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What Licenses Does A Bubble Tea Business Need?

What Licenses Does A Bubble Tea Business Need?

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What Licenses Does A Bubble Tea Business Need?

Starting a successful bubble tea business takes more than knowing how to make a tasty drink.

The question, “what business license do I need to start my business” is a common one, but in reality, a business will often need multiple licenses, permits, and registrations from federal, state, and local agencies to get started.

Let’s look at the licenses to consider when starting a bubble tea business.

Related: Guide to starting a bubble tea business

While we have researched what licenses and permits your business may need, please be aware that there is no way for us to have uncovered every state and local requirement.

To not miss any important licenses and permits, we recommend also checking with your local Chamber of Commerce, economic development agency, or use a business license service like Incfile or LegalZoom.

What Licenses Do You Need to Start a Bubble Tea Business?

Food Service License

In order to serve any type of food or drink, a food service license will be needed. This licensing helps ensure food-service establishments are following health and safety requirements and keeping the public safe. Registration is different by location, and you may need a state license or county license, and sometimes both.

Licensing typically requires employees have a food handler certificate or food sanitation certification, in addition to the facility being randomly inspected.

 

Outside of a food service license, there aren’t any other licenses specifically for a bubble tea business; however, there will likely be general licensing requirements for starting a business.  Here are a few of the common licenses and permits that a bubble tea business may need:

General Business License or Permit

Depending on where the business is located, a general business license or permit may be required. A few states require a business license; however, they are more commonly found at the city level.

Learn more: Business license requirements by state

Business Name Registration

While not necessarily a business license, it’s worth noting that in order to use a name for a business, many states require the registration of that name. Making matters more complicated, the process of name registration is different by state and the type of business entity.

For instance, sole proprietorships and partnerships generally need to register a business name (also referred to as a Doing Business As, DBA, fictitious name, or assumed name).

Learn: How to register a DBA

Corporations and LLCs register are a little easier in that their name is registered when forming the entity.

Related: What is the difference between a sole proprietorship, partnership, Corporation, or LLC?

Federal Employer Identification Number

The Federal Employer Identification Number (also referred to as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number) is a unique nine-digit number that identifies a business with the Internal Revenue Service (IRS).

Any business with employees or those that form as a partnership, Corporation, and in many cases an LLC, the business will need to get an EIN.

Sole proprietors and single-owner LLCs without employees can instead use the owner’s social security number.

Learn: How to get an EIN 

Sales Tax Permit or Business Number

In order to sell products and/or offer certain services, a state sales tax permit (business tax number or tax ID number) may be needed.  This permit creates an account number with the state’s Department of Revenue or a similarly named state taxing agency to collect and remit sales tax on items sold by a business.

Learn: How to get a sales tax permit

Resale Certificate

When buying inventory such as tea, tapioca, straws, cups, etc., that are sold to customers, the business can purchase these items tax-free. A resale certificate (sometimes referred to as a seller’s permit) allows a business to purchase inventory, and instead of paying the sales tax to their vendor, they charge the sales tax to the end-user of the product.

A resale certificate only allows a business to not pay sales tax for items being resold, and sales tax will still need to be paid for supplies or equipment.

Learn: How to get a resale certificate

Certificate of Occupancy

In most communities, a bubble tea business will need to secure a Certificate of Occupancy (CO) before operating in a commercial building.  This certificate is typically obtained from the city, but sometimes from the county, and allows a business to occupy and operate from a building provided the building complies with zoning regulations, building codes, and any other local requirements.

Before starting your bubble tea business, be sure to check with the local zoning department to ensure the business can legally operate out of the chosen location.

 

The process of identifying all of the licenses and permits necessary to start a bubble tea business may feel confusing and overwhelming. It is critical to do this right the first time, otherwise your business may be shut down after opening, until all licenses are obtained.

These are some of the most common business licenses, but there may be specific licensing that isn't listed. Before starting your business, be sure to check with the City Clerk, County Clerk, Chamber of Commerce, and/or Economic Developer in your area to get more information regarding business licensing.

For some additional peace of mind, companies like Incfile or Legalzoom can do the research and ensure you have all of the proper federal, state, and local licenses to start your business.

What Licenses Does A Bubble Tea Business Need?

What Licenses Does A Bubble Tea Business Need?

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