What Does “Public Need” for a Liquor License Mean?

By John P. Connell, Esq., Law Offices of John P. Connell, P.C.

Did you know that sometimes, in order to get a liquor license for a location not previously licensed, you have to demonstrate “public need?” Several factors go into assessing public need, and it’s good to keep them in mind.

The “public need” standard is one way for local licensing authorities to ensure liquor licenses are placed in neighborhoods where there aren’t already an abundance of bars, restaurants, or package stores. But how do the liquor licensing authorities decide whether the public need standard is met?

What happens when some community members oppose a newly-licensed establishment in their neighborhood, while other community members express support?

Understanding the Factors at Play

Liquor licensing authorities look at the number of pre-existing licenses in the proposed area, the traffic and noise in the area, the opinions of the neighborhood, and the overall reputation of the applicant. Liquor licensing authorities have the discretion to “exercise judgment about public convenience and public good that is very broad, but is not untrammeled.”

When liquor licensing authorities deny a transfer or grant of a license, they must be able to back up their denial with evidential support. If not, the Alcoholic Beverages Control Commission can overrule it, if the license applicant decides to appeal.

What Are “Neighborhood Opinions”?

Although a neighborhood’s opinions and concerns regarding a license applicant are relevant, standing alone, they’re insufficient for denial of an application. At a license applicant’s hearing (where the licensing board votes to deny or grant a license), testimony by locals isn’t enough evidence for an application denial. Similarly, testimonials from locals, like concern about parking and traffic issues, has to be consistent with the liquor licensing authorities’ own findings.

In other words, the liquor licensing authorities can’t just deny a license on the basis of a few vocal opponents, without independent findings that there’s no public need.

How to Troubleshoot Ahead of Time

The liquor licensing authorities have to have sufficient evidence to support their decision. So, a license applicant’s good standing and overall reputation in the community will help the process of gaining the liquor licensing authorities’ approval. Therefore, a license applicant should try to show a demand for a liquor license at their proposed location with supportive speakers, political or neighborhood representatives, or other means of evidence. You should also be prepared to show there is a plan to handle parking and traffic, as well as other concerns. Mostly importantly, a license applicant should reach out to the community before the hearing to address any concerns raised by neighbors.

To put it simply, don’t just show up to the hearing and hope for the best. Prepare, reach out to the community, and you’ll have the evidence you need to convince the liquor licensing authorities there is a need for your license.

Sell a Liquor License: Price and Value of Liquor Licenses

The Process of Buying a Liquor License in the United States

In many cases in the United States, the cost of buying a liquor license will vary from state to state. The price can range from approximately $300 to nearly $20,000; in some states, you might even have to shell out upwards of $1 million. If you’re thinking of obtaining a license or have already decided to buy a liquor license, it’s important to budget both the right amount of time and money. Buying a liquor license can take up to five to six months and will have varying fees. Your fees will be different depending on what kind of business you have. For example, if you own a restaurant in Los Angeles, California, and wish to sell beer and wine but not hard liquor, you would pay a processing fee of $100 and $13,800 for the actual liquor license.

You might also be required to pay local fees on top of state fees, which you can find by visiting your state government website’s Department of Alcohol and Beverage Control (ABC) section to find specific liquor license rates for where you live. It’s also important to understand that you may not be able to buy a liquor license directly from your state or city, because there is a limited number of available licenses that can be legally issued based on per capita quotas. In many cases, you might have to buy a license from an existing liquor license holder.

The most difficult part of buying a liquor license is often finding a liquor license for sale. If you don’t have any experience with finding available licenses, it’s best to consult a professional, so if you’re on our site, you’ve come to the right place!

After you’ve found out how much it will cost to buy a liquor license in your state, there are several important steps to follow.

Steps to Take in Order to Buy a Liquor License

Find out what type of liquor license you need to buy.

You can do this by visiting your state’s ABC, which will explain the specific license you need and the specific costs associated with it. The type of liquor license you’ll need to buy will depend on what kind of establishment you own (e.g. bar, restaurant, hotel, etc), what kind of alcohol you want to sell, during what hours you want to sell beer, wine, and liquor, and if you are manufacturing and distributing alcohol, all of the above, or simply selling it.

Prepare everything that you’ll need to apply to buy a liquor license beforehand.

The most important part of buying a liquor license is to be completely prepared before you send the actual application in. That means not only should you have done all of the research, know key terms and aspects like tax liens and state specifications, but you should have all of your documents ready and in order. Among other things you’ll need, you should absolutely have your:

• Business license

• Sales tax permit

• Zoning permit

• Alcohol tax permit

• Health permit

• Building permit

• Signage permit

• Employer Identification Number (check with the IRS)

It’s extremely important to have all of this prepared before filing for a liquor license, because your liquor license application may be put on hold if you don’t have the proper materials and information. If you are a qualified buyer and have all of your materials properly prepared and sent with your application, the process should be fairly smooth.

File your application to buy a liquor license.

Once you have done all the research and prepared everything that you need to purchase a liquor license, you’re ready to file a liquor license application with your state’s ABC. The simplest way to file is via e-mail. Your state government’s website will have all of the official forms you need to download in order to apply. Additionally, you’ll need to supply and file:

• Background check forms (some states might require fingerprints)

• A Certificate of Good Standing from the Secretary of State

• A Signed Lease Agreement to confirm the location of your business

• Financial verification sheets to prove that you’re in good tax standing

• Any potential processing fees required by your state

As long as no complaints have been filed against your business and you are in compliance, the process should be simple and straightforward. However, it can take five to six months before the liquor license is in your hands, so don’t forget to factor in that waiting time.

