Insurance Curator Opening a new restaurant or hospitality location in Los Angeles requires a state- and county-specific compliance plan to limit liability exposure. This checklist is written for operators expanding or launching a venue in Los Angeles County, California, and focuses on legal, regulatory, and financial steps that materially reduce risk.
Quick action summary
- Target location: Los Angeles, California (City & County)
- Primary regulatory bodies: Los Angeles County Department of Public Health, California Department of Alcoholic Beverage Control (ABC), Cal/OSHA, California Department of Tax and Fee Administration (CDTFA), City of Los Angeles Office of Finance
- Immediate must-dos (first 30 days):
- Obtain EIN, register business entity
- Apply for seller’s permit (CDTFA)
- File for health permit with LA County Public Health
- Confirm zoning and building permits with local planning/permit office
- Secure insurance (GL, liquor liability, workers’ comp)
H2 — Core Legal & Regulatory Checklist (step-by-step)
1. Business formation, registrations, EIN, and local business tax
- Form your entity (LLC, corporation, etc.) with California SOS (file at bizfile.sos.ca.gov).
- Get an Employer Identification Number (EIN) from the IRS (free).
- Register for a California seller’s permit—required to collect sales tax: California Department of Tax and Fee Administration (CDTFA). Seller’s permits are issued without a fee, but sales tax collection is required: https://www.cdtfa.ca.gov/
- City of Los Angeles requires a Business Tax Registration Certificate (BTRC) — check the Office of Finance for registration and the gross receipts tax schedule.
Sources:
- SBA on licenses & permits: https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
2. Food safety & health permits (Los Angeles County)
- Apply for a Public Health Permit from Los Angeles County Department of Public Health — mandatory before opening. Expect on-site inspections for plan review and food safety compliance.
- Submit menu, floor plan, and equipment specs during plan check.
- Train staff on HACCP/serving protocols and document food safety training.
- Know local health code variations (e.g., mobile food vending rules vs. full-service restaurants).
Resource:
- LA County Food Safety Program: https://publichealth.lacounty.gov/eh/food/
See also: State Health Code Variations and Local Resources for Food Safety Compliance
3. Alcohol licensing & dram shop exposure
- File for the appropriate California ABC license for the premises (on-sale general for restaurants, Type 47, 48, etc. depending on service). Licensing timelines can exceed 90 days due to public notice and investigation.
- Tip: Apply early — license transfers and issuance in Los Angeles often take several months.
- Implement strict server training (TIPS, RBS) and point-of-sale (POS) refusal procedures to reduce dram shop liability.
Resource:
- CA ABC licensing: https://www.abc.ca.gov/licensing/
Related: Dram Shop Law Differences by State: Key Variations for Bars, Restaurants and Venues
4. Employment law, wages, scheduling, and labor posters
- California requires a number of written policies and posted notices (minimum wage, sexual harassment prevention, injury notice).
- Los Angeles city has its own minimum wage and scheduling obligations; confirm local ordinances. Track paid sick leave, overtime rules, and meal/rest break rules.
- Register with the California Employment Development Department (EDD) for payroll taxes and unemployment insurance.
See: State-Level Wage, Scheduling and Tip Laws That Affect Restaurant Liability and Operations
5. Workplace safety and workers’ compensation
- Comply with Cal/OSHA standards; implement written safety plans for fire, slip-and-fall reduction, and kitchen hazards.
- Workers’ compensation insurance is required for most employers in California. Purchase from a licensed carrier before employees start work.
Cal/OSHA: https://www.dir.ca.gov/dosh/
6. Building, fire, and occupancy permits
- Confirm zoning and conditional use permits with LADCP (Los Angeles Department of City Planning).
- Get building permits for tenant improvements; schedule inspections for plumbing, mechanical, and electrical work.
- Obtain fire department approval and a Certificate of Occupancy.
