Compliance & Safety

Restaurant Permits & Licenses Needed: The Full List, Costs, and Order to Apply

August 24, 2026 · 14 min read

13

approvals a full-service restaurant needs, minimum

3-6

months from lease to all permits in hand

Add liquor, outdoor seating, valet, or live music and the count climbs to 17. The fees are the small part. The calendar is what costs money.

Who issues the 13 core approvals

1
4
8
1

Federal (1): EIN

State (4): Entity, sales tax, CFPM, food handler

County / City (8): Food license, CO, building, fire, sign, FOG, waste, business license

Private (1): Music (ASCAP/BMI/SESAC)

Typical timeline (26-week build-out)

Entity + tax
Wk 0-1
Build-out permits + plan review
Wk 1-8
Construction + inspections
Wk 6-20
CO, health, fire, liquor
Wk 16-26

Phases overlap on purpose. Chicago plan review alone runs 5 to 90 days depending on scope (Chicago Dept. of Buildings). Liquor adds 45 to 90 days in most states.

A full-service restaurant needs roughly a dozen separate approvals from four levels of government before the first ticket prints. Some are free and take five minutes (your EIN). Some cost thousands and take months (liquor, build-out permits). The expensive mistake is not the fees. It is applying in the wrong order, so a health inspector shows up before the fire marshal has signed off on the hood and you lose three weeks. This guide lists every permit a restaurant needs, who issues it, what it costs, how long it takes, and the sequence that avoids dead time. If you are still at the concept stage, start with how to start a restaurant and come back here once you have a lease in hand.

Permit vs. License vs. Certificate

Agencies use these words loosely, but the distinction matters because it tells you what can go wrong.

License

Permission for the business to operate. Tied to the entity and address. Renews on a cycle (annual, biennial). Examples: business license, retail food license, liquor license.

Permit

Permission for a specific activity or piece of work, usually with an inspection at the end. Examples: building permit, sign permit, hood suppression permit, sidewalk cafe permit.

Certificate

Proof that a person or building passed a test. Held by an individual (food manager) or the property (certificate of occupancy). Follows the person, not the business.

Why it matters: a license is usually withheld until every permit is closed and every certificate is on file. The health department will not issue your food service license until the building department has closed the building permit and issued the certificate of occupancy. That dependency chain is the whole reason the sequencing section below exists.

Master Table: All 17 Permits & Licenses

Thirteen apply to nearly every sit-down restaurant. The last four depend on your concept. Costs are ranges across U.S. jurisdictions, with the specific figures we could verify against official fee schedules called out in the notes. Where a fee is set by rule or by square footage, we say so rather than guess.

Permit / licenseWho issuesTypical costTimelineRenewal
Business entity registration (LLC/corp)State Secretary of State$50-$500 (IL: $150)Same day to 2 wksAnnual report (IL: $75/yr)
Employer Identification Number (EIN)

IRS issues it in the same online session. Never pay a third party for this.

IRS (federal)FreeMinutes, onlineNone
Sales tax permit / seller's permit

Illinois Certificate of Registration is free via MyTax Illinois, ~1-2 business days.

State Dept. of RevenueFree in most states; CT $100, WA $901-2 business days to 4 wksVaries; many none
General business license

Some cities (Chicago) fold this into the retail food license; Texas has no general state business license.

City or county$0-$5001 day to 4 wksAnnual or biennial
Food service establishment permit / retail food license

Chicago: $660-$1,650 by sq ft, 2-yr term (BACP). Austin: $309-$927 by sales tier + $178 pre-opening inspection (FY25-26 schedule). NYC: $280-$1,000 by seating.

Local or state health dept.$100-$1,6502-8 wks after passing inspectionAnnual or biennial
Certified Food Protection Manager (CFPM)

IL adds a $35 state fee, Chicago a $45 city certificate on top of the exam price.

ANAB-CFP accredited exam provider (ServSafe etc.) + state/city registrationServSafe $179 course + proctored exam, or $99 exam only; other ANAB-CFP accredited providers from $35 (Texas exam-only), ~$70 for a nationally portable proctored exam1 day to 2 wksEvery 5 yrs (Minnesota 3)
Food handler cards (each employee)

Illinois law requires at least one option at $15 or less; most run $7-$13. Texas cards run about $7.

