Legal and Regulatory Business Expenses
Legal and Regulatory Business Expenses
All possible government agencies and costs required prior to and after start up.
There are a number of mandatory government agencies small business owners are required to associate with and being a restaurant owner include even more of these cost provoking permits such as a certificate of occupancy, food service license’s, business licenses, and more.
Clear template
KPI regulatory report
Government/ Local Agency
Unit
Importance
Interaction/ Requirement
Time
Associated Costs
Notes
1
Resale Permit
1
Possibly Nessacary
After searching for resale numbers in our state to find a specific office that accepts resale permit requests, just submit your application. and it will be emailed or sent via mail after approval.
Very easy to get and doesn’t require renewal.
Resale permits can cost up to $50, but are often as little as $0 to obtain.
A resale permit allows your restaurant to make certain nontaxable purchases (wholesale food inventory, for example) if these items are purchased for use in the manufacture of products for resale (meals). The state does require business’ with permit to report regularly on sales tax collected and pay it to the state.
2
Sign Permit
1
Possibly Nessacary
outdoor signs need to be approved by your local government, and business owners must hire a licensed contractor to design, install, and permit signage on store fronts and then bring the design ideas to the Planning Department in City Hall for approval.
Easy to acquire and doesn’t involve any additional check ups or renewals.
Sign Permits cost between $20-$50 depending on the current business market and local regulations.
If you are starting your business in a collective store front, you will most likely need a sign permit from the city government, which include varying specifications depending on size, location, and lighting.
3
Food Service License
1
necessary
issued by the city or county health department via an in-person visit to your business to ensure that you are following all restaurant food safety regulations.
Should be fairly quick and easy to aquire, if business is up to standard, but license can expire automatically and needs to be renewed every few years.
Price varies based on location, size, and employee count of restaurant, but falls in the range of $100-$1000 to aquire.
When you’re applying for license, you'll need to give the name of your restaurant, an address for a permanent kitchen facility, and your personal information. Additionally, once the license is obtained, the health department will continue to make regular visits to inspect your restaurant.
4
Certificate of Occupancy
1
necessary
Follow the steps on the local governments website to schedule check appointment where you will be granted certificate if everything is in order.
Timeline can vary based on availability, but usually can be completed in just a few weeks.
Most standard building certificates of occupancy will cost a flat $100 as a one time payment.
Obtained after final inspection and certifies that the building has been properly constructed and maintained.
5
Employer Identification Number (EIN)
1
necessary
Assigned by the IRS, and only one is issued a day. You can apply through the IRS website or by phone/ email.
Generally takes a while to get, but is necessary to have.
Obtaining EIN can be a pain, but is 100% free
All businesses must obtain an EIN (tax ID number) in order to operate in the U.S
6
Business License
1
necessary
Submit application procedures required for your state and follow up if license isn’t received on time.
For most restaurants, you will need to renew your license annually or pay fees by the annual deadline, but license can be obtained fairly quickly.
Required cost of registration is roughly an initial $50 and license cost is between $25 to $7,000 depending on the type of business and expected business profit.
Business license legitimizes new businesses as legal entities and allows them to operate.
7
Building Health Permit
Possibly Nessacary
generally, restaurant obtains a health permit from the city or county health department at the same time they’re applying for a business license.
If your business does require a building health permit, it will be subject to periodic health inspections to ensure your restaurant is sanitary at various times.
The cost of a building health permit depends on your state's jurisdiction, but can be from $50 to $1000.
Not all business’ will require this permit, generally just the ones being built from the ground up.
8
Employee Health Permit
Possibly Nessacary
The specific requirements for obtaining this permit vary depending on your location and local guidelines, but it can be acquired through researching your local health guidelines and requirements.
All employees must complete a state-approved food handler’s course and purchase a food handler’s permit prior to attaining this permit, so it can take a little while, if your employees are not pre certified.
The cost varies from state to state, but can be from $100 to $500.
In addition to your building needing a health permit, many business’ (especially restaurants) will require an employee health permit which covers the employees handling food and beverages in your restaurant.
9
Seller’s Permit
Possibly Nessacary
You can register online for a seller's permit by visiting the local government's website and submitting the registration form.
The process to receive a sellers permit is very accessible, as you can register online or via phone and usually is a really quick and easy process.
There is no cost to apply for the seller's permit, but you may have to leave a security deposit in the situation that the restaurant closes and you have unpaid taxes, which will be calculated during the time you apply.
A seller's permit allows a state to identify a business as a collector of sales tax, and most businesses, especially in the food and beverage industry, need to obtain a seller's permit as well as the resale certificate.
10
The Equal Employment Opportunity Commission (EEOC)
necessary
Food service employers must avoid discriminating against people with disabilities while obeying strict public health rules. Food service workers with disabilities have rights under the ADA when applying for jobs or when working for a restaurant.
Always
There are no associated costs with this regulation, just the requirement of anti discrimination in your business.
The EEOC is a Federal government agency, that enforces the sections of the ADA (federal civil rights law that applies to people with disabilities and protects them from discrimination) that prohibit employment discrimination.
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