For food & beverage businesses

Federal: alcoholic beverage license from TTB if making/selling alcohol; food safety oversight from FDA (specific products). State: food service license, employee health certifications, sanitation permits, alcohol license (if applicable), sales tax permit. Local: health department permits, business license, fire safety. File.Business handles state-level licensing; local permits coordinated with city-specific specialists. NOTE: File.Business does not service alcohol businesses.

Single-location independent restaurants: LLC is typical (pass-through tax, simple operation). Multi-unit/multi-state operators: often C-Corp for stock-based employee incentive plans. Franchise operators: depends on franchisor preference and franchise agreement requirements. File.Business handles formation; restaurant operations often need restaurant-specific accountants for complex 1099 + tip reporting.

Most states distinguish: GROCERY food (typically exempt or reduced rate), PREPARED food (typically taxed at full rate). Some states (TX, KS) tax all food; some (CA, MA, NY) exempt unprepared food. Restaurant sales are always 'prepared' and taxed. After hitting economic nexus, multi-state delivery operations need registration in each applicable state.

Standard stack: general liability ($1M-$2M), product liability (food poisoning claims), commercial property (equipment, inventory), workers comp, liquor liability (if applicable), commercial auto (if delivery). Specialty: food-spoilage coverage. Costs $200-1000+/month depending on size and risk profile.

Employees must report tips ≥$20/month to employer; employer withholds tax on tips. Form 8027 (Annual Information Return) required for restaurants with 10+ employees and food/beverage at table service. Tip credit rules (allowing reduced minimum wage for tipped employees) vary by state - some states (CA, NV, MN, others) don't allow tip credit. File.Business coordinates with restaurant-specific accountants.