Licenses Required to Start a Bakery

While it may be fun planning menus and browsing bakery packaging suppliers, you have to cover your bases for getting all the licenses and permits required to run your bakery. This means you'll need an assortment of documents from both your city and state governments.

City Requirements
Check with City Hall about what's needed to get a basic business license, then asking about zoning requirements for your location. You may also have to get permits for a sign, for parking, or for putting even one small table out on the sidewalk. Also be sure you are cleared at the city level to buy wholesale. Finally, as you are preparing and selling food, you will have to pass the battery of requirements before you get your Food Permit.



Oh yes, and as you will be hiring employees, check and see if anything is required from you as a business owner at the city level. Usually this is the dominion of the state, but very large cities, like New York, LA and Chicago may have complex and demanding requirements.

You may also be required to get a fire permit and inspection, which should be part of your building inspection but in some cities it is not. The building and construction inspection is sometimes done hand in hand with the inspection done to get a Health Department License, but not always. Getting a Health Department License can be a fairly long and arduous process. I've heard some cafe owners say they had no problems whatsoever when they set up shop in a major city, but when they moved to a tiny little town to open a tiny little bakery, they stepped into a nightmare process to get their Health Department License. Try to be as polite and professional as you can, no matter how the inspector acts.

Many of the larger cities also have agents who come to do spot checks for everything from food inspections and liquor licenses to where you are putting that one tiny table on to sidewalk; the same one you fought and begged and pleaded with the city to give you for months. These checks happen most often to new food service businesses, so you need to make sure you can actually follow and maintain whatever terms you agree to in order to get your various permits and licenses.

Also expect to spend a day or so learning the ins and outs about your city sales tax, including when and how to pay it, getting your sales tax number, and possibly setting up an escrow account and funding it so the city feels confident they've got at least some tax money out of you already.

State Requirements
The first step is to get the basic licenses and permits required to operate any business in your state. This typicall means getting just a business license, but you may also have to get registered with the state tax office for certain kinds of special taxes like Gross Receipts or other requirements. Start by Googling your state's business development or Taxation and Revenue office.

The next licenses and permits you'll want are wholesaler permits. You want to be able to buy from the large wholesale-only bakery equipment supplies, and they require state-issued permits for this. You'll also want to be able to sell standard retail items, like Italian cookies, say, or high-end baking supplies. This requires a tax permit so the state can get their slice of the sale.

Federal Requirements
You'll need an Employer's Identification Number, or EIN. This is easy to get online and can be done in ten minutes or less. If possible, you may actually want to try to get this "license" first, because many state business permit forms ask for an EIN.





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