Liquor License
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Obtaining a liquor license can be a long and challenging process. Each state has its own governing agency on licensing liquor. Also, many counties and towns within a single state can have additional rules about requirements and licensing procedures. It is impossible to go through every state’s laws, but this we will help you out on how to get a liquor license.
Just see Step 1 below to get started.
Know your state’s alcohol laws. The first thing to be aware of is that each state has its own rules and requirements regarding the supply of liquor licenses, so you should contact a local authority to find out about alcohol laws and the sale of licenses in your specific state.
- Each state has an Alcoholic Beverage Control (ABC) agency that regulates the sale and distribution of liquor, so you also contact your local ABC office for more information.
- Some states have license quotas limiting the number of places that can sell alcohol within the state, at any given point in time. Towns may also have quotas in place. It is important to know if there are any available licenses for your state and town — if there aren’t, you may have difficulty procuring a license.
Figure out if you need an on-license or an off-license. There are two major types of liquor license required by premises that sell alcohol.
- You will need an on-license if the liquor you sell is intended to be consumed on the premises. Examples of businesses that would require an on-license include bars, restaurants and taverns.
- You will need an off-license if the liquor you sell is intended to be consumed off the premises. Examples of businesses that would require an off-license include liquor stores, grocery stores and drug stores.
Figure out the specific class of licence 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 variety of alcohols you intend to sell. Some examples of the most common license classes include:
- Tavern license:A tavern license may be required in some states by businesses that serve food, but make up to half of their overall profits through the sale of alcohol.
- Beer and wine:Some smaller bars or restaurants may only be granted a licence to sell “soft” liquors like beer and wine. This license does not entitle its owner to sell “hard” liquors, like spirits.
- Restaurant:Restaurant licenses typically allow any type of alcohol to be sold on the premises. However, the license may stipulate that only a certain percentage of the restaurant’s total earnings may come from the sale of alcohol. This percentage is normally in the region of 40%.[1]
Be prepared to defend your proposal. After you submit your application, a notice will be posted at the proposed location of your business, including your name, the type of license you are applying for and what selling privileges the proposed license would entitle you to.
- This notice must be publicly displayed for a set amount of time (which varies by state). During this time, anyone from the local community can come forward and contest your application.
- Depending on the state or city laws, you may also be required to post an announcement of your liquor license application in the local newspaper, and in some places, reach out to local neighborhood organizations such as schools, places of worship and nearby parks.
- If there are no objections to your application, local government will proceed with reviewing your application as normal. If there are objections, you may be called forward to defend your proposal at a public hearing, before a final decision is made.






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