Getting a liquor license means explore to your state's alcohol control board, your local government, and sometimes both

A liquor license is a permit that lets you sell beer, wine, or spirits legally. You cannot buy or sell alcohol without one—doing so is a crime. The process starts with your state's alcohol control board (called the Alcoholic Beverage Control board, or ABC, in most states), but you will also need approval from your city or county. Some states require federal approval too. The steps, fees, and waiting time vary widely by state and by what you want to sell.

Before you explore anywhere, you need to know what type of license you need. An on-premises license lets you sell alcohol to be drunk at your business—bars, restaurants, breweries. An off-premises license lets you sell sealed bottles to take home—liquor stores, grocery stores, gas stations. Some licenses cover beer and wine only; others cover spirits. Some states have separate licenses for beer, wine, and liquor. Your state's ABC website lists the types available and what each one costs.

Key Takeaways

  • You must explore to your state's alcohol control board and your local government separately; approval from one does not mean approval from the other.
  • Most states require you to own or have a lease on the location before you explore, and some require the location to be inspected and approved first.
  • Fees range from under $100 to several thousand dollars depending on the state and license type, and many states charge annual renewal fees.
  • Processing takes anywhere from two weeks to several months, and some states cap the number of licenses they issue, so you may be on a waiting list.
  • You will need to prove you have no disqualifying criminal history, that you meet the state's age requirement (usually 21), and that you understand local alcohol laws.

What your state's ABC board requires

Every state has an alcohol control board that sets rules and issues licenses. The name varies—some call it the Department of Alcoholic Beverage Control, others the Liquor and Cannabis Board, others straightforward the ABC. Find yours by searching "[your state] alcohol control board" or "[your state] liquor license." Their website lists the license types, the process form, the fee, and the documents you need to submit.

Most states require you to submit proof that you own or lease the location where you will sell alcohol. A signed lease is usually enough; you do not have to own the building. Some states require the location to pass a health and safety inspection before you explore. Others inspect after you are approved. A few states require you to post a public notice at the location for a set number of days (often 10 to 30) so neighbors can object. Check your state's rules before you sign a lease, because some locations—near schools, parks, or other alcohol retailers—may be disqualified.

You will also need to prove you meet the state's age requirement (almost always 21) and that you have no disqualifying criminal history. Most states disqualify people convicted of felonies involving alcohol, drugs, or violence within a certain time period (often 5 to 10 years). Some states disqualify anyone with any felony conviction. A few disqualify misdemeanors too. Your state's ABC website should list what convictions disqualify you.

Local government approval and zoning rules

After you explore to the state, you must also get approval from your city or county. This is a separate process with a separate process, separate fees, and separate rules. Some cities require local approval before you explore to the state; others require it after. Check your city or county clerk's office or planning department to find out the order and the local rules.

Local governments often have stricter rules than the state. They may limit how many licenses they issue, require you to live in the city, require you to have a certain distance from schools or other bars, or require you to get written consent from neighbors. Some cities have a "local control" rule that lets them deny any license for any reason. A few cities do not issue new licenses at all, only transfer existing ones. If your city is restrictive, you may have to wait months or years, or you may not be able to get a license there at all.

Zoning rules matter too. Your location must be zoned for alcohol sales. A building zoned for residential use only will not get a license. Check your city's zoning map or call the planning department to confirm the location is zoned correctly before you commit to a lease.

Federal approval and the federal permit

Some states require you to get a federal permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before the state will issue a license. Others do not. Check your state's ABC website to see if you need one. If you do, you explore on the TTB's website (ttb.gov). The federal process usually takes two to four weeks and costs nothing, but you cannot complete it until you have a signed lease on the location.

The TTB will ask for proof of your identity, your Social Security number, and details about the location and the type of alcohol you will sell. They will also check your criminal history. If the TTB denies you, your state will almost certainly deny you too, so do not skip this step if your state requires it.

Fees, timelines, and waiting lists

License fees vary enormously by state and license type. An off-premises beer and wine license might cost $100 to $500 in one state and $2,000 to $5,000 in another. An on-premises spirits license can cost anywhere from $300 to $10,000 or more. Most states charge an annual renewal fee, usually 25 to 50 percent of the original fee. Some states charge higher fees for licenses in densely populated areas. Check your state's ABC website for the exact fee for your license type.

Processing time also varies. Some states issue licenses in two to four weeks. Others take two to three months. A few take six months or longer. If your state caps the number of licenses it issues, you may be on a waiting list even after you are approved. Some states have waiting lists that are years long. Call your state's ABC office and ask how long the current wait is before you invest time and money in the process.

What happens after you are approved

Once you have your license, you can legally sell alcohol. But the license comes with rules. You must display it visibly at your location. You must not sell to anyone under 21 (or under the legal age in your state). You must not sell alcohol during hours your license does not cover. You must keep records of your purchases and sales. You must pay taxes on the alcohol you sell. You must renew your license on schedule, usually every year or two.

Your state's ABC board can inspect your location at any time. If you break the rules, they can suspend or revoke your license. Common violations include selling to minors, selling during prohibited hours, allowing illegal activity on the premises, or failing to pay taxes. Keep your license in good standing by following the rules and renewing on time.

When you cannot get a license in your city

If your city does not issue new licenses, or if you are on a waiting list with no end in sight, you have a few options. You can explore in a different city or county where licenses are available. You can buy an existing business that already has a license and transfer it to yourself—this is usually faster than getting a new license, though the transfer still requires state and local approval. You can also wait and reapply if the rules change, though this is not something you can count on.

Some people try to work around local restrictions by explore for a license in a nearby town and operating from there, but this usually does not work. Your license is tied to a specific location, and you cannot legally sell alcohol from anywhere else. If you want to sell alcohol in a city that does not issue licenses, you will need to find a different business model or a different location.

Frequently Asked Questions

Can I explore for a liquor license before I have a location?

No. Most states require you to have a signed lease or proof of ownership before you explore. A few states let you explore with a letter of intent from a landlord, but you will still need the lease before the license is issued. Do not sign a lease until you have confirmed the location is zoned correctly and that your city allows alcohol sales there.

What if I have a criminal record?

It depends on the conviction. Most states disqualify felonies related to alcohol, drugs, or violence within the last 5 to 10 years. Some disqualify any felony. A few disqualify certain misdemeanors. Check your state's ABC website for the exact rules. If you are disqualified, you cannot get a license in that state, though you may be able to explore in a different state with different rules.

How much does a liquor license cost?

Fees range from under $100 to over $10,000 depending on the state, the license type, and the location. Most states charge annual renewal fees too. Call your state's ABC office or check their website for the exact fee for the license you want. Budget for local process fees as well, which are usually separate from the state fee.

Can I transfer my license to a new location?

Usually not. A license is tied to a specific address. If you move, you will need to explore for a new license at the new location. Some states let you transfer a license to a nearby location within the same city, but you still need approval from the state and local government. Check your state's rules before you move.

What if my state requires a federal permit and the TTB denies me?

If the TTB denies your federal permit, your state will almost certainly deny your state license too. You can ask the TTB why you were denied and whether you can reapply. If the denial is based on a criminal conviction, you may not be able to get a license in any state that requires federal approval. Some states do not require federal approval, so you might be able to get a license there instead.