ANAB-accredited online providers; state-approvedServSafe $15 per person; other ANAB-accredited providers from $71-2 hrs online3 yrs for ServSafe; 2 yrs in Texas and some other states
Building permit (kitchen build-out, plumbing, electrical, mechanical)

Chicago's plan-based permit minimum is $602 with a $600 deposit; the city's 2026 fee calculator prices the rest.

City building dept.$600 to $10,000+ (scales with scope)5-90 days plan reviewNone; expires if work stalls
Certificate of Occupancy (CO)

Chicago requires a CO for a change of occupancy (retail to restaurant) or >10,000 sq ft of work.

City building dept.$100-$500 or bundled in inspection fees2-4 wks after final inspectionNone unless occupancy changes
Fire dept. operational permit + hood suppression sign-offLocal fire marshal$50-$300 permit; $300-$500 per semiannual suppression inspection1-3 wksAnnual permit; NFPA 96 inspection every 6 months
Sign permitCity buildings/planning dept.$50-$500 (Chicago: $200 + $40/illuminated sign)2-6 wks (zoning review)Some cities annual inspection fee
Grease trap / FOG (fats, oils, grease) permit

Chicago/MWRD: clean at 25% capacity; fines start at $500 per violation.

Water/sewer utility or health dept.$0-$300 permit; $150-$600 per pump-outApproved with plumbing plansAnnual; pump logs on demand
Music licensing (ASCAP, BMI, SESAC)

Exempt under 17 U.S.C. 110(5) only if under 3,750 sq ft AND playing over-the-air radio/TV on home-style gear. Streaming services are not exempt.

Private performing-rights organizationsASCAP min $366-$502/yr (2026), BMI min $485/yr (2025), SESAC ~$580/yrSame weekAnnual
Waste / dumpster servicePrivate hauler; city permit only if on public way$100-$500/mo service; permit varies1 wkContract
Liquor licenseif applicable

Full breakdown in our liquor license guide.

State ABC + local authority$300-$14,000 state; Chicago $4,400/2 yrs45-90 days; 3-6 mo in NY/MA/NJAnnual or biennial
Outdoor seating / sidewalk cafe permitif applicableCity transportation or business dept.Chicago: from $150, sized by sq ft and land value4-8 wksSeasonal or multi-year (NYC: 4 yrs)
Valet parking permitif applicableCity business or transportation dept.Varies; often $100-$1,000 + operator license2-6 wksAnnual (Chicago: July 1)
Resale certificateif applicable

Lets you buy food and supplies from vendors without paying sales tax. Not a permit; a form you hand to suppliers.

State Dept. of Revenue (uses your sales tax number)FreeImmediateNone; some states require periodic refresh

Sources: City of Chicago BACP 2026 license fee schedule; City of Austin FY2025-26 food permit fee schedule (filed with Texas DSHS); Illinois Dept. of Revenue; IRS; Illinois Dept. of Public Health (CFPM and food handler rules); ASCAP 2026 rate schedules; BMI Eating & Drinking Establishments license; 17 U.S.C. 110(5). Everything else is a cross-jurisdiction range. Confirm with your own city before budgeting.

CFPM vs. food handler card: these are not interchangeable. Most health codes require one certified manager on duty per shift and a handler card for everyone else who touches food. Our ServSafe Manager vs. Food Handler comparison covers which staff need which.

Two items on this list deserve their own guides. Liquor is the most expensive and slowest single license, so read how to get a liquor license before you sign a lease in a quota state. And the fire marshal's sign-off hinges on the hood system; our fire suppression system guide explains what gets inspected and why hoods fail.

The Order to Apply: What Must Come Before What

The chain runs in one direction. Health will not license a kitchen without a certificate of occupancy. The building department will not issue a CO until the fire marshal has witnessed the hood suppression test. The fire marshal will not schedule that test until the mechanical permit is closed. Skip a link and the whole line waits.

1. Entity + EIN + sales taxWeek 0. Free to $150.2. Zoning verificationBefore you sign the lease3. Health dept. plan reviewKitchen layout, sinks, grease trap4. Building permitsPlumbing, electrical, mechanical, hood5. Sign permit + liquor filingRun in parallel with build-out6. Fire marshal: hood + suppressionAnsul test, extinguishers, exits7. Final building inspection + CONothing after this moves without it8. Health pre-opening inspectionCFPM cert + handler cards on file9. Food service license issuedThen liquor final, music, waste

Paperwork, no inspection

Plan review stage

Physical inspection

Open for business

Three sequencing rules that save weeks

  1. File the liquor application the same week you pull building permits.

    Liquor boards run their own clock (45 to 90 days in most states, longer in quota states). They do not care that your kitchen is not built. Start it early so it finishes near the CO, not three months after.