What kind of liquor license do I need to apply for?

There are many types of liquor licenses that exist, so it’s important to know which one you need to acquire for your specific business or establishment before applying for one. What are the different classes of liquor licenses?

• Arts licenses (e.g. theaters, galleries)

• Beer and wine licenses (e.g. for smaller businesses only planning to sell beer and wine)

• Brewpub licenses (e.g. for establishments that want to brew their own liquor)

• Club licenses (e.g. for private social clubs that wish to serve alcohol to members only)

• Delivery licenses (e.g. for business that plan to deliver alcohol to customers)

• Eating place licenses (e.g. establishments or businesses that primarily serve food but also wish to sell small amount of alcohol, or take-out beer)

• Hotel licenses (e.g. for hotels with bars and/or restaurants that wish to serve alcohol)

• Restaurant licenses or all-liquor licenses (e.g. for a restaurant that wishes to be able to sell all types of alcohol including beer, wine, and liquor)

• Retail licenses (e.g. for grocery stores, convenience stores, liquor stores, and all retail establishments that wish to sell alcohol in closed containers)

• Tavern licenses (e.g. businesses that serve substantial food but make 50% or more of their profits from selling alcohol)

What are the risks of buying a liquor license?

As with any kind of responsibility, there are risks and liabilities that come with obtaining a liquor license. Once you own a liquor license, you have an elevated legal duty to the public and to the patrons of your establishment to serve beer, wine, and liquor responsibly. That also means that criminal and civil actions can be taken against you, and your business may be held responsible for any of your patrons who cause damage to themselves or others. Those who hold a liquor license, or buy and sell liquor, may also face administrative liability penalties such as fines, suspension of a liquor license, or even a full revocation of the liquor license if the establishment fails to comply with government regulations associated with the issuance of the specific liquor license. This is one reason that it’s important to safeguard your establishment with protective and preventive measures before applying for and buying a liquor license.

Making sure that you put comprehensive policies in place for training and supervising employees, as well as inventory control, will help to minimize any risks or liabilities associated with owning a liquor license.

How soon should I start the process of buying a liquor license before opening my business?

Because the time that it takes to obtain a liquor license will vary in many cases, depending on your city, state, or specific business circumstances, it’s wise to begin the process of buying a liquor license as soon as possible. It may take between five to six months to obtain a liquor license, and potentially longer if there are complications. The process of obtaining a liquor license often requires lots of back-and-forth, and is more complex than simply requesting and purchasing it; this is also why having a liquor license broker can make your process easier. The safest bet is to apply for a liquor license well in advance of the time period that you’re planning to open your business or begin serving beer, wine, or liquor.

What should I do while my liquor license is pending?

Depending on what kind of business you operate and what type of liquor license you’ve applied for, you may be required to post a public notice of a pending liquor license if your business is already open. Other than that, you should wait patiently for the process to wrap up, and avoid selling any form of alcohol until you’ve officially bought and have been granted your liquor license.

How long is a liquor license valid for?

The term of a liquor license is generally between one to three years, but the amount of time that your liquor license will be valid for will also depend on local and/or state regulations. Once you obtain a liquor license and note the date when it will no longer be valid, it’s important to plan ahead for when you will need to renew it.

However, obtaining a liquor license once does not necessarily mean that you will be able to automatically renew your liquor license. If you operate your business responsibly, avoid selling beer, wine, or liquor to minors, and operate within regulations, you should be able to renew your liquor license relatively easily.

Can my liquor license be revoked?

Yes, your liquor license can be revoked. If a claim is filed against your establishment for any reason, including employee or patron misconduct, your business may lose its liquor license.

Situations that may cause your liquor license to be revoked:

• Selling liquor at an unauthorized time

• Allowing guests to drink in unlicensed areas of an establishment or outside the bounds of an establishment

• Employing untrained service staff without the proper authorization to sell or serve liquor

• Over-serving someone who is inebriated

• Patrons of your establishment participating in disorderly conduct

• Serving beer, wine, or liquor to underage customers

Can I buy a liquor license from another business going out of business?

It is possible to buy a liquor license from another establishment that is going out of business. In many cases, this may be the only way to obtain a liquor license, given the limited number of licenses that each state can issue to begin with. Many business may actually be looking to sell their existing liquor license. The process of buying a liquor license from an already existing business is similar to the process of buying one directly from your state’s ABC , especially because you must still submit an application.

However, it may often be cheaper to buy a liquor license from an existing business than if you were to buy a brand new liquor license. If you want to find a business that is looking to sell its liquor license in order to begin a license transfer process, you can check your state’s ABC Board and work with a license brokerage like ours to ensure you get the best price during the sale and that you don’t run into further bureaucratic issues.

Can I sell beer, wine, or liquor without a liquor license?

It is illegal to sell beer, wine, or liquor without a liquor license in the United States. Selling any form of alcohol without a liquor license is putting both yourself and your establishment at risk, and is punishable with hefty fines, in addition to time in jail. Even if you have submitted an application to obtain a liquor license, and are in the process of buying one but have not yet been granted a liquor license, it is not advisable to sell beer, wine, or liquor. Selling any form of alcohol without holding a liquor license, even if you have a pending liquor license, will most likely disqualify you from obtaining one in the future.

