Snapping up your liquor license can cost you anywhere from $50 to over $300,000, depending on the type of license and the state you’re in. But that’s a small price to pay for selling alcohol that can generate a profit margin of 75% to 80%.

As alluring as these margins are, getting your license can be a lengthy and daunting process: determining which licenses you actually need, waiting five to six months, plus putting in many hours researching and filling out paperwork. But there are ways to make the process much smoother.

We’ve collected all the information you need to determine what a liquor license costs and how you can put your best foot forward to get yours. You should walk away from this piece knowing:

The most common types of liquor licenses
The cost to sell wine, beer, and liquor on site for your state
Where to get liquor license cost information by state
Detailed costs and information for New York, Chicago, Austin, Toronto, LA, and Miami
The simple 4-step process you can follow to get your liquor license
How to renew your license
Reasons why your license might get rejected

Let’s get started.

Different Types of Liquor Licenses

How Much does a Liquor License Cost

The two main types of liquor licenses are on-license and off-license. Selling alcohol on site requires an on-license liquor permit, while selling alcohol off site, requires an off-license liquor permit. As a restaurant owner, you’ll likely be interested in getting an on-license.

There are also more specific liquor license classes, depending on the type of establishment and what state you’re in. To simplify your life, here are four most common types:

Beer and wine license: for restaurants that only serve beer and wine
Restaurant liquor license: for restaurants that serve beer, wine, and spirits (also known as an “all liquor license”)
Tavern Liquor License: for restaurants that offer food, but alcohol accounts for 50% of sales
Brewpub Liquor License: for establishments that make and sell beer or wine

The details, specifics, and definitions of these licenses will vary by state, so you can get more details by contacting your local Alcohol Beverage Control (ABC) Board – the board responsible for liquor laws in your state. There is a full list of the ABC agencies further along in the article, when we discuss how to get your liquor license.

Now that you have a broad understanding of the type of licenses, you’re likely wondering, “How much does a license cost in my state?”

Liquor License Cost in Your State

Below are the approximate liquor license costs by state, plus more detailed costs and license information for New York City, Chicago, Austin, Toronto, LA, and Miami. Keep in mind many of these states also require you to pay an application processing fee (state, local, or both) on top of the range listed below, which can be anywhere from $40 to $1,000.

The final cost varies depending on:

The type of license. In Delaware, for example, you pay $500 to sell beer or wine, $1,000 to sell liquor, and $2,000 to sell beer if you’re a brewery pub.
The number of licenses you need.
Whether it’s a quota state. Although each state sets specific fees, they cannot control the market price of licenses in quota states. In New Mexico, for example, the average cost of a license is $381,000.
Your local area. For example, Nevada’s fee structure differs per county – below is a liquor license cost range across Clark County and Washoe County.

Alabama: $300–$1,000
Alaska: $500–$2,500
Arizona: $1,575–$1,650
Arkansas: $40–$1,000
California: $100–$15,384
Colorado: $351–$750
Connecticut: $300–$1,450
Delaware: $1,000–$1,500
Florida: $280–$1,820
Georgia: $150–$1,000
Hawaii: $150–$1,000
Idaho: $800–$180,000
Illinois: $750–$6,600
Indiana: $50–$6,000
Iowa: $300–$1,690
Kansas: $500–$2,000
Kentucky: $520–$2,580
Louisiana: $145–$345
Maine: $100–$135
Maryland: $480–$1,200
Massachusetts: $200–$3,500 (note: the city of Boston is much higher because of quotas)
Michigan: $250–$600
Minnesota: $240–$2,000
Mississippi: $450–$925
Missouri: $50–$300
Montana: $400 (plus a one-time application fee of $5,000–$20,000 based on seating)
Nebraska: $50–$650
Nevada (Clark County and Washoe County): $908–$4,000
New Hampshire: $480–$1,200
New Jersey: $2,500
New Mexico: $1300–$381,000
New York: $960–$5,850
North Carolina: $400–$1,000
North Dakota: $500–$2,020
Ohio: $376–$2,344
Oklahoma: $500–$1,005
Oregon: $400–$500
Pennsylvania: $125–$700
Rhode Island: $500–$2,000+
South Carolina: $325+
South Dakota: $900–$1,200 or $1 per capita within city limits (depending on municipality class)
Tennessee: $300–$4,000
Texas: $1,000–$6,000
Utah: $825–$2,750 (excludes bond)
Vermont: $230–$1,000
Virginia: $145–$1,430
Washington: $200–$2,000
West Virginia: $250–$1,000
Wisconsin: $50–$10,000
Wyoming: $1,500–$10,500

