How to open a restaurant or café in the City of Los Angeles
Seven stages from idea to opening day, in the order most owners work through them, with links to the agencies involved.
Concept and numbers
Test the idea and the budget before you commit.
Draft your startup budget and break-even
Use your own numbers to see how much you need and what sales cover your costs. Revisit it as quotes come in.
Check that your name is available
Search California business name records and the free federal trademark search before you print signs. This is research, not legal clearance.
Ask LADBS for a free case manager
The Restaurant & Small Business Express Program assigns a case manager who coordinates agencies from design through permits, construction and your certificate of occupancy.
Business setup
Register the business and its taxes.
If you’re forming an LLC or corporation, register with the state
LLCs and corporations register with the California Secretary of State through bizfile Online.
If you’ll use a fictitious name, file and publish it
If your business name doesn’t include your surname, file a Fictitious Business Name statement with the county clerk and publish it within 30 days for four consecutive weeks. It lasts five years.
Get a federal EIN if you need one
An EIN is needed if you hire employees or operate as a corporation or partnership. It is free from the IRS; be wary of sites that charge for one.
Get a seller’s permit
Businesses selling items ordinarily subject to sales tax need a free seller’s permit from CDTFA. A security deposit may be required.
Register for a City Business Tax Registration Certificate
Everyone doing business in the City of Los Angeles needs a Business Tax Registration Certificate. Register online and you get a temporary certificate right away.
Your site
Find a space where a restaurant is allowed, and check its prior use.
Check zoning and the space’s prior use
Look up the zoning in ZIMAS and check the certificate of occupancy for the prior use. If the space was a store or office, you’ll need a change of use permit from LADBS. Confirm parking requirements too.
Review your lease before you sign
Confirm the lease allows a restaurant and check who pays for build-out and upgrades. Consider having a lawyer review it; OpeningIQ can’t give legal advice.
Plan for accessibility
Businesses open to the public must follow the ADA. New construction and alterations must be accessible, and barriers in existing spaces must be removed where that’s readily achievable. Small businesses may qualify for a tax credit.
Plans, permits and build-out
Get the approvals to build out and prepare the space.
Submit plans to County Environmental Health
For new construction or a major renovation, submit plans to the County’s Environmental Health Plan Check Program as well as to LADBS. Construction can begin after both approve.
Get LADBS building permits
Submit plans for building, electrical and plumbing work to LADBS, including a change of use permit if needed. LADBS lists the sign-offs you need from other departments on a clearance worksheet.
Clear LAFD fire and life safety review
LAFD plan-checks and inspects new construction and remodels for fire and life safety as part of the building permit.
Get LA Sanitation’s grease clearance
Restaurants that generate fats, oils and grease need LA Sanitation’s food service establishment clearance before LADBS finalizes the building permit or certificate of occupancy.
Get final sign-offs and your certificate of occupancy
After final inspections and department clearances, LADBS issues the certificate of occupancy. Your case manager can help schedule inspections and close out the permit.
If you want outdoor dining, apply to L.A. Al Fresco
Sidewalk and on-street dining are permitted as revocable permits through the Bureau of Engineering, working with LADOT.
Licenses
Get the licenses that let you open.
Get food safety certifications
At least one owner or employee must hold a Certified Food Protection Manager certificate, and every food employee needs a California Food Handler Card within 30 days of hire.
Get your County public health permit
After Environmental Health’s final inspection, pay the permit fees and your public health permit is issued.
Get City approval to sell alcohol
Selling alcohol in LA needs City Planning approval: a conditional use permit, or the faster Restaurant Beverage Program for eligible sit-down restaurants in eligible areas.
Apply for a California ABC license
Post the public notice at the premises for 30 days. Most investigations take about 55–65 days. Beer and wine licenses aren’t capped, while general licenses are limited by county population.
Register with TTB before you sell alcohol
Businesses that sell alcohol must register with the federal Alcohol and Tobacco Tax and Trade Bureau before they start, for each location, and keep records of the alcohol they buy.
Get ready to open
Cover people, insurance and suppliers.
If you’ll hire, register with EDD
Register as an employer within 15 days of paying more than $100 in wages in a calendar quarter.
If you’ll hire, set up federal payroll taxes
Withhold federal income tax using each employee’s Form W-4, pay Social Security and Medicare taxes, and pay federal unemployment (FUTA) tax, which isn’t withheld from pay.
Complete Form I-9 for every hire
Employers verify each new employee’s identity and authorization to work on Form I-9 and keep it on file.
Report new hires to your state
Report each new employee to your state’s new hire directory within 20 days of hiring; some states require it sooner.
Put up required workplace posters
Which federal posters you need depends on the laws that cover you; the Labor Department’s free Poster Advisor tells you. States have their own posters too.
Get workers’ compensation insurance
California employers with one or more employees must have workers’ compensation insurance.
Follow LA’s minimum wage and sick leave rules
Employers must pay the City of Los Angeles minimum wage for work done in the city and provide paid sick leave.
Arrange business insurance
Ask an insurance broker what coverage your lease, lender and licenses call for. This is an OpeningIQ suggestion, not an agency requirement.
Line up equipment, POS and food suppliers
Get quotes early and compare delivery, payment and support terms. Your budget should guide the choices.
Check every approval is in hand
Gather your public health permit, business tax certificate, seller’s permit, certificate of occupancy and food safety certificates in one place, and confirm each matches your address and business name.
Open and stay current
Keep licenses, permits and filings current.
Keep permits and registrations current
Keep your public health permit, business tax registration and seller’s permit current, and expect routine health inspections.
Track these steps in a free private plan
Save your progress, notes and target dates, and see your next step at a glance. Your plan stays private and is never shared with suppliers.