“Repairs to vehicles: Catering can be hard on your vehicles, so you’ll need replacements to tires. Before you begin catering to clients, you need to register your business with federal, state, and local agencies. Once you have the type of catering business you want to start in mind, you can move on to choosing a name for your business and defining the entity for it as well. If you decide to operate as a sole proprietor, your business will be unincorporated and be owned by you alone (or you and your spouse). Columbia – The Business License Office of City Hall issues businesses business licenses which are required for any business activity. First, you need to think of a business name. For example, your cooking facility will likely need a grease trap permit. You’ll want to register your business and its name with the state you plan to operate in. Once you have your business name and entity chosen, the next step on the “how to start a catering business” checklist involves writing a business plan. You need to obtain a business license from the state, as well as a food handling license. You’ll also want to apply for an employer identification number also called an EIN. Maybe you started off with china for 200 and now you only have china for 150 because they break,” says Burnett, listing the things that caught her off-guard when starting out. Step 2: Write a catering business plan. If you want to go the traditional route, you can go for a traditional term loan, a business line of credit, or maybe a business credit card. Many businesses create price tiers that provide a certain level of service and amenities for various amounts. For a basic catering operation, you’ll need refrigerators to keep supplies fresh, cooking equipment (including an oven, hob, fryer, and maybe a grill) and food preparation equipment. What other necessary actions/steps do I need to take? “It varies because we do buffets, plated dinners, simple appetizers, or [events] where we’ve just dropped off food and they’ve served it themselves—to very high-end menus with unique ingredients,” she explains. First, you need a business license and you will need it because you are a business. “It’s through the guests that are attending the events you’re catering for.”. Step 3: Register your catering business and get an EIN. Step 4: Get All Licenses and Clearances Needed to Start a Catering Business As with most industries involving food prep, you can’t just, well, do it. You also need to pass a county or state health inspection—a residential kitchen likely won’t cut it, so consider looking for a commercial kitchen that has already … If you will be serving alcohol at catering events you will need a liquor license. University of Minnesota: Catering Successfully, Bucaro Tech Help: Start a Catering Business from Home, A Touch of Business: How To Start A Catering Business. Importantly, though, you should also research your competition and identify potential customers. With accelerated courses, you could earn your bachelor’s in as little as 2.5 years. I think definitely.”, Burnett notes that, for the catering industry, access to capital is especially important: “Most small businesses fail because they don’t have the capital to get them through the ebbs and flows. But preparing for the unexpected is about more than budgeting. Depending on the business entity you chose, your business’s name might by default be your name. “You can be a great cook, and that doesn’t necessarily make you a great caterer,” she says. Starting a Catering Business – 10 Legal Documents You Need. In Minnesota, for example, bakeries are regulated by the Department of Agriculture. If you place a billboard for marketing purposes, you must meet county and state laws for signage and a license may be required. Is there a particular type of catering that is needed in your area that is currently underserved? Contact your local Alcohol and Beverage Commission for specific requirements for your state. In addition, as a business, you will need a business license and a federal tax ID. Contact your state occupational licensing or health department to learn what permits you need and any laws you need to abide by. Your market research into the needs in your area can go a long way to helping you sustain your business. This will give you permission to start a business in your state. General requirements vary but always include inspecting the facility for state compliance. Here's an inside look at the industry as well as the skills needed to run a successful catering business. Decide what type of catering you want to do. If you’re starting a business in a federally regulated industry—firearms, commercial fishing, aviation, etc.—then you’ll need to consult a specific list of business licenses to operate legally in your industry. When you do make the plan, it should include quite a bit of research. do not influence our opinions of the products and services available to small businesses. Catering isn’t an easy business. I want to start a small catering business in san pablo,ca i was thinking of renting a small kitchen when i need to cook but the issues are what licenses do i need. Burnett found herself in business well before she expected to be. It’s about thinking your way through stressful situations, planning for the unexpected, and most importantly, running a business just like you would any other. “Hey, I want aprons with logos on them—getting that logo vectorized for $75-$80, then $5-$7 a piece depending on how big you want the logo. This is aside from your skills as a cook. “Was it more stressful because there wasn’t a plan at the beginning or there wasn’t capital? Burnett made the decision to start her business out of necessity after her husband lost his job in the wake of the 2008 financial crisis. The location of your business may need a zoning license or permit, and you may need a building permit if you are remodeling. Eric Goldschein has a decade of experience in digital media, writing and reporting on entrepreneurship, finance, business lending, marketing, and small business data and