How to Get a License to Sell Alcoholic Beverage

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How to Get a License to Sell Alcoholic Beverage
How to Get a License to Sell Alcoholic Beverage

Video: How to Get a License to Sell Alcoholic Beverage

Video: How to Get a License to Sell Alcoholic Beverage
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Obtaining a license to sell alcoholic beverages can be a long and challenging process. Each state has its own government agency that regulates beverage licensing. In addition, many regions and cities within a single state may have additional rules regarding licensing requirements and procedures. It is impossible to cover all the laws of each state, however this article will give you a general idea on how to obtain a license. Just see Step 1 below to get started.

Steps

Part 1 of 3: Understand What License Type You Need

Get a Liquor License Step 1
Get a Liquor License Step 1

Step 1. Know your state's alcohol laws

The first thing to keep in mind is that each state has its own rules and requirements regarding the provision of licenses to sell alcoholic beverages, so you should contact your local authority to find out about alcohol laws and the sale of licenses. in its specific state.

Each state has an agency responsible for the control of alcoholic beverages (ACB – Beverage Control Agency), which regulates the sale and distribution of these products; therefore, please contact your local responsible agency office for more information

Get a Liquor License Step 2
Get a Liquor License Step 2

Step 2. Find out if you need a license to sell in bars and restaurants, or one to sell alcoholic beverages in markets and warehouses)

There are two main types of license required for places that sell alcohol.

  • You will need a bar/restaurant license if the beverage sold is to be consumed on site. Examples of companies that require this license include bars, restaurants, cafeterias and taverns.
  • You will need a warehouse and distributor license if the drink you sell is intended to be consumed off premises. Examples of businesses that require this type of permit include liquor stores, grocery stores, grocery stores, and convenience stores.
Get a Liquor License Step 3
Get a Liquor License Step 3

Step 3. Find out the specific class of license you need

In some states, you will need to apply for a very specific class of license depending on the nature of your business and the variety of alcohol you plan to sell. Some examples of the most common license classes include:

  • “Botequin License”: A tavern license may be required in some states for businesses that serve food, but make sure half of your global profits come from selling alcohol.
  • “Restaurant”: Restaurant licenses generally allow any type of alcohol to be sold there. However, the license may stipulate that only a certain percentage of the restaurant's total revenue can come from the sale of alcohol. This percentage is usually around 40%.

Part 2 of 3: Go Through the Application Process

Get a Liquor License Step 4
Get a Liquor License Step 4

Step 1. Start as early as possible

If you are thinking about opening a bar or restaurant that serves alcoholic beverages, it is important to start the process of obtaining your license as soon as possible.

  • Getting approved for a license takes time - in some places even a year.
  • Therefore, it should be one of the first things you should consider when planning your new venture.
Get a Liquor License Step 5
Get a Liquor License Step 5

Step 2. Consider the cost

The cost of obtaining your liquor license can vary widely. In some cases, you will only have to pay a few hundred dollars to cover the application fees and taxes.

  • If you buy a commercial establishment that is already licensed to sell alcoholic beverages, it is important to verify the validity and authenticity of the authorizations.
  • When buying a business, make sure you have a lawyer (preferably one who is familiar with licensing) to review the agreement and answer any questions you may have.
Get a Liquor License Step 6
Get a Liquor License Step 6

Step 3. Write a clear indication of the type of business you intend to run

As explained in Part 1, there are often different licenses for different types of businesses - for example, running a local bar will require a different license than opening a liquor store.

  • Therefore, as part of your application, you will have to write a clear description of the type of business you are going to run. You should include information about whether you intend to sell alcohol for consumption on the premises and the percentage of total income you expect from selling this type of product.
  • You should also include information about the type of alcohol you will be serving or selling - wine, beer, hard liquor, or a combination of all three.
Get a Liquor License Step 7
Get a Liquor License Step 7

Step 4. Complete the required forms and provide all required documentation

You can purchase the necessary forms from your county or Beverage Control Agency, or from the Licensing and Permit Department of your local city hall. In some states you will have to file an application with either the state or your local city or county.

  • The application will include details about your business and your personal background. Details such as your age, your business experience and a clean personal record can affect the state's decision to grant you a license.
  • You will also need to include a number of important documents with your application, which may include: a certificate of incorporation, a partnership agreement, the constitution of the company, a copy of your proposed food menu, photos or drawings of the exterior of the building, and a floor plan of its interior, a certified compliance code and a copy of the title record for the facilities.
Get a Liquor License Step 8
Get a Liquor License Step 8

Step 5. Be prepared to defend your proposal

After you submit your application, a notice will be posted at the location of your proposed business, including your name, the type of license you are applying for, and what sales privileges the proposed license entitles you to.

  • This publication must be publicly displayed for a certain period of time (which varies by state). During this time, anyone from the local community can come forward and challenge your request.
  • Depending on state or city laws, you may also be required to post an advertisement of your application for a license to sell alcoholic beverages in the local newspaper, and in some places, local residents' organizations such as schools, places of worship and in nearby parks.
  • If there are no objections to your application, the local government will proceed with the review of your application as usual. If there are objections, you may be called upon to defend your proposal at a public hearing, before a final decision is made.

Part 3 of 3: Maintain Your Alcoholic Beverage License

Get a Liquor License Step 9
Get a Liquor License Step 9

Step 1. Renew your beverage license annually

You will need to renew your license every year, which will incur a renewal fee.

Keep in mind that if you stay up to date with your local agency throughout the year, you may be entitled to a reduced rate

Get a Liquor License Step 10
Get a Liquor License Step 10

Step 2. Be aware that your license may be revoked

Please understand that your license may be revoked if you violate the terms established by your local agency.

Common violations include selling alcoholic beverages to minors, serving alcohol to an employee, or allowing an employee to be intoxicated at the establishment

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