I want to rent a house and fix it up so I can open it up as a small dinner restaurant, and I was wondering what was required. Thank you in advance for your answer.

There's no simple answer to this question. The fact of the matter is, you will need to do many things, but the most important are forming an LLC, filing for a Sellers Permit, and obtaining your State Employer Tax Identification Number.

The artifical person formed by an LLC forms a corporate protection for you, and in this case, will insulate you from the possible liability arising from operating a restaurant out of residence, as well as protect the name of your corporation state wide for legal and advertising purposes.

Your sellers permit is required before you can serve even your first meal to a customer, and then for every meal after. Once you have it though, you will be able to buy your food wholesale, meaning tax free, which in the razor thin margin business of restaurants, is absolutely key.

The ability to hire employees and not simply run your restaurant with family and friends is essential. Hiring good chefs, talented waiters, and experienced help is the difference between a restaraunt with charm and a restaurant with class. One gets by. The other thrives.

The formation of an LLC agreement effectively creates a new and seperate person from the individual or individuals forming the agreement,  in which said individuals own stakes in the new person. This provides legal, financial and tax liability protection for the owners.

Filing for a sellers permit allows a business or individual to charge sales tax properly for the services and goods they render and sell to customers. Then, when tax day comes, they can properly determine their dues and pay them to the state.

State Employer Identification Numbers are of absolute importance. Simply put, without one, it is illegal to have employees. Not only that, but without ojne, you can not pay witholding taxes, and leave yourself vulnerable to massive criminal penalties and lawsuits.

Starting Businesses are required to obtain a business license. 

In addition, INDIVIDUALS / SOLE PROPRIETORS, PARTNERSHIPS & CORPORATIONS OR LLCs using a business name other than their last or legal name need a DBA trade name.

CORPORATIONS & LLCs need a federal tax id.

EMPLOYERS need a federal tax id (EIN), a state tax id (EIN).

RETAILERS OR WHOLESALERS of tangible taxable items / services, need a seller's permit / resale license and a business license.

Note that ALL BUSINESS NEED a business license

-and-

most small business advisors recommend using a federal tax id instead of a social security number to open a business bank account as well as perform a nationwide business name check before your register your dba or corporation.

Take a QUIZ to see what you need

http://www.businessnameusa.com/licenses/info/step1.htm

FEES: http://www.businessnameusa.com/licenses/Fees/ShowFeesTablePage.aspx

TO ORDER, go to: http://www.businessnameusa.com/licenses/fees/order.aspx

www.businessnameusa.com

P.O. Box 14927

Long Beach CA, 90853

310-455-6675

Without an LLC, you are personall responsible for all the legal pitfalls that your restaurant risks. This is no small danger, and no small issue, especially considering the chosen location. By seperating yourself from the busines, you retain control while avoiding the dangers of perilous personal debt or liability.

Simply put, you get a sellers permit because you have to. Even if the benefits weren't enough to convince you, the dissadvantages should be. There is no good reason to not get one, and at the end of the day reason doesn't come into, only the law.

75% of small business fail in the first 6 months. Most of the rest fail before the year is out. With a State Employer Identifation Number, you can hire the kind of help that will make your business one of the few that survive instead of one of the many that fail.

Find the fees for all these permits and more at the following link:

http://www.businessnameusa.com/services/fees.htm

Keep in mind that we have just cut our already basement prices across the board.