The beer market is massive — worth over $700 billion worldwide. If you want a piece of that pie, you’re not alone. But how can you sell beer legally? Do you need a liquor license to sell beer in your store?
Navigating the tangled regulations around retail alcohol sales confuses even the savviest entrepreneurs. What permits are necessary for selling beer? How are they different from the licenses you’d need to operate a bar? Or to sell liquor?
The laws are confusing, and the consequences steep: Get it wrong and you risk liquor license violations, confiscated inventory, and severe fines.
This post will cut through the confusion around alcohol licensing laws. You'll learn the key regulations on selling beer, including permits, fees, and penalties if you fail to comply. We'll also share actionable tips to ensure you stay on the right side of the law.
Do You Need a Liquor License To Sell Beer?
When it comes to selling beer in your retail business, one of the first questions is, "Do I need a liquor license for that?" The short answer is yes — with few exceptions, any business selling alcoholic beverages like beer must have the proper liquor licensing in place.
Essentially, a liquor license is an official certification from your state or local licensing board that permits you to sell alcoholic drinks. The primary purpose of liquor licenses is to regulate and control the sale of alcohol in order to promote responsible business practices and compliance with all applicable laws. Without the right licensing, selling beverages like beer, wine, or spirits can result in steep fines or even criminal charges in some cases.
Related Read: How Much Is a Liquor License? 3 Top Factors
Liquor licenses come in many shapes and sizes, depending on your business. Common license types include:
- On-sale licenses: Allow businesses to sell alcoholic drinks for consumption on licensed premises, such as at restaurants, bars, etc.
- Off-sale licenses: Enable retail stores to sell prepackaged beer, wine, and liquor for consumption off-site. This license is what most liquor stores require.
- Catering permits: Special short-term permits allow businesses to serve alcohol at private events.
As you explore obtaining a liquor license for selling beer in your store, pay close attention to all the legal requirements and restrictions in your state and county. It's also wise to consult an alcohol licensing lawyer to ensure you get approved for the proper licenses without delays or hiccups.
With all this in mind, let’s take a closer look at the requirements and license types you may explore for your store.
Liquor License Requirements
You know you need the correct license in place to sell beer in your store. But how can you get licensed to sell beer, wine, or liquor?
Licensing requirements will vary depending on your state and locality, but most jurisdictions consider a set of baseline requirements and obligations. These requirements include:
- Age Restrictions:
Applicants must typically be at least 21 years old to be eligible to apply for and hold a liquor license. This minimum age limit aims to ensure proper levels of personal and professional responsibility in handling the sale and distribution of alcoholic beverages.
Related Read: 5 Best Age Verification Software Tools for Liquor Stores
- Background Checks:
Most licensing agencies require extensive background screenings, including formal criminal record checks. Most states prohibit candidates with felony convictions or past alcohol-related offenses from securing liquor licenses. Demonstrating strong moral character is also vital. - Financial Obligations:
The licensing process and opening a liquor store comes with various fees, including multi-thousand-dollar application fees, annual licensing renewals, permit charges for secondary locations, and minimum liquor liability insurance coverage requirements. Some regions may require posting a bond as well. Be sure you have the funds you need upfront to avoid delays in your approval process.
Most jurisdictions impose these baseline requirements, but as we mentioned before, your area may differ or have additional requirements. Before you attempt to navigate the licensing process, be sure to consult state and municipal statutes. You may also choose to work with a legal expert for additional help and guidance.
Selling Beer Without a Liquor License
For this next section, let’s explore a “what-if” scenario. In this case, “What if I try to sell beer without a liquor license?”
Given the complex licensing rules surrounding beer and alcohol sales, some business owners wonder if there are ever exceptions for selling beer without formal liquor permits. While legal loopholes occasionally exist, these limited exclusions come with heavy restrictions and penalties if you get things wrong.
Related Read: ANSWERED: How Much Is a Liquor License in NY?