7. Insurance — recommended coverage and price expectations
Essential policies for Los Angeles restaurants:
- General Liability (GL)
- Commercial Property
- Liquor Liability (if serving alcohol)
- Workers’ Compensation
- Business Interruption (with extra expense)
- Employment Practices Liability (EPLI) for multi-staff operations
Typical price benchmarks (Los Angeles restaurants, subject to size/claims history):
- General Liability: roughly $500–$3,000 per year
- Liquor Liability: $1,000–$10,000+ per year depending on capacity/alcohol sales
- Workers’ Comp: varies widely; often $3.00–$8.00 per $100 payroll depending on job classification
- Commercial Property premiums depend on coverage limits and occupancy
Sample providers and published pricing:
- Next Insurance advertises small-business restaurant policies with digital quotes — small GL policies often advertised starting at about $23/month for minimal coverage levels: https://www.nextinsurance.com/restaurant-insurance/
- Square (payments) and Toast are common POS partners; factor processing fees (Square’s in-person rate: 2.6% + $0.10 per transaction) into margins: https://squareup.com/us/en/pricing
Insurance comparison (sample):
| Coverage Type | Typical Annual Cost (Small LA Restaurant) | Notes |
|---|---|---|
| General Liability | $500 – $3,000 | Based on revenue, seating capacity |
| Liquor Liability | $1,000 – $10,000+ | High variability; vet insurer for dram shop claims |
| Workers' Comp | $3.00–$8.00 per $100 payroll | Depends on job classifications |
| Property & BI | $1,000 – $10,000+ | Based on building value, equipment, and location |
See also: Region-Specific Insurance Requirements and Licensing Differences for Hotels and Restaurants
8. POS, payment processing, and merchant liability
- Choose a POS with good reporting and integrated liability controls (age verification prompts, item tracking).
- Square pricing for card-present: 2.6% + $0.10 per transaction (public pricing as of listing) — compare to Toast and other processors which may have different rates and monthly platform fees. Link: https://squareup.com/us/en/pricing
- Maintain PCI compliance to limit cardholder data liabilities.
9. Accessibility (ADA) and signage
- Ensure accessible entrances, restrooms, and seating layouts comply with ADA and California Building Code. Accessibility violations are frequent sources of claims and fines.
- Post required notices (health inspection grade if required, wage notices, business license display).
10. Ongoing compliance, audit calendar, and local counsel
- Centralize compliance tasks in a calendar: renew health permit, re-inspect fire suppression systems, renew ABC license, renew insurance, payroll tax filings.
- Retain a local hospitality-focused attorney for lease review and jurisdictional liability nuances.
H3 — Sample 90-Day Opening Timeline (High-level)
- Days 1–7: Entity formation, EIN, seller’s permit, BTRC application
- Days 7–30: Submit health plan check to LA County; apply for ABC license if selling alcohol; begin tenant improvements and building permits
- Days 30–60: Complete inspections (electrical/plumbing/fire); order POS and signage; secure insurance and workers’ comp
- Days 60–90: Final health inspection and ABC approvals (if timed); staff hiring & training; soft open with monitoring
H3 — Practical Risk-Reduction Policies to Implement Day 1
- Alcohol: mandatory server training (TIPS/RBS), incident log, refusal procedures
- Food safety: temperature logs, supplier vetting, corrective action records
- Employment: written handbook, timekeeping to document breaks/overtime, harassment prevention training
- Safety: mats, signage, routine slip-and-fall hazard checks, first-aid kits, and documented cleaning schedules
Resources & References
- Small Business Administration — licenses & permits: https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
- California Department of Alcoholic Beverage Control — licensing: https://www.abc.ca.gov/licensing/
- Los Angeles County Public Health — food facility program: https://publichealth.lacounty.gov/eh/food/
- Cal/OSHA: https://www.dir.ca.gov/dosh/
- Square pricing (payments): https://squareup.com/us/en/pricing
- Next Insurance — restaurant insurance: https://www.nextinsurance.com/restaurant-insurance/
Internal reading (related topics):
- State & Region-Specific Liability Laws for Hospitality: What Multi-Location Operators Must Track
- State Health Code Variations and Local Resources for Food Safety Compliance
- Region-Specific Insurance Requirements and Licensing Differences for Hotels and Restaurants
Follow this checklist to create a state- and county-specific compliance playbook that materially reduces legal exposure when opening in Los Angeles.