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Startup Guide

Opening a Noraebang in the U.S., Step by Step

A to Z for first-time owners, written in the order things actually happen. Read it before you sign a lease.

People who have run a business in Korea often have the hardest time in the United States. The familiar order — pay key money, hand the space to an interior contractor, bring in the machines — does not work here. This guide does not promise success. It sets out, in order, where earlier owners lost money and time and what they should have done first.

Before you read

This guide reflects October 2026. Permits and rules differ by state, county and city, and they change often. Where the text says "Example: City of Los Angeles" or "Example: New York", that is one jurisdiction's rule and does not carry over to others. This is general information, not legal, tax, immigration or real-estate advice. Confirm with the relevant agency and your own attorney and accountant before you sign or file.

Who wrote this. ELOHIM EPF USA administers copyrights in Korean music, and music licensing fees paid by karaoke venues are our revenue. We therefore have a financial interest in the Music Licensing section. We cite the statutes and sources there so you can check them yourself. Where we could not verify something, we say so.

Roadmap

Ten steps at a glance

Skip an early step and you pay for it later. Select a step to open that section.

  1. PHASE 1

    Prepare Before you sign a lease

  2. Look at your numbers and your status before any storefront

    Work out how much you can invest and how many months you can carry, and whether your immigration status allows a liquor license.

    Work with
    Accountant, immigration attorney
    If you skip it
    Sign a lease before your funding and eligibility are settled and you lose the deposit and the rent.
    Read the First Steps section

  3. Decide on your customers and concept

    Whether you serve alcohol changes zoning, licensing, the building classification and your hours. Change it later and you start over.

    Work with
    Yourself, liquor-license attorney
    If you skip it
    Change your mind about alcohol later and you redo zoning, licensing and construction.
    Read the Market section

  4. Form the company

    An LLC or corporation, an EIN, a business bank account. Sign the lease in the company's name, not your own.

    Work with
    Accountant, attorney
    If you skip it
    Sign in your own name and the debts of the business stay with you personally.
    Read the First Steps section
  5. PHASE 2

    Secure the site Zoning check and lease

  6. Ask city hall whether a noraebang is allowed at that address

    Zoning, permission to sell alcohol, distance from homes, schools and churches, parking, and any conditions already attached to the address.

    Work with
    City planning department, architect
    If you skip it
    You learn that a noraebang or alcohol is not allowed at the address only after you have signed.
    Read the Location & Lease section

  7. Negotiate the lease so it depends on your permits

    Use clause, the right to terminate if permits are denied, rent during construction, limits on your personal guarantee. Read it with an attorney.

    Work with
    Commercial lease attorney
    If you skip it
    Without a contingency clause you pay rent on an empty space while you wait for permits.
    Read the Location & Lease section
  8. PHASE 3

    Permits and build-out The longest stretch

  9. File your permits in parallel

    Liquor license, conditional use permit, building permit and health review should run side by side, not one after another. That saves about half a year.

    Work with
    State liquor authority, city hall, county health department
    If you skip it
    File them one after another and opening slips by months.
    Read the Permits & Licensing section

  10. Build with a licensed contractor and permitted plans

    Soundproofing, fire and accessibility work must pass inspection before you open. Fail an inspection and you tear it out and redo it.

    Work with
    Architect, licensed contractor
    If you skip it
    Unpermitted or unlicensed work leads to stop-work orders and rebuilding.
    Read the Build-out & Equipment section

  11. Line up machines, songs and music licenses

    The price of the machine and permission to use the songs in your business are separate items. Settle both before opening day.

    Work with
    Equipment vendor, performing rights organizations, ELOHIM EPF USA
    If you skip it
    Leave it out of the budget and it becomes an unplanned cost after you open.
    Read the Music Licensing section
  12. PHASE 4

    Open Three months either side of opening

  13. Hire staff and set house rules

    Paperwork, wages, insurance, training. Tell staff from day one which violations cost a venue its license.

    Work with
    Payroll service, employment attorney
    If you skip it
    Breaching license conditions and serving after hours have led to license suspensions.
    Read the Staff & House Rules section

  14. Start promoting three months before opening, and record your first three months

    Customers come on opening day only if you are already on Google Maps. Note which days and hours your rooms sit empty.

    Work with
    You and your staff
    If you skip it
    If you are not on Google Maps on opening day, customers cannot find you.
    Read the Marketing section
Contents

Browse by topic

Read only the sections you need.

01

First Steps

Timeline, immigration status and license eligibility, forming a company, new build vs. buying.

 02

Market

Where Korean Americans live, real room rates, profit benchmarks, why venues closed.

 03

Location & Lease

Five questions for city hall, distance rules, lease clauses, due diligence on a purchase.

 04

Permits & Licensing

Every permit you need, liquor licenses in eight states, conditions on karaoke rooms.

 05

Build-out & Equipment

Construction sequence, sprinkler thresholds, soundproofing and ventilation, contractors, machines and certification.

 06

Staff & House Rules

Hiring paperwork and wages, training, and the five violations that shut venues down.

 07

Marketing

Google and Yelp review rules, widening your customer base, what not to do, a timeline.

 08

Music Licensing

Why you pay, whom you pay, common misunderstandings, what to budget.

 09

Budget & Checklist

One-time and monthly cost tables, and a checklist from before signing to opening day.

Selling or buying a venue? See the Buy & Sell board.

Before you open

You can ask us first

It is fine if you are still looking at sites. Tell us how many rooms you plan and we will tell you the music licensing fee to put in your budget. Registration is free.

Ask about fees → Register your business
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