To start with, what licenses & permits do you need for a food truck?
You need to prepare a business license, employer identification number, driver’s license, food handler’s permit, health department permit, seller’s permit, fire certificates, parking permits, commissary letter of agreement, standard operating procedures document, and special event permit.
For your food truck, it’s critical to adhere to all legal requirements. By doing this, you’ll be able to keep your business open and avoid paying steep fines. Each city, county, and state has its own licensing and permitting requirements for food trucks. On the U.S. website, vendors can look up the local license and permit requirements in their area. website of the Small Business Administration.
For more information, continue reading.
What Is Required To Launch A Food Truck?
You must have a complete business plan before starting a food truck, as well as a written contract with your “commissary,” or the location where you prepare and store food. Keep in mind this when looking online for resources that are local to your area since some states, like Massachusetts, refer to food trucks as “mobile food establishments.”
Let’s examine a few of the specific actions that call for the requirement of food truck permits or licenses.
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Business License
This basic prerequisite for any business to open for business, also known as your vendor license, must be met. Your operation will be monitored by the government for tax purposes once you have obtained the business license that is required by your city and state. The price of your business license will vary depending on your city. For instance, a business license in Boston, Massachusetts, costs $65 while one in New Orleans, Louisiana, can cost up to $150.
Keep in mind the following to maintain your business license:
Keep track of when your license expires
Become knowledgeable about the license renewal process
Learn if your city limits the amount of mobile food vendor licenses they distribute
Visit the U.S. Small Business Administration website to learn more about your business license
Employer Identification Number (EIN)
A federal tax ID number known as an Employer Identification Number (also known as an EIN or Social Security Number) is used to register your business with the IRS. You can do things like create a credit profile, start a business bank account, and hire staff. When you apply for a business license, some states also give you this number.
You can apply for your Employer Identification Number through the IRS’s website, fax machine, or postal service for free. Apply well in advance of your opening date because the processing time can be up to 4 weeks.
Driver’s License
Like with a car, you must register your food truck and have a current state driver’s license in order to operate one. Your regular driver’s license will do in the majority of states. In contrast, other states will consider your vehicle’s weight and length when determining whether you need to apply for a commercial driver’s license.
Depending on the state and license type, a driver’s license can cost anywhere from $10 to $100. Ask your local Department of Motor Vehicles (DMV) about the requirements and the application process if you want to get a driver’s license.
Food Handler’s Permit
Your food handler’s permit (also known as a food handler’s license) will be awarded to you once you have successfully completed a food handler training and food safety course. You may want to enroll in this course ahead of time, but it’s not required to pass with flying colors on your health inspection.
In most states, only the shift manager is required to obtain this personal permit; however, it is generally required that at least one employee working each shift has this permit. In addition to providing your customers with some assurance about your business, the food handler’s permit is necessary to run a food truck. They will feel more at ease placing an order from you once they see the permit (and the health grade), knowing that the food is being prepared in a secure environment.
As always, this depends on the state and city in which your food truck is located, but food handler permits are typically good for 5 years and typically cost less than $50. Find a food handler’s permit testing location in your city by visiting the ServSafe website today to begin the process of getting yours.
Obtaining each and every license and permit required is just the first step toward realizing your food truck dreams. See more about What To Wear To A Fast Food Interview?
Health Department Permit
The health department issues a permit, also known as a “food service license,” which certifies that your truck passed the health inspection. An agent from the health department will examine your truck in search of health code violations and provide you with notes on what to correct along with an overall grade for your truck. They look for appropriate food storage, general cleanliness, and the presence of well-defined HACCP plans. Your health score must be made public in most cities so that customers can see it.
Depending on the city, a health department permit may cost $50 to $1,000. To schedule a visit from an inspector, get in touch with your neighborhood health department by phone or email.
