Coffee Shop / Cafe Permits & Licenses in San Francisco, California

Required for all LLCs to form the entity. Statement of Information (Form LLC-12) due within 90 days of formation ($20 fee, biennial renewal $20).

Applies to all California LLCs.

Required for retail sales of food/beverages; security deposit may be required based on estimated tax liability.

Registers for state payroll taxes (UI, ETT, SDI). Applies if paying wages over $100/quarter.

Administered locally by county health departments under state law (CA Retail Food Code). State sets standards; local fees apply.

File with county where principal place of business is located, then publish in adjudicated newspaper for 4 weeks. State provides guidance.

Required for dealers selling CRV beverages (e.g., soda, water, some coffee drinks in bottles/cans).

Required for all businesses selling taxable goods in California. Coffee shops must collect and remit sales tax on food, beverages, and retail items. Effective rate varies by jurisdiction (7.25% minimum).

All California LLCs must register with FTB regardless of tax classification. LLCs are subject to the $800 annual minimum franchise tax (see separate entry).

Required for all employers in California. Employers must withhold state income tax from employee wages and file Form DE 9, DE 9C, and DE 9C (Schedule B).

UI tax applies to first $7,000 in wages per employee annually. Rate varies from 1.5% to 6.2% based on experience rating. New employers pay 3.4%.

All LLCs doing business in California must pay $800 annual franchise tax, even if no income is earned. Applies regardless of business type.

Many California cities (e.g., Los Angeles, San Francisco, San Diego) impose a business tax based on gross receipts. Must register with city finance department. Example: Los Angeles Business Tax Registration Fee is $100–$400 depending on revenue.

Coffee shops must collect state and local sales tax on all taxable sales. CDTFA assigns filing frequency based on average monthly tax liability. Filing via Form CDTFA-101.

Even single-member LLCs often obtain EIN for banking and compliance. Required for all employers and multi-member LLCs.

Applies to net income from the coffee shop if owner is actively involved. Must file Schedule SE with Form 1040.

Due dates may shift slightly if they fall on weekends. Single-member LLCs report on Schedule C; multi-member on Form 1065.

Single-member LLCs are disregarded entities; income reported on owner’s Form 1040. Multi-member LLCs file Form 1065; corporations file Form 1120.

Employers must withhold State Disability Insurance (SDI) from employee wages. Paid via Form DE 9C. Also funds Paid Family Leave (PFL).

Required for all cafes, coffee shops, and food service businesses. Inspection may include equipment, storage, sanitation, and employee hygiene practices. Must be renewed annually.

At least one employee must obtain a state-approved food handler card. Valid for 3 years. Renewal required.

Required for all businesses per LA Municipal Code Sec. 21.03. Coffee shops classified under Retail Food.

Verifies use complies with zoning district (e.g., C-2 allows cafes). LA Zoning Code Sec. 12.04.

Required for all cafes per CA Retail Food Code + local ordinance. Includes food handler cards.

Covers sprinklers, exits, extinguishers per LA Fire Code (CBC/2019).

LA Municipal Code Sec. 91.0103. Required for cafe build-outs.

LA Zoning Code Sec. 12.21-A.8 limits size/illumination.

Required for all employers in California with at least one employee, including part-time and family members. Sole proprietors without employees are exempt but may elect coverage. Enforced under Labor Code § 3700. Required regardless of business structure (LLC included).

While not mandated by California law, general liability insurance is strongly recommended and frequently required by commercial leases, third-party contracts, or local jurisdictions for health and safety compliance. SBA and CalOSHA recommend it for risk mitigation.

Not legally required in California for coffee shops. However, may be advisable if offering consulting services (e.g., catering planning). Not typically needed for standard retail operations.

Only applies if the coffee shop sells travel packages (e.g., tourism bundles). Most cafes are exempt. Bond amount: $50,000. Enforced under California Corporations Code § 17550 et seq.

Required under California Vehicle Code § 16020 for any vehicle registered to or regularly used by the business. Minimum liability coverage: $15,000 bodily injury per person, $30,000 per accident, $5,000 property damage (15/30/5).

No California law mandates product liability insurance specifically. However, coffee shops selling food and beverages face significant risk of liability for contamination or injury. Strongly recommended. FDA and Cal/OSHA regulate food safety but do not require insurance.

Not directly mandated by ABC as a fixed-dollar policy, but ABC requires proof of financial responsibility (e.g., bond or insurance) for license issuance. Most insurers offer liquor liability as part of a package. Required indirectly through licensing conditions. Applies only if selling beer, wine, or spirits.

While not insurance per se, compliance with food safety regulations reduces need for high-cost liability claims. Local health departments enforce rules and may require proof of general liability in some jurisdictions. Mandatory food facility registration required under Health and Safety Code § 113700.