New York Liquor License: The Details

Type of liquor licenses in New York

The liquor authority for New York State provides definitions of over 20 license classes in New York, including Drug Store Beer, Restaurant Wine, as well as Hotel Wine to On-Premises Liquor, Restaurant-Brewer, and Supplemental Restaurant Brewer.

Liquor license cost in New York City

Here are the most common liquor license costs:

$960 for beer and cider (plus a $100 filing fee)
$960 for wine, beer and cider (plus a $100 filing fee)
$4,352 for on-premises liquor (plus a $200 filing fee)
$5,850 for restaurant-brewer (plus a $200 filing fee)

How to apply for a liquor license in New York

Refer to these links for the application process and more information on getting a liquor license and abiding by the laws in New York.

Chicago Liquor License: The Details

Type of liquor licenses in Chicago

Chicago has six major liquor license classes: Tavern License, Packaged Goods License, Club License, Caterer’s License and Caterers Registration Permit, and the Consumption on Premises-Incidental Activity License (COP).

The COP license is a broad license that allows you to sell liquor on site. It requires a renewal every two years. You can also get secondary and special liquor licenses if you host promotional or special events, such as Outdoor Patio/Cafe and Late Hour Liquor License (which lets you serve alcohol past 2:00 am).

Liquor license cost in Chicago

Here are the various liquor license costs, which are each good for two years only:

Tavern license: $4,400 (plus a $40 publication fee)
COP License: $4,400 (plus a $40 publication fee)
Caterer’s License: $4,400 or $2,200 if you already have a COP License (plus a $40 publication fee)
Outdoor Patio License: $1,760 (plus a $40 publication fee)
Late Hour License: $6,000 (plus a $40 publication fee)

Take note: After getting a Chicago liquor license, you’ll also need to obtain the State of Illinois License for $750.

How to apply for a liquor license in Chicago

Refer to these links for more information on getting a liquor license in Chicago and the documentation you need:

Austin Liquor License: The Details

Type of liquor licenses in Austin

The Texas Alcohol Beverage Commission provides two broad classifications and definitions: beer licenses and liquor permits.

Beer licenses

Wine and Beer (BG) Retailer’s Permit: You can sell beer or wine to be consumed on or off site.
Brewpub (BP) Licenses: You can manufacture, brew, bottle, and sell to customers on the premises.

Liquor permits

Mixed Beverage (MB) Permit: You can sell mixed beverages from unsealed containers.
Mixed Beverage Late Hours (LB) Permit: You can sell mixed beverages between 12:00 and 2:00 am.

Liquor License cost in Austin

Here are the liquor license costs in Texas:

BG License: $2,000 plus a $550 surcharge (Bexar, Dallas, Harris, and Tarrant counties); $350 plus $553 surcharge (all other areas)
BP License: $1,000 plus a $426 surcharge
MB Permit: $6,000 plus a $602 surcharge (first renewal is $4,500, second is $3,000, third and all subsequent renewals are $1,500)
LB Permit: $300 plus a $327 surcharge

So, if you want a full liquor on-premises license, including late hours, you’ll pay: $6,000 + $602 + $300 + $327 = $7,229.

How to apply for a liquor license in Austin

For details on how to apply for a liquor license, visit the Alcohol Beverage Permit Process.

Toronto Liquor License: The Details

Serving and selling alcohol in Toronto requires a liquor sales License from the Alcohol and Gaming Commission of Ontario (AGCO).

Liquor License cost in Toronto

A Toronto liquor license will cost you $817.36.

How to apply for a liquor license in Toronto

Visit one of the four city clerk offices and submit the two required forms: Municipal Information and Liquor License Clearance.

