

Processing

Online entity filings post in about 2 to 3 business days; many county clerks process a DBA the same day in person

Every restaurant making taxable sales needs a seller's permit before its first sale. For a sit-down restaurant nearly everything is taxable: meals served on site and all hot prepared food are taxable whether eaten in or taken to go. Cold food sold to go can be exempt, but the 80/80 rule almost always catches a restaurant (more than 80 percent of sales are food and more than 80 percent of that is taxable), so even a cold salad or drink is taxable unless you separately track cold to-go items. Alcohol is taxable too.

Issued by

California Department of Tax and Fee Administration (CDTFA)

Fee

$0 (free to register). CDTFA can ask for a security deposit in some cases.

Renewal

No expiration; the account files sales and use tax returns on an assigned cycle

Processing

Often issued the same day when you register online

A restaurant registers with the EDD within 15 days of paying more than $100 in wages in a calendar quarter, which the first payroll usually triggers. Registration creates a state employer ID and four payroll taxes: unemployment insurance and employment training tax paid by you, and disability insurance and income tax withholding taken from wages. You also report every new hire to the state registry within 20 days.

Issued by

California Employment Development Department (EDD)

Fee

No registration fee. Payroll taxes (UI, ETT, SDI, and PIT withholding) begin once you register.

Renewal

One-time registration, then ongoing quarterly filings

Processing

Same day online through e-Services for Business; about 10 to 14 days by mail

California Labor Code Section 3700 requires every employer with even one employee, part-time included, to carry workers' compensation coverage before that person starts work. A restaurant lines up a policy through a licensed insurer or the State Fund. Operating uninsured can bring an immediate stop-work order from the Labor Commissioner on top of the penalties, so this is not optional once you hire.

Issued by

Any insurer licensed in California or the State Compensation Insurance Fund; enforced by the Department of Industrial Relations and the Labor Commissioner

Fee

Premiums are set by the carrier from your payroll, job class, and claims history; there is no state fee for the coverage itself. Going without it is a misdemeanor with fines up to $10,000 and civil penalties up to $100,000.

Renewal

Annual policy renewal; an ongoing legal obligation

Processing

Obtained from a licensed insurer; timing depends on the carrier

Every employee who prepares, stores, or serves food earns a card from an accredited provider within 30 days of hire and keeps it current while employed. The statewide card is honored everywhere except Riverside and San Bernardino counties, which kept their own pre-existing programs and require a county card instead; San Diego County, which used to run its own, now accepts the statewide card. Someone holding a current food protection manager certificate is exempt, and the employer keeps the cards on file for inspection.

Issued by

ANAB-accredited training providers under the California Food Handler Card Law (Health and Safety Code Section 113948); enforced by county environmental health departments

Fee

Set by the provider, commonly $7 to $25. Under SB 476 the employer pays for the card and the employee's time.

Renewal

Every 3 years

Processing

Self-paced online course and exam; the card usually issues the same day

Every restaurant that prepares, handles, or serves non-prepackaged potentially hazardous food, which is every sit-down kitchen, needs at least one owner or employee who has passed an accredited food safety manager exam. Only one certified person is required per facility, and that person cannot count for a second location at the same time. They do not have to be on site every hour, but the certificate stays on file at the restaurant for the inspector.

Issued by

An ANSI-accredited certification organization (ServSafe, Prometric, NRFSP, and similar) under Health and Safety Code Section 113947.1, enforced by your county environmental health department

Fee

Set by the accredited provider. State law requires at least one statewide exam option at no more than $60 including the certificate; many providers charge $50 to $250 with a prep course.

Renewal

Every 5 years

Processing

Exam-based, offered in person or through proctored online sessions

CalCode says a food facility may not open for business without a valid permit, and a sit-down restaurant is a food facility. The state mandates the permit, but your county environmental health department issues, inspects, and prices it, so the dollar figure lives on your city page. The permit is tied to the operator and location and is nontransferable, so buying an open restaurant means applying fresh.

Issued by

Your county environmental health department, acting as the enforcement agency under the California Retail Food Code (Health and Safety Code Section 114381)

Fee

Set by your county health department. No statewide flat fee. See your city page for local amounts.

