Starting a restaurant in Los Angeles has its own set of legal considerations, which are specific both to the State of California and to the restaurant industry. The person must undertake the following steps:
Before seriously pursuing a new restaurant in Los Angeles, you will need a specific thought-out business plan. This can include:
The type of business entity you choose for starting your restaurant in Los Angeles will affect your amount of personal liability and tax obligations. Actually, there are four basic types of business formations:
Each type of these business formations has different requirements, tax implications costs, and levels of liability.
Under California law, a restaurant owner must obtain the following:
There are numerous risks associated with opening a restaurant in Los Angeles, such as employees or customers falling or slipping, someone getting hurt from broken glass or hot liquid etc. There are also more common business risks such as theft, fire or other personal injury or property damage. While choosing proper insurance coverage for you restaurant try to make sure that everything, from plates to stoves, is fully covered. In case of personal injuries, make sure to have a good general liability policy.
If you are thinking of opening a restaurant that is a part of a franchise you will be subject to a franchise contract which will likely give the franchisor rights to:
There are some particular employment laws that are specifically relevant to restaurants, such as minimum wages for tipped employees or rules regarding different exams and training related to food preparation and handling. Various testing and training rules can be found in in Chapter 3 of the California Retail Food Code.
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