12 Permits and Licenses Needed To Open a Supermarket

You may know that the formula for launching a grocery business includes writing a solid business plan, creating a memorable brand, lining up your suppliers, and securing the funding to bring your vision to life. However, one critical aspect that can significantly impact your success if not managed properly is obtaining the necessary supermarket licenses and permits. As a business owner in the food and beverage industry, you want to cover your legal bases before opening to the public to avoid fines, lawsuits, and the possibility of being shut down.

Don’t let an overlooked health permit or a missing food handler’s license derail your plans, especially when the possibilities for success in the supermarket industry are greater than ever. Even at the peak of inflation, more than half of shoppers expressed positive feelings toward visiting the grocery store, according to a 2024 survey published by The Food Industry Association. What’s more, frequent online grocery shopping has declined since the pandemic as people realize the enjoyment and value of shopping in person at the market. 

To help you succeed in this dynamic industry, we’ve identified twelve essential licenses and permits that most supermarket owners need to know about, and we’ve outlined a timeline for completing them.

What Licenses Do You Need to Open a Supermarket?

1. General Business License

Almost every state government requires businesses to obtain a general business license to legally operate. While it may seem simple, the process can become complicated when dealing with different local, state, and federal jurisdictions, especially since there’s no one-stop shop to gather all the information online. While your business may not be required to have a general business license, your city, county, and industry will all have unique applications and requirements. 

The reason a business license is required is to ensure your supermarket is safe for the public. That’s why certain “riskier” businesses have stricter requirements. For example, while a street vendor might not need a license to sell baseball caps, a deli or bakery, which must adhere to strict food handling regulations, certainly will.

How to get a general business license

Check out your local city or county’s zoning office to find the business license application. If you Google “Your State + Business License Application,” you should find the correct information and any additional requirements. You can also call your mayor’s office, county administrator, or Secretary of State.

How much does a general business license cost?

The cost varies depending on the region and your business type. That said, most business licenses cost $25 to $400 depending on the type of business, and there is often a registration fee of $50. Keep in mind that you may need to renew your business license annually. 

2. Employer Identification Number (EIN)

Think of an EIN as the Social Security Number for your supermarket. This number will be used for tax purposes; all businesses need one, except for sole proprietors with no employees. This should be one of the first licenses you secure since you will likely need this on applications for business licenses and other permits.

How to get an EIN

You can obtain your EIN through the IRS online, but they only allow you to apply for one per day. The application portal is open Monday through Friday, 7 a.m. to 10 p.m. EST. 

How much does an EIN cost?

Obtaining an EIN is free! 

3. Certificate of Occupancy 

A Certificate of Occupancy is a legal document that proves a structure, such as a warehouse or a grocery store, is safe to inhabit. It serves as proof that your business property complies with local codes and is being used for its intended purpose. Without a CO, a supermarket cannot legally operate. 

How to get a Certificate of Occupancy

Contact your local building or zoning inspection office to determine what documentation you need to provide to secure your CO. The information will also be posted on your local government's website.  

How much does a Certificate of Occupancy cost?

The cost varies from jurisdiction to jurisdiction, but they typically run around $100 plus an additional fee for every square foot in the building. 

4. DBA or “Doing Business As”  

This is also known as a “trade name,” “assumed name,” or a “fictitious business name.” Any business that uses a name different from the owner’s legal name may be required to file this paperwork. When a company is formed, the legal name automatically defaults to the business owner’s name if it's a sole proprietorship or partnership, unless it’s launched as a Limited Liability Company (LLC) or corporation. While some supermarkets share names with their original owners (e.g., Stew Leonard’s), chances are you’ll be filing a DBA. 

How to get a DBA

Just like the general business permit, DBA requirements vary by jurisdiction. You can file your paperwork with your county clerk’s office or your state government. 

How much does a DBA cost?

You can expect filing fees to cost between $10 to $100, and some states may ask you to place a fictitious name ad in a local newspaper for a set amount of time to fulfill a public notice requirement. 

5. Meat and Poultry Handler’s License 

Any business that stores, transports, or handles meat and poultry must secure this license. The license is intended to protect public health by guaranteeing that your supermarket and storage facility is in tip-top shape, that you have appropriate cooling equipment to keep your products at a safe temperature, and that all of your meat products are marked, labeled, and handled safely and hygienically throughout the supply chain. 

