While starting your new restaurant venture, it is important for you to compile all the important documents. Documentation is required for getting the proper federal and state permits and identification numbers, and licenses. These are a fundamental part of the process that will help you prevent tax penalties and hefty fines. Proper documentation will help you even cease and desist orders to close the business. You should do some research in order to find out what documents are exactly required for your restaurant business since different states will call for different documents based on their native laws. Moreover, the documentation process will also vary depending on the size and concept of your restaurant.
Here are a list of some documents that you will require for your restaurant business.
Business Entity Registration
To get your restaurant business registered is one of the primary tasks that you must accomplish. You can find various ways to register your food business. However, you should note that different ways for registration comes with different liabilities and tax advantages and disadvantages. Seek help from a tax consultant before starting your restaurant business to guide you make use of the best registration process. For business registration, you need to file a business registration application with the secretary of state or county registrar.
Tax Identification Number
Social Security Number or SSN is used by Sole proprietorship restaurants and partnerships as the tax identification number for their business entities On the other hand, corporations and limited liability businesses have a federal tax identification number which you can achieve by filing an SS-4 Form with the IRS. In some states like Texas, you need to pay tax under the federal employer identification number filed with the Texas Secretary of State.
Permits and Licensure
You will require various permits for your food business. If you are serving liquor, then you will require some additional permits. It is to be mentioned that you should have an established business entity along with tax identification number for obtaining the permits. You can search on the internet for knowing the various permits that you will require for your location.
You should note that you will require all the proper licenses for conducting your food business. Depending on the laws of your state, you will require different licenses. You need to contact the secretary of state to know about the licenses that you will require for your restaurant business. Filing all the documents will help you run your food business in a streamlined manner.
Robin Clark holds advanced degrees in financial management and corporate finance. He is very well-versed with the nuances of modern day business financing including SBA restaurant loans. He holds immense expertise in writing articles and blogs on restaurant business loans.