10 Steps to Start a Catering Business

By Bazal Razzaq

Chief Editor

Updated: October 24, 2023

Editorial Note: We earn a commission if you use the services recommended on this page. Commissions do not affect our opinions or recommendations.

Catering Business

A catering business is handy during any party, event or other moment. You would have the opportunity to cater to your clients using your business, and so would be the opportunity to get a good reputation in the industry. 

You can open an LLC for this business. Let’s try and find out about the steps through which you can start this business quickly and effectively. So, without further ado, let’s get down to it:

#1 Set up a phone system for your catering business

You wouldn’t want your personal phone to work as your business phone too. It would jumble up the details and bring in hassle for you. It’s therefore important to separate these two and keep them aligned accordingly.

A great business owner will keep their phone system separate from the personal one. This way you can keep everything rolling and make things wonderful for your business and yourself.

#2 Define your catering business

Your business is what stands out for you and you would want to add details to it that make you look wonderful. If the business brand is not in order then that impacts your business. You can always have more people come to your business, but all of this can only happen when you define who you are, and what you stand for as a brand/ business.

It’s advised to always keep a check on what your business projects outside and how it looks in the real world. If it doesn’t give out a good image then you need to redefine your business. Your business/ brand is how people perceive you, and so it is important that you look through credentials in this regard.

#3 Apply business insurance for your catering business

Every state requires you to apply for business insurance. This helps in keeping your business safe. General Liability Insurance is an important aspect of the work required by your business. The other is Workers’ compensation insurance. When your business has employees, your state would require you to have Workers’ compensation coverage.

#4 Obtain necessary licenses and permits for your catering business

A catering business needs to be registered as a food service establishment. You are required to get this detail from the local health department. Pass the health inspection to continue with your business. If you plan to sell or serve alcohol then you need to obtain a liquor license to lawfully sell alcohol.

It’s necessary to get a service agreement done before providing your service at any location. The next thing you need to check is to see that your business complies with labour safety. Your employees/ staff need to feel safe while working with you. You need to have a certificate of occupancy before any event. It helps ensure that your guests know that they are safe. This also confirms that all local and government guidelines have been followed.

#5 Create a business accounting for your catering business

Business details should be kept confidential. Detailed information about your business expenses and income sources will help you understand the financial performance of your business. Accurate and detailed information in this regard is an exceptional way to keep things organized.

#6 Open a Business Bank Account for your catering business

You wouldn’t want your personal account to be utilized or be in a problem in case your business suffers an issue. It’s important to create a business bank account for your catering business. This way you keep your personal and business accounts separate.

#7 Apply for an EIN for your catering business

You would have to apply for an EIN through the IRS in your state. Every business has a different EIN for themselves and this means that everything is trackable. There is another thing to do after you have applied for an EIN for your business.

#8 Register Your Catering Business For Taxes

The moment your business is up and running, you would have to comply with the laws of the state. Now this includes filing your taxes and being in line with all the other requirements of your respective state. The state and federal taxes will be complied with at all times. You would have to then follow the respective state guidelines to get the next set of details.

#9 Ensure You Form A Legal Entity of your Catering Business

When you want to start a business, it’s important to make it a legal entity. The moment you make it one, you have everything taken care of for yourself. The legal benefit of this is that you are a possible successful business. It helps you file other details about your catering business. You are the standard bearer for your business domain.

#10 Plan Your Catering Business

The catering business, just like any other, requires a clear plan. You would have to figure out specific details about it. These will help you understand the specifics in a better manner:

What would you name your catering business?

Everything stems from a name. So you must give your business one that doesn’t match any other in your work area. You can come up with one that is unique. It should also reach a specific audience without offending their feelings. It’s necessary to search for information by following these steps:
State Business Records

It’s essential to check the state business records to ensure the details match the requirements. You don’t want to have a hassle for your business when all is said and done.

Federal and State Trademark Records

The federal and state trademark records need to be checked because you don’t want any trademark-related issues to arise later for your business. Your business needs to run effectively and to do that, the federal and state trademark records need checking.

Social Media Platforms

There are so many businesses registered in the online space. You would want your business to stand out from the crowd in the online world. The best way to do that is by picking a different business name on social media platforms. Your catering business needs a name that catches the audience’s attention. Take advantage of this possibility.

Register Your Business Domain

Find a domain for your catering business. Register it to ensure that your business is searchable in the online space. When you do this, you are available for people, and it adds value. You have a space where people can search for you. Now that’s a good thing.

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Frequently Asked Questions​ (FAQs)

You would want to check that your business has the relevant details in check. According to the state, you should ensure that every information is right for you. Every business domain has a specific requirement, and you wouldn’t want to make it a hassle for you.

Yes, every business needs to be registered in the respective category without any hassles. If your business causes concerns then things will go off-hand for you and that is not something you would want for yourself.

You can visit the IRS website and apply for an EIN. It is free of charge, so you have all the benefits available to you.

No, every insurance plays a value and you would have to keep those insurances to ensure that your business is law-abiding.

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