Liquor license costs range anywhere from $300 to $14,000 and may take 5-6 months to process, depending on county, state, local as well as federal licensing requirements, in addition to application and processing time and fees. In New York, by way of example, license and filing fees total $4,552, while California new license and processing charges total $13,900.
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Below are the spirits licensing costs and permit types for many example states. In an attempt to compare apples to apples, the permit type is a restaurant that wants to sell beer, wine, and liquor until roughly 2 am at a major metropolitan area.
Liquor License Fees by State
| Condition | License Type | Charges | Total Cost |
|---|---|---|---|
| New York City Liquor License | Single establishment retail on-premises license for liquor, wine, beer, cider |
|
$4,552 |
| Indiana Liquor License | Beer, wine, and liquor permit |
|
$1,000 |
| Ohio Liquor License | Restaurant on-premises liquor permit for beer, wine, and liquor |
|
$2,444 |
| California Liquor License | Restaurant liquor license for on-premises beer, wine, and spirits |
|
$13,900 |
| Texas Liquor License | Restaurant on-premises beer, wine, and liquor license |
|
$7,229 |
| Florida Liquor License | Restaurant beer, wine, and liquor on-premises sales |
|
$1,820 |
| Chicago Liquor License | Retail on-premises liquor permit |
|
$5,190 |
These are only a couple of specific examples and may not include extra fees incurred such as neighborhood licenses required. Make certain to look at your state government site to discover the rates for your local area.
Now You Know how much a liquor license costs, let’s look at the 3 steps involved in getting a liquor license:
Step 1: Figure Out What License You Will Need For The State
As you see below, you will first need to recognize several things like license type, accessibility, etc.. To do this you will need to see your state’s section of Alcohol Beverage Control (ABC), which may provide you with all the relevant data for a liquor license. Here are a few of the popular state websites:
State Alcohol Beverage Control (ABC) Boards
| Condition | Website | Phone Number | Address |
|---|---|---|---|
| New York City Liquor License |
New York State Liquor Authority | -LRB-518-RRB- 474-3114 | 317 Lenox Ave. 4th Floors New York, NY 10027 |
| Indiana Liquor License |
Alcohol and Tobacco Commission | -LRB-317-RRB- 232-2430 | Indiana Government Ctr. South 302 W. Washington St., Rm. E-114 Indianapolis, IN 46204 |
| Ohio Liquor License |
Ohio Department of Commerce Division Of Liquor Control | -LRB-614-RRB- 644-2411 | 6606 Tussing Road Reynoldsburg, Ohio 43068-9005 |
| California Liquor License |
California Department of Alcoholic Beverage Control | -LRB-916-RRB- 419-2500 | 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 |
| Texas Liquor License |
Texas Alcoholic Beverage Commission | -LRB-512-RRB- 206-3360 | 5806 Mesa Dr Austin, Texas 78731 |
| Florida Liquor License |
Florida Department of Professional Business Regulations Division of Alcoholic Beverages and Tobacco | -LRB-850-RRB- 487-1395 | 2601 Blair Stone Road Tallahassee, FL 32399 |
| Illinois Liquor License |
Illinois Liquor Control Commission | -LRB-312-RRB- 814-2206 | 100 West Randolph Street Suite Number 5-300 Chicago, IL 60601 |
Your nation’s ABC board will know exactly what is necessary for every business to sell spirits and also be properly accredited. It’ll be able to inform you which license(s) you’ll need and how much they will cost.
While permit types differ significantly among states, the Kind of permit you’ll need typically Depends upon your answers to these questions:
- What type of establishment are you? (e.g. bar, restaurant, hotel, etc)
- Does drinking happen off premises (retail) or on assumptions (bar, restaurant)?
- What type of alcohol do you sell?
- Are customers bringing their own alcohol (BYOB), or are you going to store and serve the alcohol?
- What hours can you sell? (the later you remain open, typically the more expensive the permit)
- are you going to market on Sundays? (Some states like Ohio bill an extra fee for Sunday sales)
- Do you manufacture, distribute, or promote alcohol, or any combo of the three?
Determine Permit Availability
Most states and localities have a limited number of liquor permits. They are already pushing their permit limitations and have few, if any, new liquor licenses out there. You may have to check availability in the county, state, or town level depending on which state you are located in. This includes ensuring the area you are targeting is a”wet” place (alcohol sales are allowed) and not a”dry” location (alcohol sales are prohibited).