Your state’s Department of Agriculture typically issues meat handler’s licenses and will require in-person inspections to ensure compliance with regulations by either a state or county health inspector or an expert from the USDA Food Safety Inspection Service (FSIS). The health inspector will continue to visit your supermarket periodically throughout the year to ensure compliance with high standards. 

Remember that the meat you source must be slaughtered in a facility that also has been inspected and approved by the USDA. 

How to get a meat handler’s license

You can start by researching the food vendor requirements for your state with the U.S. Food and Drug Administration. When applying for a meat handler’s license, you'll need the name of your supermarket, your business address, and the owner's personal information.

Employees at your deli, bakery, fish counter, and other areas of your supermarket should also obtain food handlers permits. This can be easily done through ServSafe, Learn2Serve, and StateFoodSafety, all of which provide online training and exams. Most food handler permits are good for at least two to three years. 

How much does a meat handler’s license cost?

The fee for a meat and poultry license, which can vary by location and number of employees, ranges from $100 to $1000. Food handler’s permits run around $10 to $15. 

6. PACA License 

Those joining the ranks of grocery wholesalers and large supermarkets will need to brush up on the Perishable Agricultural Commodities Act (PACA). The sale of fresh and frozen fruits or vegetables in the U.S. is regulated under several federal laws, including the PACA, which applies to anyone who buys or sells more than 2,000 pounds of produce per day. Additionally, anyone selling fresh or frozen fruit and vegetables at retail must get a PACA license once the invoice cost goes above $230,000 in a calendar year. 

How to get a PACA license

You can apply online at the Agricultural Marketing Service, a division of the U.S. Department of Agriculture (USDA), or call 800-495-7222 (PACA).

How much does a PACA license cost?

An annual license starts at $995 plus a $600 additional fee for each supermarket location or additional facility. Fees are capped at a maximum of $8,000. 

7. Building Permits 

Even if you’re taking over an established supermarket, a change in ownership is rarely plug-and-play. You might be renovating the interior, moving walls, or building a brand-new store from the ground up. You also might find that electrical, plumbing, or HVAC systems need updating. Whatever the situation, you’ll want to research the permit requirements in your area to ensure you comply with all local codes.

Also, check into zoning permits to ensure your location is zoned for commercial use. There may also be zoning regulations on parking lots and loading docks.   

How to get a building permit

Start with the U.S. Small Business Administration or your city or town’s government website, which typically provides relevant documents and application forms online. If you’re making significant changes, such as removing support walls or changing the footprint of your space, plan on providing documentation from a licensed engineer or architect. Once the permit is obtained, the work covered must be inspected by the Building Department. Each permit will include a list of the required inspections. 

How much does it cost to get a building permit?

Building permits can range from $50 for minor changes to more than $2,000 for total remodels.

8. Health Permits 

Every supermarket will need a health permit, even if they’re taking over an existing store. Safety comes down to all the little decisions and changes the owner makes — among them, lighting, ventilation, proper sanitation, equipment, and even bathroom configurations. The city or county where a business operates administers food facility health permits, so the process will vary widely. 

How to get a health permit

Check with your County Health Department for rules and application forms. To obtain this permit, you’ll need a detailed floor plan indicating the dimensions of the interior spaces, the expected number of occupants, emergency exits, and more. You should also have a list of all materials used for your supermarket, including cleaning products and any special equipment.

How much does a health permit cost?

The cost of obtaining a health permit varies by certification area, so it’s best to check with your local health department for further information. For example, in California, a health permit can cost between $700 to $2000. 

9. Commercial Sign Permit 

For supermarkets, signage can be a cornerstone of your marketing strategy. After all, it’s an inexpensive but highly effective way to entice new customers to your business as they drive by. Before installing a sign, you’ll need to obtain a permit from the city, which will specify restrictions on the size, style, and lighting intensity. Elon Musk learned this the hard way when he installed a giant flashing “X” sign atop his San Francisco headquarters after acquiring Twitter. When complaints flooded in from nearby residents, the city discovered he didn’t have a permit, and he was forced to take it down after a few days (a permit might be required for dismantling, too). 