Do I still need to buy a liquor license if my business or restaurant is BYOB?

In many cases, people assume that operating a business as a BYOB establishment means that it’s possible to avoid applying for or obtaining a liquor license. However, that is false. Although the type of liquor license that you must buy will be different because you will not be buying, storing, or selling your own liquor, it is still mandatory to obtain a liquor license if you wish for patrons to legally consume alcohol on premises.

Why does it take so long to buy a liquor license?

The process of obtaining a liquor license may go smoothly if you’ve properly prepared all of the necessary documents and have acquired the money that you need ahead of time. However, it’s always possible for complications to arise during the process of trying to buy a liquor license. It may take a longer amount of time to buy a liquor license if you do not have all of your documents, if it takes more time to verify your documents or eligibility, or if you have been convicted of a felony. Sometimes, there are simply many establishments that have pending liquor licenses simultaneously, and the state’s ABC needs time to get through all of them.

How do I renew my license if I already have a liquor license?

If you have already applied for and purchased a liquor license previously, the process should be fairly simple when you want to renew your liquor license. Similar to the process of buying a liquor license the first time, the application process will vary depending on your state and the kind of establishment you own. You should receive a notice from your state at least a month before your liquor license expires, prompting you to begin the renewal process if you haven’t already. Renewing a liquor license will require the same forms, and fees will vary by state.

How Long Does It Take to Get a Liquor License?

The process of applying for and obtaining a liquor license for your bar or restaurant varies from 90 days to five or six months, depending on your state. The timing is dependent on a variety of factors including but not limited to:

• Additional licensing requirements as determined by state laws (such as zoning permits)

• Liquor license availability in your state

• Failure to supply necessary documentation upon time of application submission

• Objections towards your liquor license from local community members

• Existing felony convictions regarding license applicant(s)

In some states, it is even required by law that any business looking to acquire a liquor license cannot be granted the license for a minimum of thirty days after filing, regardless of how prepared you are and how quickly your liquor license application is processed.

The best way to ensure that you are as prepared as possible for the liquor license application process is to research which class of liquor license you will need, as well as liquor license availability in your area. If your state has a license quota and it has been reached, then you may not be able to receive your license right away, or may have to purchase it from an existing vendor of beer, wine, and/or hard liquors in your area.

Licenses available for purchase include beer and wine licenses, retail licenses, restaurant licenses, otherwise known as “all-liquor licenses,” and more.

Some towns and cities may be “dry” or “zoned,” and thus prohibit the selling of alcoholic beverages of any kind. Be sure that the location of your business does not fall under that category.

The Process of Acquiring a Liquor License

Understanding your local government’s role in the distribution of liquor licences, as well as being able to identify the liquor license authority in your state/county who will be reviewing your application and proposal, will contribute to a potentially shorter wait as a license recipient.

Reviewing liquor license availability in your area.

Each state in the U.S. has its own Department of Alcoholic Beverage Control (ABC), which you can consult with to determine local liquor license availability. Depending upon a state’s population, only a set amount of liquor licenses may be issued per capita. Visiting or getting in contact with the ABC in your state will give you a clear idea of how many licenses—and which types—are available for purchase at the time of your application submission.

If your area has already reached its license quota or is near that threshold, you may find yourself paying a larger sum of money to obtain that harder-to-get license. In states without quotas, a liquor license can cost a few hundred dollars, but in states with more strict liquor laws—such as Utah, which only allows one new liquor license per 5,000 residents—a liquor license could run into the thousands or even top $1 million.

You may also find yourself in need of a liquor license broker in order to purchase a restaurant license, beer and wine license, or tavern license from another business that already owns the class of license you need.

How to search for and acquire a liquor license.

Once you are well-informed about your license class, availability, and local laws regarding alcoholic beverages, it is time to determine the best way to acquire your liquor license.

Generally, applying for a quota or new license is more expensive than obtaining an application in a state with more lax liquor laws, or an application for the transfer of a pre-existing license. Bars, restaurants, and liquor stores in your area could be good businesses to purchase a license from.

Your state’s ABC likely also has resources regarding available licenses for sale, and can assist you in connecting with the appropriate vendor. Liquor License Advisor can help guide your choices as well, keeping in mind the alcoholic beverage and sales market in your village, town, city or county.

The process of applying for an existing license requires much of same documentation as the application for a new liquor license. Documentation you may be asked to provide in your state include:

• Alcohol tax permit or sales tax form

• Business License

• Certificate of incorporation

• Employee Identification Number

• Health permit

• Zoning permit

Most license applications also require a detailed description of the type of business you own. Writing and reviewing this information will also better inform your specific liquor license needs.

Making an offer on an existing liquor license.

When your state has reached its liquor license quota, is it likely that you will need to get in contact with a business in your town that already owns the license you need. In this case, you will either need to match the asking price of that business for a transferral of their license, or need to make an offer on the liquor license.

Your geographical location, as well as the competitiveness of your town or county’s liquor vending, will likely affect both the vendor’s asking price and your offering price. States reaching their quota, or states that have multiple transferrable liquor licenses available, may have more expensive rates. License transfers can cost anywhere from $2,500 to $250,000. Liquor license advisors can offer guidance on how to best obtain an alcoholic license from another business.

Understanding your state’s ABC local liquor license authority.

