Are you considering opening a food serving business such as a café or restaurant in Massachusetts? If you are, you will probably be aware that there are a number of legal requirements to take into account as well as decisions about the type of business, it’s financing and the skills you need.
These legal requirements can be satisfied by applying for permits and complying with regulations set by a number of state and federal bodies. For a start, any café, fast food enterprise or restaurant is a business, so there are requirements that must be met as there are for any new business in the state. This type of business also involves the preparation and the serving of food to the public, so there are health and safety considerations that must be considered with appropriate legal compliance. If customers are going to be eating in the restaurant, then there are additional health and safety considerations involved.
Timely planning will be needed to ensure that compliance with the range of legal requirements required to open a restaurant or similar establishment in Massachusetts. Failure to comply with the legal requirements could lead to serious penalties being imposed and the possible closure of your business.
The more important legal requirements are described briefly below. You may find it helpful to discuss your business compliance with an attorney before being sure that you have completed what is necessary. One of the aspects of opening a new business like a café or restaurant in Massachusetts which can be confusing is that regulations can vary from county to county, municipality to municipality, as well as those that are applicable state wide. An attorney can reduce the time wasted in searching for the relevant authority for each certificate license or permit you need before you can open your business.
Legal requirements for opening a restaurant in Massachusetts
These are the main things you need to satisfy before opening your restaurant in Massachusetts:
- Business License;
- Certificate of Occupancy;
- Food Facility Health Permit;
- Food Handler’s License, also known as a Food Service License;
- Liquor License Permit (if liquor is to be sold or offered in the premises);
- Seller’s Permit.
Business License
You will need a business license to open your new restaurant wherever it is in the state. This is supplied on application to the county or municipality where your business will be located. If you are considering opening more than one restaurant in different locations, then you will need licenses from each government agency where the restaurants will be opened. To get your license, you need a thorough business plan. This will determine the type of business structure you will be opening, such as a sole proprietorship, a partnership, LLC, etc. You will also need to supply a specific business name, its proposed address and phone number, your Employer Identification Number (EIN) and a Certificate of Insurance (COI).
Note that your EIN is a federal requirement for tax purposes, so you need to apply for this separately from the IRS. Once you have your EIN, this is the number you will need to supply when you apply for the local business license. The COI is something that applies to your business for insurance purposes, so there are many factors that an insurance provider will need to know before it will provide you with suitable insurance cover. The COI will be needed before you apply for your business license.
Certificate of Occupancy
Government at a local level will have a zoning plan. You may need a certificate of occupancy to confirm that the type of business you intend opening conforms to the zoning plan of that jurisdiction. For example, you may find that where you want o open your restaurant is strictly for residential use and not for commercial use, or you may find that you don’t even need a certificate of occupancy at all. It all depends on the town, city or county you are considering. The certificate also confirms that the building you will be opening is up to local code requirements and safety considerations have been inspected and are current.
Food Facility Health Permit
Your new restaurant will need a food facility health permit. This will be supplied by the local Board of Health in the town, city or county you are locating your business in. You can apply online in most cases, but before a health permit is issued, your premises will need to be inspected to ensure that the preparation, storage and serving of food in it is safe and will prevent illness in your employees and customers. Each new food facility will need a new health permit. It isn’t transferable like a liquor license (see below).
Food Handler’s License
Food handlers’ licenses must be applied for to allow food handlers to be employed in a restaurant or other food facility. Food handlers are anyone who prepares or serves food in a restaurant. This includes cooks and chefs, bartenders and baristas. Food handlers’ licenses are required within 30 days of being hired to work in a restaurant. To get a license, the applicant must pass a test about food safety and safe food preparation. There is normally some sort of minimum percentage requirement to satisfy the standard for the food handlers’ test.
Liquor License Permit
A liquor license permit is required if your restaurant intends to sell liquor. These sorts of licenses are issued by the state government, rather than by a local government. Before you apply for the liquor license, you will already need a seller’s permit (see below). You will need to post a public notice on the outside of your premises or post a notice in a newspaper for 30 days after applying for a liquor license. Your premises also needs to comply with local zoning regulations as some parts of a municipality or county may not be zoned to allow the sale of alcohol. It may take between 1 to 3 months before your liquor license is issued.
Seller’s Permit
A seller’s permit is applied for through the state’s SBA License and Permits portal. A seller’s permit allows the business to charge state sales tax.
For more information, visit our website Mucci Legal or contact us for a free initial legal consultation today.