How to Start a Catering Business in California

October 29, 2026

Catering in California is shaped by permits more than most small businesses. Your kitchen determines where you can cook, your county health permit determines what you can prepare and transport, and alcohol service is a separate, expensive license layer. This guide follows the order that matters most: the kitchen first, then the health permit, then alcohol, then staff, and finally the business registrations that make you a legal entity able to collect sales tax.

This article is informational content, not legal or tax advice. Permit rules, fees and deadlines change, and counties and cities set their own requirements. Confirm each figure with the agency named, and talk with a California business attorney and a CPA before you sign a kitchen lease, form an entity or add alcohol service.

What You Need Before You Start

Gather these items before you sign a kitchen agreement or file anything with the state:

• A written agreement giving you access to a permitted commercial kitchen
• A county health permit application, plus plan check documents if you are building a new kitchen
• Food handler cards for every employee who handles food, and one certified food safety manager
• Food-safe transport containers and a vehicle set up to move food the way your county requires
• Food thermometers and a simple temperature log you can use at every event
• A business name, Articles of Organization (Form LLC-1) or Articles of Incorporation, and a federal Employer Identification Number from the IRS
• A California seller's permit from the California Department of Tax and Fee Administration (CDTFA), which is free
• Standard event contracts, a deposit policy, and insurance quotes from a broker

Step 1: Secure a Permitted Commercial Kitchen

This is the step new caterers most often underestimate. A catering operation is a food facility under Health and Safety Code 113789, and so is a host facility, so the food must be prepared in a permitted commercial kitchen. Your home kitchen cannot be used for catering. Cottage food rules cover only shelf-stable foods that are not potentially hazardous, and the home restaurant program (MEHKO) excludes catering.

You have three realistic routes:

1. Lease a kitchen and have it permitted. You get full control of the space, but this route has the highest upfront cost and the longest timeline.
2. Use a shared commercial kitchen or commissary. Many already hold a county permit, which can get you operating sooner. Ask for the facility's permit documentation, confirm that it covers catering, and get hours, storage and rental terms in writing.
3. Use an existing restaurant kitchen. Some restaurants rent kitchen time outside their own service hours. Confirm that the restaurant's permit covers the work you plan to do.

If you build a new kitchen, the county environmental health department must review your plans in a plan check before construction begins, and then it inspects the finished space. Do not start build-out until the plan check is approved. If you hire a contractor for work totaling $1,000 or more, that contractor needs a Contractors State License Board license, so check the license before work starts.

Step 2: Get Your County Health Permit

Each county sets its own health permit fees, so there is no single statewide price. For example, Orange County's 2026-27 fee schedule lists caterer complex preparation permits at $1,148 to $1,455 a year. Search your county's environmental health website for its food facility fee schedule, and do not assume another county charges the same.

Ask the county these questions before you apply:

• Does your event model need its own permit? Does a public event need a temporary food facility permit? The county decides, so ask rather than assuming that a private event needs no permit.
• Which holding temperatures, transport rules and cleaning procedures apply? These come from the California Retail Food Code, and the county will tell you what it expects to see.
• Which records must be available at each event, and what does an inspector typically check?

Expect the county to review your menu, equipment and kitchen layout as part of the application. Describe your menu in detail, because the county uses it to decide which preparation activities your permit must cover.

Step 3: Decide Whether to Serve Alcohol

Alcohol is optional, but if clients expect bar service you need to understand the licensing before you quote events. The Department of Alcoholic Beverage Control (ABC) handles these licenses.

• The Type 58 caterer's permit is an add-on. A caterer that wants to sell alcohol at events needs a Type 58 permit, and only holders of an on-sale general or on-sale beer and wine license, or a few other license types, can add one. You cannot buy a Type 58 by itself. The Type 58 annual fee is $290.
• Each event needs its own catering authorization. The fee is $100 for fewer than 1,000 expected guests, $325 for 1,000 to 4,999 guests, and $1,000 for 5,000 or more.
• There is an event cap. A premises may have no more than 36 authorized events a year unless ABC finds substantial public demand (Business and Professions Code 23399).
• The underlying license is the real cost. A Type 47 license costs $19,840 through the annual drawing. A Type 41 beer and wine license costs $565 a year and has no drawing.
• Client-supplied alcohol needs a direct question. If the client buys the alcohol and no money changes hands for it, call your local ABC district office and ask how the rules apply to your arrangement. Do not assume either answer.

Responsible Beverage Service (RBS) certification applies to the people serving alcohol, including servers and managers, so budget for it before your first bar event.

Step 4: Train Staff and Assign Food Safety Roles

Staff requirements are where many caterers make costly mistakes, because the deadlines are short.

• Food handler cards. Employees who handle food must get a food handler card within 30 days of hire. The employer pays for the course and for the time the employee spends on it (Health and Safety Code 113948).
• Certified food safety manager. A caterer that handles nonprepackaged potentially hazardous food needs one certified food safety manager (Health and Safety Code 113947.1). That person does not have to be present for every hour of operation, but you must name who it is and make sure the duties are covered.
• Minimum wage. The state minimum wage is $16.90 in 2026 and $17.40 starting January 1, 2027. Verify both figures before you set pay rates.