  2. Get the health department to review your plans before construction, not after.

    Most health departments offer plan review for new food establishments (Austin charges a $178 pre-opening inspection fee; many cities bundle it). A rejected three-compartment sink location costs $200 on paper and $4,000 once the plumber has already roughed it in. Pair this with our commercial kitchen layout guide.

  3. Book the fire marshal and the final building inspection as a pair.

    In most cities the CO will not issue until fire signs off. Ask the building inspector which fire items they need, then schedule the hood suppression test (with the Ansul contractor present) for the day before. Two visits in two days instead of two visits three weeks apart.

Worked Example: Chicago Cost Roll-Up

Chicago publishes most of its fees, which makes it a clean example. Assume a 3,200 sq ft full-service restaurant, 14 hourly staff, one certified manager, a lit flat sign, and a mid-scope kitchen remodel. City and state fees are from the 2026 BACP schedule and Illinois agencies; contractor line items (fire inspection, grease) are typical Chicago vendor rates.

Required, year one

$8,715

12 line items

With liquor + patio + live music

$14,035

15 line items

Share that is government fees

~58%

rest is contractors and PROs

Required for every Chicago restaurant
Illinois LLC filing

IL Secretary of State; $75 annual report after

$150
EIN

IRS, online

$0
Illinois Certificate of Registration (sales tax)

IDOR MyTax Illinois, 1-2 business days

$0
Retail Food Establishment license (2,501-4,500 sq ft)

BACP 2026 schedule, 2-year term

$1,110
Chicago Food Service Sanitation Certificate (1 manager)

Chicago Municipal Code 7-38-012; ANAB CFPM exam ~$100 separate

$45
CFPM exam + course (1 manager)

Illinois Extension course incl. exam; IDPH adds $35 for state FSSMC

$100
Illinois food handler training (14 staff x $10)

ANAB providers $7-$13; law caps one option at $15

$140
Building permit deposit + plan-based fee

$602 minimum; mid-scope restaurant remodel estimate via DOB 2026 calculator

$3,500
Business identification sign permit

$200 application + $40 illuminated flat-sign inspection (DPD)

$240
Fire suppression semiannual inspection (year 1, x2)

$300-$500 per NFPA 96 visit; contractor, not city

$800
Grease trap pump-outs (quarterly, x4)

$150-$600 each; MWRD requires logs

$1,200
Music licensing (ASCAP + BMI + SESAC minimums)

ASCAP ~$366-$502, BMI $485, SESAC ~$580

$1,430
Subtotal$8,715
Concept-dependent add-ons
Consumption on Premises - Incidental Activity liquor license

BACP, 2-year term, plus publication fee

$4,400
Sidewalk cafe permit (small footprint)

BACP minimum; scaled by sq ft and land value

$150+
Public Place of Amusement (live music)

BACP; $770-$13,200 by occupancy

$770+
Subtotal$5,320

Reading the number: under $9,000 in required permits for a mid-sized Chicago restaurant sounds small next to a build-out. It is. The permits themselves are rarely what breaks a budget. What breaks it is the 4 to 12 weeks of rent paid while waiting on plan review and the CO. Put both the fees and the carrying cost into your startup cost model and the business plan you show the bank.

Not in this roll-up: the building permit line is an estimate, not a published flat fee; Chicago prices plan-based permits by construction type, occupancy, and square footage through its online calculator. Chicago also does not issue a separate general business license for restaurants; the Retail Food Establishment license is the business license. Every city is different. Austin, for example, charges $309 to $927 a year by sales volume plus a $178 pre-opening inspection, and Texas has no state LLC annual report fee but a $300 filing fee.

The 5 Permits That Delay Openings Most

Every one of these sits on the critical path. Ranked by how many weeks they typically add when they go wrong.

Do the math on delay before you do the math on fees. A four-week slip on a space with $15,000 a month in rent and pre-opening payroll costs more than every permit in the Chicago roll-up combined.

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