How to Start a Restaurant in California

October 29, 2026

Opening a restaurant in California means dealing with more agencies than most food businesses face in other states. The order you tackle them in matters. Start with the county health permit, because your kitchen layout and menu drive everything else. Then handle the alcohol license, the city approvals, and the staff and pricing rules. This guide walks through that sequence, along with the entity and name filings you need to complete alongside it.

Disclaimer: This article is informational content, not legal or tax advice. Laws, fees and deadlines change, so confirm every figure with the agency named before you commit money. For complex situations, consult a qualified attorney or CPA.

What to Gather Before You Start

Pull these items together before you contact any agency. Most applications ask for some version of each.

• A business name and legal entity, such as an LLC registered with the Secretary of State
• A site address with zoning that allows food service
• A scaled floor plan showing the kitchen, prep areas, dish room, restrooms, storage and seating
• An equipment list with make and model numbers for every cooking, refrigeration and dishwashing unit
• A complete menu that describes how each item is prepared, cooled and reheated
• A staffing plan that names who will hold the food safety certification
• A written budget that includes every fee in this guide, plus your buildout and working capital (this guide does not estimate those costs)

Step 1: Get the County Health Permit

A restaurant is a food facility, so it needs a permit from the county environmental health department, not from the state. The process has two parts: a plan check before construction and a pre-opening inspection after it. Fees are set by each county, so the amount depends on where you operate.

1. Submit your plans for plan check. Send the floor plan, equipment list and menu. The reviewer checks sinks, handwashing stations, equipment placement, refrigeration, and whether any menu item needs a special process plan. Plan check is billed separately from the permit fee.
2. Revise and build to the approved plan. If the reviewer requests changes, make them on paper before you build. Changing a finished kitchen costs more than changing a drawing.
3. Pass the pre-opening inspection. The inspector compares the finished space to the approved plan. Do not serve food to the public until the permit is issued.
4. Pay the annual permit fee. Counties price permits by seats, employee count or preparation complexity.

The 2026 to 2027 Los Angeles County schedule for restaurants is below. The plan check fee for a restaurant of 0 to 500 square feet is $1,044.

Seating	Low risk	Moderate	High
0 to 30 seats	$319	$719	$1,206
31 to 60 seats	$344	$762	$1,309
61 to 150 seats	$370	$838	$1,375
151 or more seats	$400	$932	$1,438

San Diego County sets an annual permit by employee count: $842 for 1 to 10 employees, $987 for 11 to 25, $1,170 for 26 to 100, and $2,087 for 101 or more. Orange County charges $482 for a minimal preparation restaurant with up to 60 seats. Complex preparation runs from $1,238 for 30 seats or fewer up to $2,043 for more than 200 seats. For any other county, check with that county's environmental health department for its current schedule.

Tip: Call the county before you sign a lease. The reviewer can tell you whether your concept, such as sushi, raw items or a commissary arrangement, needs extra approvals that change your equipment list.

Step 2: Decide on Alcohol and Apply Through ABC

The Department of Alcoholic Beverage Control (ABC) issues the state liquor license. Three license types cover most restaurants.

• Type 41 (beer and wine for an eating place): The annual fee is $565, with a $1,135 non-general application fee. ABC issues this license outside the drawing, so you can apply directly.
• Type 47 (on-sale general, beer, wine and spirits): A county quota allows one license for every 2,000 inhabitants. Type 47 licenses are issued only through ABC's annual priority drawing. The 2026 window ran from September 14 to 25, 2026. A drawing winner pays $19,840 plus the first annual fee. The 2026 annual fee is $1,545 in a city over 40,000, $1,260 in a city of 20,000 to 40,000, and $985 in a smaller city or unincorporated area.
• Type 75 (brewpub): This license fits a restaurant that brews its own beer on site.

ABC fees rose 2.72% on January 1, 2026, and are scheduled to rise 3.31% on January 1, 2027. Confirm the current amounts on ABC's fee schedule before you file.

Licenses held by existing businesses sometimes change hands privately. Prices in that secondary market are negotiated between the parties, and this guide does not quote them. Have a licensing specialist or attorney review any transfer, including the conditions of the license and any local protest period.

Two more rules apply once you hold an alcohol license. Servers and managers need Responsible Beverage Service certification. Eating places with the right license type, such as Types 41, 47 or 75, may sell to-go cocktails through December 31, 2029 under AB 2663 and Business and Professions Code 23401.5. Confirm the conditions with ABC before you build a takeout program around them.

Common mistake: Planning a Type 47 opening date. Because the license comes through the drawing, you may not be able to open with full liquor service on your planned date. Build a beer and wine menu as your first phase if you can.

Step 3: Clear the City Approvals

Building, fire and zoning approvals come from your city, and each runs separately from the health permit. Their fees vary by jurisdiction, so ask the city planning and building departments for their current schedules. Expect the city to review your floor plan for occupancy limits, exits, grease handling, and signage.

California has no general statewide business license. The Secretary of State issues none, and the CDTFA seller's permit is not a business license. Most of California's 483 cities charge a local business tax or registration certificate, and 445 of them report revenue from one. There is no common formula, so the amount depends on the city. Counties license only regulated activities. Ask the city clerk or finance department what applies to your address.

If you hire contractors for buildout, check their licenses with the Contractors State License Board. Work of $1,000 or more in labor and materials generally requires a licensed contractor, so confirm the current threshold with the board.

