General business license
A city or county may require your business obtain a general business license for the privilege of doing business there. This license may also be known as a business privilege license or business tax registration. It applies to businesses of all types, including food distributors and wholesalers.
A small number of states, such as Washington and Alaska, issue a state-level general business license. In those states, you may need to obtain a general business license at both the state and local levels.
Zoning
Neighborhoods are typically zoned for commercial, industrial, or residential use. A zoning ordinance can restrict or ban certain types of businesses, so confirm that your location is zoned for warehousing and food distribution before you sign a lease or buy a property. If you plan to construct or expand a commercial property, you may also need a zoning permit and land use approval.
Building and equipment
Several building and equipment license, permit, and registration requirements apply to food distribution and wholesale businesses. Examples include:
- Certificate of occupancy. Specifies a building’s legal use and type of occupancy. A change in use, egress, or occupancy type may require a new certificate or an amendment to the existing one.
- Building permits. Required for construction, expansion, or major renovations such as adding a loading dock, cold storage room, or mezzanine.
- Local health department permit. In many areas, the county or city health department issues the food establishment permit and conducts inspections, either in place of or in addition to the state license.
- Fire department permits and inspections. Fire and police departments typically require registration of security and fire alarm systems. Fire inspections and sprinkler system approvals may also apply to warehouses. Many fire codes also require operational permits or annual inspections for high-piled storage (warehouse racking above a certain height) and for certain equipment, including some refrigeration systems.
- Stormwater and wastewater permits. Some municipalities require discharge or pretreatment permits, grease trap or interceptor permits, and backflow prevention device registration. These are more common for facilities that wash product, equipment, or trucks.
- Signage permits. Depending on the city or town, you may need a permit to display or install signs.
Federal licensing requirements
Federal requirements apply on top of state and local licensing. The main federal agencies involved are the FDA, which regulates most food facilities, the USDA, which oversees fresh produce dealers, and the FMCSA, which regulates commercial motor carriers.
FDA food facility registration
If your business manufactures, processes, packs, or holds food intended for human or animal consumption in the U.S., you must register with the U.S. Food and Drug Administration (FDA). This applies to both domestic and foreign facilities, and foreign facilities must designate a U.S. agent. Registration must be renewed every two years between October 1 and December 31 of each even-numbered year. Certain food businesses, such as restaurants and retail food establishments, are exempt.
The FDA must also receive prior notice of every shipment of imported food. The FDA does not approve shipments in advance, but the facilities that produce, process, pack, or hold the food must be registered, and you must submit prior notice before the shipment arrives.
FSMA compliance
The FDA Food Safety Modernization Act (FSMA) is not a license, but it sets the food safety rules that registered facilities must follow. The rules most likely to apply to food distributors and warehouses are:
- Preventive controls. Separate rules for human food and animal food cover sanitation, pest control, and facility practices. Some requirements are modified or exempt for facilities that only store packaged food.
- Sanitary transportation. Shippers, loaders, carriers, and receivers must keep vehicles and equipment sanitary and maintain proper temperatures during transport.
- Food traceability. Facilities that hold foods on the FDA’s Food Traceability List must keep additional records. The FDA extended the compliance date from January 20, 2026 to July 20, 2028.
- Foreign supplier verification. Importers must verify that their foreign suppliers meet U.S. safety standards.
PACA
The Perishable Agricultural Commodities Act (PACA) sets fair trading standards for fresh and frozen fruits and vegetables sold in interstate and foreign commerce. By prohibiting unfair and fraudulent practices, it protects growers, shippers, distributors, retailers, and others who deal in those commodities. The USDA enforces PACA through a licensing system.
You need a PACA license if you buy or sell fresh or frozen fruits and vegetables in wholesale quantities, defined as 2,000 pounds or more in any single day. This covers wholesalers, processors, grocery wholesalers, and food service companies, as well as truckers who buy or sell produce for their own account. Brokers, commission merchants, and others who negotiate sales on behalf of another person must be licensed on their first transaction. The exception is brokers who handle only frozen produce, who are not covered until their negotiated sales exceed $230,000 in a calendar year. Retailers need a license once their annual purchases of fresh and frozen fruits and vegetables exceed $230,000 in invoice cost.
FMCSA
If your business transports food in commercial motor vehicles, you may need to register with the Federal Motor Carrier Safety Administration (FMCSA), the federal agency that regulates commercial vehicle safety.
Generally, a business operating commercial vehicles of 10,001 pounds or more across state lines needs a USDOT number. Carriers that haul other companies’ freight for pay also need operating authority (an MC number). Many states apply similar requirements to in-state operations.
Alcohol, tobacco, and other specialty licenses
Distributing certain products requires licenses beyond your general food business credentials. These are issued mostly at the state level, though some also have federal requirements. Requirements vary widely depending on where you operate and what you sell. The most common categories are:
- Alcohol. Most states use a multi-tier system, and distributors must hold their own state license. Some also require a local permit. Federally, the Alcohol and Tobacco Tax and Trade Bureau (TTB) requires alcohol wholesalers and importers to hold a basic permit.
- Tobacco and vapor products. Most states require a distributor or wholesaler license, sometimes one per location, and many levy excise taxes or require tax stamps on cigarettes. Distributors that ship cigarettes, smokeless tobacco, or vapor products across state lines may also need to register with the federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) under the Prevent All Cigarette Trafficking (PACT) Act.
- Meat, poultry, and egg products. Processing requires federal or state inspection. Distributors and warehouses handling meat or poultry may need to register with the USDA Food Safety and Inspection Service (FSIS), and many states license egg handlers and dealers.
- Dairy and seafood. States commonly license dairy distributors, and seafood handlers may need state licenses. Federal permits mostly apply to certain fisheries dealers.
- Organic products. Repackaging, relabeling, or processing organic products may require USDA organic certification. Businesses handling only sealed, packaged organic goods are often exempt but must follow organic handling rules.
- Hemp, CBD, and cannabis. These are governed by state licensing systems, and federal law adds restrictions. Consult your state regulator and an attorney before distributing them.
Because these licenses are often product-specific, you may need several at once. Contact your state’s alcohol, tobacco, agriculture, and health departments to confirm what applies to your inventory.
Learn more
States and counties mandate licenses for all food-related operations, spanning from food prep to consumption. Rigorous inspections and law enforcement in the food industry ensure public health and safety standards are met.
Contact CT Corporation’s business license team for more information about how we can help you navigate food distributor and wholesaler licensing requirements.
