How to start a catering business in the US (2026 guide)

To start a catering business in the US, you need a business entity and EIN, a licensed commercial kitchen to cook in, a food permit from your health department, a way to keep food at safe temperatures from your kitchen to the event, insurance, and clear pricing that handles sales tax and service charges correctly. Home kitchens generally can't be used: the FDA Food Code, the model behind most state rules, counts a catering operation as a food establishment that needs a permit. Start with drop-off catering for offices and small events, then add full-service events.

Not legal advice. Catering rules are set by your state and county. Check with your health department and state tax agency. Figures were read on the sources' own pages on October 20, 2026.

Step 1: Choose your catering model

Catering covers very different jobs. Pick the one that fits your skills and budget.

Most new caterers start with drop-off and corporate lunches, because the menus repeat and there's less staff to manage.

Step 2: Write your plan and pricing

Decide your menu, your minimum order, how far you'll deliver and what you'll charge per guest. Price from cost, not from competitors: food, disposables, staff hours, delivery and your overhead.

Use the free catering business plan template, our guide on how to price catering and the catering price calculator.

Step 3: Register the business and get tax IDs

Clients, especially companies, will ask for your business details and a W-9 before they pay you.

• Choose a structure (sole proprietorship or LLC).
• Get an EIN free from the IRS online.
• Register for sales tax with your state. Catering is often taxable, including some charges you might not expect (see Step 7).
• Open a business bank account.

Step 4: Find a licensed kitchen

You'll need a commercial kitchen your health department has permitted. The FDA Food Code lists a "catering operation" among food establishments when it provides food directly to a consumer, which is why health departments ask caterers for a permit and an approved kitchen.

Options:

• A shared or commissary kitchen rented by the hour or month.
• A restaurant's kitchen in its quiet hours, under an agreement the health department accepts.
• Your own kitchen once you have steady volume.

What about home? Most states don't allow catering from a home kitchen. A few have narrow home-kitchen laws. California's microenterprise home kitchen operations (MEHKOs), where a county opts in, cap you at 30 meals a day and 90 a week, which is too few for most catering jobs. See how to start a home food business for what home kitchens can do.

Step 5: Get your permits and food safety basics

Your health department issues your permit, often after a kitchen inspection and a menu review. Expect these model Food Code rules to apply in some form:

• Apply early. The model rule is to apply at least 30 calendar days before you start.
• Certified food protection manager as the person in charge, unless the department rates you low risk.
• A written employee illness policy, a new requirement in the 2026 Food Code (released September 17, 2026).
• Food safety management. The 2026 Food Code also adds a written food safety management system, due within four years of your regulator adopting that edition.

Step 6: Plan how food stays safe off-site

Off-site food safety is what separates catering from restaurant cooking. Here are the Food Code temperatures your plan should meet:

Buy insulated carriers, a probe thermometer and chafing dishes, and log temperatures when food leaves your kitchen and when it's served. Keep allergen details for every dish, because clients will ask about the nine major allergens (milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, soybeans and sesame).

Step 7: Get sales tax and service charges right

Two rules catch out new caterers.

1. A mandatory service charge isn't a tip. The IRS says a payment is a tip only if the customer voluntarily decides to pay it and sets the amount. A required charge, such as a "mandatory 18% charge for large parties," is a service charge. If you pay it to staff, it's wages, with payroll taxes, not tip income.

2. Catering charges can be taxable beyond the food. In California, for example, CDTFA's Publication 22 says you're a caterer if you serve food on your customer's premises or premises they supply, and that "charges to your customer for the preparation and serving of food and beverages are taxable." Charges for the tableware, linens and tables you use to serve are taxable too, even if listed separately. California taxes a mandatory tip, gratuity or service charge; an optional tip isn't taxed.

Other states treat service charges differently; see sales tax on restaurant food for five states, and ask your state revenue department.

Step 8: Insure the business and hire staff

Get insurance in place before your first booking, because venues and companies ask for proof before they sign.

• General liability insurance. Venues and corporate clients often ask for a certificate naming them as additional insured.
• Commercial auto for delivery vehicles.
• Workers' compensation where your state requires it (Texas lets private employers opt out, with notice).
• Staff. Plan pay from real wages: the BLS national median for restaurant cooks was $17.98 an hour in May 2025. Every hire needs a Form I-9.

Step 9: Take orders and quotes

Catering orders arrive in two shapes: set menus (trays, boxed lunches) that clients can order ahead, and bigger events that need a custom quote.

How Menuthere helps, honestly. Menuthere doesn't have a catering module: there's no headcount, deposit or invoice step in checkout. What it does well is set-menu ordering. The Free plan gives you an ordering page and QR codes with 0% commission and 50 orders a month, with the major allergens tagged on each dish. Lite (US$17 a month) adds unlimited orders, scheduled delivery and pickup times, card payments through your own Stripe account, and dishes that need notice, so a catering tray can only be ordered, say, two days ahead. For events, use the free catering quote maker and catering invoice template. See online ordering for catering.

Put your set catering menu online for pre-orders. with 0% commission.

Create your free ordering page

Worked example: quoting a 50-guest office lunch in California

An office in California books a drop-off lunch for 50 at $25 a guest, plus an 18% service charge for setup and staff. The tax rate here is California's statewide base of 7.25%; most areas add district taxes, so use the rate for the delivery address.

Now your costs, with assumed figures except the wage: food and disposables at 30% of $1,250 is $375.00; two cooks for 4 hours at the BLS median of $17.98 is $143.84 before payroll taxes. Write the charge clearly on your quote and invoice so the client knows whether it's a tip or a service charge.

How much does it cost to start a catering business?

A drop-off caterer using a rented kitchen can start with far less than a restaurant. Your main lines:

Your catering start-up checklist

• Catering model and menu chosen
• Pricing per guest built from costs
• Business structure, EIN, state sales tax registration, bank account
• Licensed kitchen agreement
• Health permit; certified food protection manager; employee illness policy
• Hot and cold transport kit and a temperature log
• Allergen list for every dish
• Quote and invoice template that labels service charges correctly
• Insurance; I-9s for staff
• Set catering menu online for pre-orders

Related guides

Planning a full sit-down or counter-service restaurant? Read our step-by-step guide on how to open a restaurant, with a 6-month timeline. You may also want to read how to start a meal prep business and how to start a food truck business.