Not mandated by state law but required by most landlords, city permits, and vendors. Standard coverage: $1M per occurrence / $2M aggregate. Often bundled with property insurance.

Single-member LLCs without employees may use the owner's SSN, but obtaining an EIN is recommended for liability separation. EIN is required for opening a business bank account and hiring employees.

Single-member LLCs are taxed as disregarded entities unless electing otherwise. Multi-member LLCs are taxed as partnerships by default. LLC owners must pay self-employment tax (15.3%) on net earnings via Schedule SE.

Cafes must provide a safe workplace, including hazard communication training, accessible safety data sheets (SDS), emergency exits, and protection from slips, burns, and equipment hazards. Cafes using commercial fryers or gas appliances must follow specific safety protocols.

Cafes must ensure physical access (entrances, counters, restrooms), accessible seating, and communication for people with disabilities. Applies regardless of number of employees. Applies even to leased spaces—both landlord and tenant may share responsibility.

Required records include: Articles of Organization, Operating Agreement, tax returns, financial statements, contracts, and meeting minutes. IRS recommends 3–7 years for tax records.

Cafes must install and maintain grease traps or interceptors to prevent FOG (fats, oils, grease) from entering municipal sewer systems. Must comply with local POTW (Publicly Owned Treatment Works) requirements, which are federally regulated under the Clean Water Act.

Cafes must ensure all advertising (menu claims, promotions, social media) is truthful and not misleading. Examples: 'organic' claims must comply with USDA standards; 'locally sourced' must be substantiated. Applies to all U.S. businesses under Section 5 of the FTC Act.

Cafes must pay at least federal minimum wage ($7.25/hour), though California state law requires higher. Must pay overtime (1.5x regular rate) for hours over 40/week. Applies to tipped employees—employers may take a tip credit only if specific federal conditions are met (e.g., $2.13 minimum direct wage, tip credit notice).

All employers must verify identity and work authorization for every employee using Form I-9. Employers must retain Form I-9 for 3 years after hire or 1 year after termination, whichever is later. Applies to U.S. citizens and non-citizens alike.

Cafes with 50+ employees within 75 miles must provide eligible employees (12 months of service, 1,250 hours in past year) up to 12 weeks of unpaid, job-protected leave for qualifying medical/family reasons. Posting notice is required.

Cafes are considered food facilities under the FDA Food Safety Modernization Act (FSMA). Must register with FDA once and renew every 2 years. While full FSMA preventive controls may not apply to small retail food establishments, basic food safety practices (e.g., time/temperature control, hygiene) are still required under federal law.

Chain restaurants with 20+ locations must display calorie counts on menus and menu boards, provide additional nutrition information upon request, and include a statement about daily caloric intake. Does not apply to standalone cafes or small chains.

Cafes selling alcohol must obtain a Federal Basic Permit from TTB and pay the Special Occupational Tax (SOT). However, most on-premises retail sales are primarily regulated at the state level (California ABC). Federal registration is still required under 27 CFR Part 11.

Retailers must verify ID for customers under 27, post required signage, and not sell self-serve tobacco. Must comply with FDA rules under Family Smoking Prevention and Tobacco Control Act. Applies to all tobacco retailers.

Required for all LLCs registered in California. Due every 2 years after the initial filing year. Example: If formed in March 2023, next due March 2025, then March 2027, etc.

Seller's Permit does not expire but must be actively maintained. Business must notify CDTFA of changes in ownership, location, or business structure. Failure to renew after cancellation may result in penalties.

Frequency determined by CDTFA based on expected tax liability. Most small businesses file quarterly. Example: Q1 (Jan–Mar) return due April 30.

All LLCs doing business in California must pay $800 minimum franchise tax annually, regardless of income. First-year exemption may apply if no business activity and meets conditions.

A valid health permit must be displayed. Renewal often tied to inspection. Frequency of inspections depends on risk classification (e.g., high-risk = 3 times/year).

Includes review of fire extinguishers, hood suppression systems, exit signage, and storage. Frequency varies by municipality and occupancy risk.

Required posters include: Minimum Wage, Injury Reporting, Sexual Harassment Prevention, Paid Family Leave, and others. Must be visible to employees in English and other languages if needed.

Even one employee (including part-time) requires coverage. Sole proprietors without employees are exempt.

Form 5020 must be filed annually even if no employees during the year (mark 'zero premium').

Some cities (e.g., Los Angeles) require annual renewal by December 31. Others (e.g., San Diego) use anniversary dates. Must be renewed even if no business activity.

Single-member LLCs taxed as disregarded entities file on owner’s personal return (Schedule C). Multi-member LLCs default to partnership taxation.

Typically required near entrance or point of sale. Applies to both city business license and county health permit.