How to Start a Catering Business
For a catering company with a team: certification, permits, hiring and payroll paperwork, insurance and billing large events. Working alone is covered separately.
This guide is for building a catering company that runs events with staff. If you're one cook taking your first orders, the guide to starting as a caterer linked below fits better. Billing a catering order line by line is covered in the catering invoicing guide.
The BLS page on food service managers (In the US, last modified October 29, 2026) says "Some states and localities require that food service managers have food safety certification." It also says managers "may review or complete paperwork related to licensing, taxes and wages, and unemployment compensation." Your state and local health department set the permits for your kitchen and events.
A sample event invoice: a wedding reception for 120 guests at 120 × $42.00 = $5,040.00 and 24 server hours at 24 × $25.00 = $600.00 total $5,040.00 + $600.00 = $5,640.00. Use your own figures; these are only an illustration.
Step-by-step startup guide
Follow these steps to launch your catering business on solid footing.
- 1
Set the kind of events you'll run
Choose weddings, corporate events or drop-off orders, and the largest guest count your kitchen and team can handle.
- 2
Check certification and permits
The BLS page on food service managers (In the US, last modified October 29, 2026) says "Some states and localities require that food service managers have food safety certification." The SBA (In the US, SBA, checked October 31, 2026) says "Visit your Secretary of State’s website to find out which permits and licenses you need."
- 3
Hire and document your staff
The IRS's hiring page (In the US, IRS, last reviewed or updated February 18, 2026) says "Ask all new employees to give you a signed Form W-4 when they start work." It also says "All U.S. employers must properly complete Form I-9 for every individual they hire for employment in the United States."
- 4
Arrange insurance for a business with employees
The SBA (In the US, SBA, checked October 31, 2026) says "The federal government requires every business with employees to have the following:" and lists "Workers’ compensation", "Unemployment" and "Disability insurance". It adds "Some states also require additional insurance."
- 5
Put event terms in writing
Set out the menu, guest count, staffing, deposit and final payment date in a signed contract before you book food and staff.
- 6
Bill the event in parts
Invoice the deposit when the contract is signed and the balance after the final guest count, with food, staff and rentals on separate lines.
Tips for starting your catering business
- Track each server's hours on the day of the event.
- Keep one folder per event for the contract, menu, receipts and invoices.
- Confirm the final guest count in writing before you order food.
- Ask an accountant how to set up payroll before your first hire is paid.
How Billed helps you get started
Features to look at as you set up your business.
Team Time Tracking
Billed's features page says: "Collaborate and track your team’s time in one place."
Partially Paid Invoices
Billed's features page says: "See partially paid invoices and send payment reminders to your customers."
Permission & Roles
Billed's features page says: "Invite your team mates, accountants and contractors and grant them permission in your account."
Project Invoices
Billed's features page says: "Keep all invoices related to your project in one place."
Frequently asked questions
More Startup Guides
Invoice Your First Event
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Area | What to settle | Source |
|---|---|---|
| Certification | Food safety certification rules | BLS (In the US, last modified October 29, 2026) |
| New hires | Form W-4 and Form I-9 | IRS (In the US, IRS, last reviewed or updated February 18, 2026) |
| Insurance | Workers' compensation, unemployment, disability | SBA (In the US, SBA, checked October 31, 2026) |
| Event billing | Deposit, then balance on final count | Catering invoicing guide |
When this isn't for you
If you're cooking on your own for small orders, start with the guide to becoming a caterer; this one is for running a company with staff.