Browse and consider locations

• Consider factors like demographics, safety, traffic, zoning and building requirements, and accessibility.

Check the location's zoning

• Every location is zoned differently.
  • 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 consult with the SF Department of Public Health (DPH) and SF Fire Department (SFFD) to understand whether your space needs sprinkler systems, kitchen hoods, fire exits, capacity requirements, and more.
• Check this even if the location was a restaurant before. It may have operated without permits, or with outdated equipment.

Learn about making your business accessible

• Your landlord is required to provide information about the accessibility of the building, in case it needs renovations.

Create a Business Plan

• Writing out business goals and action steps helps you clarify and organize your priorities.

Choose a business structure

• When starting a business, you will need to select a business structure for your business. This decision impacts how much you pay in taxes and your personal liability (i.e. who is legally responsible for debts). You will need to decide before registering your business.

Choose and file a business name

• If you choose to conduct business under a name different than your own (ie. John Doe), you must file a Fictitious Business Name (FBN) with the SF Office of the County Clerk.

Apply for an Employer Identification Number (EIN)

• An Employer Identification Number (EIN) is also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number. It is a unique nine digit number assigned by the Internal Revenue Service (IRS).
• Generally, businesses need an EIN to pay employees and to file business tax returns.

Register your business in San Francisco

• 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.

Apply for a Seller's Permit

• Seller's Permits are from the CA Department of Tax and Fee Administration (CDTFA). Every location must have this permit to sell taxable goods.

Obtain workers' compensation insurance

• You will need this insurance if you will have employees. 

Apply for permits for tenant improvements

• Most tenant improvements - even small ones - require a permit

Check water and wastewater capacity charges

• 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).
  • Tip: Get an estimate of the water capacity charge from the SFPUC before you sign a lease. .

Install equipment for fats, oils and grease

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

Get 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.

Install signage and/or an awning

• Awning permit fees are waived every May. You can qualify if you submit your permit application during the month of May. 

Get a Manager's Food Safety Certification

• Either your and/or a designated employee needs this certification.
• This person is responsible for teaching other employees about proper food handling. 

Ensure all employees have a Food Handler Card

• See the options for getting a Food Handler Card.

Apply for your Health Permit to Operate

• Apply within 6-8 weeks of your planned open date.
• You'll need to include proof of Worker’s Compensation Insurance, proof of Food Safety Certification, and a Business Registration Certificate.

Obtain a Liquor License

• The CA Department of Alcoholic Beverage Control (ABC) issues liquor licenses. 
• 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.
• Liquor licenses can be transferred or purchased from an old owner of a restaurant. This can sometimes be expensive.
  • 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.

Use containers that are compostable or recyclable

• If you serve takeout or allow customers to take food home, you need to comply with the SF Mandatory Recycling and Composting Ordinance prohibits certain food service ware, like Styrofoam containers.

• 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.
• Prepare and pay your local, state, and federal taxes.