Restaurant Permits & Licenses in San Jose, California

Required for all LLCs; initial filing due upon formation

Required for all retailers selling tangible goods including prepared food for consumption off-premises

Required if paying wages over $100/quarter or have employees

Issued by local county health dept per state law (H&SC §110000 et seq.); plan check required pre-opening

Filed in every county where business operates; publish in newspaper

Fees as of 2024; application process 3-6 months; background checks required

Administered locally per CA Health & Safety Code §113700+; includes plan review ($500+)

CFPM must be onsite during operations; ANSI-accredited programs

Hot prepared food sold by restaurants is subject to California sales tax. Cold food is generally exempt unless sold with eating utensils. Registration is mandatory for all restaurants selling taxable items. File via CDTFA Form CDTFA-230.

Employers must register for Personal Income Tax (PIT) withholding using Form DE 4 with the Employment Development Department (EDD). This is required for all employers in California. See also EDD Form DE 1 for employer registration.

All employers must register with EDD using Form DE 1. UI tax rate varies by experience rating; new employers pay 3.4% on first $7,000 per employee annually (2024 rate).

All LLCs doing business in California must pay an $800 annual franchise tax regardless of income. Additional LLC fee based on gross revenue applies starting 2024: $900 if > $250K, $2,500 if > $500K, $6,000 if > $1M, $11,790 if > $5M. Due with Form 568.

Most California cities require a business tax certificate or business license. Fees and requirements vary. Example: City of San Mateo at https://www.smgov.net/Departments/Finance/Content.aspx?id=2857. Must be renewed annually.

Restaurants selling alcohol must register for alcoholic beverage tax with CDTFA. Tax is 20% of wholesale price for beer, wine, and spirits. Requires separate reporting from sales tax. See CDTFA Form CDTFA-230.

Los Angeles County imposes a 0.5% tax on gross receipts from restaurant meals. Other jurisdictions may have similar taxes. Not statewide. Must register with county tax collector. See LA County Auditor-Controller: https://lavote.net/documents/auditor/restaurant-meal-tax-faq.pdf

Effective June 1, 2024, under SB 270 and AB 1881. Applies to all food facilities providing single-use foodware. Report and pay via CDTFA Form CDTFA-289. Exemptions for certain nonprofit and government entities.

Required by the California Retail Food Code. Inspection may be required prior to issuance. Must be renewed yearly. See local health department for application process.

Required for all retail food sales, including restaurants. Apply online via CDTFA portal.

Issued by local county/city health dept (e.g., LA County Public Health). State law mandates it; local enforcement. Plan check required for new/remodeled facilities.

Required under Uniform Retail Food Facilities Law. Submit plans to local health dept for approval.

Required for all employers in California with at least one employee, regardless of business structure. Sole proprietors are not automatically exempt if they hire others. Coverage must be obtained from a licensed insurer or through the State Compensation Insurance Fund (State Fund).

Not universally mandated by California state law, but many cities and counties require proof of general liability insurance as part of business licensing. Also commonly required by commercial landlords. Strongly recommended due to risks of customer injury or property damage.

Required under California Vehicle Code §16020 for all vehicles operated by a business. Applies even if the vehicle is used for food delivery. Minimum liability coverage: $15,000 per person/$30,000 per accident for bodily injury, $5,000 for property damage. Higher limits recommended.

While not always listed as a direct monetary penalty, the ABC strongly requires proof of liquor liability insurance (also called dram shop insurance) for license approval. Coverage typically starts at $1 million per incident. Required due to liability risks associated with overserving patrons.

A surety bond of $10,000–$40,000 (depending on license type) is required for most ABC license applicants. The bond ensures compliance with California’s Alcoholic Beverage Control Act. Issued by a licensed surety company and filed with the ABC.

Required for all LLCs, especially those with employees or that file employment, excise, or alcohol taxes. Even single-member LLCs without employees may need an EIN if they are taxed as a corporation or have certain types of tax obligations.

LLCs are pass-through entities by default. Profits/losses flow to owner’s personal tax return. Single-member LLCs report on Schedule C; multi-member on Form 1065 (partnership). Self-employment tax (15.3%) applies to net earnings.

Applies to all employers with employees. Requires safe working conditions, hazard communication (e.g., chemical safety), injury and illness recordkeeping (Form 300/301 if 11+ employees), and employee training. Restaurants must comply with fire safety, slip-resistant flooring, and safe handling of hot equipment.

Applies to all restaurants open to the public. Requires accessible entrances, restrooms, seating, and menus. Includes Title III of ADA. New construction or alterations must meet ADA Standards for Accessible Design. Applies regardless of number of employees or size.

