Starting a food truck business shares some similarities with other entrepreneurial ventures. If you’re considering launching a food truck, you’ll need to address essential aspects such as: drafting a business plan, crafting your menu, selecting a name and logo and registering them, incorporating your business, securing financing, equipping your truck, and obtaining food truck insurance.
However, food trucks also require specific business licenses and permits to operate legally. These requirements can vary significantly depending on your location, so it’s crucial to understand what’s needed in your city, county, and state. Checking with your local Secretary of State is always the best way to determine the specific licenses and permits you’ll need.
Whether you decide to start a food truck or another type of business, understanding the necessary permits is essential for success.
Essential Permits for Your Mobile Food Business
Here are some of the most common permits and licenses that food trucks typically need to acquire before serving customers:
Business License
A business license, also known as a basic business operation license, permits you to operate your food truck within a specific city, county, or state.
The government uses business licenses to identify and track businesses for tax purposes, and ensures your food truck operates legitimately and protects public health by meeting certain compliance requirements.
Before applying, contact your local Secretary of State to learn about any additional requirements and associated fees. Be sure to ask about renewal procedures to avoid fines for operating with an expired license.
Employer Identification Number (EIN)
If you plan to hire employees, even part-time workers, you’ll need an Employer Identification Number (EIN).
An EIN is a federal tax ID issued by the IRS to identify your business. Think of it as a social security number for your business. Even if you’ve incorporated as an LLC or partnership, registering for an EIN is generally advisable. Having an EIN enables you to open a business bank account and establish a credit profile.
Even if you don’t intend to hire employees and plan to operate as a one-person show, obtaining an EIN is still recommended. Once your business is incorporated, you are considered its ’employee.’ The IRS requires an EIN to track your food truck and ensure compliance.
Parking Permit
Food trucks can’t park anywhere they please. Most cities have zoning restrictions that limit parking to specific areas.
You’ll need to obtain a parking permit that specifies where your food truck is allowed to operate. Contact your county clerk for a comprehensive list of approved parking locations. Inquire about parking meter requirements, parking sign rules, proximity bans to brick-and-mortar establishments (for example, restrictions on parking an Italian food truck near an existing Italian restaurant), and commissary requirements for overnight parking.
Health Permit
Regardless of your cuisine, your food truck must undergo a health department inspection and receive approval.
Operating without a health permit can cause significant problems. Customers want to be confident that your food truck adheres to high safety standards. A health department permit assures the public that you safely prepare and handle food.
Application processes and fees vary, but an annual health permit is essential for your food truck’s success. After obtaining a health permit, you may need additional related permits like a food handler permit for employees and a mobile food facility permit. Remember to renew your permits regularly. Consult with your local Secretary of State if you’re unsure about renewal frequency.
Ensuring Compliance for Long-Term Success
Navigating the world of permits and licenses can seem daunting, but it is a crucial step in setting your food truck up for success. By understanding the requirements in your area and proactively obtaining the necessary documentation, you can focus on what you do best: serving delicious food and building your brand. Don’t hesitate to seek guidance from your local Secretary of State or business advisors to ensure you are fully compliant and ready to roll.
