One missed permit can shut down your convenience store dreams before you even flip that “Open” sign.
Opening a convenience store means dealing with a whole web of federal, state, and local regulations.
Depending on what you’re planning on to sell, you need to figure out everything from basic licenses to specialized permits. It can be so overwhelming that even hopeful owners might quit before they get started.
Worse, some invest time and money, only to give up once they realize just how tangled up they are in regulatory red tape.
Luckily, it doesn’t have to be this way. We'll cut through the confusion and give you a straightforward checklist of every permit you need.
This guide breaks down the 10 essential permits for convenience store owners, plus additional licenses you might need depending on what you plan to sell. By the end, you'll know exactly what to apply for, when to start the process, and how much to budget.
It’s a great time to open a convenience store. The industry is thriving, with revenue growing at 6% annually over the past five years to reach $48.7 billion in 2025. With over 70,000 convenience stores operating nationwide, it's clear the c-store business model works. Here’s the catch: Convenience stores face some of the most complex regulatory requirements in retail.
Why? It all comes down to your inventory.
You're not just selling snacks and sodas. Tobacco products are the largest revenue segment for convenience stores, followed by food service, packaged beverages, beer, and candy. Each category has a web of federal, state, and local regulations you have to navigate.
Related Read: Where Do Convenience Stores Get Their Merchandise? 7 Top Suppliers [and How To Manage Them]
Missing even one permit can shut you down before you start. We're talking hefty fines, forced closures, and the loss of your investment.
Understanding which permits you need and securing them properly is the first step toward taking on this profitable industry. Let's break down the essential permits every convenience store owner needs.
What it is: Your EIN is essentially your business' social security number — a nine-digit federal tax ID that identifies your business to the IRS.
Why you need it: Your EIN is required to open business bank accounts, file taxes, and hire employees. Even sole proprietors often need an EIN for business banking and vendor relationships.
How to get it: Apply online through the IRS website. The application takes about 15 minutes, and you'll receive your EIN immediately.
Cost: It’s completely free through the IRS. Beware of third-party websites that charge fees for this free service.
Pro tip: Get this first. You need this number for most of your other licenses and permits.
Related Read: How To Open a Retail Store: 7-Step Checklist
What it is: A business license gives you general authorization to operate commercially in your city or county. Essentially, this document is your basic "right to do business" permit.
Why you need it: This license is a legal requirement to conduct business. Without it, you can't legally open your doors.
How to get it: Contact your local city or county clerk's office. Search online for "[your city] business license application" to find forms and requirements.
Cost: The cost varies by location and business size but ranges from $25–$400, plus annual renewal fees.
Timeline: Processing time is one to four weeks, though busy jurisdictions may take longer.
Related Read: The Ultimate Business Plan Checklist for New Retail Stores [+ a Downloadable Checklist!]
What it is: Your sales tax or seller’s permit is your authorization to collect sales tax from customers and remit it to your state government.
Why you need it: This small business tax permit is required to sell retail products in any state with sales tax. Without it, you're operating illegally.
How to get it: Apply through your state's Department of Revenue or taxation agency. Many states offer online applications with immediate approval.
Cost: Your seller’s permit is usually free, though some states require a security deposit if you have outstanding tax obligations.
Timeline: Processing time is one to two weeks in most states, though some issue permits immediately online.
Important note: If you plan to sell online or in multiple states, you need permits in each state where you have "nexus,” or significant business presence.
What it is: A resale certificate is a permit for tax-free purchases of inventory for resale.
Why you need it: Without a resale certificate, you’ll pay sales tax when buying c-store inventory, then collect it from customers only to remit it to the government. These would be funds you won’t be able to recover.
How to get it: This certificate is usually combined with your sales tax permit, and you apply for it in the same process.
Cost: The cost ranges from $0–$50, and is frequently included with your sales tax permit at no additional charge.
What it is: Your health department permit certifies that your store meets food safety standards for selling food and beverages.
Why you need it: A health department permit is required to sell any food items, especially convenience store staples like fresh coffee and grab-and-go foods.
How to get it: Submit detailed floor plans to your County Health Department, complete food safety training, and pass an on-site inspection.
Cost: The cost varies widely by location. The range typically falls between $700 and $2,000, with metropolitan areas tending to be on the higher end.
Timeline: Your health department permit will take two to six weeks, plus additional time for scheduling inspections.
Pro tip: Don't wait until the last minute. Inspections often reveal issues that require modifications, so be sure to budget extra time and money just in case.
Related Read: 4 Convenience Store Trends To Get Ahead Of
What it is: Your liquor license is your permission slip to sell alcoholic beverages like beer, wine, and spirits.
Why you need it: If you intend to sell alcohol of any kind in your store, you need a liquor license. Most states and localities have multiple types of liquor licenses with different requirements depending on the type of alcohol carried (spirits versus wine and beer) and sale type (on-premises versus off-premises consumption).
