Adding alcohol sales to your business might be one of the smartest steps in your business plan. This is because alcohol has some of the highest profit margins, ranging from 60% to 85%. The first thing you’ll learn when you start the liquor license process is that the entire alcohol market is tightly governed in Texas. Jumping through all the hoops will be worth it when you can pop the champagne and start selling alcohol from your business. As you begin on your journey, remember that one thing that is guaranteed when starting a business is that it will have its ups and downs, just remind yourself of those high alcohol margins!
You will be not be eligible for a Texas liquor license if:
There are three tiers of liquor licenses in Texas: manufacturing, distribution/wholesale, and retail. Manufacturers produce the alcoholic drinks, distributors and wholesalers transfer the drinks to stores/businesses, and retailers sell the drinks directly to consumers. Along with the license, the businesses in each tier may have different insurance requirements. For example, a manufacturer will likely need general liability insurance, a distributor may need small business insurance, and a retailer would need retail insurance. If you sell alcohol at all, you will most likely need liquor liability insurance.
It’s best to contact the TABC if you don’t know which tier your business is in. Also the licenses vary based on a variety of factors, including what type of business you have, whether you need a temporary permit or a long-term license, and whether there will be on premise or off premise consumption.
The cost of your liquor license will depend on your business location, local laws, bond requirements, and the amount you owe based on the TABC license and permit fees chart.
For an idea of how much it will cost: manufacturing prices run from $500 to $3,000, distribution from $3,500 to $4,000, and retail from $0 to $5,300. Some other licenses and permits can go as high as $10,000 and you may require a bond which can range from $5,000 to $30,000.
Are you hosting a special event, fundraiser, or private party? Then you can acquire a one-day liquor license or alcohol permit for the day of the event. To get approval from the TABC for your temporary permit, you must submit the completed forms at least 10 business days before the day of the event. Failure to submit in time means paying the following late fees:
Our Dallas TABC lawyers are ready to help your business with any issue it may have at the TABC or at the State Office of Administrative Hearings.
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