Food and drink · LLC guide · updated
How to start an LLC for a catering business
Caterers cook in one place and serve somewhere else, often at venues that demand a certificate of insurance and a signed contract. One wedding gone wrong can bring illness claims from many guests at once. An LLC keeps those claims and the deposit disputes with the company.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- Caterer permit
- Commercial kitchen
- Liquor rules
- Event COI
Catering Business businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 722320), the latest U.S. totals.
Why catering business owners form an LLC
Illness at an event
A single contaminated dish can affect dozens of guests in one night.
Cancellations and deposits
Clear contract terms on deposits and cancellations prevent the most common disputes.
Serving alcohol
Who holds the alcohol license at an event decides who is responsible.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a catering business
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- General and product liability
Venues usually require $1 million per occurrence and to be named as an additional insured.
- Liquor liability
Needed if your staff serve alcohol.
- Commercial auto
For the van that moves food and equipment.
Taxes
- Sales tax on catering
Most states tax catering, and many tax delivery, setup and service charges too. Collect it on the full invoice where required.
- Deposits
Deposits for future events are usually income when received or when the event happens depending on your accounting method; ask a CPA.
Sign every client and venue agreement as the company with your title. Include a limit of liability, a force majeure clause and the deposit terms.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a catering business LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Can I start a catering business from home?
In most states, no. Catering usually requires a licensed commercial kitchen, which you can rent by the hour.
Do caterers need a liquor license?
It depends on the state. Some issue a caterer's license; in others the host or venue gets a temporary permit. Your staff may still need server training.
What insurance do caterers need?
General liability with product coverage, liquor liability if you serve alcohol, commercial auto, and workers' comp once you have staff.
Should the LLC charge a service fee or gratuity?
A mandatory service charge is your revenue and becomes wages when you pay staff. A voluntary gratuity is a tip that belongs to the staff. Name them clearly on the invoice.
How much does it cost to form an LLC for a catering business?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my catering business?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
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Ready when you are
Have us file your Catering Business LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.