What Licenses are Needed to Start a Food Truck?

Food trucks are an exciting type of business that are cheaper to start than most food service businesses. However, before you can open for business, you need to know what licenses are needed to start a food truck. There are a lot of them, and some of them can cost a pretty penny, so you’ll have to be ready to spend some money and get some certifications.

Key Points:

• Starting a food truck requires a lot of permits and licenses
• Make sure to get all of the required licenses for your area, lest you face legal issues
• Licensing and permits are highly local, so working with a local business mentor can be a huge help

What Licenses and Permits Are Needed to Start a Food Truck?

In order to start a food truck, you need a variety of licenses and permits.

In general, you can break the required documents into a few categories.

First are the business licenses and permits which any business needs to be able to hire people and pay taxes. Usually, you’ll get these from your local or state government. If you’re having trouble figuring out the permits you need, don’t be afraid to ask your local city or town.

Erik Metzdorf, owner of the first food truck in Newburyport, Massachusetts, noted how helpful the city was with opening the business. “The City of Newburyport really bent over backwards to help us figure out how to get the permitting done… he Health Department and the city had the vision to understand that the Newburyport community wanted us here, and so they worked with us to figure it all out. We are very grateful to the city and the Newburyport Health Department for working with us to get the permitting done.”
Next are the ones related to your vehicles, such as a driver’s license and parking permits.

Finally, there are licenses related to food service, giving you permission to sell food and showing that you can handle food safely.

Business License

To get started, you’ll need a business license.

How Do I Get a Business License for My Food Truck? 

Getting a business license for your food truck should be relatively easy. You can usually get one from your local or state business department. You’ll have to provide some basic info, such as your identity, the business’s name, and the line of business you intend to operate in.

How Much Does a Business License Cost?

The cost of a business license varies depending on where you live and what business you’re running, but you can expect it to be between $50 and $500. 

Employer Identification Number (EIN)

An Employer Identification Number (EIN) works like a Social Security number for your business. You’ll need one to be able to apply for loans, pay employees, and file your business taxes.

How Do I Get an EIN for My Food Truck? 

You can get an EIN online directly from the IRS website. You’ll provide some basic information about you and your business. The process takes just a few minutes.

How Much Does an EIN Cost?

There is no cost to apply for an EIN.

Driver’s License

While you don’t strictly need a driver’s license, having a food truck you can’t move from place to place doesn’t make much sense. You’ll want to get licensed if you don’t already know how to drive.

How Do I Get a Driver’s License? 

Each state sets its own requirements to get a driver’s license. If you’re an adult, the process usually involves a written test and a road test. Younger people usually have to go through a process involving getting a learner’s permit and practicing for a set number of hours with a licensed adult.

How Much Does a Driver’s License Cost?

Driver’s license costs vary from state to state, ranging from $10 to $90.

Food Handler’s Permit

A food handler’s permit proves that you know how to safely handle food and serve it to customers.

How Do I Get a Food Handler’s Permit for My Food Truck? 

Typically, you’ll need to complete a training and safety course to get a food handler’s permit for your truck. Most states only require that the manager-on-shift has this certification, so you should definitely get one, but consider having other employees attend.

How Much Does a Food Handler’s Permit Cost?

In most states, this permit costs less than $50.

Food Truck Permit

A food truck permit comes from your local government and gives you the right to operate a food truck in that area.

How Do I Get a Food Truck Permit? 

To get a food truck permit, you’ll need to apply with your local government, usually in-person or online.

How Much Does a Food Truck Permit Cost?

Prices can vary widely but usually run about $50 or $100.

Health Department Permit

A health department permit is important for your food truck because it shows that you will handle and store food safely. This might also be known as a food service license.

How Do I Get a Health Department Permit for My Food Truck? 

You can get this permit by passing an inspection from a health department official. They’ll look at food storage, cleanliness, and the like.

How Much Does a Health Department Permit Cost?

Prices for a health department vary widely, from as low as $50 to as high as $1,000.

Fire Certificate

Some areas require a fire certificate to show that you know how to handle a fire in your vehicle safely. Some areas waive this requirement if you only sell refrigerated or cold items, such as ice cream.

How Do I Get a Fire Certificate for My Food Truck? 

You can get this certificate by having the fire department inspect your vehicle, ensuring it is fire-safe.

How Much Does a Fire Certificate Cost?

The cost for this permit will depend on where you live but is usually about $100.

