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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on October 15, 2024. Next review due October 1, 2025.
Maybe you already have a restaurant or a food store and you’d like to boost sales by selling liquor? Perhaps you want to start an online business selling wine and spirits? Or maybe you want to launch a craft brewery that makes unusual beers? Well hold that thought. Because regardless of the reason you want to manufacture, sell or distribute liquor products, you first need a liquor license.
A liquor license is a legal permit that allows businesses to produce, distribute, and sell alcohol, while also controlling various aspects of its sale and service. It covers important regulations such as who can purchase alcohol, the days and hours alcohol can be sold, and the types of alcohol permitted.
The license also dictates how alcohol can be served, including the containers used and the allowable quantity per sale. Additionally, it controls where alcohol can be consumed or sold to-go, and whether a business is authorized to manufacture, distribute, or sell alcohol, either separately or in combination. Lastly, liquor licenses set rules for pricing, associated fees, and any applicable quota limits.
Unlike many other permits and licenses, liquor licenses have unique requirements based on the state where you operate.
Every state has their own liquor licensing laws, although initially, you’ll need to register with the federal Alcohol and Tobacco Tax and Trade Bureau (TTP). This agency can also give you further information to help you get your state and local operating licenses and permits. Usually, you’ll do this via your state’s Alcoholic Beverage Control (ABC) agency, (see point 7 below), as they set your state’s laws related to alcohol. You’ll also need to meet any relevant county or municipality liquor rules and apply for regional or local permits. Your state’s ABC should have details of these requirements.
A ‘dry county’ is a county where the sale of alcoholic beverages is prohibited by local law. In these areas, alcohol cannot be sold in stores, restaurants, or bars, although possession and consumption may still be allowed. Dry counties often reflect cultural or religious influences.
Top tip: Don’t be tempted to start manufacturing or trading alcohol without the proper licensing as that can lead to large financial penalties or even prosecution.
You may have to get in line to obtain your liquor license. Some states provide an unlimited number of liquor licenses, while others impose a quota restricting the number issued. If the state limit has been met, new applicants must wait until an existing license expires before they can get their license. However, on the bright side, state laws frequently change, so it’s essential to research your state’s alcohol control board for up-to-date quota rules. Hiring legal counsel specializing in liquor laws may also be useful.
As of 2023, the following states were classified as ‘quota’ states:
Liquor licenses are not like driving licenses, where one size fits all. Different states may require specific liquor licenses that reflect what type of liquor you sell and where you sell it. Your state ABC can provide this granular information, but initially, you’ll need to determine if you need an on-license or off-license. On-licenses are for alcohol consumed on-site (bars, restaurants), while off-licenses are for alcohol sold for off-site consumption (liquor stores, bottle shops). Understanding these distinctions is key when applying for a license.
Other classes of specialist liquor license:
To file your liquor license application you’ll need to get the necessary forms from your state’s ABC. Because the regulations vary by location, you may also want to ask these questions:
You’ll need to file additional documents with your license application. Commonly required documents include:
Top tip: Make sure you’ve paid any delinquent taxes or outstanding fees before applying for your liquor license. Failure to do so can negatively impact your chances of obtaining a license.
You may also need to file:
The cost of liquor licenses varies by state and the class of license you are applying for. The differences in price can be extreme. For example, in Alabama your license may cost you $100 to $1,000, but in California, liquor license costs range from $1,000 to $16,000. Your state’s ABC can tell you how much you’ll need to pay. Be aware that in some areas, you might need a liquor license for all four levels of government – federal, state, county, and local, which will incur additional costs.
Once you have all the required materials, you can submit your liquor license application. Most states allow you to complete this process online through their government website. The application typically requires a non-refundable processing fee ranging from $50 to $100. Additionally, you may be asked to undergo a background check or fingerprinting as part of the process.
Who controls the manufacture and sale of liquor in your state? The list:
Starting a business that manufactures or sells liquor can be expensive – as well as licensing costs, you’ll have a multitude of other expenses to meet. In many cases, a business loan that lets you pay over time instead of using up your valuable working capital will be your best solution. However, business loans for start-ups can be difficult to obtain – which is why working with finance experts can make all the difference when you’re seeking funding.
Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality business loans from a choice of lenders. Give your new liquor business the best possible start. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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