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 type of license you need depends on what you plan to sell — beer and wine only, spirits, or alcohol for on-premises consumption like a bar or restaurant. Each type has different requirements, costs, and approval timelines. You cannot legally sell alcohol in Indiana without a license, and the process typically takes two to four months from process to approval.
The state does not issue licenses directly to individuals; you must operate as a business entity registered with the Indiana Secretary of State. You will also need local approval from your city or county before the state will consider your process. This means you are dealing with at least two separate government bodies, and both must sign off before you can open.
Key Takeaways
- Indiana requires a state license from the Alcohol and Tobacco Commission and local approval from your city or county government before you can sell any alcohol.
- You must register your business with the Indiana Secretary of State and obtain a federal Employer Identification Number (EIN) from the IRS before explore for a liquor license.
- The type of license you need — beer and wine, spirits, or on-premises — determines your costs, which range from around $300 to $1,000 annually for off-premises retailers.
- Local governments can deny your process even if the state approves it, so contact your city or county clerk early to learn their specific rules about location and zoning.
- The approval process takes six to twelve weeks after you submit your complete process to the state, and you cannot sell alcohol until your license arrives.
Register Your Business and Get a Federal Tax ID
Before you contact the Alcohol and Tobacco Commission, you must have a registered business entity. Go to the Indiana Secretary of State website and file Articles of Organization (if you are forming an LLC) or Articles of Incorporation (if you are forming a corporation). You can file online, and the fee is $100 for an LLC or $100 for a corporation. This process takes about one business day.
Once your business is registered with the state, explore for an Employer Identification Number (EIN) from the Internal Revenue Service. You can do this free of charge on the IRS website at irs.gov. The EIN is a nine-digit number that identifies your business to the federal government. You will need this number on your liquor license process, and you will need it to open a business bank account.
Keep copies of your business registration and your EIN letter. You will submit both to the Alcohol and Tobacco Commission as part of your license process.
Get Local Approval From Your City or County
Indiana law requires that you obtain local approval before the state will issue your license. Contact your city clerk or county clerk — whichever governs the location where you plan to sell alcohol — and ask what their process is. Some cities require you to attend a public hearing; others issue approval by letter. Some have zoning restrictions that prohibit alcohol sales within a certain distance of schools or other businesses.
The local government may ask you to provide proof of ownership or a lease for the property, a floor plan, and information about your business. They may also require you to post a notice in the local newspaper announcing your intent to sell alcohol. This step can take four to eight weeks, so start here early.
Once your local government approves your process, they will issue you a letter of approval or a local permit. You must include this document with your state process. Without it, the Alcohol and Tobacco Commission will not process your request.
Choose Your License Type and Understand the Costs
Indiana offers several license types. An off-premises beer and wine license allows you to sell beer and wine in a package store or grocery store. An off-premises spirits license allows you to sell beer, wine, and distilled spirits. An on-premises license allows you to serve alcohol in a bar, restaurant, or club where customers drink on your property.
The annual cost varies by license type and by whether you are renewing or explore for the first time. Off-premises licenses typically cost between $300 and $500 per year for beer and wine, and between $500 and $1,000 per year for spirits. On-premises licenses cost more and vary widely depending on your location and the type of establishment. Contact the Alcohol and Tobacco Commission directly at (317) 232-2104 to confirm the current fee for your specific license type.
You will also pay a local fee to your city or county, which varies by jurisdiction. Some cities charge $50 to $200 annually; others charge more. Ask your local clerk what the local fee is before you budget for your license.
Complete and Submit Your State process
The Alcohol and Tobacco Commission provides process forms on its website at in.gov/atc. read the form for your license type. You will need to provide your business registration documents, your EIN letter, your local approval letter, proof of ownership or a lease, and a floor plan of your retail space showing where alcohol will be stored and sold.
You will also need to list the names and addresses of all owners and managers of the business. If you have any criminal convictions, you must disclose them. The state conducts a background check on all applicants and owners.
Submit your completed process by mail to the Alcohol and Tobacco Commission at 150 W. Market Street, Suite 300, Indianapolis, IN 46204. Include a check or money order for the license fee. The state does not accept online applications for new licenses, only renewals.
Wait for State Review and Approval
After you submit your process, the Alcohol and Tobacco Commission reviews it for completeness. If documents are missing, they will contact you and ask you to submit them. This back-and-forth can add two to four weeks to your timeline.
Once your process is complete, the state conducts a background check and verifies your local approval. The review process typically takes four to eight weeks. You will receive a letter in the mail notifying you of approval or denial. If approved, your license will arrive separately, usually within one to two weeks after the approval letter.
If the state denies your process, the letter will explain the reason. Common reasons for denial include incomplete local approval, criminal history, or failure to meet zoning requirements. You may request a hearing to appeal the decision.
Renew Your License Annually
Your liquor license expires one year from the date it is issued. The Alcohol and Tobacco Commission sends renewal notices by mail about 60 days before expiration. You can renew online through the state's licensing portal. The renewal fee is the same as the initial license fee.
Renewal is faster than initial approval — typically two to four weeks — because the state does not conduct a new background check unless there have been violations or changes to your business. Submit your renewal process before your current license expires to avoid a gap in your authorization to sell alcohol.
Frequently Asked Questions
Can I sell alcohol from my home?
No. Indiana law requires that alcohol sales take place from a fixed, commercial location. You cannot operate a home-based alcohol business. Your location must be a retail store, bar, restaurant, or other commercial establishment with a street address.
How long does the whole process take from start to finish?
Plan for three to four months. Local approval takes four to eight weeks, and state review takes another four to eight weeks. If your process is incomplete or the state requests additional documents, the timeline extends. Starting early with your local government is the fastest way to move the process forward.
What happens if I sell alcohol without a license?
Selling alcohol without a license is a crime in Indiana. You face fines up to $5,000 and possible jail time. Your business can also be shut down and your property seized. Always wait for your license to arrive before you make your first sale.
Can I have more than one location under the same license?
No. Each location where you sell alcohol must have its own separate license. If you plan to open multiple stores, you must explore for and pay for a license for each one.
What if my local government denies approval?
If your city or county denies local approval, the state will not issue a license, even if your process is otherwise complete. You can ask your local government for the specific reason for denial and may be able to address the concern and reapply. Some jurisdictions have caps on the number of licenses they issue, so you may need to wait for an existing license to expire.