trends. You should have extra capital when you start out, and continue to budget wisely as you go, because you never know when something will go wrong in the catering industry. How do I get an approval for that business? Moore – The City Clerk’s Office issues business licenses for entities offering catering, selling alcohol, operating as a pawn broker, along with a few others You may be able to find staff just as easily, either by word-of-mouth or by combing your own network. “When you’re putting food in somebody’s mouth, that’s the best time to find your next client,” she says. But as Burnett knew even in the nascent stages of starting a catering business and expanding to event planning, the business is about much more than putting food on plates. You will need to obtain at least a few licenses or permits in order to start your catering business. Caterers can work independently for events, parties, meetings and weddings, or the caterer can contract through event facilities.Starting a catering business requires a broad range of skills. Hiring Employees A catering business can be run by a single owner, or be a collaborative effort by a business owner and a set of reliable employees. She had previously worked in food and retail management, and she fell back on that experience when it came time to find a new source of income. Additionally, while we are compensated by some marketing partners, these partnerships As with most industries involving food prep, you can’t just, well, do it. If they don’t need something, if it doesn’t pertain to their event, it’s not going into their pricing. “Things break, so you have to replace them. Additionally, uniforms, including vectorized logos, can be “really cheap or really expensive,” in the words of Burnett. If you’re ready to start your catering business, LegalZoom can help make the process easier. The kind of kitchen equipment you need will depend on what type of food you need to prepare and cook. In most states the Department of Health provides these licenses. Step 5: Determine your pricing. Here’s another place where having capital at the start comes in handy: If you’re hiring and training staff before they actually work an event, you need to set aside training dollars. That can put you in a tight spot. In Minnesota, for example, bakeries are regulated by the Department of Agriculture. If your business will be located in an incorporated city, contact the city. Since we were going to have in-house staff as well as catering staff, we had to go through a much more extensive training period.”. Food was costing more. There are stringent requirements for how your facility handles food. Order | | | SERVICES: HOW IT WORKS: QUIZ: FAQs (888) 995-8568: ORDER! Some other requirements you might need to consider include workers’ compensation insurance and permits or licenses to work out of certain venues—the monthly or annual costs of which can cut into profit margins. “Really, it’s about networking. This either will be a city or county health department, or, in those cases where there is no local authority responsible for issuing the permit, the DSHS itself. Talk with your county's business planner to ensure you aren't missing an important license or permit. A business license will be the first thing you need to get. In some cases, such as a health permit, you most likely will need to look to a local government office. When it does come time to buy, equipment financing can provide you with the funding you need to cover the cost of supplies. Knowing how to acquire capital is one of the keys to figuring out how to start a catering business. Once you know what kind of catering you want to do, you can get on to the next steps. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. He has written for a number of outlets including Business Insider, HuffPost, Men’s Journal, BigCommerce, Volusion, Square, RetailNext, Zenefits, and Keap. Skip Navigation Links. You need to obtain a business license from the state, as well as a food handling license. Please review a product or service provider’s terms States often require training for management or staff who handle alcohol. Corporate catering might involve more focus on LinkedIn advertising, where you can buy leads; you might also pay people to knock on doors and pass out fliers to bigger businesses. “But when we moved into our new location, at the Hall County Government Center, we opened up a café, coffee shop, and expanded the catering business at the same time. You’ll also need to choose the business entity you want your business to operate as. Otherwise, it depends on what kind of catering you specialize in. If you start a cottage food business there are limits to the sales volume you can generate in one calendar year. Step 6: Hire, train, and outfit your catering staff. 1. Business incorporation documents-: Although it is possible to run your business as a sole proprietorship or as a partnership, incorporating your catering business would help to protect you in the event of litigations or law suits. Other permits and licenses may be required by local jurisdictions or state agencies. The catering industry attracts a broad range of entrepreneurs. Or maybe you’re like Dannella Burnett, of Gainesville, Georgia, who formed her catering business back in 2009, and your reason is simple and sweet: “I figured if I could cook for other people and put food on their plates, I could put food on my family’s plate,” Burnett says of her decision to start Oakwood Occasions. As with any new venture, you must come up with a business plan. Once that is complete, you need to begin the licensing process as several licenses and permits are required before opening for business. Doing so will give your catering business a solid foundation from which to grow. Set up your business structure. There was no real formal training from the beginning,” she says. Form a corporation or LLC, obtain the business licenses and permits you need, or download a customizable catering services agreement you can begin using right away. As a business, you will need to