If your passion is doing wonders in the kitchen, starting your own restaurant would not just be a dream do come true moment, but also a good business to start with. However, it is important to know that before you start your dream restaurant, you need to look at many considerations and matters. Staring your own company is one hell of a task, and it definitely doesn’t happen overnight.
One of the things that you need to keep an eye on is the legalities of your business. This will include applying for business permits, licenses to operate, adhering to business laws and ordinances respective to the state, and complying with local government requirements. Sounds heavy, right? It does, but you just have to. After all, there’s no mountain so high if you are driven by goals.
Here are some of the essential business legalities that you should know before starting a restaurant business;
1. Decide on the business model.
One important procedure when starting any type of business is deciding what your business model is. It could be a sole proprietorship, partnership, or a Limited Liability Company (LLC). The LLC model is preferred by many, as this will protect your business from personal liabilities. For example, if your business will declare bankruptcy in the future, your personal assets will not be put at risk.
As with any business model, forming an LLC has a lot of requirements. Fortunately, LLC formation services can help you with the paperwork, so you don’t have to do everything yourself. If you don’t know how to choose providers, it’s best to compare services such as Bizfilings and Incfile to determine what you need for the budget you have.
2. Register your choice of business name.
After complying with all the requirements of creating a business structure, you will now select a name for your business. You will be given options upon registration — entity name, trademark, domain name, and DBA.
3. Complete all the business permits and licenses.
Another important step when starting your own business is complying with all the legal documents and applying for licenses that will enable you to operate the said business legally.
These documents do not only protect the business alone. It will also serve as a protection for yourself, your employees, and the customers as well. Apart from that, these will ensure the privacy of your personal information and your business will be trusted by the customers.
4. Get a Federal Tax ID Number
Another legal procedure when starting a business is acquiring an Employer Identification Number or EIN. This will allow you to legally hire employees, open a business bank account, and pay federal taxes in your state.
5. Apply for a Business Insurance
The last thing you would want to consider is keeping your business ensured. The sole purpose of insurance is to add a protective layer to your business from potential risks. It does not only protect your personal assets, but it is ensuring your business as well. Some types of insurance are general liability insurance, product liability insurance, and commercial property insurance.
Overall, starting a restaurant business is not an easy task. While there may be a lot of tasks to accomplish, your efforts won’t be wasted because these procedures will help you conduct your business legally in your state.