What Permits Do You Need To Open an Ice Cream Shop
Permits Needed for Ice Cream Shop Businesses
What Permits Do You Need To Open an Ice Cream Shop
When starting an ice cream shop business, one of the first things you will want to consider is what permits and licenses you’ll need to open legally.
As an aspiring ice cream shop owner, you’ll want to consider a variety of essential factors for your business, including your branding, your ice cream shop location, and your ice cream shop startup budget, among others.
In this post, we’ll focus on what types of licenses and permits you’ll need to open an ice cream shop.
For additional resources in starting an ice cream shop business, check out our ice cream shop business blog.
What Permits and Licenses Do You Need for an Ice Cream Shop
There are permits and licenses that most businesses in any state need, so we will list them below. Next, we’ll get more specific about what licenses and permits an ice cream shop or related ice cream business needs.
We highly recommend that you write an ice cream shop business plan first – before you move forward with spending any significant money on your business.
Writing an ice cream shop business will help save you money and time – and many headaches. A business without a plan is deemed to fail because you will have all your planning chaotic. It’s a critical document that encompasses every aspect of your business: starting from your budget and ending with your menu. You will use it as a reference and provide it to your investors, property owners, etc.
Our ice cream shop startup kit will provide an editable business plan so you can get started easily and quickly. It comes with descriptions and guidance on every project section to make it easier for you to think about and write your business plan.
Create a Business Structure
Every business must legally establish itself as an entity to operate in a state. Usually, this is done by registering your ice cream business as a particular business structure within your given state. If you are outside the United States, you will want to check with your local province or regional government which agency is best.
Ice cream shop entrepreneurs have several general business structures to choose from.
Which business structure best suits your business depends on your specific needs and those of your partners or investors.
Typically, most companies will have the options of forming:
- Corporation
- Limited Liability Corporation
- Non-Profit Organization
- Partnership
- Sole Proprietorship
While each of these might pose some advantages, we have seen that LLCs provide several attractive benefits for other types of retailers, like coffee shop owners.
You will want to research and determine what is best for your particular ice cream shop business and register it within your state or the state you intend to operate in. You may also register your business in a third state if the benefits of doing so are to your liking.
Registering your ice cream business as a separate entity may limit the potential business liability that you may incur for any misfortunate event that occurs during your business
Further Reading: How Much Does a Small Ice Cream Shop Cost?
Get Your EIN Number
Your Employee Identification Number is given to you by the IRS. While not a requirement to start an ice cream business, you may want to establish your business structure first (i.e., LLC) before getting your EIN.
Your EIN will be necessary for many essential business functions, such as hiring and paying your employees and helping identify your businesses regarding taxes.
Local and State Business Licenses
After determining your ice cream shop business structure, you need a business license. Usually, this is done through your state and city government.
A business license to operate may likely need to occur at your local city or county level. In addition, this license will likely need to be renewed annually.
Your state and city may require you to have a license for the city and state you operate in.
If you have a mobile ice cream unit and operate in various municipalities, you may need a business license for each city you work in.
Reseller’s License
A reseller’s license is a license to sell things on a retail level. For example, many vendors require you to have a reseller’s license for them to sell you their wholesale goods.
More importantly, a reseller’s license will allow you to purchase wholesale merchandise or ingredients without paying sales tax. As a result, this helps businesses avoid being double-taxed.
So, for example, if you make your ice cream condiments, you will not have to pay taxes on those ingredients. Or, if you also decide to open a coffee shop and need to pay for coffee and milk, you won’t have to pay taxes on those items.
You may need to double-check and see if you need a reseller’s license in your jurisdiction.
Further Reading: How Much Does an Ice Cream Shop Cost?
Permits and Licenses for Ice Cream Shops
Health Department Approval and Permit
Like most food and beverage establishments, you will have to get the health department’s approval before you can legally open your ice cream shop.
The health department permit is necessary for a variety of reasons. The first is to prevent foodborne illnesses. Depending on the rest of your menu, ice cream shops might be categorized as low to medium risk.
Ice cream, frozen yogurt, and milk must be stored at a particular temperature.
Additionally, the health department will want to see if you and your employees can clean adequately, wash your hands, and maintain a healthy environment.
Most local health department agencies you will work with can be found at the city or county level.
Keep in mind that any health department violations, such as rodent infestation or employees not washing their hands, may bump up your risk assessment by the health department.
If you operate a mobile ice cream business and sell ice cream in various counties, you may need health department approval from each county.
Buildings Department Approval and Permit
Your buildings department plays a significant role in your ability to operate legally. If you have a brick-and-mortar ice cream shop, you will need the buildings department to sign off that your building is safe for workers and employees.
Everything from parking, entrances and exits to the installation of plumbing and plumbing and gas will need to be done to your local safety codes.
Permits and Licenses for Ice Cream Shops
License Renewals
Your ice cream shop licenses and permits will need to be renewed. Often these renewals occur annually. It will be vital for you to keep up to date to avoid any fees or penalties.
Also, certain additions to your menu may require getting a new license. For example, if you decide to add a kitchen and prepare food indoors, your local health and buildings department will have to be inspected to issue you a new permit.
Your Ice Cream Shop Menu
Your ice cream shop menu impacts your entire operation. For example, your menu will dictate how each agency you need approval from will scrutinize your ice cream shop.
The less “risky menu items” on your ice cream menu may lower your health risk – and it may put you in a specific category of risk of food-borne illnesses. For example, you may be checked yearly to meet basic requirements: sectioning and scooping ice cream, ready-to-eat food delivery and storage, hot water, etc. You may consider adding toasted sandwiches or fruit smoothies to your ice cream operation. It will immediately raise your risk level to 2. Anything beyond that will entail risk three that comes with potentially hazardous food like raw ingredients.
Whatever you decide to do, you should consider two starting points: your concept and your budget. You can always start small and extend your ice cream shop if you wish.
For more information, get our Complete Ice Cream Shop Startups Kit.
