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Open-a-Bar.com › Articles › How to Get a Liquor License

So, you have decided that you want to open a bar, pub, tavern, restaurant or nightclub business. That's great - but there's more to it than that. Perhaps one of the most crucial steps (quite possibly even the most important one) to opening and operating a successful and legitimate bar or restaurant business is the securing of a [retail] liquor license or permit.

The names and specifics can vary by jurisdiction. Some locations require only that you register and pay fees and regulatory taxes. However, for most locations, the process is much more complex and deliberate.

We'll try to break it down for you in this article by getting into the "Who, What, Where, When, How and Why."

Don't miss our huge table of where to start in the United States featured below. Cheers!

Any individual who wishes to own and operate any establishment that furnishes beverage alcohol in any jurisdiction requiring a license or permit to do so. This is generally true for the entire United States.

In all cases, the applicant must be twenty-one (21) years of age or older due to the National Minimum Drinking Age Act passed by Congress in 1984. Also, the applicant's criminal background is taken into account. Having a criminal history doesn't necessarily prohibit a person from applying for and acquiring a liquor license. Unfortunately, convictions for crimes like tax evasion and other "white-collar" crimes, as well as alcohol-related offenses will certainly have a major negative impact on the applicant's consideration.

Usually, the applicant must be a resident of the jurisdiction where the license is being applied for. Certain time-restrictions may apply. Applicants will typically need to be knowledgeable of applicable liquor codes and may be required to complete and pass alcohol training. Please contact your local government for specific details as they relate to you and your business.

A Liquor License or Permit can vary by name, type and location just as sure as the myriad of alcohol-related businesses that wish to operate. The applicant should thoroughly research and select the license type that best accommodates their business. Some license types can be:

The business will also need a sales tax license and/or register to pay related taxes and fees. Usually, the State Department of Revenue or similar agency will handle this.

Again, the applicant will need to check with their local government for absolute certainty on what the actual provisions for their proposed location are. Depending where they are, they my be regulated by the State, the County, at the Borough or Township level or even possibly the City or Town itself. These agencies will control the types of beer, wine and liquor you may sell and on what days and hours. Knowing for sure up front eliminates any confusion and stops major problems from popping up down the line.

Most importantly: BECAUSE IT IS THE LAW. If you are not properly and adequately licensed to do business, you CANNOT do business. Period.

Owning, managing and operating a bar business inherently possesses many responsibilities and risks that are best served when a potential license-holder has been thoroughly vetted and made to adhere to industry-standards and regulatory protocols. It all does sound very daunting, but the reward is responsible, safe and legal alcohol service for the owner, their staff and customers. This translates into business longevity and profit.

The timing of applying for your liquor license is critical. It is a key component to your business plan, which investors and financiers will be meticulously analyzing and scrutinizing. With no liquor license or permit in hand, you are at a stand-still if your business model undoubtedly depends on it. Some agencies may brag of a quick turnaround when certain protocols are met, while others all but guarantee at least a twelve-month backlog of bureaucratic red-tape and uncertainty. A qualified liquor license broker or reputable business attorney may of unparalleled assistance in this area. It is a prevailing opinion that these business professionals can expedite these procedures more rapidly and favorably. DO NOT DELAY in securing your liquor license and follow up regularly with those agencies or persons that are responsible for reviewing your application and issuing your license or permit.

This is always a key consideration, and varies from agency to agency and depends largely on circumstance. In most instances, there will be fees and renewal rates to contend with. Some states and municipalities have "Quota Systems" in place that regulate the issuance on licenses per capita and can affect the cost. Sometimes, when populations in key areas increase, these agencies will create and release new licenses for bidding. While some people feel these systems are part of "Blue Laws" and are antiquated, they are still on the books, in-force and a factor in acquiring your license. At the other end of the spectrum, some localities do not require any such licenses.

A lot of times, the size of your establishment will be a contributing factor to the cost of your license. The larger the occupancy, the higher your cost.

Many times, the highest costs are incurred when you are taking over a license from a previous licensee or are otherwise transferring it. These costs can extend into thousands of dollars.

There is no template for generically calculating costs, but once you have done your homework and consulted your business professionals, such as qualified and experienced license brokers and attorneys, you will definitely want to build these costs into your business plan as they can be significant.

What else can you expect when applying for a liquor license? There will be a decent amount of detailed paperwork and prerequisites that you will need to complete and endure. Many application packets may request:

Don't forget that once your application is processed, there will typically be a posted public introduction usually in a newspaper or related publication wherein the public is invited to review the notion of your request for a liquor license to do business in their community. You may need to counter some warranted apprehension and dissension from the community and even other businesses, so be prepared by having counter-points to check possible negative feedback, demonstrable examples of how your business will benefit the community and other calls to advocacy. Everyone has to pay taxes, so make your voice the loudest, most reasonable one that stands to fill the local coffers the most.

Meet these formalities head-on with a solid business plan, a serious, can-do, responsible attitude and appropriate assistance and representation wherever necessary and you will no doubt meet your goals of securing a liquor license or permit for your bar, pub, tavern, restaurant or nightclub business.

DISCLAIMER: Please remember that data and figures can and will change when various agencies are involved and over time. Taking that into consideration, we do not guarantee the accuracy of any/all of the information reported here. Applying for a liquor license/permit does not guarantee issuance. Acquiring a liquor license/permit does not have any financial bearing on how well your business will or will not do. Feel free to email us with questions or for more help.

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