The structure of liquor license authority in the United States differs by individual state. Each state has its own Department of Alcoholic Beverage Control (ABC), which regulates beverage sales. A state’s ABC has jurisdiction over regional sales, importing, and manufacturing of alcohol; this includes withholding licensing where necessary.

Your state is legally entitled to regulate alcohol sale. For some states, these local laws are even more so restrictive than what is expected on a federal level. Even so, is it expected that in order to successfully close a liquor license you abide by both local liquor license authority and state laws.

In addition to following expectations of your state’s ABC, in some regions liquor licenses are granted by both a city and that city’s state licensing authorities. Some city councils have appointed boards just for the monitoring and reviewing of liquor license applications.

These governing bodies may be part of a city or state’s:

• Licensing Department

• Department of Commerce

• Department of Revenue

You will be expected to abide by local liquor laws, in addition to both the standard national and state regulations. Keep everyone happy, and your customers will be happy too.

How to receive liquor license state approval.

Many states see ownership of a liquor license as a privilege, not a right. Once you have completed your application and submitted all necessary documentation and information regarding your liquor license application, it is then up for review by the state’s ABC and the local committee.

In addition to review by the committee, some communities offer an opportunity for other institutions—such as schools or places of worship—to submit an objection or protest to your application if they feel that it is not appropriate for you to hold a liquor license. Other considerations such as felonies and criminal records of applicants are also held under consideration and can affect the state approval of a licence.

Once your application has been processed and barring any objections, the local committee will likely request a background check for all persons involved with your application. In addition, your business may be required to inform local authorities and governing bodies of this submission, and you will need to prominently display in a storefront window notice that you have applied for a liquor license. Needs for notice include if the building your business is located in has yet to have obtained a liquor license.

Following the announcement of your application, you may be asked to host an inspection at the address of your bar, restaurant, or liquor store, as to ensure that your business functions in compliance with the information you have supplied in your application. Furthermore, you maybe asked to present and prove your case of license issuance to local liquor license authority.

On average, local liquor license authority will take five to six months to respond to your application request with a confirmation or rejection. If within this time you pass the aforementioned inspection and your application is in order, state liquor license authority will grant a temporary liquor license.

Issuance and closing of your liquor license.

Once your liquor license application has been reviewed and processed, it can take between three months to one year for your business to receive its official liquor license, depending upon your ability to address local legislative needs and supply the necessary documentation and background checks for the class of liquor license for which you’ve applied.

Provisions to a liquor license might include the times at which you may be able to sell alcohol. Weekends, federal holidays, and daylights saving time may be included as days under which the jurisdiction of your liquor license would not fall.

If all goes as expected, you will be supplied with a “Closing Form for New License or License Sale” document by your state, which will verify that all the information you supplied in your application process is true and accurate and acknowledge that you are the individual(s) purchasing said liquor license.

Your license may be revoked if after receiving a business liquor license of any class, business behavior fails to comply with federal, state, and local law. Keep everything above board and the drinks will keep flowing!

Sell a Liquor License: Price and Value of Liquor Licenses

If you own a business that deals with the sale and distribution of alcohol, a liquor license is a valuable and often necessary asset. In some states, liquor licenses can be sold from one business entity to another depending on supply and demand. For example, if a restaurant is going out of business, that establishment’s liquor license can be sold to qualified buyers who will use the license in accordance with the class of license, type of license, and any restrictions.

Luckily, most states allow liquor licenses to be bought and sold, but have different specifications for what is required. There are three types of liquor license transfers or sales, including person to person (or business to business), where the building and liquor license are both sold; place to place with the same business, where a business moves locations and retains the same liquor license; or a double transfer, where the location and owner both change. Your state’s Department of Alcoholic Beverage Control (ABC) will have information on selling a liquor license that’s specific to your area. State laws have different categories for liquor licenses, including how the license can be used.

Sometimes, business owners opt to sell their license when they’re no longer conducting business at their property. It’s also a savvy way to turn a valuable asset into making money back, which is especially important if you’re closing down a business.

Before a buyer can purchase your license, they have to apply through the ABC in their state, similar to if they were applying for a new license. Working with a broker can match you with the right buyer.

Selling a liquor license can be an overwhelming process, but having all the information based on your geographical location and options can help make the process streamlined and simple. That’s why we’re here to help! Read below for all the details on liquor license prices, the value of a liquor license, liquor license renewal, and more logistical questions behind the sale.

Liquor License Price

The price of a liquor license varies wildly depending on a lot of factors, including what state you or your business is located in, the kind of license your business requires, and even how many liquor licenses are available in your geographic location. The average cost of a liquor license can run from several hundred dollars to several thousand, but each state has specific rules regarding the sale of alcohol, including beer and wine, that could affect pricing.

The price of a liquor license depends on supply and demand. If you purchase a liquor license from a business that is closing or going out of business, you apply with your state’s ABC as if you were applying for a new license, which may also include a liquor license transfer fee.

Value of Liquor License

Here’s the tricky thing about a liquor license: because the value of a liquor license changes as the market charges, there’s no simple, set price. It depends on the supply and demand in your state or region. For example, depending on where the market is, a liquor license could run between $75,000 and $80,000 in Pittsburgh, or between $12,000 and $400,000 in California at the same time.

In many states or regions, there is a quota on the amount of liquor licenses a city can issue based on population. If there are multiple buyers for licenses, the price will rise, but if the demand is slower, the price will drop.

