2 Getting Started/Laws Related to Catering

Getting started in a catering business can be exciting, but also challenging. Here are some tips to help you get started in the catering business:

• There are many license requirements, taxes to be paid, and laws to follow in catering. Joining your restaurant association may help you stay on top of this, especially when changes occur. Here are some considerations.
  • The Government
  • Licensing, Regulations, and Sanitation Inspections
  • Sanitation Certification is required. ServSafe Certification can be taken at your local technical college. The certification is currently valid for five years. A copy of a valid certification must be displayed in the facility. Serving safe food is a priority in catering. The information learned in a sanitation class governs safe food handling. These laws and codes need to be fully understood and followed. Sanitation problems can close your business.
  • Facilities must be up to code and inspected yearly by local health inspectors.
  • Insurance
  • Liability, property, medical, dental, Social Security, and workers’ compensation insurance are all necessary. Do the research to find the best insurance providers for your operation.

Alcohol Laws

• Before starting, see if there are class b licenses available?
• Licensed Bartender must be on-site at all times. They must pass a required Responsible Beverage Server course and post the license in the facility.
• Knowing the laws and adhering to them helps to keep customers and staff safe and helps keep you in business.

Licenses and Permits Required When Operating a Wisconsin Restaurant

The Wisconsin Restaurant Association is a valuable partner with many resources regarding laws and regulations for caterers.

Restaurant license

• License is issued by the Department of Agriculture, Trade and Consumer Protec (DATCP) or your city or county health department acting as an agent for DATCP — after passing plan review and inspections. You need to file an application at least 30 days before scheduling an inspection. The department has 30 days to act on an application that has been submitted with payment.
• New licensees can call 608-224-4923 for assistance.
• The license must be posted in your restaurant to be seen by the public.

Seller’s permit, sales tax account number and Wisconsin employer ID number (WEIN):

• Get these from the state Department of Revenue by completing the application for Business Tax Registration (BTR-101).
• Call the DOR at 608-266-2776 to request a copy or visit www.revenue.wi.gov/TaxForms2017through2019/btr-101.pdf to download the form.
• The seller’s permit is essentially a permit to sell at retail.
• The sales tax account number is for an account where regularly collected sales taxes are deposited.
• The WEIN is needed to collect state withholding taxes from employees’ wages. The BTR fee is $20 regardless of the number of tax types you request. Seller’s permit has to be on display in a prominent location in your business.

Federal employer ID number (FEIN)

• From the IRS, it is given to identify your business.
• Visit www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers-eins to learn more and apply online.
• Call 800-829-4933 with questions. Unemployment compensation account: From the UC division of the Department of Workforce Development, it is an account in which UC taxes are deposited. To obtain an account, complete a registration and login at dwd.wisconsin.gov/uitax/
• Look for New Employer Registration – Apply for New UI Account Number.
• Call 608-261-6700 for assistance.

Additional Considerations

• Worker’s compensation insurance: Worker’s comp must be purchased from an insurance carrier. Certified Food Protection Manager Certificate: Wisconsin requires licensed food service operations to meet certain food safety and sanitation regulations, including having at least one manager or operator certified in food protection practices. This individual must complete and pass the exam within 3 months of opening.
• If selling alcoholic beverages, you must also obtain:
  • Alcohol beverage license: Obtain from your municipality – contact the city, town or village clerk. Download the Department of Revenue Publication 302 (Alcohol Beverage and Tobacco Laws for Retailers) for more details. Alcohol licenses must be framed and posted where the serving of alcoholic beverages takes place.
  • Federal Special Occupation Tax Stamp: Before beginning business, every retail licensee must file an Alcohol Dealer Registration with the federal Department of Treasury Alcohol and Tobacco Tax and Trade Bureau (TTB). Use TTB Form 5630.5d. This form is available from the TTB website at: www.Hb.gov/images/pdfs/forms/f56305d.pdf or by calling the National Revenue Center at 1-800-937-8864 or email Hbtaxstamp@Hb.gov. Once you have registered for your business, any change in your business operation must be reported before the subsequent July 1, using the same form.
• Accountant
  • Consider hiring an accountant if that is not your area of expertise. Even if it is, decide where your time and skills would be better used. An accountant can help with tax planning, making sure you are paying the right taxes at the correct time and keeping on top of the various tax laws that apply. You will need to know when to pay sales taxes and payroll taxes.