How to get a commercial sign permit

Outdoor signs often need to be approved by the local government. In San Francisco, for example, you can research the sign rules on the city’s website and then visit the permit center in person to complete the appropriate application. Business owners may need to submit construction drawings drafted by a licensed architect, engineer, or contractor. Be sure to check with your city about obtaining awning permits as well. 

How much does a commercial sign permit cost?

A sign permit can cost between $20 and $50.

10. Sales Tax License 

Some states call this a “seller’s permit.” This permit allows the state to identify your supermarket as a sales tax collector and is needed to sell almost all products and services. Most businesses, especially in the food and beverage industry, must secure a seller's permit as well as a resale certificate (more on that next). 

How to get a seller's permit 

You can register online for a seller's permit by visiting your state’s Department of Revenue. Online registration, phone assistance, and in-person assistance are often available.

How much does a seller's permit cost? 

Applying for the sales tax license is free, but you may have to leave a security deposit if you have unpaid taxes. The amount of this deposit will be determined when you apply. 

11. Resale Permit 

No business wants to pay unnecessary taxes. If you buy goods from other suppliers solely for resale, you’ll need a resale permit to ensure you pay sales tax only once on these products. In other words, it enables you to make specific non-taxable purchases (e.g., wholesale beef) if they are used in products for resale (e.g., delicious beef jerky). Without a resale permit, you’ll be paying tax twice: first, when you buy the meat from a supplier, and then again when you sell the jerky to a customer. Instead, goods purchased exclusively for resale will be subject to sales tax only when they are finally sold to a customer for personal use. 

How to get a resale permit

 Each state has its own rules regarding resale permits, and not all states require one. To get started, visit the Department of Taxation and Finance for the state in which you conduct business. Typically, the forms and documents are available online. Keep in mind that if you conduct business in other states, you’ll need to apply for “nexus” permits in each state where your goods or services are sold. You’ll be asked to provide your bank account numbers and projected monthly sales.

How much does a resale permit cost?

This permit can cost from $0 to $50. 

12. Liquor License 

If you plan on selling alcoholic beverages in the U.S., you must apply for a liquor license. Some states may require both a liquor license and a beer and wine license, and there are two major types: on-licenses and off-licenses. On-licenses are for those who intend to sell alcohol consumed on premises, like a bar or restaurant. Off-licenses are for businesses that sell alcohol that will be consumed off-premises, like a traditional grocery store. The application process can sometimes take months, so apply for a liquor license as soon as possible.

How to get a liquor license

Liquor licenses: Start your journey here to find out which department you’ll work with in your state and the specific rules and regulations that apply. 

How much does a liquor license cost?

The price varies by state. A liquor license costs as little as $100 in Idaho and as much as $13,800 in California. 

Timeline for Opening a Small Business 

12 Months Out

First, register your business with the federal government, state, and local municipality.

DBA - “Doing Business As”

The name of your supermarket is the bedrock of your brand and must be established before you want to think about things like marketing, signage, and a website. Check your state's official database to find out if the name you want is available. Once your DBA is established, you can open a business bank account, undertake transactions for your company, and search for your website domain name. 

In some states, you’ll need to publish a statement in a local newspaper near your place of business within a month of filing and let the ad run for several weeks. You may also be required to file an affidavit after the last ad publish date. Check with your local Registrar-Recorder/County Clerk’s Office for specific requirements.  

EIN

A tax ID number (EIN) is another crucial piece to have in place early on. Without it, your supermarket simply won’t get off the ground. You’ll need an EIN to file federal tax returns, to open a business bank account, or to apply for a credit card. When it comes to invoicing, many companies won’t even pay you without an EIN. It’ll also come in handy when you apply for your general business license, as many states require this number on their applications. 

You can apply online or using IRS Form SS-4 (“Application for Employer Identification Number”). You’ll need to provide basic information about your business, including your industry type and projected number of employees.  

General Business License

Since you likely need this to conduct business legally, it’s best to get this as soon as you complete your business plan. You’ll be asked for basic info, including your business name, EIN, business type (e.g., LLC), and anticipated revenues and expenses. Gathering your key details could take a while, so we recommend checking these requirements well in advance. 