Some things to keep in mind when assessing the value of your liquor license are whether it is a Class C, a Tavern, or another class or type of license, where the license is located, and whether the license is transferable to a new location. In some states, the ABC may have a list of available licenses, which can help you assess the value of your license based on the market. A liquor license broker or company can help you determine the worth of your liquor license, as well as connect you with credible buyers.

Can I Sell My Liquor License If I Owe Taxes?

While specifics depend on your state, the ABC can refuse to transfer a liquor license if the license owner is delinquent on their taxes. Alcohol beverage licenses can be refused to any person who owes delinquent state taxes, and in order to help the sale of your liquor license go smoothly, you should ensure you are up-to-date on all tax payments and in good standing.

Liquor License Renewal

Liquor licenses have to be renewed yearly, which sometimes requires a liquor license renewal fee. When buying an existing liquor license, in addition to requesting a transfer of ownership through your state’s ABC, in many cases, if the license is expiring in less than four months, the owner of the license must file the renewal application. In most cases, the owner of the liquor license will receive a notice anywhere from thirty to ninety days ahead of the liquor license’s expiration date, offering plenty of time to get your renewal application in.

While the steps of buying a liquor license are similar whether you’re purchasing a new license or an existing one, you can apply for a temporary permit that allows you to continue operation while your application is processed.

Liquor License Applications in Florida, Massachusetts, New Jersey, and Pennsylvania

To sell alcohol at any venue in the United States, you need a liquor license. Each of the 50 states has a unique way of issuing these liquor licenses. The liquor license application process varies greatly from sea to shining sea.

In 17 states, liquor license quotas exist. Those states are:

• Alaska

• Arizona

• California

• Florida

• Idaho

• Kentucky

• Massachusetts

• Michigan

• Minnesota

• Montana

• New Jersey

• New Mexico

• Ohio

• Pennsylvania

• South Dakota

• Utah

• Washington

To help you with the application process, here are the basics on how to get a liquor license in the states of Florida, Massachusetts, New Jersey, and Pennsylvania, four states we commonly receive questions about.

Florida

In Florida, liquor licenses are handled by the statewide alcohol beverage control commission, the Florida Division of Alcoholic Beverages and Tobacco Bureau of Licensing. Three of the most popular types of liquor licenses in Florida are the quota license, the SRX, and the beer and wine license.

Quota

Florida is one of 17 states with a quota on the number of liquor licenses issued each year. The quota license is only required for full-service alcohol establishments, such as package-liquor stores, bars, and dining facilities that do not qualify for a SRX license.

SRX

With a special restaurant alcoholic beverage license (SRX), you can sell beer, wine, and liquor for consumption on the premises of a restaurant. However, to qualify for this license, that restaurant must get at least 51% of its revenue from food and non-alcoholic beverages. There is no quota on the number of SRX licenses issued in Florida each year.

Beer and Wine

Beer and wine licenses are the easiest and most affordable option for many business owners in Florida and can be used in restaurants, conveniences stores, and bars. However, this type of license does not necessarily make business owners much money.

Applications for each of these licenses are available online and at any ABT license office in the state of Florida. For each of these liquor license applications, you will have to provide fingerprints, a requirement that many other states do not have.

Massachusetts

In Massachusetts, the Alcoholic Beverages Control Commission (ABCC) of the Commonwealth of Massachusetts controls the issue of liquor licenses, of which there are approximately two-dozen types. The most commonly requested licenses fall into two categories: the alcohol beverages local retail license and the alcoholic beverages state license.

Local Retail License

The local retail liquor license application varies in each town and city in Massachusetts. Different types of local retail liquor licenses allow you to operate a package-liquor store, serve alcohol beverages at restaurants, or run a bar or nightclub. All liquor license applications and the associated fees must be submitted online. The ABCC recommends that you contact your Local Licensing Authority (LLA) before submitting your application, as they may have additional requirements for the liquor license application process in your area.

State License

State liquor licenses in Massachusetts are available under several broad categories, which include distribution licenses, direct-to-consumer licenses, broker or salesperson licenses, storage permits, transportation permits, manufacturer licenses, one-day special permits, and out-of-state licenses. Each of these liquor licenses has a separate application.

New Jersey

The Division of Alcohol Beverage Control (ABC) issues liquor licenses in New Jersey and the state has some of the toughest liquor license regulations in the country. Population and local ordinances limit the number of retail liquor licenses issued in a municipality, which makes it harder to obtain liquor licenses available for bars, restaurants, and package-liquor stores. For that reason, liquor licenses are often sold privately within a municipality and can be expensive.

There are 29 distinct types of liquor licenses issued in the state of New Jersey. One 12-page universal application form can be used for both local liquor licenses and state liquor licenses in New Jersey. However, only certain liquor license applications can be submitted online.

Three of the most common types of liquor licenses in New Jersey are the plenary retail consumption license, the restricted brewery license, and the bring-your-own-bottle license.

Plenary Retail Consumption License

The plenary retail consumption license allows alcohol beverages to be sold for consumption on the premises of a licensed venue as well as in packaged forms that can be removed from the licensed venue. This type of liquor license is best suited for restaurants and bars.

Restricted Brewery License

The restricted brewery license allows you to brew malt alcoholic beverages in restricted quantities each year. To acquire this liquor license, you will need a plenary retail consumption license. The restaurant or bar associated with your plenary retail consumption license must be associated and adjacent to your brewery.