Step 4: Meet the Staffing Requirements

Staff rules are where many first-time owners get caught off guard. Build them into your opening plan.

• Food handler cards: Food handlers must get a card within 30 days of hire. The employer pays for the course and for the paid time to take it (Health and Safety Code 113948).
• Certified food safety manager: A food facility that handles nonprepackaged potentially hazardous food needs one certified food safety manager under Health and Safety Code 113947.1. That person does not need to be present every hour, but cannot serve as the certified person at another facility.
• Employer registration: Once you have employees, register with the Employment Development Department (EDD).
• State minimum wage: The state minimum wage is $16.90 per hour in 2026. It is reported to rise to $17.40 on January 1, 2027, so verify that figure with the Department of Industrial Relations before you set wages.
• Fast food minimum wage: The $20 minimum under Labor Code 1474 applies only to limited-service restaurants that are part of a national chain of more than 60 establishments. An independent restaurant is not covered. Check with the Department of Industrial Relations for any change.

Common mistake: Assuming the fast food wage rule covers every restaurant. Only the chain restaurants described in Labor Code 1474 are covered, and independent owners should not price their labor around that $20 figure.

Step 5: Set Your Pricing and Sales Tax

Meals served on or off the premises are taxable under Revenue and Taxation Code 6359(d). The statewide base sales tax rate is 7.25%, and district taxes push city rates from 7.25% to 11.75%. On the CDTFA's October 2026 table, Los Angeles is 10.25% and San Francisco is 8.625%. Confirm the rate for your address before you set your point-of-sale system.

Apply for a seller's permit through CDTFA at the CDTFA sales and use tax page. The seller's permit is free. Use the CDTFA's general information at cdtfa.ca.gov to learn how to report and remit tax.

Under Civil Code 1770(a)(29), an advertised price must include all mandatory fees other than government taxes and actual shipping. If you add a mandatory service charge to party or banquet menus, it belongs in the advertised price. Do not list a lower price and add the charge at checkout.

Register Your Business Entity Alongside These Steps

Your entity and name filings run in parallel with the permits above. Most restaurant owners form an LLC, so the figures below assume one.

• Articles of Organization (Form LLC-1): The filing fee is $70. Online filings are normally processed within about 5 business days or less. Expedite options are $350 for 24-hour, $750 for same-day (received by 9:30 a.m.), and $500 for 4-hour drop-off with precheck. File through bizfile Online.
• Name reservation: A name can be reserved for $10 for 60 days, not renewable for consecutive periods. Check availability at the Secretary of State name availability page. An LLC name must include Limited Liability Company, L.L.C. or LLC, and cannot include words such as bank, trust or corporation.
• Statement of Information (Form LLC-12): The fee is $20. File it within 90 days of forming the LLC, then every two years during the six-month window ending on the last day of the anniversary month. The Franchise Tax Board assesses a $250 penalty if you miss it after a Secretary of State notice.
• Franchise tax: An LLC organized or registered in California from 2024 through 2026 owes the $800 minimum annual franchise tax from its first year. An LLC whose first taxable year begins in 2027, 2028 or 2029 pays $400 in year one under RTC 17941(g)(2), so confirm the first-year amount with the Franchise Tax Board. The LLC fee is $900, $2,500, $6,000 or $11,790 once California-source total income reaches $250,000, $500,000, $1,000,000 or $5,000,000.
• Registered agent: You must keep an agent for service of process. That agent must be an individual who lives in California or a corporation with a Corporations Code 1505 certificate. The LLC must also keep an office in California.
• Fictitious business name: If you operate under a name other than your legal name, file a Fictitious Business Name Statement with the county clerk-recorder within 40 days of starting. Publish it in a newspaper once a week for four weeks, and renew it after five years. The statutory filing fee is $10 plus $2 per additional name or owner, but counties charge more. Publication is a separate cost.

California does not allow a domestic series LLC. If you want a corporation instead, the Articles of Incorporation fee is $100 and the Statement of Information (Form SI-550) is $25 every year. Business programs information is at the Secretary of State's Business Programs Division.

Expected Results

A clean inspection and a complete set of permits can help you open on schedule and avoid enforcement problems. A written food safety plan and trained staff may help you protect guests and keep your kitchen consistent. These steps do not guarantee any sales, profit or inspection score, and this guide cannot promise specific business outcomes.

Common Mistakes to Avoid

• Signing a lease before checking zoning and plan check requirements. A site that cannot pass plan check costs you rent while you wait.
• Serving food before the pre-opening inspection. Your permit is not valid until the inspection is complete.
• Treating the alcohol license as a formality. Type 47 depends on the drawing, and the timeline can stretch past your plans.
• Skipping the city business tax question. Many cities charge one, and it is due even if your state filings are complete.
• Missing staff training deadlines. Food handler cards are due within 30 days of hire, and your certified food safety manager must be designated in advance.
• Forgetting the Statement of Information. A missed filing leads to a $250 penalty and can complicate your bank and tax records.

Get free help: The California Small Business Development Center network offers free advising on business planning, financing and licensing questions. For legal structure, lease terms and alcohol license transfers, consult an attorney. For sales tax, payroll and franchise tax planning, consult a CPA.

Disclaimer: This article is informational content, not legal or tax advice. Verify every fee, threshold and deadline with the agency named before you act.