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 depends on what you want to sell — beer and wine only, spirits, or all three — and where you want to sell it. A grocery store, a bar, and a brewery each follow different paths and pay different fees. You will need a local permit from your city or county first, then explore to the state. The whole process typically takes 30 to 60 days after you submit your state process, but local approval can add weeks or months depending on where you are.

Indiana does not allow you to hold a license if you have certain criminal convictions, if you owe back taxes, or if you have had a license revoked in any state. You must also be at least 21 years old and a resident of Indiana for at least one year before you can own a license outright. Some counties and municipalities have their own rules on top of state law — some prohibit off-premises sales (like liquor stores) in certain areas, and some require a local referendum before a new license can be issued. Check with your city or county clerk before you spend money on the process.

Key Takeaways

  • You must get a local permit from your city or county before the state will consider your process to the Alcohol and Tobacco Commission.
  • Indiana has four main license types — off-premises beer and wine, off-premises spirits, on-premises (bars and restaurants), and manufacturer licenses — each with different fees and rules.
  • You cannot hold a license if you have been convicted of a felony involving moral turpitude, owe back taxes, or have had a license revoked in any state.
  • The state process requires proof of local approval, a floor plan of your premises, proof of ownership or a lease, and identification of all owners and managers.

The Four Main License Types in Indiana

Off-premises beer and wine allows you to sell beer and wine for consumption away from your location — this is what a grocery store or convenience store holds. The annual fee is $250. You cannot sell spirits, and you cannot allow customers to drink on your premises.

Off-premises spirits allows you to sell beer, wine, and distilled spirits for off-premises consumption. The annual fee is $500. This is what a liquor store holds. Like beer and wine licenses, you cannot operate a bar or allow on-site drinking.

On-premises licenses allow you to sell beer, wine, and spirits for consumption at your location — bars, restaurants, and clubs hold these. The annual fee is $500 for beer and wine, or $1,000 for a full license that includes spirits. You must have a kitchen and serve food if you want to hold a full spirits license in most counties, though rules vary.

Manufacturer licenses are for breweries, wineries, and distilleries. Fees vary by type and production volume. Manufacturers can also sell directly to consumers on-premises and hold a limited off-premises license for their own products.

Getting Local Approval First

Before you contact the state, you must obtain a local permit or approval from your city or county. Contact your city clerk or county auditor's office — they will tell you whether your location is zoned for alcohol sales and what the local process is. Some municipalities require a public hearing or a vote by the town council. Some counties have a limit on how many licenses they will issue in a given year.

You will need to show proof of your location — either a lease signed by the property owner or a deed if you own the building. The property owner may need to sign off on your process. Once the local body approves you, they will issue a local permit or a letter of approval. Keep this document; you will submit it with your state process.

Local approval does not may provide state approval, but the state will not even review your process without it. If your local government denies you, you cannot appeal to the state — the decision is final at the local level.

Submitting Your process to the Alcohol and Tobacco Commission

Once you have local approval, you can explore to the Alcohol and Tobacco Commission. You can read the process form from the Indiana State Excise Police website or request one by phone at 317-232-2104. The form is called the "process for Alcoholic Beverage Permit."

You will need to submit the following documents with your process: your local permit or letter of approval; a floor plan of your premises showing the location of storage, service areas, and any outdoor seating; proof that you own or lease the property (a deed or signed lease); a copy of your driver's license or state ID; and the names, addresses, and dates of birth of all owners, managers, and anyone with a financial interest in the business. If you are a corporation or LLC, you must include articles of incorporation or formation and a list of all members or shareholders.

The process fee varies by license type. Off-premises beer and wine is $100; off-premises spirits is $150; on-premises beer and wine is $150; on-premises full spirits is $200. Manufacturer licenses range from $100 to $500 depending on the type. You can pay by check or money order made out to the State of Indiana.

Mail your completed process and all documents to the Alcohol and Tobacco Commission, 100 North Senate Avenue, Indianapolis, IN 46204. Keep a copy for your records. The commission will send you a confirmation letter when they receive your process.

What Happens After You Submit

The Alcohol and Tobacco Commission reviews your process to make sure all documents are included and that you meet the legal requirements. If something is missing or unclear, they will contact you and ask you to resubmit. This can add two to three weeks to the timeline.

If your process is complete and you meet all requirements, the commission will issue your license. You will receive the physical license in the mail. The license is valid for one year from the date of issuance and must be renewed annually. Renewal applications are typically sent to you 60 days before your license expires.

If the commission denies your process, they will send you a letter explaining why. You have the right to request a hearing before the commission to contest the denial. The hearing request must be made in writing within 10 days of the denial letter.

Annual Renewal and Ongoing Compliance

Your license expires one year from the date it was issued. The commission will mail you a renewal process about 60 days before expiration. The renewal fee is the same as the original process fee. You must renew before your license expires; selling alcohol without a valid license is a criminal offense.

While you hold a license, you must follow Indiana's alcohol laws. You cannot sell to anyone under 21. You cannot sell alcohol between 3 a.m. and 6 a.m. on weekdays, or between 4 a.m. and 6 a.m. on Sundays (hours vary slightly by license type and local ordinance). You must keep records of all purchases and sales. You cannot allow disorderly conduct on your premises. The Alcohol and Tobacco Commission can inspect your location at any time without notice.

If you are cited for a violation, you may face a fine, suspension, or revocation of your license. A revoked license cannot be reissued for at least two years, and a second revocation is permanent.

When to Call a Professional

If your local government denies your permit, or if the state denies your process, you may want to consult an attorney who specializes in alcohol licensing. An attorney can review the reasons for denial and advise you on whether you have grounds to appeal or reapply. Some applicants hire an attorney from the start to help them navigate local zoning rules and prepare their process, especially if they are opening a large establishment or in a competitive area.

If you are cited for a violation after you receive your license, an attorney can represent you in any hearing or appeal. The cost of legal help varies widely, but many attorneys offer a free initial consultation.

Frequently Asked Questions

Can I sell alcohol online or by delivery in Indiana?

Indiana law allows off-premises beer and wine sales to be delivered to customers' homes, but only if you hold an off-premises license and the delivery is made by you or your employee. Spirits cannot be delivered. You must verify the customer's age at delivery. Online sales are not explicitly permitted under state law, so check with your local government and the Alcohol and Tobacco Commission before offering them.

What if I want to open a bar in a county that has no available licenses?

Some Indiana counties have reached their license limit and will not issue new on-premises licenses. If that is the case in your county, you cannot open a new bar there. You can explore in a different county, or you can wait to see if someone surrenders or loses their license, which would free up a slot. Contact your county auditor to find out the current status.

Do I need a separate license for each location if I own multiple bars or stores?

Yes. Each location must have its own license. You will need to submit a separate process for each address, and each location must meet all local and state requirements. You can own multiple licenses, but you cannot consolidate them into one.

How much does an Indiana liquor license cost in total?

The state process fee ranges from $100 to $500 depending on license type, plus the annual license fee of $250 to $1,000. Local permit fees vary by municipality and can range from $0 to several hundred dollars. You should also budget for legal help, a floor plan, and any renovations needed to meet local codes. Total startup cost is typically $500 to $2,000 before you buy any inventory.

Can I transfer my license to someone else if I sell my business?

No. A liquor license is tied to the person who holds it and the specific location. If you sell your business, the new owner must explore for their own license. The old license is surrendered and cannot be transferred. The new owner must go through the full process process, including local approval.