At a high level, operating retail beer sales without any form of alcohol license or permit explicitly granted by your state's alcohol control body is illegal. Regulatory agencies can impose severe penalties for unlicensed sales, including hefty fines reaching tens of thousands of dollars, outright business closure, future license application obstacles, and even criminal charges in some cases. Simply put, the risks here far outweigh the potential rewards in most cases.
However, certain states carve out restrictive exemptions for entities like small breweries, wineries, or pre-approved events like tasting events to distribute beer directly to consumers without independent liquor licensing. These exceptions, when available, usually enable production businesses like breweries to sell sealed containers of their craft beers for off-site consumption. These permissions generally come with strict volume limits and sales caps.
In short, while these exceptions can be narrowly applicable for some situations, broad unlicensed beer sales remain prohibited. When in doubt, consult an alcohol licensing attorney before attempting any beer-related commerce without permits on record.
Beer and Wine Licenses vs. Full Liquor Licenses
For the purposes of this post, we have been considering the need to obtain any license to sell beer in your store. However, it’s important to note that, in most states, you can apply for a license to sell beer and wine that will not allow you to sell liquor products. These licenses are typically less expensive to apply for and less challenging to maintain than full liquor licenses.
The main distinctions between a full liquor license and a beer and wine permit relate to the types of alcoholic beverages each allows a business to sell. A full liquor license allows your business to sell any style of alcoholic drinks, including beers, wines, ciders, seltzers, spirits like vodka and whiskey, mixed cocktails containing liquor, and more. It's the most expansive sales permission possible.
Meanwhile, beer and wine seller’s permits exclusively allow retail or on-premise sales of fermented alcoholic beverages up to a specific proof, specifically beers, wines, and ciders below 16 to 21 percent ABV, depending on the state. So wine shops, package stores focusing on craft beer, gastropubs, and similar lower-proof concept bars can benefit from beer and wine privileges.
The Importance of Obtaining a Liquor License for Selling Beer
While the licensing process involves some upfront time and costs, securing formal permission via a beer and wine or full liquor license remains critical for any business selling beer. Let's explore why.
First, holding a valid liquor license enables stores, restaurants, bars, breweries, and other venues the legal right to distribute alcoholic beverages. Being able to sell beer opens up wider revenue opportunities and meets consumer demand for alcoholic offerings alongside the other products you already carry in your store.
Additionally, the penalties associated with selling alcohol without a permit are severe. If you go that route, you’ll face legal repercussions and irreparable reputational damage. Business closure, criminal charges, and fines for noncompliance are all on the table. With stakes like these, no successful owner can afford to ignore alcohol licensing requirements.
In short, while licensing legwork takes some determination, the privileges and protections it offers your business far outweigh the headaches. If you want to sell beer in your store and run a legal, profitable business, you need the proper licensing in place.
Do You Need a Liquor License to Sell Beer? Operating Your Store Profitably
Do you need a liquor license to sell beer? The short answer is yes. Some states and jurisdictions may allow you to sell beer, wine, and other non-liquor alcoholic beverages with a lesser permit, but ultimately, you must obtain specialized licensing to sell beer at the retail level.
However, obtaining the proper licensing is only the first step in your journey. To operate a profitable beer and liquor store, you must invest in the right tools and infrastructure, with your point of sale (POS) system being the most critical.
The right POS solution will provide built-in age verification and compliance tracking to help you adhere to liquor license mandates. A robust point of sale system will also manage inventory control, purchasing, reporting, payments, and more so you can focus on customer experience.
Bottle POS delivers all these features and more. Our solution is built specifically for beer, wine, and liquor stores, with tailored features like case break inventory management, customer database, promotions, and loyalty programs.
If you plan to sell beer or expand your alcohol offerings, proper POS infrastructure is just as essential as proper licensing. Schedule a demo to see Bottle POS in action and get answers to all your questions from our team.