Pennsylvania

Pennsylvania, like New Jersey, has some of the strictest liquor laws in the country. In the state of Pennsylvania, the Pennsylvania Liquor Control Board (PLCB) issues and renews liquor licenses. If you would like to acquire a new liquor license in Pennsylvania, you must register an online account with PLCB+, which allows applicants and licensees to submit liquor license applications, conduct business with the board, and access education and certification resources.

The most commonly requested liquor licenses in Pennsylvania are categorized by the kind of venue in which the alcoholic beverages are to be sold, such as the restaurant liquor license, the club and catering club liquor license, the distributor liquor license, the eating place liquor license, and the hotel liquor license. The restaurant, club and catering, eating place, and hotel liquor licenses require that the sale of alcoholic beverages be the secondary reason for the venue’s establishment.

Pennsylvania’s Liquor code limits the number of retail liquor licenses that a county can issue each year based on that county’s population. The quota is updated every 10 years to reflect any changes in the federal census. Restaurant, distributor, and eating place liquor licenses are among those affected by this quota.

Since Pennsylvania established its quota 1939, some counties have more retail liquor licenses than the quota allows. These “extra” licenses are still eligible for renewal, but no new licenses can be issued in those counties.

Determining What Kind of Liquor License You Need

Depending on what kind of establishment or business you own and operate, you’ll need to apply for a specific class of liquor license. The fees that you pay will vary depending on what kind of liquor license you buy and the demand for that type of license in your state or city. The specifics of this information can be found at your state’s Department of Alcoholic Beverage Control (ABC). Here are the different types of liquor licenses that exist:

• Arts licenses (e.g. theaters, galleries)

• Beer and wine licenses (e.g. for smaller businesses only planning to sell beer and wine)

• Brewpub licenses (e.g. for establishments that want to brew their own liquor)

• Club licenses (e.g. for private social clubs that wish to serve alcohol to members only)

• Delivery licenses (e.g. for business that plan to deliver alcohol to customers)

• Eating place licenses (e.g. establishments or businesses that primarily serve food but also wish to sell small amount of alcohol, or take-out beer)

• Hotel licenses (e.g. for hotels with bars and/or restaurants that wish to serve alcohol)

• Restaurant licenses or all-liquor licenses (e.g. for a restaurant that wishes to be able to sell all types of alcohol including beer, wine, and liquor)

• Retail licenses (e.g. for grocery stores, convenience stores, liquor stores, and all retail establishments that wish to sell alcohol in closed containers)

• Tavern licenses (e.g. businesses primarily serving food but making 50% or more of their profits from selling alcohol)

Application Fees and Taxes that Come with Buying a Liquor License

In many cases in the United States, the cost of buying a liquor license will vary from state to state. The price can range from approximately $300 to nearly $20,000, and in some cases, the cost can top $1 million. Your fees will also be different depending on what kind of business you have. A restaurant in California that only serves beer and wine could have wildly different fees than a liquor store in Massachusetts.

You might also be required to pay local and state fees, which you can find by visiting the state government website. It’s also important to understand that you may not be able to buy a liquor license directly from your state or city, since there is a limited number of available licenses that can be legally issued based on what are called per capita quotas. Because of this, in many cases, you might have to obtain a license from an existing liquor license holder. This might make it more challenging to track down a current holder, and it’s why liquor license brokerages like ours are critical to ensuring you not only find the correct license, but also get the best deal.

Various Fees

In many cases, you won’t be paying all of your costs upfront, and you’ll be paying varying amounts of money to different people and places. Some fees may go towards private individuals or brokers that help you apply for or obtain a liquor license, while other fees may simply be application fees to the state agency where you’re applying. There may also be annual fees that you’re required to pay in order to maintain your liquor license.

Broker Fees that May Come with Buying a Liquor License

If you’re trying to buy a liquor license, especially if you’re in a state with liquor license quotes, it’s often wise to work with a liquor license broker. What is a liquor license broker, exactly? A broker is like a real estate agent, but for alcohol: they help you to buy or sell a license. At Liquor License Advisor, we assist people in finding current liquor licenses that are for sale, as well as helping establishments to buy and sell liquor licenses. Brokers are particularly helpful in tracking down license holders, making sure their licenses are legitimate (there are frauds out there, and you don’t want a phony liquor license), ensuring that all of the paperwork is in order, and providing invaluable feedback based on what kind of business you own and where you’re hoping to sell liquor. The amount of money you pay a broker will depend on services rendered, and specific circumstances, but can also save you money in the long-run by preventing you from making mistakes, misunderstandings, or oversights.

County Liquor License Fees

The amount that you’ll owe in liquor license fees will vary from county to county. Depending on the area that you live in, it’s possible that you might need to obtain a liquor license for multiple levels of government, or even all four, including federal, state, county, and local. The more levels of liquor licensing that you need to obtain, the more you’ll have to pay. This is on top of a $50-$100 non-refundable processing fee.

You’ll want to obtain a County Beer License if you own an establishment that is located in a county, excluding counties that are located inside a city or within five miles of a city.

State Liquor License Fees

Depending on the class of liquor license, the state and city your establishment is operated in, and what hours you want to sell alcohol during, amongst other factors, your state liquor license fees will vary. Check your ABC website for this information. If you’re looking to buy a liquor license in Boston, for example, and you wish to buy an all-alcohol license and sell until 2 a.m., you could end up shelling out more than $450,000.