Restaurants must comply with Clean Water Act. Grease traps must be installed and maintained to prevent blockages and pollution. Discharge of fats, oils, and grease (FOG) into sewers is regulated. Some cities have local FOG programs, but federal law authorizes enforcement.

Applies to all businesses. Prohibits deceptive or misleading advertising (e.g., false claims about food sourcing, prices, or health benefits). Requires clear disclosure of material information (e.g., “prices exclude tax,” “buffet not available on holidays”). Applies to websites, social media, and menus.

Requires payment of federal minimum wage ($7.25/hour, though California state law sets higher rate), overtime (1.5x regular rate for hours over 40/week), and proper recordkeeping. Applies to tipped employees (employers may take a tip credit only if state law allows and conditions are met). Note: California does not allow federal tip credit; full minimum wage must be paid regardless of tips.

Requires eligible employees (12 months with employer, 1,250 hours in past year) to be granted up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Posting notice and recordkeeping required. Most small restaurants do not meet threshold.

All U.S. employers must complete Form I-9 to verify identity and work authorization. E-Verify is not federally required for restaurants unless contracting with federal government or in states with mandates (California does not require E-Verify for restaurants).

FDA issues the Food Code as guidance, but it is adopted and enforced by state and local health departments. Federal role is advisory. Covers food handling, storage, labeling, allergen control, and employee hygiene. Required for all restaurants. California adopts FDA Food Code via California Retail Food Code (Cal. Code Regs. Tit. 22).

Federal Basic Permit required under 27 CFR Part 16 for businesses manufacturing, importing, or selling alcohol. Restaurants selling beer, wine, or spirits must obtain TTB Basic Permit in addition to California ABC license. Applies even if only selling alcohol.

Requires employers to report allocated tips and reconcile with employee-reported tips. Applies to restaurants with counter service or table service where tipping is customary. Must file even if no tip allocation occurred.

All California LLCs must file a Statement of Information (Form LLC-12) every 2 years. The first filing is due within 90 days of formation, then every 2 years thereafter. Example: If formed in March 2023, first filing due by June 30, 2023; next due by June 30, 2025.

Restaurants must obtain and renew a general business license from the city or county where located. Renewal dates vary; contact local clerk’s office. Example: Los Angeles requires annual renewal with the Office of Finance.

Required for all businesses selling taxable goods. No expiration, but must be maintained active. Must report changes within 20 days. Applies to all restaurants selling food for consumption.

Frequency based on tax liability. Most restaurants file quarterly. Example: Q1 (Jan–Mar) return due April 30. Form CDTFA-601.

Employers must file quarterly (Form 941) by the last day of the month following the quarter (e.g., Q1 due April 30). Form 940 (Federal Unemployment Tax) due January 31. Form W-2/W-3 due January 31.

LLCs taxed as sole proprietorships/partnerships must make estimated payments using Form 1040-ES. Corporations use Form 1120-W.

Applies to pass-through entities (LLCs taxed as partnerships) and individuals. Use Form 540-ES or 568-ES depending on entity type.

All restaurants must have a valid health permit. Inspections are unannounced. Frequency depends on risk level (e.g., full-service restaurants inspected 2–3 times/year). Renewal typically due annually.

Required for all restaurants. Includes hood suppression system inspection. Certificate must be posted. Example: San Diego requires annual fire safety inspection.

Local building departments may require periodic inspections for occupancy compliance. Frequency varies by city. Often coordinated with fire or health inspections.

California requires at least one certified food protection manager per establishment. Employees must complete an accredited food handler training course. Effective January 1, 2023, all food handlers must be certified within 30 days of hire.

Required posters include: Minimum Wage, Sexual Harassment Prevention, Paid Family Leave, Workers’ Compensation, and others. Must be displayed in a conspicuous location in English and other languages if applicable.

Required federal posters: Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), Employee Polygraph Protection Act, and OSHA Safety. Must be visible to employees.

All employers in California must carry workers’ comp insurance. Policy must be active and displayed. Employers without employees (e.g., sole owner) are exempt.

Employers must file Form DE 9 (Quarterly Contribution Return) and Form DE 9C (Wage Report) each quarter. New employers pay UI tax rate of 3.4% on first $7,000 per employee annually.

Employers must track hours worked and sick leave accrued and used. Employees can request records at any time. Must provide notice of accrual on pay stub or written statement.

IRS requires tax records for 3–7 years. EDD requires payroll records for 4 years. Health permits may require food safety logs (e.g., temperature) for 6 months to 1 year. Maintain all records securely.

All restaurants must comply with ADA Title III. Includes physical access, service animals, and communication. No formal filing, but must be maintained continuously.

At least one employee must hold a valid Certified Food Protection Manager (CFPM) certificate from an accredited program (e.g., ServSafe). Required since 2013. Must be renewed every 5 years.