Seller’s Permit

A seller’s permit allows you to purchase ingredients and raw materials at wholesale prices without paying sales tax. Some states, especially those with no sales tax, don’t require this.

How Do I Get a Seller’s Permit for My Food Truck? 

If your state requires a seller’s permit, check with your state government to find the application process.

How Much Does a Seller’s Permit Cost?

Most states do not charge a fee to apply for a seller’s permit.

Employee Health Permit

In some states, employees also have to pass certain health and safety tests to be able to serve food.

How Do I Get an Employee Health Permit for My Food Truck? 

To get this permit, you’ll need to check with your local health department for certification classes or training that you can provide to your employees.

How Much Does an Employee Health Permit Cost?

The price for an employee health permit ranges widely depending on your location but is usually $50 to a few hundred dollars.

Liquor License

If you want to sell alcohol out of your food truck, you’ll need to get a liquor license.

How Do I Get a Liquor License for My Food Truck? 

Each state and even city has incredibly different rules regarding liquor licensing, so you’ll want to check with your local government for the exact process. 

How Much Does a Liquor License Cost?

Liquor license prices can vary significantly. In some locations, they can cost tens of thousands of dollars.

Hawker and Peddler License

If you plan to travel to different towns to sell your goods, you may need to apply for hawker or peddler licenses in each town where you operate.

How Do I Get a Hawker and Peddler License for My Food Truck? 

Check with the city or town government where you operate to determine if the license is required. If it is, you can usually apply online or in person.

How Much Does a Hawker and Peddler License Cost?

These licenses are typically inexpensive, costing $25 or $50 in each town.

Parking Permits

Food trucks are vehicles, which means they need parking. You’ll need permits to park them in certain locations.

How Do I Get Parking Permits for My Food Truck? 

If you want to park in a public area, you’ll have to apply for a permit from the local government. You can also consider working with private businesses to operate on their land. You’ll need to get a permit from the landowner in those cases.

How Much Do Parking Permits Cost?

Parking permit prices vary depending on where you operate but usually range from $500 to $1,000.

Commissary Letter of Agreement

Depending on where you live, you may need to store supplies and do your prep in a commissary kitchen before you get in your truck. This document confirms your access and use of the commissary facility.

How Do I Get a Commissary Letter of Agreement for My Food Truck?

To get this letter of agreement, you’ll need to work directly with the company providing the commissary kitchen access.

How Much Does a Commissary Letter of Agreement Cost?

Prices depend significantly on where you are, rents in the area, and other factors.

Special Event Permit

Food trucks can make a killing operating at special events such as fairs, festivals, and outside sporting events. Getting a permit to operate at these events can be costly, but worth it.

How Do I Get a Special Event Permit for My Food Truck?

How you get a permit depends on the nature of the event and where you plan to park.

At private events like festivals or fairs, you can work with the organizer to get a permit to operate on the fairgrounds. If you just want to park on the street outside of a stadium on game day, you might need to work with your local government or even the team to get a permit.

How Much Does a Special Event Permit Cost?

Special event permit prices can vary widely but usually range in the hundreds of dollars.

Where can I get food truck loans to cover my costs?

There are lots of sources of food truck loans that you can use to cover costs.

• Food truck sellers. Companies that sell food trucks often offer financing to help you afford the cost of the vehicle.
• Friends and family. You can always turn to people you know for financing, though you should consider the pros and cons of mixing money and family first.
• Business lenders. Food trucks are a business, so typical business loans are an option. You might like to learn more about dedicated food truck financing options we recommend.
• SBA lenders. The SBA loans offered by the US Small Business Administration have low rates and high limits but can take longer to apply for.

Business Mentoring Organizations That Could Help

Running a food truck can be quite difficult if you don’t know what you’re doing. A good mentor can make all the difference. Consider these organizations if you want to find a mentor for your business.

• SCORE. SCORE is a nonprofit organization with more than 300 groups across the country. 
• Local networking events. If you live near a large town or city, you can find local networking events where business owners can meet each other. These can be a great way to find a mentor.
• Women’s Business Centers. Women business owners can use these groups to connect with like-minded women and are a good place to find others who can help them through difficult decisions.
• Small Business Development Centers. The government offers a database where you can find these centers. Most have some form of mentoring program.

Conclusion 

Starting a food truck can mean applying for a lot of permits and licenses, but the effort is well worth it. Despite the licensure requirements, food trucks are one of the least expensive ways to enter the food service industry and can be highly profitable. Attention to detail will be essential as you get all the permits and licenses you need.