How to get it: Review your state and local requirements and apply through your state's Alcoholic Beverage Control (ABC) agency. The process is one of the most complex on this list and includes background checks, credit checks, and sometimes public hearings.
Cost: Liquor license costs range from $100–$1,400+, depending on your state. Idaho charges around $100, and California can exceed $1,400.
Timeline: This can take from 30 days to over six months. Some states have quotas limiting available licenses in certain areas, so you want to start this process as early as possible to prevent holdups.
What it is: A tobacco license authorizes you to sell tobacco products, including cigarettes, cigars, smokeless tobacco, and e-cigarettes.
Why you need it: This license is a federal and state requirement for tobacco sales. Tobacco is the largest revenue segment for most convenience stores, so you want to secure this license for your store.
How to get it: Apply to both the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) and your state tax/revenue department. You also need to complete age verification training, comply with display restrictions, and understand packaging requirements to be approved.
Cost: The cost ranges from $50–$500 annually, depending on your state's fee structure.
Timeline: This can take two to four weeks for processing after submitting complete applications.
Note: Some states require separate permits for different tobacco products. Regulations change frequently, so stay informed about flavor restrictions and new compliance rules.
What it is: As the name suggests, your lottery license is your store’s permission to sell state lottery tickets and participate in the lottery system.
Why you need it: A lottery license is required to sell lottery tickets, another one of the biggest revenue drivers for convenience stores.
How to get it: Prepare detailed business and financial information and apply through your state lottery commission. You also need to commit to minimum monthly sales requirements and set up a business bank account dedicated to lottery transactions.
Cost: the cost is approximately $500, including equipment setup and mandatory background checks.
Timeline: It can take 30–60 days for processing, including credit and criminal background checks.
Related Read: How Do I Become a Lottery Retailer? 3-Step Process for C-Stores
What it is: Your occupancy certificate verifies that your building is safe for commercial use and meets all local building codes.
Why you need it: If you’re running a brick-and-mortar business, you need a certificate of occupancy to legally operate from your location.
How to get it: Schedule inspections with your local building/zoning department covering structural, electrical, plumbing, fire safety, and ADA compliance. You need to verify that your business meets building code compliance, zoning requirements, and fire safety regulations to get approved.
Cost: The cost is around $100 plus per-square-foot fees, varying by jurisdiction size and local fee structures.
Timeline: The certificate is issued immediately after passing the final building inspection, but you want to schedule this well in advance of your planned opening date, as code violations will require corrections.
What it is: These permits authorize you to make construction, major modifications, electrical work, or plumbing changes to your space.
Why you need it: If you plan to make any changes to your brick-and-mortar location, you need these permits. Structural changes like adding or removing walls or rooms definitely apply, but even seemingly minor modifications like upgrading lighting systems may require a permit.
How to get it: Submit detailed plans to your local building department. You need to give detailed construction plans, provide contractor license verification, and submit to inspections throughout your project.
Cost: This can cost $50–$2,000+, depending on project scope. Minor changes cost less; major renovations require substantial fees.
Timeline: It can take one to eight weeks for permit approval, depending on project complexity, plus actual construction time.
Depending on your specific business model and location, you may need additional permits beyond the 10 we’ve discussed so far. Let’s take a look at some other common permits for convenience stores.
Fire Department Permit: This is required if you install equipment like large coffee machines, propane tanks, or selling fireworks. Contact your local fire marshal to determine if your equipment or inventory triggers this requirement.
Sign Permits: Most municipalities regulate business signage size, placement, and lighting. Check local zoning requirements before installing exterior signs, LED displays, or illuminated signage. Costs typically range from $25 to $200.
Food Service License: If you're preparing hot food, operating a deli counter, or brewing fresh coffee, you may need a more extensive food service license beyond the basic health permit. This process involves additional inspections and stricter food handling requirements.
Environmental Permits: Gas station convenience stores need EPA and state environmental agency approvals for underground storage tanks, fuel dispensing systems, and spill prevention. These permits involve extensive documentation and regular compliance monitoring.
Workers' Compensation Insurance: While not technically a permit, this insurance is mandatory in most states before hiring your first employee. You need proof of coverage to remain compliant with state labor laws and protect your business from workplace injury claims.
After reading this guide, you should have the information you need to get your permits right the first time — and start your convenience store business off on the right foot. While we’ve covered the essential permits most convenience stores need, keep in mind that requirements can vary depending on your location. What applies in Texas may be different in New York or California.
Before you start applying for permits, be sure to contact your local city clerk, county health department, and state agencies to confirm specific requirements for your area. Many jurisdictions have helpful checklists and guidance documents that can save you time and stress.
But getting the right permits is only the first step to running a profitable convenience store. If you want to run a store that becomes a community staple, you need the right tools and technology. An effective point of sale (POS) system is the most essential tool in your arsenal.
The right POS system helps you manage inventory, track sales, and stay compliant from day one. Schedule a demo with POS Nation today to see how our c-store solution can set you up for success.