The ABC board or possibly your regional county or city can give you information on accessibility limitations and whether or not there are some of your class of liquor licenses available. They can also explain how new requests are managed, which also varies by state. By way of example, California retains a lottery in certain areas of the country if there are more applicants than available permits.
You Might Need to Buy From an Present Business
Even if your county is all full and there aren’t any new liquor permits, there can be other techniques to attain a liquor license. In many cases, other companies in the area will be looking to market their license. Your nation’s ABC frequently monitors that and can notify you of those choices. For instance Illinois makes contact information available for all existing licensees.
Buying an existing liquor license or a business with an present license requires lots of the same steps as if you were purchasing a new liquor permit. You still have to go through precisely the same application process as a new liquor permit. But you can make an application for a temporary permit that will allow for continued operation while your application is being processed, usually 120 days. Fees are normally lower for a transport than a brand-new license.
You can read here regarding purchasing a business in general.
Step 2: Prepare for Application Process
Irrespective of whether you are receiving a brand new license or buying one from a different company, the next step is to make certain to have all of your ducks in a row before you file your program. Properly preparing for the program procedure can save you months in processing period.
One of the chief ways to speed up your application for a liquor license is to make sure all your overall business licenses and documents are in order.
Here are some examples of the elements you should consume in order before you file for your liquor license:
- Employer Identification Number — Employ at IRS.Gov
- Zoning permit — Check with your local zoning commission (contact information on state site )
- Business License (Can also be at multiple levels of government based on what you sell) — Check with local small company commission
- Sales Tax License — Apply Online via Your State Website
- Alcohol Tax Permit (sometimes included in earnings tax form) — Get in-touch with your state’s company taxation department
- Food handler’s permit (if you’re selling meals ) — Check with your state’s health commission
- Building permit — Check with your local zoning commission (contact info on state site )
- Signage allow — Check with your local zoning commision (contact info on state website)
- Health permit — Check with your State Health Commission
- Music permit (if you’re likely to be playing copyrighted music) — Accessible from a number of online companies, such as License Suite.
If you don’t have all of these things learned, your liquor application is going to be placed on hold till you do.
If you have been in business awhile, it’s also advisable to be sure you are up-to-date on all tax obligations. If you are behind on your taxes, the state will not look favorably in your own liquor license.
According to James Henry Dunne, Professor of Hospitality Studies, NYIT School of Management,
“Throughout the start-up phase the application for a liquor license ought to be filed as soon as is feasible, because permit approval takes two to three months, or longer. Additionally, because a fully executed lease arrangement (or even deed/proof of possession of the real property where the license is going to be utilized ) is also required along with your license application (along with a number of different requirements), start-up operators are faced with the stressful situation of signing a lease prior to being authorized for a permit. Because this is obviously a threat, start-ups should seek concessions from the landlord, if the landlord is fine (reduced or free-rent during building renovations — or before permit accepted — or even an Escape Clause providing an exit to the leaseholder if permit not authorized ).”
Measure 3: Document Your Application with the ABC Board
As soon as you’ve your prep work done, it’s time to actually file your application with your nation’s ABC Board. This is generally done by means of a mail-in form that you can print from your state government site. After we analyzed a sample of state government websites, not one of them provided a way to apply online.
Things to Include With Your Application
Typically, you will find additional items that need to be included with your application along with the government-provided types (using Ohio’s requirements as an example):
- Processing charge — Nearly every state has a non refundable processing fee. Some are just deposits against the license fee. Ohio charges a 50-100 processing fee based on the type of license you need.
- Background check kinds — A history check will be carried out at least on the business owner and at times also on the top five officers of a company and maybe the landlord (if landlord is creating a commission on alcohol sales).
- Fingerprint(s) — Some states, such as Ohio for instance, demand fingerprints for the desktop check
- Signed Lease Agreement — you’ll need to offer a signed rental agreement of your company location and take into consideration the period between signing the rental agreement and the prospective months prior to getting your liquor license
- Financial Verification Sheet — A Few licenses are contingent on how much anticipated alcohol earnings your business is going to have.
