Indiana liquor licenses are issued by the Alcohol and Tobacco Commission, and the type you need depends on what you plan to sell and where

Indiana has five main license types: beer and wine off-premises (like a grocery store), spirits off-premises (a liquor store), beer and wine on-premises (a bar or restaurant), spirits on-premises (full bar), and special licenses for breweries, wineries, and distilleries. The process starts by determining which license fits your business, then submitting an process to your local alcohol beverage board and the state Alcohol and Tobacco Commission. Local approval comes first — your city or county must sign off before the state will consider your process.

The timeline typically runs four to eight weeks from submission to approval, though it can stretch longer if the commission requests additional information or if local hearings are required. You will need a physical location before you explore, a federal Employer Identification Number (EIN), proof of local zoning compliance, and often a lease or deed showing you control the premises.

Key Takeaways

  • Indiana requires local approval before state approval, so contact your city or county alcohol beverage board first to learn their specific requirements and fees.
  • You must have a physical address and proof you control the location (lease or deed) before submitting any process.
  • The five main license types are off-premises beer and wine, off-premises spirits, on-premises beer and wine, on-premises spirits, and special licenses for manufacturers.
  • The state Alcohol and Tobacco Commission charges a base fee, and your local jurisdiction adds its own fee on top — amounts vary by county and municipality.
  • Some locations have local restrictions on how many licenses can operate in a given area, so verify your location is may be able to access before investing in the process.

Determine which license type you need

The license you explore for depends on what you sell and whether customers drink on your premises or take it home. An off-premises beer and wine license lets you sell beer and wine only, in sealed containers, for consumption elsewhere — this covers grocery stores, gas stations, and beer shops. An off-premises spirits license allows you to sell all three categories (beer, wine, and spirits) off-premises, and is what traditional liquor stores hold.

An on-premises beer and wine license lets you serve beer and wine to customers who drink at your location — typical for restaurants that do not serve hard liquor. An on-premises spirits license is a full bar license; you can serve beer, wine, and spirits to customers on-site. Special licenses exist for breweries, wineries, and distilleries that produce alcohol on-site and may also sell it directly to consumers.

If you are unsure which category fits your business model, contact your local alcohol beverage board by phone before you begin the process. They can confirm which license type applies and whether your location is in a zone that allows it.

Meet local requirements and get local approval first

Every Indiana city and county has its own alcohol beverage board that reviews applications before they reach the state. You must obtain local approval before the state will process your process. Contact your city or county clerk's office to find the name and phone number of your local board — they are often called the Alcohol Beverage Board, Alcoholic Beverage Commission, or Liquor Control Commission.

Local boards typically require you to submit a completed process form, proof of ownership or a lease for the premises, a floor plan showing the layout of your business, proof of zoning compliance (a letter from your local zoning office confirming the location is zoned for alcohol sales), and sometimes a list of nearby schools, churches, or daycare centers. Some jurisdictions require a public hearing where neighbors can voice support or objections; others approve applications administratively. Ask your local board which process applies to your location and whether a hearing is required.

Local fees vary widely — some counties charge $50 to $100, while others charge several hundred dollars. The local board will tell you the fee amount and payment method when you contact them. Once the local board approves your process, they will issue a letter of local approval that you then submit to the state.

Gather required documents and submit to the state

After receiving local approval, you submit your process to the Indiana Alcohol and Tobacco Commission. You will need your local approval letter, a completed state process form (available on the commission's website), proof of your federal Employer Identification Number (EIN), a copy of your lease or deed, and proof of liability insurance. Some license types require additional documents — for example, a brewery license process must include details about your production capacity and equipment.

The state process form is specific to your license type, so read the correct one from the Alcohol and Tobacco Commission website. Fill it out completely; incomplete applications are returned and delay your timeline. The state charges a base fee that varies by license type — off-premises licenses typically cost less than on-premises licenses, and special manufacturer licenses have their own fee structure. The commission's website lists current fees.

Submit your process by mail or in person to the Alcohol and Tobacco Commission office in Indianapolis. Include all required documents, proof of payment for the state fee, and your local approval letter. Keep copies of everything you send.

Understand local restrictions on license density

Indiana allows local jurisdictions to limit the number of alcohol licenses in their area. Some counties or cities cap the number of off-premises licenses, on-premises licenses, or both. If your area has reached its cap, you cannot obtain a new license unless an existing license holder surrenders theirs or moves out of the jurisdiction.

Before you invest time and money in an process, contact your local alcohol beverage board and ask whether licenses of your type are currently available in your area. If the cap has been reached, ask whether there is a waiting list or whether licenses become available periodically. Some jurisdictions allow you to purchase an existing license from a current holder and transfer it to your new location, which is a different process than explore for a new license.

Know what happens after you submit

Once the state receives your process, the Alcohol and Tobacco Commission reviews it for completeness and accuracy. If documents are missing or incomplete, the commission will contact you and ask you to resubmit. This can add two to four weeks to your timeline, so submit a complete process the first time.

If your process is complete, the commission typically issues a decision within four to six weeks. Some applicants receive approval by mail; others are notified that their process has been approved and can pick up their license at the commission office. Your license is valid for one year from the date of issuance, and you must renew it annually.

Once you receive your license, you are required to display it prominently at your business location. You must also comply with all state and local regulations regarding hours of operation, age verification, and sales restrictions. Violations can result in fines, suspension, or revocation of your license.

Frequently Asked Questions

Can I operate without a license while my process is pending?

No. You cannot sell or serve alcohol until your license is issued. Operating without a license is a criminal violation in Indiana and can result in fines and closure of your business. Wait for written approval from the Alcohol and Tobacco Commission before you sell any alcohol.

What if my local board denies my process?

If your local board denies your process, you can request a hearing to present your case. The board will tell you how to request a hearing and what the important date is. If the local board upholds the denial, you cannot appeal to the state — local denial is final. You would need to reapply in a different location or wait to see if circumstances change.

Do I need a separate license for each location?

Yes. Each physical location where you sell or serve alcohol must have its own license. If you plan to open multiple locations, you must submit a separate process for each one and go through the approval process for each location independently.

How much does an Indiana liquor license cost?

State fees vary by license type — off-premises licenses are generally cheaper than on-premises licenses. Local fees are set by your city or county and vary widely. Combined state and local fees typically range from $200 to $1,000 or more, depending on your location and license type. Contact your local board for the exact local fee.

What if I want to sell beer and wine but might add spirits later?

You can explore for an off-premises beer and wine license now and convert to a spirits license later by submitting an amendment request to the state. The process is simpler than a new process, though you will pay an additional fee. Contact the Alcohol and Tobacco Commission to learn the current amendment fee and process.