Interested in opening a grocery store, but overwhelmed by the number of permits you need to apply for? You’re in the right place.
Opening a grocery store requires cooperating with federal, state, and local licensing requirements. These requirements change depending on where you operate, what you sell, the size of your store, and other factors.
So, if you’re wondering ‘what license do I need to open a grocery store?,’ your answer might be more complex than you think.
Here’s the good news: With the right roadmap, you can handle every license without breaking a sweat.
This guide breaks down exactly which licenses you need for your grocery store, where to get them, and how to maintain compliance once you're operating.
Most grocery stores need minimal federal licensing, but depending on your size and operations, two key requirements could apply to your business.
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You'll need a PACA license if you buy or sell more than 2,000 pounds of fresh or frozen produce daily, or if your annual retail produce sales exceed $230,000 in invoice costs. This federal requirement relates only to produce sales, and it’s designed to protect both buyers and sellers.
How to get it: Apply online through the USDA's Agricultural Marketing Service or call 800-495-7222 (PACA). The annual license costs $995, plus $600 for each additional location, with fees capped at $8,000 total.
Your EIN is essentially your business' social security number. You need this federal tax ID if you plan to hire employees, and it's required for opening business bank accounts and filing taxes.
How to get it: Applying for an EIN is completely free through the IRS website. Apply Monday through Friday between 7 a.m. and 10 p.m. EST. This should be one of your first steps since you need your EIN for most other license applications.
State requirements vary by location, but these six licenses cover the most common needs for grocery store operations.
Every grocery store needs this permit to collect sales tax from customers. Without it, you can't operate as a retailer.
How to get it: Apply through your state's Department of Revenue or Taxation. Most states also offer online registration. The permit is typically free, though you may need to leave a security deposit if you have unpaid taxes.
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This permit prevents double taxation on wholesale purchases you'll resell to customers. Without it, you'll pay tax on both buying and selling inventory, which you want to avoid.
How to get it: Apply through your state's Department of Taxation and Finance. Costs range from free to $50, depending on your state. The online application requires your bank account information and projected monthly sales figures.
This license authorizes you to sell food directly to consumers from your physical location. It's mandatory for grocery stores in most states.
How to get it: Apply through your state's Department of Agriculture or Department of Public Health. Costs vary from several hundred dollars to over $2,000 in states like California. You'll submit detailed floor plans showing your store layout, including refrigeration areas and food storage sections.
If you plan to slice deli meats, heat foods, make sandwiches, or prepare ready-to-eat items, you need this license in addition to your basic retail food permit.
How to get it: Contact your state health department for applications. Costs vary by jurisdiction. Your application must detail all processing activities and specifications about the space where you’ll be preparing the food.
Planning to sell fresh meat or poultry? This specialized license ensures you meet the required safety standards for storing and handling these products.
How to get it: Apply through your state's Department of Agriculture. Depending on your location and employee count, costs range from $100 to $1,000. The application requires a facility inspection and a detailed walkthrough of your meat handling procedures.
Related Read: What Is a Food Handling License? [And How To Get One]
If you plan to carry beer, wine, or spirits in your grocery store, you need a liquor license. As a heads up, this is one of the most complex and expensive permits on this list.
How to get it: Apply through your state liquor authority. Costs vary wildly, from $100 in Idaho to over $13,000 in California. As a bonus tip, be sure to start this process early. Applications can take several months for approval.
Your city and county requirements are just as important as state and federal licenses. These five permits ensure you're compliant with local regulations.
This basic permit gives you legal permission to operate a business in your specific city or county.
How to get it: Apply at your local city or county government office. Costs typically range from $25 to $400, plus a potential $50 registration fee. The application requires basic business details like your store name, address, and business type.
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Local health permits ensure your grocery store meets community health and safety standards. This is separate from your state retail food license.
How to get it: Apply through your county health department. Costs vary significantly by jurisdiction. You'll submit detailed floor plans showing your store layout, and a health inspector will visit your facility before approval.
This document certifies your building is safe for commercial grocery operations. You cannot legally open any brick-and-mortar business without it.
How to get it: Apply through your local building or zoning inspection office. Expect to pay around $100, plus per-square-foot fees. You'll submit documentation about your building's intended use and pass safety inspections covering fire safety, electrical systems, and structural integrity.
If you intend to renovate your storefront or do any kind of new construction, you need a building and zoning permit. Even minor changes like moving walls or updating electrical systems require approval in most localities.
How to get it: Apply through your local building department. Costs range from $50 for minor changes to over $2,000 for major renovations.
You need local permission before installing your grocery store sign. Sign regulations vary between communities, so be sure to check your local requirements before ordering your store signage.
How to get it: Apply through your local government permit office. Permits typically cost $20 to $50. At the time of application, submit sign specifications, including size, lighting, and placement.
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As you can see from this post, opening a grocery store requires quite a few different licenses and permits. If you want to get all your required approvals and open on time, you need to take a strategic approach.
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Here’s a simple step-by-step process you can follow to get your licenses and open your grocery store on time:
We recommend starting this process three to six months before your planned opening date. Remember: Most licenses require annual renewal, so build compliance tracking into your ongoing operations.
If you want to open a grocery store, you have to be prepared to deal with some complex licensing requirements. However, with proper planning, you can manage your applications without the stress and get all your ducks in a row for opening day.
But getting your grocery store licenses is only the first step in your journey.
Once you have all your licenses in place, you need the right technology to manage your grocery store operations — this is where your POS comes in. The right solution tracks inventory, manages compliance records, and streamlines your checkout processes to keep customers happy and sales volume high.
Ready to complete your grocery store setup? Build and price your custom grocery POS solution today.