Liquor License Attorney Fees

While you don’t necessarily need to hire a lawyer or attorney to help you obtain a liquor license, it can certainly be helpful. A liquor license attorney can help you prepare all of the relevant paperwork needed to apply for a liquor license, as well as make sure you’re in accordance with all regulations. Liquor license attorney fees may be steep, but they may save you money, time, and confusion in the long-run when applying for a liquor license.

Liquor license attorneys can also be hired if you’re facing a serious claim or have been given a summons for violating the liquor law. Hiring a liquor license attorney can cost you $5,000 or more, depending on the services you need. Although it might seem like a pretty penny, it’s best to pay more to do the whole process correctly, and make sure you’re in compliance with all liquor license regulations now than to risk not being able to obtain a liquor license, or even lose it for good later.

What Type of Liquor License Do I Need for My Business or Venue?

Every business, venue, or establishment that plans to sell alcoholic beverages must have a liquor license to operate legally. Fortunately, there is a liquor license suited to every operation imaginable, from a large restaurant to a small café to a nightclub. The specifics of each liquor license will vary by state, county, and municipality, and for that reason, you should check with your local Department of Alcoholic Beverage Control (ABC) about the ins and outs of liquor licenses in your area. In some states, the different licenses are classified by numbers, not just names, so make sure to do your research. For example, in California, a Restaurant/All Liquor/Full Liquor License is a Type 47, but in Massachusetts, it is referred to as a Section 12 On-Premise License.

That being said, here is some general information about some of the most commonly requested liquor licenses around the country.

Liquor licenses are usually classified by three factors:

• The type of alcoholic beverage sold (beer, wine, spirits, liquor)

• The venue where the alcoholic beverage is sold (restaurant, nightclub, hotel, grocery store, etc.)

• The way that the alcoholic beverage is sold (packaged, poured)

Restaurant/All Liquor/Full Liquor License

The restaurant liquor license, sometimes known as the all-liquor license or the full-liquor license, is for restaurants that want to sell all types of alcoholic beverages, including beer, spirits, wine, and liquor. Restaurant liquor licenses come in on-premise and off-premise varieties. On-premise liquor licenses allow you to sell poured alcohol on the premises of your restaurant. With an off-premise liquor license, you can sell alcoholic beverages that can be removed from the premises of your restaurant in a travel container or in packaged forms for sale.

To get this license, you have to prove that at least 50% of your restaurant’s total sales are from food and non-alcoholic beverages. Restaurant liquor licenses can be difficult to obtain and expensive, but they are often extremely lucrative to business owners.

Beer and Wine Liquor License

The beer and wine liquor permits the sale of those two types of alcohol beverages but does not permit the sale of spirits or hard liquor. The beer and wine liquor license allows restaurants to sell some alcoholic beverages on their premises without going through the hassle or expense of getting an all-liquor license.

This license may require you to prove that at least 50% of your restaurant’s total sales are from food and non-alcoholic beverages. If you’re looking for an option that’s cheaper and easier than the all-liquor license, the beer and wine license may be a good option for your restaurant.

Liquor Store License/Retail License

With a liquor store license, sometimes known as a retail license, you can sell packaged alcoholic beverages for consumption off the premises of your business. Liquor store licenses come in different varieties that allow you to sell different kinds of alcoholic beverages. Some liquor store licenses only allow the sale of liquor and wine, while others allow the sale of beers and spirits as well.

Your local ABC will have the specifics of the liquor store license options available in your area. This off-premise license allows grocery stores, convenience stores, liquor stores, and other establishments to sell packaged liquor.

Brewery License

A brewery license allows businesses to brew their own alcoholic beverages and offer them for sale. Variations of this license place restrictions on the quantity of liquor that the business can brew and sell each year as well as the size of the containers it uses to sell the liquor. Often, the licensed brewery is associated and adjacent to a restaurant, hotel, or other venue. The brewery license can allow for consumption of alcoholic beverages on the premises of the venue and off the premises of the venue.

Tavern License

A tavern license allows establishments like nightclubs, lounges, pubs, and of course, taverns, to sell alcoholic beverages as their primary source of business. This license may only permit the sale of beer and wine, or it may also permit the sale of liquor and spirits. To get a tavern license, your establishment must have suitable kitchen facilities and sell substantial food that can serve as a meal.

The tavern license is an on-premise license, which means it only permits alcoholic beverage consumption on the premises of your venue. The tavern license is often accompanied by licenses that permit dancing, entertainment, extended hours, and outdoor service, which allows alcoholic beverages to be consumed in an outdoor space associated with the establishment that has a tavern permit. A venue with a tavern license may not allow patrons under the age of 21 without the presence of a legal guardian.

Hotel License

A hotel license is an on-premise license that allows the sale of alcoholic beverages at a hotel, motel, or similar lodging. With this license, guests of the hotel or motel can consume alcoholic beverages throughout the premises, in restaurants, bars, common areas, and private rooms. This license may only permit the sale of beer and wine, but in some cases, it also permits the sale of liquor and spirits. Much like the tavern license, the hotel license requires suitable kitchen facilities on the premises that can prepare substantial food for guests.

Club License

Not to be confused with a license for a nightclub, the club license allows country clubs, veterans clubs, service clubs, fraternal clubs, and other not-for-profit clubs to sell alcoholic beverages, which may include beer, wine, liquor, and spirits. Like the tavern license and the hotel license, the establishment for which the club has a license must have suitable kitchen facilities to feed substantial food to its patrons.

