What You Need to Know Before You Start

Indiana liquor licenses are issued by the Alcohol and Tobacco Commission (ATC), a division of the Indiana State Excise Police. The process differs depending on what you want to sell — beer and wine only, spirits, or consumption on premises (a bar or restaurant). You will need a local permit from your city or county before the state will issue anything, and that local step often takes longer than the state approval.

The basic timeline runs four to eight weeks once you have submitted everything, but the local permit can add another four to twelve weeks depending on where you are. You cannot legally sell alcohol until both the local and state licenses are in hand. Many applicants underestimate the local step and assume the state process is the bottleneck.

Key Takeaways

  • You must obtain a local permit from your city or county before explore to the state Alcohol and Tobacco Commission.
  • Indiana issues separate licenses for off-premises sales (liquor stores), on-premises sales (bars and restaurants), and beer-and-wine-only retailers.
  • You will need a completed process, proof of property ownership or lease, a floor plan, and documentation of your identity and background.
  • The Alcohol and Tobacco Commission charges a non-refundable process fee and a separate license fee if you are approved.
  • Local zoning rules, distance requirements from schools and other licensed establishments, and background checks can all delay or block approval.

Getting Your Local Permit First

Contact your city or county clerk's office and ask for the liquor license process or permit process — the name varies by location. Some municipalities call it a "local permit," others a "local approval," and a few require a separate zoning variance. The clerk will tell you whether your proposed location meets local distance requirements (most Indiana cities require 600 feet from schools, though this varies) and whether the zoning allows alcohol sales.

You will typically need to submit proof that you own the property or have a signed lease, a floor plan of the space, and sometimes a letter from the property owner consenting to the use. Some cities require a public hearing or a neighborhood notification period. This is where delays happen most often — if your location is near a school or another licensed establishment, or if neighbors object, the local process can stall for months.

Once the local office approves, they will issue a local permit or approval letter. Keep this document — you cannot move forward with the state process without it.

Choosing Your License Type

Indiana offers three main categories. An off-premises license allows you to sell beer, wine, and spirits for consumption elsewhere (a liquor store or grocery store). An on-premises license allows you to sell alcohol for consumption at your location (a bar, restaurant, or nightclub). A beer-and-wine-only license is a restricted off-premises license that covers only beer and wine, not spirits.

Each type has different fees, different background requirements, and different local restrictions. A restaurant with a kitchen can hold an on-premises license; a gas station cannot. A grocery store can hold an off-premises license; a gas station can hold either off-premises or beer-and-wine-only depending on local rules. Check with your local clerk about which types are allowed in your location before you invest time in the process.

Completing the State process

The Alcohol and Tobacco Commission process is available on the Indiana State Excise Police website. You will need to fill out the form completely, including your name, address, date of birth, and Social Security number. If you are explore as a business entity (an LLC or corporation), you will need the business registration number and the names of all owners with a stake of 20 percent or more.

Attach a copy of your local permit or approval letter, a floor plan of the premises showing dimensions and layout, and a copy of your lease or deed. You will also need to provide a government-issued photo ID and proof of your current address. If you have any criminal convictions, disclose them — Indiana law bars certain felonies from holding a license, but not all, and honesty is required.

The process fee is non-refundable. The license fee (if approved) is separate and varies by license type and location. Neither fee is refundable if you change your mind or if the process is denied.

Background Checks and Waiting Periods

The Alcohol and Tobacco Commission will conduct a background check on you and any co-owners. This includes a criminal history search and a check against the state's list of people barred from holding a license. Certain felonies — particularly those involving alcohol, drugs, or violence — can disqualify you permanently. Misdemeanors and older convictions may not, but the commission has discretion.

Indiana law requires a 30-day waiting period between the time you submit your process and the time the commission can issue a license. This is a legal minimum, not a target; the actual wait is often longer if the commission has a backlog or if they request additional information from you. You cannot sell alcohol during this waiting period, even if you have your local permit.

What Happens If You Are Denied

If the Alcohol and Tobacco Commission denies your process, they will send you a written notice explaining the reason. Common reasons include failure to meet local distance requirements, a disqualifying criminal conviction, incomplete process materials, or a information that you are not of good moral character. You have the right to request a hearing before the commission to contest the denial.

A hearing is not a court proceeding — it is an administrative review. You can present evidence and testimony, and the commission will reconsider. If you lose the hearing, you can appeal to the Indiana Tax Court, but this is expensive and time-consuming. Many applicants choose to reapply at a different location or wait a period of time before trying again, depending on the reason for denial.

Renewing and Maintaining Your License

Indiana liquor licenses expire annually on June 30. You must renew before that date to continue selling. The renewal process is simpler than the initial process but still requires you to confirm your information and pay the renewal fee. If you miss the important date, your license lapses and you must reapply as a new applicant, including the local permit step.

Once you hold a license, you are subject to state and local rules about hours of operation, advertising, and conduct. Violations can result in fines, suspension, or revocation. The Alcohol and Tobacco Commission can also impose conditions on your license — for example, requiring you to hire a security guard or limiting your hours — if they determine it is necessary for public safety.

Frequently Asked Questions

Can I sell alcohol before my state license arrives if I have my local permit?

No. You must have both the local permit and the state license in hand before you sell any alcohol. Selling without a license is a criminal offense in Indiana. The local permit alone does not authorize sales.

What disqualifies you from getting a liquor license in Indiana?

Certain felonies disqualify you permanently, including felonies involving alcohol, drugs, violence, or fraud. Some misdemeanors and older convictions may not disqualify you, but the commission has discretion. You can ask the commission in advance whether a specific conviction will bar you.

How much does a liquor license cost in Indiana?

Fees vary by license type and location. The process fee is non-refundable; the license fee (if approved) depends on whether you are selling off-premises or on-premises and whether you are in a city or county. Contact your local clerk or the Alcohol and Tobacco Commission for the exact fee for your location and license type.

Can I transfer my license to a new location?

No. A license is tied to a specific address. If you move, you must explore for a new license at the new location, including obtaining a new local permit. You cannot straightforward move the license from one building to another.

Do I need a lawyer to explore for a liquor license?

You do not need a lawyer, but many applicants hire one because the process involves both local and state steps and the rules vary by location. A lawyer can help you navigate local zoning requirements and prepare for a hearing if your process is denied. This is optional, not required.