Renewal

Annual (the cycle is set locally)

Processing

Set locally, after plan check approval and a pre-opening inspection, commonly 2 to 8 weeks

Before you build, convert, or remodel a restaurant you submit complete scaled plans to the county environmental health department and get them approved before construction starts. The building department will not issue a building permit for a food facility until health has signed off on the plans. It is a statewide requirement handled and priced county by county, so the amount sits on your city page.

Issued by

Your county environmental health department under Health and Safety Code Section 114380

Fee

Set by your county health department. See your city page for local amounts.

Renewal

One-time per build or remodel; a change of use or method of operation can trigger a fresh review

Processing

CalCode gives the county 20 working days to approve or reject submitted plans; the local fee and logistics vary

A Type 41 lets a restaurant serve beer and wine, but not spirits, on site. You can apply for it directly from ABC at any time, since it is not quota-limited. The catch is the bona fide eating place rule under Business and Professions Code Section 23038: the premises has to be a real restaurant with a kitchen able to cook an assortment of ordinary meals, kept sanitary with proper refrigeration, and serving only sandwiches or salads does not qualify. A local pre-approval step (zoning or a public convenience finding) is a separate prerequisite covered on your city page, and every server needs RBS training.

Issued by

California Department of Alcoholic Beverage Control (ABC)

Fee

A $1,135 application fee plus the first year's $565 annual fee, so about $1,700 to the state at application (effective January 1, 2026). The annual renewal is $565. A Type 41 is not capped by county quota, so there is no secondary-market premium.

Renewal

Annual

Processing

ABC does not publish a single statewide timeline; it includes a 30-day public posting period and varies by district. Contact your local ABC district office.

A Type 47 adds distilled spirits to the beer and wine a restaurant can pour, again only at a bona fide eating place with a working kitchen serving real meals. The hard part is supply: Business and Professions Code Section 23817 caps on-sale general licenses by county population, and in nearly every urban county that cap was hit years ago, so ABC almost never issues new ones. Most operators buy an existing Type 47 from a current holder, and the market price dwarfs the state fee. RBS training applies, and the local pre-approval step is on your city page.

Issued by

California Department of Alcoholic Beverage Control (ABC)

Fee

The state application fee is $19,840 (effective January 1, 2026) if you win a rare ABC priority drawing, plus a population-based annual renewal (confirm the current amount on the ABC annual fee schedule). In most major counties the quota is exhausted, so the real cost is buying an existing license through escrow on the secondary market, which runs from about $50,000 in smaller markets to more than $400,000 in Los Angeles. Those secondary prices are set by private sellers, not ABC.

Renewal

Annual

Processing

ABC does not publish a single statewide timeline; an original priority-drawing license requires a formal premises application within 90 days of selection, and a person-to-person transfer usually takes several months

Under AB 1221, anyone who serves alcohol for on-site consumption, including waitstaff, bartenders, the managers who supervise them, and ID checkers, has to register with ABC, complete approved RBS training, and pass the ABC exam. A new hire has 60 days from their first day to finish all three steps, and the certification lasts three years. It applies to any restaurant holding an on-sale license, Type 41 or Type 47 alike.

Issued by

California Department of Alcoholic Beverage Control (ABC), through the RBS Portal and ABC-approved training providers

Fee

A $3 server registration fee to ABC, plus a training course set by the approved provider, commonly $7 to $25.

Renewal

Every 3 years (re-register, retrain, and pass the exam again)

Processing

Self-paced training, then the ABC exam must be passed within 30 days of completing it

SB 1383 requires every California restaurant to separate organic waste from trash and subscribe to organics collection. As a Tier 2 edible food generator, a restaurant also has to arrange, since January 1, 2024, to donate edible food that would otherwise be thrown out through a food recovery organization, and keep records of it. There is no state permit, but local jurisdictions enforce it and can fine you, and most new owners do not see this environmental layer coming.

Issued by

CalRecycle (statewide regulations); enforced by your local jurisdiction, which may impose penalties

Fee

No state permit or license fee. The cost is operational: you subscribe to organic-waste collection through your local hauler and contract with a food recovery organization.

Renewal

Ongoing operational obligation; no separate renewal

Processing

Not applicable; this is a compliance duty, not a permit