The initial step with opening any restaurant should be the development of a solid business plan. Most financing companies and other lending institutions will require you to submit a business plan when applying for any loans or business grants. Business Plans allow you to objectively gauge the feasibility of a business idea by laying out the framework for every aspect of the operation. While business plans may come in many different layouts, the below components are considered to be the most critical elements of a comprehensive business plan:

1. By RestaurantRookie.com
How to Open a Restaurant in Pennsylvania
Create a Great Business Plan
The initial step with opening any restaurant should be the development of a solid business plan. Most
financing companies and other lending institutions will require you to submit a business plan when
applying for any loans or business grants. Business Plans allow you to objectively gauge the
feasibility of a business idea by laying out the framework for every aspect of the operation. While
business plans may come in many different layouts, the below components are considered to be the
most critical elements of a comprehensive business plan:
• Product/Service Description
• Feasibility/Competition Analysis
• Financing Plan
• Marketing Plan
• Management & Operational Plan
• Legal Requirements
Determine Your Business Ownership Structure
The structure of your restaurant should be defined before submitting any applications for financing or
building, as it defines the legal infrastructure of your business (we strongly recommend consulting
your legal team for this step). Most restaurants operate as either Sole Proprietorships, Partnerships,
or LLCs, with the exception of large chains and franchises. It’s imperative to consider aspects such as
decision-making hierarchy, legal liabilities, and tax implications when deciding which business
structure would be the best fit your operation. Find the main types of business structures below:
• Sole Proprietorship
• Limited Liability Company (LLC)
• Partnership
• Corporation (Incorporation application must be filed with the state)
Business Name Registration

2. Registering your business name or “Trade Name” in Pennsylvania is required if you plan to operate
under a name that’s independent of your personal name, and is required for all
corporations. The Pennsylvania State (or your local county) website can provide more details on
registering your business.
Quick Steps to registering your trade name:
1. Choose your business name
2. Check business names and trademarks to assure there is no duplication on your part
3. File an “Assumed Name Certificate”(also known as DBA certificate) for your new trade name
Obtain an Employer Identification Number
If you plan to hire any employees for your restaurant you will need an EIN number from the Internal
Revenue Service. Your EIN will be used to identify your business for tax reporting purposes. You can
apply for an EIN online by simply accessing the form at http://www.irs.gov/.
Register for State/Local Tax Accounts
Restaurateurs will also be responsible for Pennsylvania state taxes. To register for a business tax
account and determine which taxes are collected for your business structure in Pennsylvania you can
visit the Pennsylvania Dept. of Revenue online.
Setup a Business Bank Account
As a business owner, it’s important for you to have checking account that is separate from your
personal checking account. Having the ability to clearly monitor and report your expenditures and
profits will make for much easier and concise record keeping, tax/sales reporting, expense write-offs,
etc. Many banks now even offer ancillary services for business customers including payroll services
and POS systems as well.
Obtain Business Licenses and Permits
The state of Pennsylvania requires specific licensure and permits before opening a public food
service establishment. Each city/county will also have their own regulations as well. Obtaining
approval for licenses and permits can be a challenging process, and it’s best to contact your state

3. and local government agencies to assure that you have all of your ducks in a row before submitting
applications. See the links below for obtaining licenses in Pennsylvania:
• Local building/zoning requirements: Visit your local county website
• Food Service & Sanitation requirements (county info incl): Pennsylvania Dept. of Agriculture
Complete Federal/State Employee Documentation
Pennsylvania restaurant owners who plan to hire employees are required to submit various
documents regarding their employees including: employee citizenship verification, new hire reporting,
and wage withholding documentation. (Note: Be sure to note how soon each form must be submitted
after an employee is hired)
Access to these forms can be found at the links below:
• Employee Eligibility Verification (Form I-9) U.S. Citizenship and Immigration Services
• W2 Filing for Social Security Wage Withholding Social Security Administration
• Federal Wage Withholding Tax Form Internal Revenue Service
• State Wage Withholding Tax Form Pennsylvania Dept. of Revenue
• New Hire Reporting Form Pennsylvania Commonwealth Workforce
Obtain Business Insurance
The state of Pennsylvania requires restaurant owners to obtain specific insurance coverages based
on various aspects of their establishment. Once you determine your insurance obligations you can
check out sites like Netquote or eHealth Insurance to receive fast rate quotes from multiple carriers.
The most common restaurant insurances include the following:
• Workers Compensation-While requirements vary with each state, as a general rule, employers must
provide workers compensation for their employees, or they must meet the requirements to self-insure
(larger companies usually). The Pennsylvania Dept. of Labor and Industry lists specific details regarding
Pennsylvania’s WC policies on their website.
• General Liability
• Property Insurance
• Health Insurance
• Liquor Liability Insurance