If you’re thinking about launching a catering company, the industry outlook is positive. Over the next several years, the catering market is projected to grow by roughly 7.7% annually—far surpassing the average growth rate of just 0.4% across all industries.
But before you can bring your signature dishes to weddings, celebrations, corporate gatherings, or private events, you must secure the correct permits and ensure you have an approved kitchen to prepare food. Licenses such as a general business permit and health department authorization are required to legally operate.
Although exact rules differ from one state to another, this guide breaks down the core credentials nearly all catering companies need. It also explains what can happen if you choose to operate without these approvals and offers guidance on how to launch your business efficiently and affordably.
What documentation do you need to start a catering company?
As clarified by a veteran restaurant marketing expert, Joshua Wood of CJ Digital, every state—and sometimes each city or county—has its own naming conventions and processes for issuing food-service permits. However, most caterers throughout the U.S. must obtain the following three foundational documents before working their first event:
1. A Business License
Because catering is not federally regulated, business licenses are issued at the state or local level rather than through a national agency.
Take California as an example: the state delegates all business licensing to local municipalities, meaning you’ll apply directly through your city or county office. Fees typically range from around $15 to several hundred dollars, and renewal schedules vary but are often annual or bi-annual.
A business license matters because:
- It ensures you’re properly registered to pay taxes within your jurisdiction.
- Operating without one can result in fines and legal penalties.
- It establishes legitimacy for your company, especially when you’re new to the industry.
How to Obtain: Verify local zoning rules, then contact the appropriate licensing agency in your area.
Cost: Usually between $15 and a few hundred dollars depending on your location.
Renewal: Typically yearly, but varies by district.
2. Health Department Clearance
Catering companies must follow the same food-safety rules as physical restaurants. Because there is no federal food permit for local food establishments, you must work directly with your local health department to secure approval.
For example, in California, counties issue Public Health Permits. You must schedule an inspection, during which a health inspector will evaluate your kitchen setup and ensure you meet required safety standards.
During the inspection, they’ll check that:
- Handwashing sinks are available and being used properly
- Employees are healthy and trained in safe food-handling practices
- Food is stored at safe hot and cold temperatures
- Counters, prep areas, and surfaces are clean
- All other hygiene and sanitation rules are being followed
If your facility meets the requirements, you’ll receive or renew your permit. If not, inspectors will usually allow on-the-spot corrections when possible or temporarily shut down the operation until issues are resolved, with a follow-up visit scheduled within about 14 days.
Health departments may inspect your kitchen:
- Before you open
- When a complaint is filed
- Up to three times per year if you prepare higher-risk items (like raw meat)
Following food-safety laws is essential. Serving unsafe food could seriously harm customers, damage your reputation, and even lead to permanent closure.
How to Obtain: Contact your state or local health department; requirements vary by region.
Cost: Varies by state or county.
Renewal: Usually annual, though timelines differ between jurisdictions.
3. A Liquor License
Not every caterer will need this permit, but if alcohol service will be part of your offerings, you must obtain the proper authorization.
Unlike general business and health permits, alcohol regulation does involve the federal government. You’ll need to apply through the Alcohol and Tobacco Tax and Trade Bureau (TTB). The application is free and can be completed online, and the federal license typically remains active for the lifetime of your business.
However, nearly every state and county also imposes additional liquor laws. You may need separate state and local permits before you can legally sell or serve alcohol at events.
Skipping this step can be extremely costly. Federal fines for noncompliance can reach up to $100,000 annually. State and local penalties vary but can significantly cut into profits.
How to Obtain: Apply through the TTB and check state-specific alcohol regulations.
Cost: No federal fee, though local permits may cost several hundred dollars.
Renewal: Federal licenses never expire; local renewals vary by jurisdiction.
4. Buffet or Restaurant Food Service Permit
There is no nationwide law governing catering, restaurant operations, or buffet-style service. Instead, each state creates its own rules, which often require an additional food-service permit separate from the standard food handler certification.
Depending on your location, this could be a general “Restaurant Food Service License” or a specific authorization for catered or buffet events.
These licenses are often tied to the health permit system or local zoning regulations. The FDA’s Retail Food Protection guidelines can also help clarify what your state requires.
How to Obtain: Often linked to your health permit; also check FDA and state regulations.
Cost: Varies widely by state and municipality.
Renewal: Typically valid for one year.
5. Food Handler’s Permit
A Food Handler’s Permit (or Food Handler Card) applies to individuals, not businesses. Anyone working in your catering operation who handles, prepares, or serves food must have this certification.
This credential ensures that employees understand sanitation standards and know how to prevent foodborne illness. Requirements differ depending on the city or state.
Examples of regional food-handler regulations include:
- Food Handlers Card in Los Angeles
- Food Handler’s Permit in NYC
- Food Handlers License in Kansas City
How to Obtain: Determined locally by each city or state.
Cost: Typically ranges from $15 to $50.
Renewal: Usually valid for 1–5 years; renew at least 30 days before expiration.
6. Employer Identification Number (EIN)
An Employer Identification Number is a nine-digit tax ID issued by the IRS, used to identify your catering business for federal tax purposes.
Having an EIN allows you to:
- Pay federal taxes correctly
- Set up business bank accounts
- Apply for permits
- Hire employees legally
How to Obtain: Apply through the IRS EIN Assistant.
Cost: Free.
Renewal: It does not expire.
What are the consequences of not obtaining these licenses?
Penalties depend on the specific violation and your jurisdiction, but the repercussions can be serious. For example, early in 2024, a South Carolina man was arrested and charged with ten counts of operating a retail business without a license after failing to secure proper documentation for his restaurant.
Ultimately, staying compliant with licensing and permitting laws is crucial for protecting both your customers and your company. Proper documentation helps ensure your catering business can operate safely, legally, and successfully for years to come.