Starting a restaurant is hard, especially when you don’t know what licenses and permits you need. With so many applications, startup fees, and documents to keep track of, it’s easy to get lost in the sea of regulations. If you’re trying to open a restaurant in Pennsylvania, we’ll outline all the major permits and licenses you need to get your business off the ground. By understanding these requirements, you can make sure you have all the necessary information prepared beforehand and set aside money to pay any application or license fees so that the restaurant startup process goes as smoothly as possible.
1. PA Business License
A business license certifies your restaurant is legally allowed to operate in Pennsylvania. They are typically issued by local governments and are necessary to comply with local and state laws and regulations. Since they are issued at the local level, they apply within that city, town, or municipality's geographic jurisdiction. Because of this, a restaurant in Philadelphia will have a different application process than a restaurant in Pittsburgh. The specific details of what your business license covers, as well as any limitations or requirements associated with it, will vary depending on your exact restaurant location within Pennsylvania.
How to Get a PA Business License
By following these steps and ensuring that all necessary documentation and requirements are met, you can successfully obtain a Pennsylvania business license. Remember to consult with local authorities and legal professionals for specific guidance tailored to your business needs.
- Confirm your financials: Check with your bank and insurance company to ensure you meet the spending requirements to operate your business legally.
- Choose a name: If you plan on operating your business under a name that differs from the company's legal name, you must register a fictitious name with the state. Select a name that is unique and resonates with your target audience.
- Verify business information: Ensure you have a valid address, phone number, and contact details to provide state authorities during the application process.
- Obtain an EIN: An Employer Identification Number, or EIN, is a federal tax ID number for businesses. Obtaining an EIN is a necessary step in the business registration process and helps the state track your tax obligations and business activities.
- Choose a classification: Choose the classification that best aligns with your business structure and goals. Common options include sole proprietorships, partnerships, and LLCs.
- Obtain a certificate of insurance: This document serves as proof to the state that your business is adequately insured, providing financial security and legal protection.
PA Business License Cost
The cost to apply for a business license varies depending on the type of ownership structure you plan to establish.
- LLC: For those opting to form an LLC in Pennsylvania, there is a filing fee of $125.
- Sole proprietor: Sole proprietors incur a $70 fee to register their business name in Pennsylvania.
- Business partnership: Business partnerships in Pennsylvania start with a $125 filing fee. However, the cost of forming a business partnership can increase with additional fees depending on the nature of the partnership agreement and required documentation.
To apply for a Pennsylvania business license, you must register an account with the PA Business One-Stop Shop.
2. PA Sales Tax License
A Pennsylvania sales tax license, or seller's permit, authorizes your business to collect and remit sales tax and is mandatory for any business engaged in the sale of goods or services within the state boundaries. Not only is this important for your accounting records, but also ensures that you meet the state's tax obligations. By obtaining a Pennsylvania sales tax license, you'll also facilitate acquiring an EIN for tax identification purposes.
How to Get a PA Sales Tax License
To get a sales tax license in Pennsylvania, you must register with the state and provide them with all business and financial information they require. This includes details about your business structure, such as your business name, address, and type of business entity. You must also provide information about your products or services and estimated sales volume. Once you have submitted all the required information, it generally takes 24-48 hours to get approved.
It's important to note that a Pennsylvania Sales Tax License is not a one-time requirement. License holders are required to renew their license every 5 years to ensure compliance with state regulations. Renewing your license on time is crucial to avoid any disruptions in your business operations or potential penalties for non-compliance.
PA Sales Tax License Cost
Applying for a sales tax license in Pennsylvania is free of charge, and businesses looking to operate in the state don't have to worry about any upfront fees.
To apply for a Pennsylvania sales tax license, you must register through the state’s website.
3. PA Liquor License
In Pennsylvania, liquor licenses are issued and closely regulated by the Pennsylvania Liquor Control Board. They encompass various details such as who alcohol can be sold to, the permitted hours for alcohol sales, the types of alcohol that can be sold, and the maximum quantity that can be sold at one time, among other factors. There are different types of liquor licenses available in Pennsylvania, including beer and wine licenses, club licenses, and restaurant licenses, each of which has specific requirements and restrictions tailored to the nature of the establishment.
It is important to note that liquor licenses in Pennsylvania must be renewed every two years to maintain their validity. Furthermore, these licenses are transferable between businesses, but there are associated fees and quotas to consider during the transfer process. To stay compliant with state and local laws, liquor licenses must be renewed periodically. Failing to renew a liquor license on time can result in penalties or the suspension of the license.
How to Get a PA Liquor License
Pennsylvania's liquor licensing process can be intricate, so it's essential to understand, adhere to, and trust the process. Stay informed, organized, and proactive throughout the application stage to set your restaurant up for success in serving alcoholic beverages.
- Research regulations: This includes investigating any zoning restrictions that may impact your ability to serve alcohol. Additionally, identify if your restaurant is in a dry zone and learn about the quota system in your area.
- Choose the right license: Factors such as the types of beverages you serve, your service methods, and the areas where alcohol will be consumed can all influence the type of license you need.
- Organize necessary documentation: This includes proof of business ownership, leasing or property agreements, detailed floor plans illustrating alcohol service and storage areas, health and safety permits, financial information, and any mandatory background checks.