- Certificate of Good Standing from the Secretary of State — This is a certification your company or LLC is complying with state regulations such as taxes and corporate filings. Partnerships and sole proprietorships don’t have certificates of good standing, but you are going to have a Doing Business As (d/b/a) fictitious name certificate if you run under a name that’s different from the legal name.
- Copy of food handler’s permit or license — This means that your food operations are in good standing with the state, county, or city.
- Other applicable licenses/forms
The Approval Process
As soon as you send in the your form, the approval procedure varies for each nation. As we discuss further below, it can take 5-6 weeks to receive your license. For reference, here is an example of what happens in Ohio once you submit your program:
- Application is logged to the machine and sent to local legislative bodies and governments in the area
- The ABC board will operate with local officials to determine wet/dry status and whether or not any new licenses can be found
- The ABC board works together with the Ohio Bureau of Investigation to process background checks (generally looking for offender listing )
- A Division Compliance Officer will come perform a physical check of your assumptions, also noting what colleges, churches, etc. are within 500 feet of your place (they will then be educated and have 30 days to object). If your organization isn’t in operation or does not pass review you’ll need rectify the matter, assuming you can, then request that the compliance officer recheck your institution.
- Public Hearing is conducted if any complaints were registered.
- If no complaints were filed or complaints were solved, then your application should be accepted and the license issued to you in 4-8 months.
Other Items to Know Before Applying for a Liquor License
Before heading into the licensing procedure there are few things you should most likely be aware of.
1. Zoning Laws for Your Small Business
Of course, your building needs to be zoned commercially. But, there are often other restrictions as well, regarding proximity to neighborhood schools, churches, and other similar establishments.
By way of instance, to obtain a California liquor permit you need to get in touch with a county or city zoning department to see if a zoning permit is necessary. If so, you’ll want to prepare and document a zoning program locally, which includes technical maps, study, notification of local residents of your application, and preparation of a written application. You may need a public hearing and answer some questions raised by neighborhood groups or acquaintances. Just after you have got the appropriate zoning permit can you apply for a California liquor permit. Other nations have similar processes.
2. Liquor License Availability
Liquor licenses are highly regulated and every county has license quotas, many of which are already maxed out. In Indiana, by way of instance, 98% of residential places are in their liquor permit capacities (see Step 1 above for info on finding out your county limitations ).
3. BYOB Restaurants/Businesses Need to Be Licensed
Some people wrongly think that BYOB companies do not require liquor licensing. That’s simply false. Even though there can be a distinct category of license since you’re not keeping the spirits on premises, a license is still required because you are serving the liquor and it’s being absorbed at where you are.
4. How Long it Takes to Receive a Liquor License
You better be going ahead because the liquor licensing process is not fast. Variable in at minimum a 5-6 month buffer between sending from your application and when you plan to open.
The licensing procedure is complicated. It’s rare that you just send in your software and what’s good to go. In most cases, there are numerous correspondences forth and back requesting various documents and confirming info. It is a comprehensive and ongoing process which takes some time.
5. Other Details You Need to Be Prepared For
Local businesses in a certain distance of your planned location often have the right to submit an objection. You often have to be of a specific age or a U.S. citizen. For many countries, liquor licenses are accompanied with very specific restrictions on when you can sell alcohol like time of day, which times, or the required food percentage of volume that you sell along with alcohol.
Renewing Your License
Generally, the duration or duration of your liquor license is 1-3 decades, but it is dependent upon your state and local regulations. There’s no automatic guarantee that your license will be renewed, particularly if you have had problems or been noted for serving to minors. However , if you’ve operated reputably and have not had any major complaints, then you ought to be able to renew your license fairly easily. Depending on your condition, the renewal fee might be similar to or significantly less than your original fee. By way of instance, in California, a new license is around $14,000, but the annual renewal fee is $876.
Bottom Line on Liquor Licensing
Getting a liquor permit is a fairly extensive procedure, and at the end of the day there’s absolutely no guarantee you will even get a license. But, the only way to find out what you are up against is to get in the process and begin digging around.
Curious to know if you need to safeguard your business against alcohol-related damages or harm? Click here to find out everything you need to know about liability insurance.
If you require assistance with the document preparation for your own license, take a look at LawTrades. They are an internet legal service provider with a group of experienced attorneys who will prepare and examine your application for you.
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