Three Things You Need To Know About Applying For A Liquor License

One way to increase your business's revenue is to sell alcoholic beverages. In order to do so, you have to apply and secure approval for a liquor license. The process for procuring a liquor license varies slightly from state to state. Check out a few things you need to know about applying for a liquor license.

1. The Type of Liquor License That You Need to Obtain Varies

All liquor licenses are not created equally. First, you have to decide if your customers will consume the alcohol on-site or if they will take it outside of your place of business before drinking it. If they will drink it on-site, you need an on-license liquor license. If your customers will drink it off-site, you need an off-license liquor license.

The type of alcohol you want to sell also affects your license. For example, if you only plan to sell beer and wine, this requires a different type of license than if you plan to sell hard liquor. Your potential license is also affected by how much of your business's sales will come from alcohol versus food or other items. Check with your state's alcohol beverage commission or an attorney who specializes in liquor laws to make sure you are applying for the right type of license.

2. It Takes Time and Money to Obtain a Liquor License

In many areas, the process for applying and obtaining a liquor license is time-consuming. Once you know that you want to serve alcohol at your place of business, you need to start the process as soon as possible. There are also fees that you have to pay in order to even apply for the license.

3. Your Town May Limit the Number of Liquor Licenses That It Issues

Some towns limit the number of liquor licenses that they are willing to issue. If your town limits licenses, this does not mean you cannot obtain a license. However, you do have to change how you get the license.

Instead of applying for the license directly from your area's alcoholic beverage commission, you may have to purchase a liquor license from another business. For example, if a restaurant is going out of business and has the type of license that you need, you can agree to buy the license. 

If you go this route, be prepared to pay more for the liquor license due to the low availability. You should also have an experienced lawyer draft a purchase agreement. Contact a company like Arizona Liquor Industry Consultants for more information and assistance.