LA Liquor License: The Details

Type of liquor licenses in LA

The five most common types of liquor licenses in California are:

Type 20: Off-Sale Beer and Wine sales only – no liquor
Type 21: Off-Sale Full Liquor, so beer, wine, and liquor
Type 41: You can serve beer and wine with food
Type 47: For full-service restaurants, you can serve beer, wine, and liquor alongside food (at least 50% of profits must come from food)
Type 48: For bars and nightclubs, you can sell liquor (over 21 only)

Liquor License cost in LA

While the cost to purchase a license varies from $100 to $15,384, you can expect to pay more for it on the open market due to quotas.

How to apply for a liquor license in LA

Visit LiqourLicense.com – Los Angeles County Liquor License – for full details on how to apply.

Miami Liquor License: The Details

Types of liquor licenses in Miami

Here are three most common liquor license types:

1COP: for a bar or restaurant to sell beer only
2COP: for a bar or restaurant to sell beer and wine on-premises
4COP: for a bar or restaurant to sell beer, wine, and spirits on-premises

Costs of a liquor license in Miami

1COP: $280
2COP: $392
4COP: $1,820

How to apply for a liquor license in Miami

Visit the Alcohol Beverages & Tobacco Board to apply:

How to Get a Liquor License

No matter what state you’re in, here are the general guidelines that will show you what to expect before, during, and after the process of applying for a liquor license.

Step 1: Come to grips with the law

Start by understanding the laws on a state and local level because these can differ widely. The two main things you’ll want to consider are if:

Your area is zoned for selling alcohol

Most states are zoned to sell alcohol, but specific areas have stricter zoning laws (like near schools or places of worship). In fact, some areas in states like Kansas, Oklahoma, Texas, Arkansas, Mississippi, Tennessee, and Kentucky, have “dry” ordinances that prevent the sale of alcohol entirely – leftovers from the prohibition era.

You live in a quota state

While many states offer unlimited licenses, some have quotas, meaning there are only a limited number. When they’re gone, they’re gone. Below are quota states:

Alaska
Arizona
California
Florida
Idaho
Kentucky
Massachusetts
Michigan
Minnesota
Montana
New Jersey
New Mexico
Ohio
Pennsylvania
South Dakota
Utah
Washington

For more information by state, consult the Alcohol Beverage Control Board in your state:

Alabama: Alabama ABC Licensing Information
Alaska: Alaska Alcohol & Marijuana Control Office
Arizona: Arizona Department of Liquor
Arkansas: Arkansas Alcoholic Beverage Control
California: California Alcoholic Beverage Control
Colorado: Colorado Liquor Licenses
Connecticut: Connecticut Liquor Control Division
Delaware: Delaware Office of ABC
Florida: Florida Division of Alcohol & Tobacco
Georgia: Georgia Alcohol Licensing
Hawaii: Honolulu Liquor Commission
Idaho: Idaho State Liquor Division
Illinois: Illinois Liquor Control Commission
Indiana: Indiana Alcohol & Tobacco Commission
Iowa: Iowa Alcoholic Beverages Division
Kansas: Kansas ABC Licensing
Kentucky: Kentucky Alcoholic Beverage Control
Louisiana: Louisiana Alcohol & Tobacco Control
Maine: Maine Alcohol & Lottery Operations
Maryland: Maryland Liquor License Renewals & Transfers
Massachusetts: Massachusetts Alcoholic Beverages Control Commission
Michigan: Michigan Department of Licensing & Regulatory Affairs
Minnesota: Minnesota Alcohol & Gambling Enforcement
Mississippi: Mississippi Alcoholic Beverage Control
Missouri: Missouri Alcohol & Tobacco Control
Montana: Montana Liquor Control
Nebraska: Nebraska Liquor Control Commission
Nevada: Nevada Alcoholic Beverage Control
New Hampshire: New Hampshire Liquor Commission
New Jersey: New Jersey ABC Licensing Bureau
New Mexico: New Mexico Alcohol & Gaming
New York: New York State Liquor Authority
North Carolina: North Carolina ABC Commission
North Dakota: North Dakota Alcoholic Beverage License
Ohio: Ohio Department of Commerce
Oklahoma: Oklahoma ABLE Commission
Oregon: Oregon Liquor Licensing
Pennsylvania: Pennsylvania Liquor Control Board
Rhode Island: Rhode Island Liquor Enforcement
South Carolina: South Carolina Alcoholic Beverage Licensing
South Dakota: South Dakota Alcohol Licenses
Tennessee: Tennessee Alcoholic Beverage Commission
Texas: Texas Liquor License
Utah: Utah Department of Alcoholic Beverage Control
Vermont: Vermont Department of Liquor Control
Virginia: Virginia Department of Alcoholic Beverage Control
Washington: Washington State Liquor & Cannabis Board
Washington, D.C.: Washington, D.C. Alcoholic Beverage Regulation
West Virginia: West Virginia Alcohol Beverage Control Administration
Wisconsin: Wisconsin Alcohol Beverage Laws for Retailers
Wyoming: Wyoming Liquor Division

