Where to Start: The Indiana Alcohol and Tobacco Commission

Indiana liquor licenses are issued by the Alcohol and Tobacco Commission (ATC), a division of the Indiana Department of Revenue. You cannot get a license from your city or county alone — the state must approve it. The ATC handles all three types of licenses: beer and wine, spirits, and on-premises (bars and restaurants).

Before you contact the ATC, you need to know which type of license fits your business. A grocery store selling beer needs a different license than a bar serving mixed drinks. The type you need determines the forms you fill out, the fees you pay, and how long approval takes.

Start by visiting the Indiana Department of Revenue website and finding the Alcohol and Tobacco Commission section. read the process packet for your license type. The ATC does not accept applications by email or phone — you must submit them by mail or in person at their office in Indianapolis.

Key Takeaways

  • Indiana liquor licenses come from the state Alcohol and Tobacco Commission, not your city, though local approval is also required.
  • You must choose between a beer and wine license, a spirits license, or an on-premises license before you start the process.
  • The process requires proof of ownership or a lease, a floor plan, and a completed form signed by the owner and notarized.
  • Local approval from your city or county must happen before the state will issue your license, and this step often takes longer than the state review.
  • License fees range from around $300 to $1,000 depending on the type, and you must renew annually.

The Three License Types and What Each One Allows

A beer and wine license lets you sell beer and wine for off-premises consumption — meaning customers take it home. This includes grocery stores, gas stations, and liquor stores. You cannot serve drinks on-site, and you cannot sell spirits or hard liquor. The annual fee is around $300 to $400.

A spirits license (also called a package liquor license) allows you to sell beer, wine, and distilled spirits for off-premises consumption. This is what a full liquor store needs. The annual fee is higher, typically $600 to $800, because you are selling a broader range of products.

An on-premises license is for bars, restaurants, and clubs where customers drink on your property. You can serve beer, wine, and spirits by the glass. The fee structure varies based on the type of establishment and the county where you operate. Restaurants with on-premises licenses often pay $500 to $1,000 annually, while bars may pay more.

Some counties and cities have local restrictions that limit the number of licenses issued or prohibit certain types. Before you explore to the state, contact your local alcohol beverage board or city clerk to confirm that your location and license type are allowed in your area.

What You Need to Gather Before You explore

The ATC process requires several documents. You will need proof that you own or control the location — either a deed, a signed lease, or a letter from the property owner giving you permission to operate a licensed business there. The lease or permission letter must be current and must specifically allow alcohol sales.

You also need a floor plan of the premises showing where alcohol will be stored and sold. The plan does not need to be professionally drawn, but it must be to scale and clearly labeled. If you are explore for an on-premises license, the floor plan must show where customers will consume alcohol and where staff will serve it.

The process itself is a multi-page form that asks for your name, address, business structure (sole proprietor, LLC, corporation), and details about the location. You must list the owner, any managers, and any other person with a financial interest in the business. The form must be signed by the owner and notarized — a notary public must witness your signature and stamp the form.

You will also need to show that you have no disqualifying criminal history. Indiana law prohibits licenses for people convicted of certain felonies related to alcohol, drugs, or violence. The ATC will conduct a background check, but you should disclose any relevant history upfront.

Getting Local Approval First

Before the state will issue your license, your city or county must approve it. This is often the longest part of the process. Contact your city clerk or the local alcohol beverage board and ask what local approval looks like in your area.

Many cities require you to hold a public hearing or post notice in the newspaper so neighbors can object. Some require a local license or permit before you can even explore to the state. A few cities have a quota — they limit the number of bars or liquor stores allowed — and you may have to wait for an existing license to close before you can get one.

The local process can take anywhere from two weeks to several months. Once your city or county approves, you get a letter or certificate of local approval. You must include this with your state process. Without it, the ATC will not issue your license.

Submitting Your process to the State

Mail your completed process packet to the Indiana Alcohol and Tobacco Commission at the address listed on the ATC website. Include the notarized process form, your floor plan, proof of location control, your local approval letter, and the process fee. Send it by certified mail so you have proof of delivery.

The ATC typically takes four to eight weeks to review your process after they receive it. During this time, they verify your information and may contact you if they need clarification. If everything is in order, they will issue your license by mail.

Your license is valid for one year from the date of issue. You must renew it annually by submitting a renewal form and paying the renewal fee. Renewal is usually faster than the initial process — often just a few weeks — as long as nothing about your business has changed.

Common Reasons Applications Are Delayed or Denied

The most common reason for delay is incomplete local approval. If your city has not formally approved your license, the state will not move forward. Make sure you have a signed letter from your local authority before you mail your state process.

Missing or illegible documents also slow things down. Your process form must be notarized — a photocopy of a notarized form is not acceptable. Your floor plan must be clear enough to read. If the ATC cannot read a document, they will contact you and ask you to resubmit it, which adds weeks to the timeline.

Criminal history is a hard stop. If you have a felony conviction for a drug offense, a violent crime, or certain alcohol-related crimes, Indiana law may prohibit you from holding a license. The ATC will tell you upfront if your history disqualifies you.

Location issues also cause denials. If your proposed location is too close to a school, a church, or another licensed establishment, local law may prohibit it. Some counties have minimum distance requirements. Before you sign a lease, confirm with your city that the location is zoned for alcohol sales.

Fees, Renewal, and Ongoing Compliance

Initial process fees vary by license type. Beer and wine licenses typically cost $300 to $400. Spirits licenses cost $600 to $800. On-premises licenses vary widely depending on your county and the type of establishment — expect $500 to $1,500. These are one-time fees for your initial license.

Annual renewal fees are usually lower than the initial fee. Beer and wine licenses renew for around $200 to $300 per year. Spirits licenses renew for $400 to $600. On-premises licenses renew for $300 to $1,000 depending on your location and business type.

Once you have your license, you must follow Indiana alcohol laws. You cannot sell to anyone under 21. You cannot sell alcohol between certain hours — hours vary by county and license type, so check your local rules. You must keep records of your inventory and sales. The ATC can inspect your premises at any time to verify compliance.

If you violate the law, the ATC can suspend or revoke your license. Common violations include selling to minors, operating outside permitted hours, or allowing illegal activity on your premises. A suspension can last from a few days to several months. A revocation is permanent and means you cannot hold a license in Indiana again.

Frequently Asked Questions

Can I sell alcohol from my home?

No. Indiana law requires a licensed premises — a physical location with a street address where the ATC can inspect. You cannot operate a home-based alcohol business. Your location must be a commercial space that you own or lease.

How long does the whole process take from start to finish?

Local approval typically takes two to twelve weeks depending on your city's process. State review takes four to eight weeks after you submit. Total time is usually three to six months, but it can be longer if your city requires a public hearing or if there are objections from neighbors.

What if I move my business to a new location?

You cannot straightforward move your license. You must go through local and state approval again for the new location. Some people choose to surrender their old license and explore for a new one at the new address. Contact the ATC to ask whether you can transfer your license or must reapply.

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

Yes. Each location must have its own license. You will need to submit a separate process for each store, and each one must go through local and state review. You will pay separate fees for each license.

What happens if I do not renew my license before it expires?

Your license becomes invalid on the expiration date. You cannot legally sell alcohol after that date. If you want to continue operating, you must reapply as if you were a new business, which means going through local and state approval again. It is much faster to renew on time than to reapply.