Quick answer: Most coffee shops need a local business license, a food service (retail food) permit from the health department, sales tax registration, an EIN if you'll have employees, building and occupancy approvals for the space, and a sign permit. Depending on your city and plans, you may also need zoning approval, fire inspection, music licensing, sidewalk seating permits and alcohol licenses. Start with your city and county.
Key takeaways
- Local + state agencies issue most permits; federal is rarely needed.
- The health permit usually requires plan review and an inspection.
- Building and occupancy approvals can take the longest.
- Requirements vary: confirm everything locally.
Why it varies so much
SCORE notes that nearly every business needs a local license, food businesses need state food licenses or permits, retailers need a sales tax license, and most small businesses don't need federal licenses unless they're in heavily regulated industries like alcohol. Your city, county and state set most of the details.
The checklist
Business setup
- ☐ Business entity registered with your state (LLC, corporation, etc.)
- ☐ EIN (federal employer identification number) from the IRS
- ☐ State tax registration, including sales tax
- ☐ Local business license or business tax certificate
- ☐ Assumed name (DBA) if operating under a different name
Space and construction
- ☐ Zoning approval for a café use (and drive-thru, if applicable)
- ☐ Building permits for construction or remodeling
- ☐ Plumbing, electrical and mechanical permits as required
- ☐ Certificate of occupancy before opening
- ☐ Fire department inspection and any fire permits
- ☐ Sign permit for exterior signage
Food safety
- ☐ Health department plan review (often required before construction)
- ☐ Food service or retail food establishment permit
- ☐ Certified food protection manager if required locally
- ☐ Food handler cards for staff where required
Most local health codes are based on the FDA Food Code, which covers things like handwashing sinks, cold holding and equipment standards. Your plan review will check these.
Operating extras
- ☐ Music licensing if you play music publicly (performing rights organizations license this)
- ☐ Sidewalk or outdoor seating permit
- ☐ Alcohol licenses (state and local, plus federal TTB registration for some activities) if serving beer or wine
- ☐ Workers' compensation insurance if you have employees
- ☐ Waste and recycling service compliant with local rules
Suggested order
- Talk to the city planning/zoning office before signing a lease.
- Submit health department plan review with your floor plan and equipment list.
- Apply for building permits.
- Register your business, EIN and taxes in parallel.
- Schedule inspections (building, fire, health).
- Receive the certificate of occupancy and food permit.
- Post permits where required and open.
Tips to avoid delays
- Use NSF-certified equipment where your health department requires it; see our equipment list.
- Include equipment spec sheets with your plan review.
- Plan sinks (handwashing, three-compartment, mop) early; they're common sticking points.
- Keep a permit tracker with agencies, contacts, dates and fees.
For the full opening timeline, see our how to open a coffee shop guide and startup costs guide.
Open with your brand ready
Affogato Bean helps new cafés launch with branded cups, sleeves, napkins and signage ready on day one, with design help included. Talk to us.
General information, not legal advice. Requirements vary by location; confirm with your local agencies.
Frequently asked questions
What licenses do you need to open a coffee shop?
Most coffee shops need a local business license, a food service or retail food permit from the health department, sales tax registration, an EIN if they have employees, and building, occupancy and sign permits for the space. Requirements vary by city and state.
How long does it take to get coffee shop permits?
It varies widely. Health department plan review and building permits often take the longest, so start those early, ideally before or right after signing a lease.
Do coffee shops need a federal license?
Most coffee shops don't need a federal license unless they sell alcohol or tobacco, which involves federal registration with the TTB as well as state and local licenses.
Sources
- SCORE, “Getting Your Business Licenses and Permits.”
- U.S. Food and Drug Administration, “FDA Food Code 2022.”
Sources checked October 2026. Statistics are reported as published by each source.