Once you have employees, you must also register with the Employment Development Department (EDD) and carry workers' compensation insurance.

Step 5: Register Your Business

California has no general statewide business license. The Secretary of State issues none, and the CDTFA seller's permit is not a business license. Instead, you register your entity with the Secretary of State, register with the CDTFA if you sell taxable goods, register with the EDD if you have employees, and add the licenses and permits your activity requires.

Form the entity

Most caterers choose an LLC. Reserve your name for $10, which holds it for 60 days and cannot be renewed for consecutive periods. An LLC name must include "limited liability company," "L.L.C." or "LLC" and cannot include words such as "bank," "trust," "incorporated," "inc.," "corporation" or "corp." File Articles of Organization (Form LLC-1) for $70 through bizfile Online. Online filings are normally processed within about 5 business days or less, while paper filings take 10 or more business days. Expedited options are $350 for 24-hour service, $750 for same-day service if received by 9:30 a.m., and $500 for 4-hour drop-off service that is precleared.

Your LLC must keep an agent for service of process who is a California resident or a corporation holding a Corporations Code 1505 certificate, and it must keep an office in California. Within 90 days of filing, file a Statement of Information (Form LLC-12) for $20, then every two years during the required window. Missing it can trigger a $250 penalty.

Expect the franchise tax to matter from year one. Every LLC owes the $800 minimum annual franchise tax if it was organized or registered in 2024 through 2026. If your first taxable year begins in 2027, 2028 or 2029, the year-one amount may be $400 under RTC 17941(g)(2), so confirm it with the Franchise Tax Board (FTB). The LLC fee of $900, $2,500, $6,000 or $11,790 applies once California-source total income reaches $250,000, $500,000, $1,000,000 or $5,000,000. A corporation files Articles of Incorporation for $100 and a Statement of Information (Form SI-550) for $25 every year.

Fictitious business name

If you operate under a name other than your legal name, file a Fictitious Business Name Statement with the county clerk in the county of your principal place of business within 40 days of starting. The statutory fee is $10 plus $2 per additional name or owner, but counties charge more, and the newspaper publication is a separate cost. Publication runs once a week for four weeks, and the statement expires after five years. Use the Secretary of State's fictitious business name page for current guidance.

Sales tax and local taxes

Catered meals are generally taxable under Revenue and Taxation Code 6359(d), and the statewide base rate is 7.25%. With district taxes, city rates run from 7.25% to 11.75%. The seller's permit is free, so get one from the CDTFA before your first sale. If a supplier asks for a resale certificate, California does not require a particular form, but confirm the details with the CDTFA.

Check your city for a local business tax or registration certificate. Of California's 483 cities, 445 report revenue from one, and there is no common formula, so the answer depends on where you operate. Counties license only regulated activities.

Fee Summary

Item	Cost	Agency
Name reservation (60 days)	$10	Secretary of State
Articles of Organization (LLC-1)	$70	Secretary of State
Statement of Information (LLC-12)	$20 every two years	Secretary of State
Seller's permit	Free	CDTFA
Fictitious business name	$10 plus $2 per additional name or owner, plus county and publication costs	County clerk
Type 58 caterer's permit	$290 a year	ABC
Catering authorization per event	$100, $325 or $1,000	ABC
Health permit	Set by county (Orange County 2026-27: $1,148 to $1,455 a year for caterer complex preparation)	County environmental health

Common Mistakes to Avoid

• Cooking at home. Cottage food rules do not cover catering, and MEHKO excludes it.
• Believing a Type 58 works alone. It must be added to an on-sale general or on-sale beer and wine license, and that license is costly.
• Skipping the county conversation. Ask about private and public events before your first booking.
• Building before plan check. Construction started without an approved plan check can force costly rework.
• Missing staff deadlines. Food handler cards are due within 30 days of hire.
• Forgetting the filing clock. The fictitious business name is due within 40 days of starting, and the Statement of Information within 90 days of filing.
• Assuming a state business license exists. Check your city and the agencies for your specific activity instead.
• Exceeding the event cap. A premises may have no more than 36 authorized events a year unless ABC approves more.

What Results to Expect

A permitted kitchen, trained staff and organized records can help you pass inspections and answer client or venue questions with confidence. Realistic timing depends on the county's plan check, the ABC process and your registrations. If you are building a kitchen, plan for months rather than weeks. The online Secretary of State filing may take about 5 business days, while paper filings take longer. Your outcomes will depend on your market, your menu and your operations, and no permit guarantees bookings.

Next Steps

Start with the kitchen agreement, because your county permit depends on it. Then call the county environmental health department, the local ABC district office if you plan to serve alcohol, and your city's business tax office. For free-standing business advising, the California Small Business Development Center network at californiasbdc.org can help you sequence the work. Review the Secretary of State's Business Programs page at sos.ca.gov/business-programs and the CDTFA at cdtfa.ca.gov before you file.

This article is informational only and is not legal or tax advice. Consult a qualified California attorney and CPA for your specific situation.