Nine Months Out 

Now that you’ve established your supermarket in the eyes of the government, it’s time to tackle the most notorious licenses and permits: Building, Food, Liquor, and Health. While some businesses sail through these with ease, these four licenses are notorious for delays. You’ll want a lot of lead time before your launch. 

Building Permits

As soon as you secure your location, you’ll want to get moving on the building permits. Though we recommend starting nine months out, some businesses begin the process a year or two in advance if they’re making significant renovations or building a brand-new property. The timing all depends on your situation. Once approved, the city or county will also require in-person inspections to ensure your space and processes are up to code. Once your business passes the final inspection, you’ll receive your permit to open. 

Meat and Poultry Handling Licenses

There is no central resource for meat handling licenses, so you’ll need to do some digging to find the requirements in your area. Since some permits are city and county-based while the state administers others, processing times can vary widely. Call the U.S. Department of Agriculture's Meat and Poultry Hotline for the phone number of your state health department: 888-MPHotline (888-674-6854). 

At the Federal level, meat products are heavily regulated by the FDA or the USDA, which require various registrations depending on the nature of your business. For example, food facilities must register with the FDA under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002. 

Liquor license

Alcohol is one of the most heavily regulated products in the U.S., so it’s no surprise that obtaining a liquor license can be complicated and expensive. The entire process can take anywhere from 30 days to 6 months or more, so applying for this early is essential. Each jurisdiction differs in how liquor licenses are approved: some rely on state agencies, often called Alcoholic Beverage Control (ABC), to handle the process, while some counties and cities may also require their own approvals. You’ll likely have a preliminary application followed by an in-person appointment with an official who screens applicants. Expect to share personal financial information and undergo credit and background checks. 

Health Permit

All food-related ventures require health permits to ensure the safety of customers and employees. When you apply for a health permit, which can often be done online with your County Health Department, you’ll need an inspection to ensure your space and practices comply with all applicable codes and ordinances. This is an area where problems and delays can arise and you may be asked to revise your layout or make changes to your building. You will receive your health permit once your business is deemed safe to operate. 

6 Months Out 

Resale Permit

Businesses that purchase products from a wholesaler or supplier for resale need this permit to avoid being double-taxed. While you may not be stocking up your inventory just yet, obtaining this permit early on will give you the flexibility to focus on the other permits you'll need later. You’ll need basic personal information for every partner or owner in your business. This ranges from basic information (e.g., EIN) to projected monthly sales, which you can pull from your business plan. 

Sales Tax License

The resale permit and the sales tax license go hand-in-hand. Every state with a sales tax requires businesses to register for a sales tax permit before collecting or paying taxes. Most states encourage businesses to register online, and you’ll need to provide similar information as required for a resale permit. You’re also required to hold a seller’s permit in states where you have “nexus.” Registration for your sales tax license, or “seller’s permit,” can take up to a month. 

3 Months Out

Food Handler’s Permit

Once the longer lead-time licenses — building, food, liquor, and health — come through, it’s important to ensure that employees preparing food (e.g., at the deli counter) are certified for safe handling. Generally, new employees have 30 days from the hire date to get certified, and the process takes only a few hours.

Certificate of Occupancy

Your supermarket can’t open the registers and welcome customers unless the certificate of occupancy is in place. A building inspector will review your city permits and conduct an interior and exterior inspection of your property to ensure compliance with all building codes. If any violations are noted, you’ll typically have 60 days to make changes to avoid additional fees. 

Commercial Sign Permit

Installing a sign early can create excitement and curiosity in your community, so it’s up to you how far in advance you want your sign on your building. The average time for obtaining a sign permit is 10 to 30 days, but it can vary depending on the specific requirements. Keep in mind that many cities require plans from a licensed architect or consultant, so you'll need to have your brand identity finalized and a designer on board well before applying. Remember that historic districts may take longer than other areas because of stricter regulations.

Time to Open Your Supermarket!

Navigating business permits and licenses is no easy feat, and in the end, you may feel like you’ve earned a Ph.D. in government administration. However, it’s a challenge that all business owners face. Once you've tackled it, you can focus on the exciting aspects: mastering economies of scale, reducing costs, and growing your incredible new business.