Eating Place License

The eating place license is suited for smaller dining establishments that wish to sell beer alongside the food items on their menu. These smaller dining establishments may also sell small quantities of other alcoholic beverages. The eating place license is a good option for a dining establishment that does not have a large budget.

What Does “Public Need” for a Liquor License Mean?

Understanding the Factors at Play

What Are “Neighborhood Opinions”?

How to Troubleshoot Ahead of Time

Sell a Liquor License: Price and Value of Liquor Licenses

The Process of Buying a Liquor License in the United States

The most difficult part of buying a liquor license is often finding a liquor license for sale. If you don’t have any experience with finding available licenses, it’s best to consult a professional, so if you’re on our site, you’ve come to the right place!

After you’ve found out how much it will cost to buy a liquor license in your state, there are several important steps to follow.

Steps to Take in Order to Buy a Liquor License

Find out what type of liquor license you need to buy.

Prepare everything that you’ll need to apply to buy a liquor license beforehand.

• Business license

• Sales tax permit

• Zoning permit

• Alcohol tax permit

• Health permit

• Building permit

• Signage permit

• Employer Identification Number (check with the IRS)

File your application to buy a liquor license.

• Background check forms (some states might require fingerprints)

• A Certificate of Good Standing from the Secretary of State

• A Signed Lease Agreement to confirm the location of your business

• Financial verification sheets to prove that you’re in good tax standing

• Any potential processing fees required by your state

As long as no complaints have been filed against your business and you are in compliance, the process should be simple and straightforward. However, it can take five to six months before the liquor license is in your hands, so don’t forget to factor in that waiting time.

Other Questions to Consider When You’re Buying a Liquor License

What kind of liquor license do I need to apply for?

There are many types of liquor licenses that exist, so it’s important to know which one you need to acquire for your specific business or establishment before applying for one. What are the different classes of liquor licenses?

• Arts licenses (e.g. theaters, galleries)

• Beer and wine licenses (e.g. for smaller businesses only planning to sell beer and wine)

• Brewpub licenses (e.g. for establishments that want to brew their own liquor)

• Club licenses (e.g. for private social clubs that wish to serve alcohol to members only)

• Delivery licenses (e.g. for business that plan to deliver alcohol to customers)

• Eating place licenses (e.g. establishments or businesses that primarily serve food but also wish to sell small amount of alcohol, or take-out beer)

• Hotel licenses (e.g. for hotels with bars and/or restaurants that wish to serve alcohol)

• Restaurant licenses or all-liquor licenses (e.g. for a restaurant that wishes to be able to sell all types of alcohol including beer, wine, and liquor)

• Retail licenses (e.g. for grocery stores, convenience stores, liquor stores, and all retail establishments that wish to sell alcohol in closed containers)

• Tavern licenses (e.g. businesses that serve substantial food but make 50% or more of their profits from selling alcohol)

What are the risks of buying a liquor license?

Making sure that you put comprehensive policies in place for training and supervising employees, as well as inventory control, will help to minimize any risks or liabilities associated with owning a liquor license.

How soon should I start the process of buying a liquor license before opening my business?

What should I do while my liquor license is pending?

How long is a liquor license valid for?

Can my liquor license be revoked?

Yes, your liquor license can be revoked. If a claim is filed against your establishment for any reason, including employee or patron misconduct, your business may lose its liquor license.

Situations that may cause your liquor license to be revoked:

• Selling liquor at an unauthorized time

• Allowing guests to drink in unlicensed areas of an establishment or outside the bounds of an establishment

• Employing untrained service staff without the proper authorization to sell or serve liquor

• Over-serving someone who is inebriated

• Patrons of your establishment participating in disorderly conduct

• Serving beer, wine, or liquor to underage customers

Can I buy a liquor license from another business going out of business?

Can I sell beer, wine, or liquor without a liquor license?

Do I still need to buy a liquor license if my business or restaurant is BYOB?

Why does it take so long to buy a liquor license?

How do I renew my license if I already have a liquor license?

How Long Does It Take to Get a Liquor License?

The process of applying for and obtaining a liquor license for your bar or restaurant varies from 90 days to five or six months, depending on your state. The timing is dependent on a variety of factors including but not limited to:

• Additional licensing requirements as determined by state laws (such as zoning permits)

• Liquor license availability in your state

• Failure to supply necessary documentation upon time of application submission

• Objections towards your liquor license from local community members

• Existing felony convictions regarding license applicant(s)

In some states, it is even required by law that any business looking to acquire a liquor license cannot be granted the license for a minimum of thirty days after filing, regardless of how prepared you are and how quickly your liquor license application is processed.

Licenses available for purchase include beer and wine licenses, retail licenses, restaurant licenses, otherwise known as “all-liquor licenses,” and more.

Some towns and cities may be “dry” or “zoned,” and thus prohibit the selling of alcoholic beverages of any kind. Be sure that the location of your business does not fall under that category.

The Process of Acquiring a Liquor License

Understanding your local government’s role in the distribution of liquor licences, as well as being able to identify the liquor license authority in your state/county who will be reviewing your application and proposal, will contribute to a potentially shorter wait as a license recipient.

Reviewing liquor license availability in your area.

You may also find yourself in need of a liquor license broker in order to purchase a restaurant license, beer and wine license, or tavern license from another business that already owns the class of license you need.