Guide to opening a multi-use business in one location

If you are starting a new storefront: Find a location that the Planning Code allows for each of the businesses you are interested in establishing.

• Contact the Office of Small Business. Small Business Permit Specialists can help you understand the zoning requirements for your proposed location.
  • Email sfosb@sfgov.org
  • Call 628-652-4949
  • Schedule an in-person appointment at the Permit Center at 49 South Van Ness Ave

You have three options to establish your business:

1. Establish "Multiple Uses": The Planning Code must allow each of the uses. Note: with this option, there are no size restrictions for each business use.
2. Establish a combination of one "Principal Use" and one "Accessory Use": Planning Code must allow each of these uses. Note: with this option, the Principal Use needs to take up at least two-thirds of the total floor area.
3. Establish as "Flexible Retail": This option allows at least two uses at the same location. As long as there's no construction needed, it also allows a business to switch between uses without more permits. Businesses can combine the following uses:
   1. Arts Activities
   2. Limited Restaurant
   3. General Retail Sales and Services
   4. Personal Service
   5. Retail Professional Service
   6. Trade Shop

Note: all of the uses you choose with the Flexible Retail option need to be allowed in the Planning Code. So, if the Code has any of the uses as "not permitted," "requires special approval," or "requires neighborhood notification" you'll still need to follow those requirements. The Office of Small Business can help you find out and understand your next steps.

If you have an existing business storefront and want to add a new business use at your location, you can also use one of the three options above.  

Determine if you need to make changes to your space. 

Before signing a lease, you can speak with the Office of Small Business' permit specialists to help you work with City agencies to understand building code requirements for your space.

Make sure your business is accessible. 

Review and sign your lease. 

Leases can be tricky, so review the lease carefully before signing. We strongly recommend getting guidance from the Office of Small Business before you sign anything. If you need legal assistance, contact:

• Bar Association of San Francisco's Lawyer Referral and Information Service at 415-989-1616
• Legal Services for Entrepreneurs at 415-543-9444 x217
• Note: Your landlord is required to provide information about the accessibility of the building, in case it needs renovations

Create a plan for the type of restaurant you will open.

• Resource: https://sf.gov/resource/2022/create-business-plan

Choose a business structure.  LLCs, Corporations and Limited Partnerships must register their structure with the CA Secretary of State before registering locally. 

• Resource: https://sf.gov/resource/2022/register-your-business

Apply for an Employer Identification Number (EIN), also known as a Federal Tax ID Number from the Internal Revenue Service (IRS). This is used to identify your business and allows you to hire employees.  If you are a sole proprietor without employees, you may choose to use your Social Security Number instead.

• Resource: https://sf.gov/information/federal-business-registration

Register your business with the City and County of San Francisco through the Office of the Treasurer and Tax Collector.

• Resource: https://sftreasurer.org/business/register-business
• Note: If you register your business before choosing a final location, you will have to update your registration with the new address.  This can cost money and time.

Choose and file a business name.  File a Fictitious Business Name (FBN) Statement at the SF Office of the County Clerk if you will be using a name other than your given name, the names of your partners, or the officially registered name of your LLC or corporation.  Research the name's availability in the county before filing.

• Resource: https://sf.gov/resource/2022/choose-business-name

Apply for a Seller's Permit from the CA Department of Tax and Fee Administration (CDTFA).  Every location must have this permit to sell taxable goods.

• Resource: https://www.cdtfa.ca.gov/taxes-and-fees/faqseller.htm

For new construction: Submit plans and documents to the SF Department of Building Inspection (DBI).  Be prepared to work with an architect or designer to create your building project plans. 

• View DBI plan specifications at: https://sf.gov/information/create-your-building-project-plans
• Visit DBI's Technical Services Counter at 49 South Van Ness (Permit Center) or email TechQ@sfgov.org for questions about building codes

Signs: If you want to install or change a canopy or sign on the outside of the building, ensure you comply with Planning Department and DBI sign guidelines.

• Planning Department: https://sfplanning.org/resource/signs
• DBI: https://sf.gov/step-by-step/get-permit-build-sign
• Note: Awning permit fees are waived each year during the month of May.  You can qualify if you submit your permit application during the month of May.  Ask for the permit fee waiver from Planning Department and DBI.

Water and wastewater capacity charge: If your business will use more water than the previous business or resident, you may have to pay a capacity charge to the SF Public Utilities Commission (SFPUC).

• Resource: https://sfpuc.org/accounts-services/service-installations/capacity-char…
• Tip: Get an estimate of the water capacity charge from the SFPUC before you sign a lease.  This fee can be high, especially if your location was not previously a restaurant.

Fats, oils and grease: Install approved grease-capture equipment (i.e. traps or interceptors) in your kitchen to prevent clogged pipes and sewer backups.

• Resource: https://sfpuc.org/programs/pretreatment-program/fats-oils-grease-fog-co…

Gas and electric services: If your business needs new or additional gas or electric services, contact PG&E Building and Renovation Services to start the application process.

•  Resource: https://www.pge.com/en_US/small-medium-business/building-and-property/b…

Obtain a Manager's Food Safety Certification for yourself and/or a designated employee.  This person is responsible for teaching other employees about proper food handling. 

• Resource: https://www.sf.gov/become-certified-food-safety-manager-your-facility

Ensure all employees have a Food Handler Card. SF DPH offers a few options for obtaining this card.

Apply for your Health Permit to Operate from SF Department of Public Health within 6-8 weeks of your planned open date. Your application will require Proof of Worker’s Compensation Insurance, Proof of Food Safety Certification, and a Business Registration Certificate.

• Resource: https://myhealthdepartment.com/san-francisco/login 

Obtain a Liquor License from the CA Department of Alcoholic Beverage Control (ABC). 

• Resource: www.abc.ca.gov/licensing/apply-for-a-new-license/
• Note: Be prepared to wait 3-6 months for your liquor license to be issued. After applying, a notice will be posted at your location to alert the general public that you plan on serving alcohol. If there are no objections, the department will conduct a background investigation and, if cleared, issue the permit.
• Note: Liquor licenses can be transferred or purchased from an old owner of a restaurant though you will often pay a premium. Transfers take 75 days on average.
• If you want to sell spirits along with beer and wine, your restaurant will need a Type 47 license. The only way to acquire a Type 47 license in San Francisco is to purchase an existing one. If you only want to sell beer and wine, you can apply directly to ABC for a Type 41 license.

Don’t serve any foods containing trans fats, per California State law. SF DPH enforces the trans fat compliance program to ensure that no food containing artificial trans fat is stored, distributed, served, or used in the preparation of any food.

• Resource: www.sfdph.org/dph/eh/food/transfat.asp

Use containers that are compostable or recyclable if you serve takeout or allow customers to take food home. The SF Mandatory Recycling and Composting Ordinance prohibits certain food service ware, like Styrofoam containers.

• Resource: https://sfenvironment.org/zero-waste-in-SF-is-recycling-composting-and-…

Post all required posters and permits including, but not limited to, No Smoking signs, minimum wage information, and health inspection results

Mark your calendar. Schedule equipment maintenance and set reminders to renew your permits and licenses as needed.  

Be prepared for SF DPH Health Inspections by checking walls, floors, and ceilings for damage; following best practices for food storage; collecting garbage; and ensuring workers have good hygiene.

• Resource: sfdph.org

Prepare and pay your local, state, and federal taxes. Learn more from these departments:

• sftreasurer.org 
• sfassessor.org
• ftb.ca.gov
• irs.gov