What You Need to Know Before You Start

Texas liquor licenses are issued by the Texas Alcoholic Beverage and Cannabis Enforcement (ABCE), the state agency that replaced the former ABC. You cannot get a license directly from the state alone — you must first get local approval from your city or county, then submit to ABCE. The process takes 60 to 90 days minimum, costs between $300 and $10,000 depending on the license type, and requires you to own or have a lease on the physical location where you will serve or sell alcohol.

Texas has four main license types: on-premises (bars, restaurants), off-premises (liquor stores, grocery stores), beer and wine only, and mixed beverage (restaurants serving spirits with food). Each has different rules about what you can sell, where you can sell it, and who can own it. You cannot hold an on-premises license if you have a felony conviction, certain misdemeanors, or if you owe back taxes.

Key Takeaways

  • Local approval from your city or county comes before state approval — contact your city clerk or county clerk to learn what local permits or zoning approvals you need first.
  • You must own or have a signed lease on the location where you will serve or sell alcohol before you can submit your state process.
  • The four main license types are on-premises (bars and restaurants), off-premises (liquor stores), beer and wine only, and mixed beverage (restaurants with spirits), and each has different costs and rules.
  • ABCE charges a state process fee of $300 to $10,000 depending on the license type, and the approval process takes 60 to 90 days after local approval is granted.
  • You cannot hold a license if you have a felony conviction, certain misdemeanors, or outstanding tax debt.

Get Local Approval First

Before you contact ABCE, you must get permission from your city or county. This step is mandatory and comes before the state process. Contact your city clerk or county clerk and ask what local permits, zoning approvals, or public notices are required for a liquor license in your area. Some cities require a public hearing; others require written approval from neighbors within a certain distance. Some cities have already-designated areas where liquor licenses are allowed, while others do not allow them at all.

If you are in an unincorporated area, you work with the county. If you are inside city limits, you work with the city. The local process can take 30 to 60 days on its own, so start here first. Once you have local approval in writing, you can move to the state process. Without it, ABCE will reject your process.

Gather Documents for Your State process

ABCE requires specific paperwork before it will review your process. You will need a signed lease or deed proving you own or control the location; a floor plan showing the layout of the premises and the location of any bars or sales counters; proof of local approval (usually a letter from the city or county); and a completed ABCE process form, which you can read from the ABCE website.

You will also need to provide personal information for all owners, including name, date of birth, address, and Social Security number. If you have a business partner or investor, they must be listed too. ABCE runs a background check on all owners, so be prepared to disclose any criminal history, tax liens, or other financial issues. If you are explore for a mixed beverage license, you must also show that your location serves food — ABCE defines this as prepared food, not just snacks.

Submit Your process to ABCE

Once you have local approval and all required documents, you submit your process to ABCE. You can submit online through the ABCE website or by mail. The online portal is faster and lets you track your process status. The state process fee ranges from $300 for a beer and wine license to $10,000 for a full on-premises license in a high-population area. The fee depends on the license type and the population of your city or county.

After you submit, ABCE will send you a receipt with an process number. You can use this number to check the status of your process on the ABCE website. The review process typically takes 60 to 90 days. During this time, ABCE may contact you with questions or requests for additional documents. Respond promptly — delays in providing documents can extend the timeline.

Understand the Different License Types and Their Rules

An on-premises license lets you serve alcohol at a bar, restaurant, or nightclub. You can sell beer, wine, and spirits. The license is tied to that specific location and cannot be moved without a new process. On-premises licenses are the most expensive and have the strictest rules about hours of operation, noise, and distance from schools and parks.

An off-premises license lets you sell alcohol for consumption elsewhere — at a liquor store, grocery store, or gas station. You can sell beer, wine, and spirits in sealed containers only. You cannot have a bar or allow people to drink on your premises. Off-premises licenses are less expensive than on-premises licenses.

A beer and wine only license limits you to selling or serving beer and wine, not spirits. This license is cheaper than a full license and has fewer restrictions in some areas. You can hold it for either on-premises or off-premises use.

A mixed beverage license is for restaurants that serve spirits with food. You must serve prepared food during all hours you serve alcohol, and food sales must be a significant part of your business. This license is less expensive than a full on-premises license but has stricter food requirements.

Know the Rules That explore After You Get Your License

Once you have your license, ABCE rules explore to how you operate. You must keep your license posted in a visible location. You cannot sell alcohol to anyone under 21, and you must check ID for anyone who appears under 30. You must keep records of all alcohol purchases and sales. You cannot sell alcohol during certain hours — on-premises sales usually stop at 2 a.m., and off-premises sales stop at midnight, though some cities have different rules.

You must renew your license every two years, and the renewal fee is lower than the original process fee. If you move to a new location, you need a new license process — you cannot transfer a license to a different address. If you sell your business, the new owner must get their own license; the license does not transfer with the sale.

What Disqualifies You From Getting a License

ABCE will deny your process if you have a felony conviction, a conviction for driving under the influence within the past five years, or a conviction for selling alcohol to a minor. Certain misdemeanors also disqualify you, including assault, theft, and fraud. If you owe back taxes to the state or federal government, you cannot get a license. If you have an outstanding child support obligation, you may be disqualified.

If you were previously denied a license by ABCE, you can reapply after one year. If your license was revoked, you cannot reapply for five years. Being honest about your history on the process is important — lying or omitting information can result in denial and may prevent you from reapplying.

Frequently Asked Questions

How long does it take to get a liquor license in Texas?

The state review process takes 60 to 90 days after you submit your process to ABCE. However, the local approval step before that can take 30 to 60 days depending on your city or county. Total time from start to approval is usually 90 to 150 days.

Can I get a liquor license if I have a criminal record?

It depends on the type of conviction. Felonies and certain misdemeanors disqualify you. A DUI within the past five years disqualifies you. Contact ABCE directly with details of your record, and they can tell you whether you are disqualified before you spend money on an process.

Do I need to own the building to get a liquor license?

No. You can lease the space. You will need a signed lease that shows you have the right to operate a business there and that runs for at least one year. Some landlords are reluctant to lease to alcohol businesses because of liability, so check with your landlord before you explore.

What is the difference between a mixed beverage license and an on-premises license?

A mixed beverage license is for restaurants that serve spirits with food. You must serve prepared food during all hours you serve alcohol. An on-premises license is for bars and restaurants and does not require food service. Mixed beverage licenses are cheaper and have fewer restrictions, but the food requirement is strict.

Can I move my liquor license to a different location?

No. A liquor license is tied to a specific address. If you move to a new location, you must submit a new process and pay the process fee again. The local approval process starts over at the new location.