Do I Need a License or Certification to Start a Coffee Shop?
- Nate Jones, CPCU, ARM, CLCS, AU
- Aug 29
- 3 min read
Starting a coffee shop is an exciting journey—but before you start serving lattes and building your brand, it's important to understand the legal requirements involved. From business licenses to health permits, ensuring compliance is a key step in launching a successful and sustainable coffee shop.
At Wexford Insurance, we specialize in helping coffee shop owners protect their businesses with tailored insurance solutions. In this guide, we’ll walk you through the licenses and certifications you may need to legally operate your coffee shop—and how we can help you stay protected.
Why Licenses and Certifications Matter
Licensing ensures your coffee shop complies with local, state, and federal regulations. Operating without the proper permits can lead to fines, closures, or legal issues. More importantly, being properly licensed builds trust with customers and regulators.
Essential Licenses and Permits for Coffee Shops
1. Business License
A general business license allows you to legally operate in your city or county. This is typically the first step in registering your coffee shop.
2. Food Service Permit
Issued by your local health department, this permit ensures your coffee shop meets food safety standards. It often requires an inspection of your kitchen and food handling practices.
3. Employer Identification Number (EIN)
Required by the IRS if you plan to hire employees or operate as a partnership or corporation.
4. Resale Permit / Seller’s Permit
If you sell taxable goods like coffee beans or merchandise, you’ll need a permit to collect and remit sales tax.
5. Zoning Permit
Before signing a lease, confirm your location is zoned for food service. Zoning laws vary by city and can affect where you’re allowed to operate.
6. Certificate of Occupancy
This certifies that your building meets safety and building codes for commercial use. It’s often required after renovations or new construction.
7. Food Handler’s Permit
Employees who handle food may need to complete a food safety course and obtain a food handler’s card.
8. Sign Permit
If you plan to install exterior signage, you’ll need approval from your local government to ensure compliance with size and placement regulations.
9. Liquor License (Optional)
If you plan to serve alcohol, such as wine or coffee cocktails, you’ll need a liquor license. Requirements vary by state.
10. Live Entertainment License (Optional)
Planning to host live music or events? You may need a separate entertainment license depending on your city’s regulations.
Do You Need a Certification to Start a Coffee Shop?
While not always required, certifications can enhance your coffee shop’s professionalism and safety:
Barista Training Certification – Improves staff skills and customer experience
ServSafe Certification – Demonstrates food safety knowledge
Don’t Forget Insurance
Licenses and certifications are just one part of protecting your business. At Wexford Insurance, we help coffee shop owners get the right coverage, including:
General Liability Insurance – Covers customer injuries and property damage
Commercial Property Insurance – Protects your building, inventory, and fixtures
Workers Compensation Insurance – Required if you hire employees
Equipment Insurance – Covers espresso machines, grinders, and other gear from damage or theft
Commercial Auto Insurance – If you offer delivery or catering
Final Thoughts
Starting a coffee shop is a rewarding journey—but it begins with getting the right licenses and certifications. By ensuring compliance from day one, you set your business up for success and avoid costly setbacks.
Need help with insurance for your coffee shop? Let Wexford Insurance guide you through the process.
Contact us at 317-942-0549 to get started.