- Submit your application: Download and complete the application form provided by the Pennsylvania Liquor Control Board. Ensure all information is accurate and up to date before submitting it for approval. Be prepared to pay the application fee, which can vary depending on the type of license you are applying for.
PA Liquor License Cost
The cost of transferring a liquor license in Pennsylvania ranges between $15,000 to $25,000 depending on the license you are looking to acquire. However, the price can sometimes exceed these estimates. Due to the scarcity of available licenses on the market, prices can rise quickly, and in some cases, competing businesses will even bid on licenses to obtain one.
To apply for a Pennsylvania liquor license, visit the Pennsylvania Liquor Control Board’s website.
4. PA Food Handlers License
A Food Handlers License, also known as a food handler’s card, signifies that individuals have completed essential food safety training and is required for any establishment that prepares and serves food. It applies to all staff who handle food in your establishment, including managers, chefs, line cooks, and servers. By ensuring that your staff members are certified with a PA Food Handlers License, you not only comply with state health regulations but also prioritize the health and safety of your customers.
How to Get a PA Food Handlers License
While the process may vary depending on your location within Pennsylvania, there are several factors to remember when pursuing your food handlers license. By adhering to them, food service professionals can ensure compliance with Pennsylvania regulations and demonstrate their commitment to upholding food safety standards.
- Timing: Employees who handle food are expected to obtain their license within 30 days of being hired.
- Exemptions: Certain exemptions may apply to restaurant managers or employees who have already achieved a food protection manager certification. Verify with local authorities to confirm whether you qualify for this exemption.
- Testing: To secure your PA Food Handlers License, you must pass a Pennsylvania food safety and preparation test, which requires a passing grade of at least 70%.
PA Food Handlers License Cost
According to PA state law, the cost of a food handlers license cannot exceed $15, making it an affordable investment. Since every employee must have one, employers may even cover the registration fee for their employees to facilitate the process and help them get acclimated to the requirements.
5. PA Certificate of Occupancy
A Certificate of Occupancy, often referred to as a CO, confirms that your commercial facility is safe, adheres to local regulations, and is legally fit for occupancy. This document is required in several instances, including when a new building is constructed, when there is a change in the building's designated use, and when ownership of the building shifts hands. Obtaining one demonstrates your commitment to providing a safe and legally compliant environment for all occupants.
How to Get a Certificate of Occupancy in PA
The process of acquiring a CO in Pennsylvania is handled at the local level, with each city or town having a department responsible for enforcing and issuing them. For that reason, a business in Harrisburg and a business in Lancaster might have different application processes. Consult with local authorities to understand the specific requirements and procedures for application. They will guide you through the necessary steps to complete the process and ensure that your commercial space meets all safety and zoning regulations.
PA Certificate of Occupancy Cost
In most cases, the cost to obtain a certificate of occupancy ranges from $50-100. Each local government in Pennsylvania may charge a different amount for applying.
6. PA Food Service License
A Food Service License, also known as a food facility health permit, signifies that your establishment complies with the state's safety and sanitation standards, ensuring a safe environment for employees and customers. This license is not only a requirement but also a mark of professionalism and commitment to maintaining high standards of cleanliness and food safety.
How to Get a PA Food Service License
The application process to get a Pennsylvania food service license will differ from one locality to another, with some areas offering online application options while others require a paper application. In any case, you should expect a visit from the health inspector once you submit your application. An in-person health inspection will be scheduled to ensure that your restaurant meets the necessary health and safety standards.
PA Food Service License Cost
The price of a food service license varies depending on which locality you are obtaining it in.
7. Retail Food Facility License
Also known as a retail food license, a retail food facility license is a legal requirement for any establishment that sells food to customers, including restaurants, bars, and convenience stores. They ensure your business meets the necessary health and safety requirements to serve food. You must secure this license before opening your business to the public, and failure to do so can result in significant fines and legal consequences. These licenses are non-transferable, meaning they are tied to the specific business entity that applied for and received them.
How to Get a Retail Food Facility License
There are three distinct applications for different scenarios when applying for a Retail Food Facility License in Pennsylvania, each of which applies to a different restaurant scenario.
- Restaurants applying for the first time must apply and pay the highest initial fees.
- Applicants navigating a change of ownership may fill out a special form suited to their needs.
- Licensed facilities that have undergone significant renovations or changes to their service must re-apply for a permit.
Once you submit your application, the processing and approval period typically ranges from 4 to 6 weeks. Upon approval, you will receive an official approval letter through email or traditional mail and an inspector will schedule an on-site inspection of your food facility.
Retail Food Facility License Cost
The cost of obtaining a retail food facility license in Pennsylvania can vary depending on the type of restaurant you operate. We've listed each option below:
- New retail food facility: $241
- New owner-operated facility under 50 seats: $103
- Change of ownership: $82
- Annual renewals: $82
- Courtesy inspections: $150
- 2nd follow-up inspection: $150
- 3rd follow-up inspection: $300
- Duplicate license fee: $14
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If you’re starting a restaurant in Pennsylvania, then you must know what kind of permits and licenses you need. By brushing up on the different types of permits and licenses, how to apply for them, and how much they cost, you can simplify the process and set your business up for success.