Step 2: Determine what licenses you need

To determine the type of license(s) you need for your restaurant, make sure you know the answers to these questions:

What type of establishment are you opening? (i.e. restaurant vs. bar)
Will guests consume alcohol on or off site?
Do you want to sell all kinds of liquor, or just beer and wine?
Do you have a BYOB policy?
How late will your restaurant be open?
Which days of the week will you sell alcohol?
Will you be running an on-site brewery or winery?

Once you have a better picture of the above, approach your ABC board for further guidance on:

Permit availability
Type of licenses
License costs and renewal information
Requirements for filing your application (documentation, etc.)

Note: If your state has quotas, you may need to purchase an existing license from another business. If you follow this route, the process may be similar.

Step 3: Get your house in order before filing

You need to prepare all documentation and general business licenses before filing for a liquor license. If not, you may end up delaying an already long process. Here are the basics you should have ready before filing:

Employer ID number (from the IRS)
Zoning permit from the local zoning commission (LZC – visit your state’s website)
Business license from your local government
Sales tax permit from your state’s website
Alcohol tax permit from your state’s business taxation department
Food service license
Food handler’s permit from your state health commission (HC)
Building permit from your LZC
Sign permit from your LZC
Health permit from your state’s HC
Music licenses such as an ASCAP license, BMI license, SOCAN license, or even SESAC license

Also, ensure your taxes are in order and that you’ve done the necessary building inspections and upheld your building codes. Otherwise, you can expect delays.

Step 4: File your application

File your application directly with your state’s ABC board by mail (no online filing). You can get all the documentation you need to file for your liquor license directly from your state’s website.

Besides sending in the government forms, you may have to pay a processing fee and send the following documentation:

Background check forms
Fingerprints
Signed lease agreement
Financial documents for permits that require income checks
Certificate of Good Standing from the Secretary of State to signify that your corporation or LLC is abiding by tax laws
Copy of your food handlers permit
Other specified documents

What Happens After Filing

The simple answer? You wait. Following all the correct steps helps the process go more smoothly and increases your chances of acceptance. Even still, expect to wait at least six months before you hear anything from your ABC board.

During the process, a notice of application will be posted at your restaurant indicating the business name, kind of license, and what you’re selling. Any community member can also contest your application, in which case you may have to present your case at a public hearing.

But if all goes well, you’ll get your license and be able to start selling alcohol, finally reaping those high-profit margins!

Two More Reminders

Make sure that you:

Follow the details laid out in the license to avoid losing it. Easy ways to have your liquor license taken away include:
- Over-serving
- Disorderly conduct
- Serving minors
- Selling at unauthorized times
- Drinking in unlicensed areas
- Untrained service staff
Renew your license in the timeframe stipulated by your ABC board. This renewal usually happens anywhere from 1 to 3 years, and the fee varies by state.

Conclusion

While the high-profit margins more than justify a liquor license cost, the process of obtaining one can be a nightmare: complicated, time consuming, and hard to control. But, if you gather the correct information, understand your state laws, and apply for your license the right way,

you’ll rest easier knowing you’ve put your best foot forward – and before you know it, you’ll be cashing in on those high profit margins.

What is the cost of a Liquor License?