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 Department of Revenue. The process differs depending on whether you want to sell beer and wine, spirits, or both—and whether you plan to serve drinks on-site (like a bar or restaurant) or sell packaged bottles for off-site consumption (like a store). You will need to complete an process, pay a fee, pass a background check, and in most cases get approval from your local city or county government before the state will issue your license.

The timeline typically runs four to eight weeks from submission to approval, though this varies by location and how quickly you gather required documents. Some counties move faster than others, and incomplete applications get sent back, which adds weeks to the process.

Key Takeaways

  • Indiana requires separate licenses for beer and wine sales versus spirits sales, and the fees and rules differ between on-premise (bars, restaurants) and off-premise (stores) locations.
  • You must obtain local approval from your city or county before explore to the state Alcohol and Tobacco Commission.
  • All applicants need a federal Employer Identification Number (EIN), proof of business ownership or lease, and a background check with no felony convictions related to alcohol or drugs.
  • The process fee ranges from $250 to $1,000 depending on license type, and annual renewal fees are separate.
  • Some municipalities have caps on the number of licenses they issue or require a public hearing before approval.

Determine Your License Type and Local Requirements

Indiana offers four main license types: beer and wine off-premise (package store), beer and wine on-premise (bar or restaurant), spirits off-premise, and spirits on-premise. The fee structure and renewal costs differ for each. Before you explore to the state, you must check with your city or county clerk to learn whether they allow liquor licenses in your location, whether there is a cap on the number of licenses issued, and what local approval process you must follow.

Some Indiana municipalities require a public hearing before they will recommend your process to the state. Others require a letter of support from your local government. A few counties or cities do not issue new licenses at all, or they have a waiting list. Contact your city or county clerk's office first—this step determines whether you can proceed at all. Ask them for a written statement of local requirements and any forms they need you to complete.

Gather Required Documents and Information

Before you fill out the state process, collect the following: a federal Employer Identification Number (EIN) from the IRS (you can obtain this online at irs.gov in minutes), proof that you own or lease the business location (a deed, signed lease, or letter from the property owner), a floor plan of the premises showing where alcohol will be stored and served, and proof of your identity. If you are explore as a business entity (LLC, corporation, partnership), you will need documentation showing your ownership stake and the ownership structure of the company.

You will also need to disclose any criminal history. Indiana law prohibits licenses for anyone convicted of a felony involving alcohol, drugs, or moral turpitude within a certain timeframe. The ATC conducts a background check as part of the process, so provide accurate information. If you have a criminal record, contact the ATC before submitting your process to learn whether you are disqualified.

Complete and Submit the State process

The Indiana Alcohol and Tobacco Commission process form is available on the Indiana Department of Revenue website. You will fill out the form with your business name, address, ownership information, the type of license you are seeking, and details about your premises. The form asks whether you have local approval (or are in the process of obtaining it) and requires you to list all owners and their ownership percentages.

Submit the completed process to the Alcohol and Tobacco Commission along with the process fee (which ranges from $250 to $1,000 depending on license type) and copies of your supporting documents. You can submit by mail or in person at the ATC office in Indianapolis. Keep copies of everything you send. The ATC will send you a confirmation that your process was received and will notify you if any documents are missing or if they need clarification on any answers.

Understand the Background Check and Approval Process

Once the ATC receives your process, they conduct a background check on all owners and managers listed on the process. This check includes criminal history, tax compliance, and any prior alcohol license violations. The ATC also verifies that you have local approval or that your local government has not objected to your process. If your local government requires a public hearing, the ATC will wait for that hearing to conclude before moving forward.

The approval process typically takes four to eight weeks. During this time, the ATC may contact you with questions or requests for additional information. Respond promptly—delays in your response delay the entire timeline. Once the ATC approves your process, they will issue your license, which is valid for one year from the date of issuance. You will receive the physical license by mail.

Pay Renewal Fees and Maintain Compliance

Your liquor license must be renewed annually. The renewal fee depends on your license type and is separate from the initial process fee. You will receive a renewal notice from the ATC approximately 30 days before your license expires. Submit the renewal fee and any updated information (such as a change in ownership or location) before the expiration date. If you do not renew before the important date, your license will expire and you cannot legally sell alcohol.

Indiana law requires that you display your license in a visible location at your business. You must also comply with all state and local rules about hours of sale, age verification, and the types of alcohol you are permitted to sell under your specific license. Violations can result in fines, suspension, or revocation of your license.

What to Do If Your process Is Denied

If the ATC denies your process, they will provide a written reason. Common reasons include failure to obtain local approval, criminal history that disqualifies you, incomplete documentation, or a local cap on licenses that has been reached. You have the right to request a hearing before the ATC to contest the denial. The hearing request must be submitted in writing within a specified timeframe (check the denial letter for the important date).

If your denial is based on a local cap or local objection, you may be able to reapply once circumstances change—for example, if an existing license is not renewed or if your local government changes its policy. If your denial is based on your criminal history or background, you cannot reapply unless the disqualifying conviction is expunged or a sufficient amount of time has passed (rules vary by offense type).

Frequently Asked Questions

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

The state review typically takes four to eight weeks after you submit a complete process. However, the total timeline is longer if you must obtain local approval first or if your local government requires a public hearing. Plan for two to four months from start to finish.

Can I sell alcohol before my license arrives?

No. You cannot legally sell alcohol until you have received your physical license from the Alcohol and Tobacco Commission. Selling without a license is a criminal offense. Wait for the license to arrive in the mail before you open for alcohol sales.

What if my city or county does not allow liquor licenses?

Some Indiana municipalities prohibit all alcohol sales or limit them to certain types. If your location does not allow licenses, you cannot obtain one there. You would need to relocate your business to a municipality that permits alcohol sales, or choose a different business model.

Do I need a separate license for beer, wine, and spirits?

Indiana separates beer and wine licenses from spirits licenses. You can hold both if you want to sell all three types of alcohol, but you will need to explore for and pay fees for each license type. Some applicants start with beer and wine and add a spirits license later.

What happens if I do not renew my license on time?

Your license expires on the date shown on the document. Once it expires, you cannot legally sell alcohol. You must stop sales when ready. To regain a license, you would need to reapply as a new applicant, which means starting the entire process over, including local approval and the state process fee.