How to Get a Liquor License and Types of Bar Licenses You Need
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In preparation for opening a bar, you must know how to navigate through the legal landscape of your city’s regulatory requirements.
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To operate a restaurant or bar legally, you need several licenses – some are easy to obtain, while others can be complicated.
It is possible to face penalties, fines, or even closure if you operate a business without the proper licenses.
The three licenses every bar and restaurant that sells alcohol needs, what they are, and how to get a liquor license.
3 Permits and Licenses You May Need to Open a Bar
1. Liquor License?
Liquor licenses are state-issued licenses that allow you to sell alcohol in your business. State laws vary from state to state. Some states, such as Oregon, regulate the distribution, sale, and consumption of alcohol directly.
There are often restrictions on the number of drinks you can sell to a customer, and unfinished bottles have to be left inside the restaurant to prevent public intoxication.
2. Music License
Businesses that use background music are required to obtain a music license under copyright law. Despite the complexity of the legal aspects of music licensing, the process for restaurants and bars is quite straightforward.
The easiest way to comply with copyright laws as a restaurant or bar is to use a background music service for restaurants. They offer fully licensed catalogs of music for a small monthly fee, and can even help you choose the right type of music for your restaurant.
On the other hand, if you’re pickier about the type of music you play in your restaurant, you can apply for your music license, which lets you play any song in the world.
If you wish to obtain music licenses on your own, contact BMI, ASCAP, and SESAC (the performance rights organizations), request the appropriate documents, and fill them out with the required information. As soon as you do this, you can play any song within your business that you own.
3. Health/Food Service License
In addition to covering you for alcoholic drinks, a liquor license does not cover food. You’ll need a license from your city’s health department if you plan to serve food in your bar. This license may be referred to as a “health license” or as a “food license.”
If you wish to apply for a license, you must visit your state or county department of health, complete the required application details, and submit it for review. You may need a state and county permit in some states.
Often, the health department will conduct an on-site inspection before you open to verify that your establishment complies with state health regulations for newer establishments. Additionally, the health department will visit your facility regularly to ensure you are following health regulations.
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Understand Your State’s Liquor Laws
Each state has its own rules and regulations regarding liquor licenses, as mentioned above. Each state has its own Alcohol Beverage Control (ABC) agency to regulate the sale of alcohol. For more information about your state’s laws and the process of obtaining a liquor license in your state, contact your local ABC agency.
Some states limit the number of locations that can sell alcohol at any given time by setting quotas. If this quota is reached, it may be difficult for you to get a license right away.
On-license vs. Off-license
There are two different types of licenses you can obtain in order to sell alcohol – on-license and off-license. An on-license is required for locations that sell alcohol to be consumed on-site, while an off-license is required for locations that sell alcohol to be consumed off-site, such as liquor stores.
Since your customers are going to consume liquor within your premises, you need an on-license liquor license for a bar or restaurant.
The Different Classes of Liquor Licenses
There are usually different classes of licenses for selling liquor in most states. These are some of the most common:
- Tavern license: if selling alcohol is your main source of income, you’ll need this type of license.
- Beer and wine: if you want to sell alcohol mainly to complement food, but not hard liquor, this is the license for you.
- Restaurant: Licenses for restaurants allow any type of alcohol to be sold on-premises, but states usually set a limit on how much your earnings can come from alcohol sales.
In order to open a bar, pub, or nightclub, you’ll probably need a tavern license.
Applying for the License
Once you understand the laws in your city and state as well as the types of licenses your restaurant or bar needs, you are ready to fill out the application.
In order to obtain a liquor license, contact your local ABC agency to obtain the appropriate forms, fill them out, and submit them. You may be required to submit an application to both your state and town or county in some states. Since review times are usually longer than 30 days, you should do this as soon as possible.
In addition to personal background information, you may be required to provide the following as a part of the application:
- Certificate of incorporation.
- Employee Identification Number.
- A partnership agreement.
- Company constitution.
- A proposed food menu.
- Photos/drawings of the restaurant.
- A copy of the certificate for the title of the premises.
You may not be able to obtain a license from your local government if the local liquor license quota is met. In this case, you might be able to purchase a license from someone else, such as a recently closed establishment.
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FAQs:
The process of obtaining a liquor license can vary depending on your location, as each state or country may have its own requirements and regulations. Typically, you will need to submit an application, pay the necessary fees, undergo background checks, and comply with specific criteria such as age restrictions and zoning regulations. It’s important to research and contact your local licensing authority for detailed information and guidance.
The types of bar licenses can vary depending on your business type and the specific services you plan to offer. Common types of licenses include a general on-premises liquor license, which allows the sale and consumption of alcohol on-site, a beer and wine license, which permits the sale of beer and wine only, and a catering license for businesses that provide alcohol services at special events. The exact licenses available will depend on your jurisdiction.
Yes, there are often qualifications and requirements that must be met to obtain a liquor license. These may include minimum age requirements for applicants, residency or citizenship criteria, background checks, financial disclosures, and compliance with zoning and health regulations. It’s important to thoroughly review the licensing guidelines and consult with your local licensing authority to ensure you meet all the necessary requirements.
The timeframe to obtain a liquor license can vary significantly depending on your location and the complexity of the licensing process. It can range from a few weeks to several months. Factors such as the volume of applications, regulatory review processes, and any potential appeals or hearings can affect the duration. It’s advisable to start the application process well in advance to allow for any potential delays.
In many cases, liquor licenses can be transferred from one business owner to another, especially when purchasing an existing bar or restaurant. However, this process typically involves a separate application and approval from the licensing authority. The transfer may require a background check, payment of transfer fees, and compliance with any specific transfer requirements set by the licensing authority. It’s essential to check with your local licensing authority for the specific transfer procedures and requirements in your area.
