How to get an alcohol license

Author: Helen Garcia
Date Of Creation: 15 April 2021
Update Date: 1 July 2024
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How to Get a Liquor License: Cheat Sheet for All 50 States
Video: How to Get a Liquor License: Cheat Sheet for All 50 States

Content

Obtaining a license for alcohol can be a long and difficult process.Each state has its own governing body for liquor licensing. In addition, many counties and cities within the same state may have additional rules about licensing requirements and procedures. It is impossible to describe the laws of all states, but this article will give you a general idea of ​​how to obtain an alcohol license. Just see step 1 below to get started.

Steps

Part 1 of 3: Understand the type of license you need

  1. 1 Know your state's alcohol laws. The first thing to know is that each state has its own rules and requirements for obtaining alcohol licenses, so you should contact your local authority to inquire about your state's specific alcohol laws and sales licenses.
    • Every state has an Alcoholic Beverage Control (ABC) agency that controls the sale and distribution of alcoholic beverages, so check with your local ABC office for more information.
    • Some states have licensing quotas that limit the number of locations that can sell alcohol in a state at any given time. Cities may also have local quotas. It is important to know if a license is available for your state and city - if not, it may be difficult to obtain a license.
  2. 2 Find out which license you need: a license for the sale and consumption of alcohol on-site or a license for the sale of alcoholic beverages to-go. There are two main types of alcohol licenses required for establishments that sell alcoholic beverages.
    • You will need a license to sell and consume alcohol locally if the drinks you sell are for local consumption. Examples of establishments that require this type of license are bars, restaurants and taverns.
    • You will need a license to sell alcoholic beverages to-go if the drinks you sell will be consumed outside the establishment. Examples of establishments that will require this type of license are liquor stores, grocery stores, and pharmacies.
  3. 3 Find out a specific Class the license you need. In some states, you will need to apply for a very specific class of license, depending on the nature of your business and the different types of alcohol you intend to sell. Some examples of the most common license classes include:
    • Tavern license: A tavern license may be required in some states for businesses that operate in food but earn up to half of their profits from alcohol.
    • Beer and Wine: Certain smaller bars or restaurants may be licensed to sell only "non-spirits" such as beer and wine. This license does not entitle its holder to sell spirits.
    • A restaurant: Restaurant licenses usually give the right to sell any type of alcohol in establishments. However, the license may stipulate that only a certain percentage of the restaurant's total profit may come from the sale of alcohol. This percentage is usually in the 40% region.

Part 2 of 3: Following the Application Process

  1. 1 Start as early as possible. If you are planning to open a bar or restaurant serving alcohol, it is important to start the alcohol license process as early as possible.
    • It will take time to obtain approval for an alcohol license - in some cases up to a year.
    • Thus, this should be one of the first considerations when planning a new business idea.
  2. 2 Calculate the cost. The cost of obtaining an alcohol license can vary greatly. In some cases, you will only need to pay a few hundred dollars to cover the application fee and taxes.
    • Unfortunately, due to licensing quotas that exist in many cities and towns, you may be required to purchase a license for an existing bar, liquor store or restaurant. When this happens, the cost for you to obtain a license can go up to thousands of dollars.
    • When purchasing a license from another business, hire a lawyer (preferably one who is familiar with alcohol licensing) who will review the agreements and answer any questions you may have.
  3. 3 Write a clear description of the type of business you will be working with. As explained in Part 1, there are usually different licenses for different types of business - for example, selling in a local tavern will require a different type of license than opening a liquor store.
    • Thus, as part of your task, you will need to write a clear description of the type of business you will be working with. You should include information about whether you intend to sell alcohol for consumption on site and the percentage of the total income that you expect to receive from the sale of alcohol.
    • You should also include information about whether you will be serving or selling alcoholic beverages - wine, beer, spirits, or all three. This is important because some beverages (such as spirits) will require a different type of license than others (such as beer).
  4. 4 Complete all required forms and submit the required documentation. You can obtain the required forms from your local council or the Liquor Control Agency, and the Bureau of Tobacco Trade and Tax. In some states, you need to apply to both the state and your local city or county office.
    • The application will contain detailed information about your business and your personal file. Details such as your age, your business background, and your criminal record can influence the government's decision to grant you a license.
    • In addition, a number of important documents will need to be included when applying, which may include: certificate of registration, cooperation agreement, constitution of your company, a copy of the offered food menu, photographs or drawings of the exterior of the building and the floor plan of the interior, a code compliance certificate and a copy certificates of ownership of the premises.
  5. 5 Be prepared to defend your proposal. Once you submit your application, a notice will be posted at your intended business location and will include the name, the type of license you are applying for, and the selling privileges that the alleged license may give you.
    • This notice must be posted publicly within a specific time frame (which varies by state). During this time, someone from the local population may come out and challenge your application.
    • Depending on state or city laws, you may also need to post your alcohol license application in your local newspaper and, in some cases, with neighboring organizations such as schools, faith-based organizations, and nearby parks.
    • If there is no objection, the local government will continue to process your application as usual. If there is an objection, you may be summoned to defend your proposal in a public hearing before a final decision is made.

Part 3 of 3: Maintaining Your Alcohol License

  1. 1 Renew your alcohol license annually. You will need to renew your alcohol license annually and this will require the payment of a renewal fee.
    • Keep in mind that if you stay on good terms with your local agency for a year, you may be eligible for a fee reduction.
  2. 2 Be aware that your license may be revoked. Understand that your license may be revoked if you violate the terms set by your local agency.
    • Common violations include selling liquor to minors, allowing regular customers to abuse alcohol, and allowing staff to be drunk in the establishment.

Tips

  • Hire a lawyer to help you understand local laws and help you draft proposals. Legal jargon can be confusing.