Seller’s Permit
In some states, owners of foodservice businesses must have a seller’s permit in order to buy ingredients and supplies at wholesale rates without having to pay sales tax. In order to avoid taxing the same thing twice, the tax would be collected when the product is sold to customers. If a seller’s permit is required in your state and how to apply for one, you can find out by visiting the website of your local state government.
Fire Certificates
You may have to have your food truck inspected by the fire department in addition to the health department in some counties. Typically, you won’t need to do this unless your truck also has gas lines and cooking equipment. You most likely won’t need a fire inspection if you only sell refrigerated goods, but it’s best to check with your local government to be sure. The fire department will inspect your electrical wiring, cooking equipment, and vehicle’s fire suppression system to make sure they are all installed and working correctly.
Parking Permits
A food truck cannot park on the side of a neighborhood street and remain there for many months. Because of zoning regulations, food trucks can typically only park in designated areas with permission.
You should get a parking permit for your food truck because these laws can vary by city and state. For a complete list of parking locations that food trucks can and cannot use, get in touch with the county clerk. Asking about proximity restrictions in your area (such as how close an Italian food truck can park to an Italian brick and mortar establishment) and whether you need to store your food truck in a commissary for overnight parking are also wise.
Commissary Letter Of Agreement
Your city may require that you store your supplies and do food prep in a commissary kitchen before setting out for the day in your food truck. If that’s the case, you might also require a commissary letter of agreement, which is a written document that you and the owner of the commissary sign that certifies your right to access the facility and the services you’re allowed to use there. You would receive a cooking area, access to fresh water, trash collection, and food storage from the commissary in addition to other specified conditions.
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Standard Operating Procedures Document
It’s uncommon, but a few cities demand that food truck operators give them a document outlining their standard operating procedures prior to them becoming open to the public. The steps you and your staff take to maintain your truck should be described in this document. You’ll need clear, step-by-step instructions outlining how to prepare each dish, clean and sanitize your equipment, and lock up your truck at the end of the day. Some operators of food trucks keep a copy of these records for their training manual.
Special Event Permit
A temporary permit called a “special event permit,” also known as a “vending permit,” enables you to sell food at a specific venue location for the duration of an event. The majority of sporting events, festivals, and concerts have an event coordinator who can provide you with information regarding the types of permits required to sell food on the premises as well as the duration of those permits. So if you’re planning to cater a wedding with your food truck, you’ll want to ask the venue coordinator what permit they’ll need from you to do so. See more about How To Start A Food Truck In NC?
How Much Does It Cost To Run And Maintain A Food Truck?
According to estimates, food truck owners spend $28,276 annually on permits, licenses, and legal compliances alone. Opening, maintaining, and operating continuously require annual government-mandated procedures. While there are a number of standard licenses and permits that food trucks must have in order to operate, each state and city has its own set of licenses and permits that owners of food trucks must obtain, especially in big cities where there is a high volume of food truck traffic on a yearly basis.
And if you think that the expense and red tape are keeping food truck owners from starting their businesses, you’d be gravely mistaken. In more than 300 US cities since they first made an impact on the restaurant industry in 2008, food trucks are already common; by 2020, there will be nearly all of them.
Like any restaurant fad, the popularity of food trucks is growing as a result of the growing trend of more adventurous dining. The food truck trend, however, doesn’t seem to be going anywhere anytime soon, in contrast to other restaurant fads. The industry’s projected value for 2017 was $2.7 billion, and its expansion has outpaced that of the commercial restaurant sector as a whole by %.
Every year, as the food truck industry grows, it becomes more and more obvious that food trucks will remain a mainstay of roadside dining for many years to come. In order to start realizing your mobile culinary dreams right away, let’s look at the top five permits and licenses needed to open and run a food truck. See more about how Much Does It Cost To Wrap A Food Truck?
The End
It’s never a good idea to assume your licenses and permits will be exactly the same as what is required by other food trucks because they may differ depending on your food truck’s location and the city, county, and state it operates in. The best course of action is to contact your local secretary of state to find out which licenses and permits food trucks must obtain in order to operate their business.
Best wishes.