choose to be a sole owner, a partnership or LLC or Corporation. Bakeries are sometimes an exception. Here you’ve got a lot of options depending on a few things, including whether you want to go it alone or not. Part of your business plan for how to start a catering business should also include the vendors and suppliers you plan to use. Then, obtain a seller's permit because prepared food bought or sold is subject to sales tax. The health department might need to check out the place where you’re cooking and preparing the food you’ll be serving, for example. All partner products “But at some point, though you want to buy those things yourself because you still can charge for them and basically you’re paying for the ownership of them. Then you have to buy the apron. Before you get to the following steps to starting a catering business, note that you should decide on the type of catering business you want to start before learning how to start a catering business. A lot of word of mouth, a lot of referrals,” she says. FAQ . It can serve as a business tax ID number and help you do other business tasks like applying for a credit card and paying your employees. To get an idea of what costs what, Burnett says that her price per person has varied from $7-$8, for light appetizers for cocktail hour, up to $80 for filet and lobster. “At the first location, we brought on staff members one by one as we needed people. and services are provided without warranty from JustBusiness. Food service professionals take a certification test and upon passing are given an identification card to prove their status. Licenses Needed to Start a Business in Federally Regulated Industries. In this guide, we are going to take you step-by-step through everything you need to know about how to start a catering business. Here is What Licenses Are Needed To Start A Catering Personal Chef business. While any business entity can technically be used to start a food truck most operators will choose either an LLC, Sole Proprietorship or a Cottage Food Business designation. If you’re unsure of what will be required, get in touch with your local Chamber of Commerce, Small Business Development Center, or the Small Business Administration to find out more. “It takes a lot more time, but a lot of my proposals get accepted, rather than a package deal where it may or may not fit what someone is looking for. Then you can apply to the Georgia Department of Public Health for a food services permit that will let you work as a caterer. You will need to have … Copyright 2020 JustBusiness.com All rights reserved, How to Start a Catering Business: 9 Steps to Starting a Catering Business. So if you’ve got the will for catering, there’s undoubtedly a way. In most states, you can check business name availability online with the Secretary of State. With a little help, you’ll be delighting guests at parties, events, and festivals in no time. – Most local governments require a business license (or business tax registration). There … “At the beginning, you can rent anything you might ever want or need,” she says. Make sure you understand the requirements and that you and any staff take the necessary training. What Licenses Are Needed To Start Catering Busines Catering Catering. Starting a catering business requires a lot of catering equipment. There are plenty of routes you can go to acquire small business funding to get your business going. open my own business I.e., Start a Catering business in 60090 Wheeling, Illinois. and conditions when evaluating such products and services. If that sounds like a lot, don’t worry—you can always add to your plan as you learn more about the catering business world. Burnett says you need to “know what you’re getting into,” due to the physical and demanding nature of the work. State licenses as well as county and/or city permits and licenses are probably going to be a few of the ones needed. All businesses need a business license as well. Catering Licenses Catering is a food business. You’ll want to choose a name and make sure it’s available in the state where you’re opening your catering business. Nothing but me, myself, and I,” Burnett explains. If you want to have a partner for your business, or want to avoid taking on all personal liability for your company, you can choose to register your business as a general partnership, a limited partnership, a limited liability partnership, a limited liability company, or another business entity. Food catering as a business can be quite overwhelming, as there are a lot of players in the market. When it comes to non-food items, Burnett suggests renting first, before buying things outright. Look into sourcing all the supplies you need, including linens, utensils, china, even tables and chairs for some events, and of course the food. Thinking of starting a catering business from home (NY) - what licenses/permissions/permits do I need to start that? An inspector will visit your facility and issue the required Tennessee restaurant health inspection reports. In most states the Department of Health provides these licenses. If you aren’t as lucky as Burnett, you will probably need some funding to get your catering business off the ground and through slower months. Despite making things work, she says luck took the place of capital and wouldn’t recommend that path to other future caterers. Quiz. Licenses that cover food handling and other health permits are others that will be applied for before opening your business. If your business will be located in an unincorporated area, contact the county. If you want to open a catering business in Georgia, then you’ll need to establish your business as a legal entity and obtain necessary licenses and permits. So if you’ve been wondering how to start a business in catering, you’ve got plenty of options. I have a business and a license but its for a internet business. Online with the funding you need a zoning license or permit requirements what licenses are needed to start a catering business you... 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