ANSWERED: How Much Is a Liquor License in California?

California’s alcohol market offers booming craft breweries, surging wine regions, and trendsetting cocktail bars. As a result, many entrepreneurs are tempted to dive behind the taps or wine shelves to get a piece of the market. But those dreams get drained fast without the most foundational asset: a liquor license.

But the Golden State’s license system is infamously bureaucratic and complicated — many would-be business owners end up bewildered at best and burned by fees and fines at worst. Without clarity, you’ll struggle to know what license to get, how much to budget, and how to maintain compliance.

So, how much is a liquor license in California?

This post covers the different types of liquor licenses with associated costs and fees. We’ll also talk through the step-by-step process you must follow to apply for a liquor license in California. 

How Much Is a Liquor License in California? Overview 

For businesses looking to sell alcoholic beverages in California, obtaining the proper liquor license is one of the first steps. But between state and local fees, how much should you expect to budget for licensing when opening a liquor store or bar?

Related Read: How Much Does It Cost To Open a Liquor Store?

When it comes to alcohol licensing in California, there are two main authorities you'll work with:

• The California Department of Alcoholic Beverage Control (ABC) issues liquor licenses at the state level based on license type, with fees starting around $100.
• Local city and county licensing boards also require food and beverage businesses to obtain permits to sell alcohol, with costs varying widely across regions. Some county licenses exceed $13,000.

In total, a new liquor license in California often ranges from $1,000 on the low end for a beer and wine establishment license up to $18,000 or more for a full liquor retail store license. Additional fees also apply for ownership transfers to new locations. High-demand metro areas typically come with higher licensing costs overall.

Related Read: Applying for a Beer and Wine Liquor License? Follow These 5 Steps

The type of liquor license needed for your business depends on factors like your county, intended audience, license availability, distribution rights desired, and whether you'll allow on-site consumption. Assessing these parameters will determine your budget. Consulting an alcohol licensing lawyer can also prove extremely valuable for navigating California's intricate licensing processes.

For more information, refer to California’s licensing board resource.

Steps To Obtain a Liquor License in California:

You must follow several key steps to obtain a liquor license in California. 

1. Determine the type of liquor license you need: California offers various liquor licenses for different types of businesses, such as restaurants, bars, breweries, wine shops, and liquor stores. The type of license you need will depend on the nature of your business.
2. Meet eligibility requirements: Ensure you meet the eligibility requirements set forth by the California Department of Alcoholic Beverage Control (ABC). These requirements may include age, residency, criminal history, and other factors.
3. Complete required training: Depending on the type of license you're applying for, you may need to complete alcohol server training and obtain a Responsible Beverage Service (RBS) certification.
4. Obtain the necessary forms: Contact the California Department of Alcoholic Beverage Control to obtain the appropriate application forms for the type of license you seek.
5. Fill out the application: Complete the application form accurately and provide all required documentation, including personal information, business details, financial statements, lease agreements, and any other supporting documents.
6. Submit the application: Submit your completed application and any required fees to the California Department of Alcoholic Beverage Control. Depending on the licensing process, you may need to submit your application online or by mail.
   
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7. Background check and investigation: Prepare for the ABC to conduct a background check and investigation to verify the information provided in your application and ensure that you meet all eligibility requirements.
8. Public notice and protest period: Provide the public with a notice and protest period during which members of the public can raise objections to your application. (Not required for all cases).
9. Attend a hearing (if required): If there are any objections to your application, you may be required to attend a hearing before the ABC to address the concerns raised.
10. Receive approval: If your application is approved, you will receive your liquor license from the California Department of Alcoholic Beverage Control. If your application is denied, you will be notified of the reasons for the denial and any steps you can take to appeal the decision.

Types of Liquor Licenses in California 

1. General On-Sale License 

The first type of license you can pursue is a general on-sale liquor license. This license type allows businesses like bars, restaurants, and nightclubs to sell beer, wine, and distilled spirits to patrons and allows those drinks to be consumed on the premises. 

Some bullet points on general on-sale liquor licenses in California:

• Permits the sale of alcohol to customers to drink at bars, restaurants, clubs, or similar establishments that wish to allow alcohol consumption on-site.
• Required by concert venues, sports arenas, bowling alleys, casinos, banquet halls, hotels, and other hospitality businesses offering drinking areas.
• Commonly used alongside restaurant licenses for establishments that wish to operate as both eateries and bars/lounges.

Cost: Application fees for general on-sale liquor licenses vary based on factors like the city, county, and population density but typically range from around $3,000 to $13,000 or more. Additional fees may apply for ownership changes. Consult local ordinances for your area's exact pricing.

Related Read: Profit Margins for Liquor Stores: 3 Ways To Increase Yours

2. Special On-Sale License 

The second California liquor license to know is a special on-sale liquor license. This type of license authorizes businesses to sell alcoholic beverages to be consumed on-site for limited special events rather than permanent operations. These licenses are extremely useful for temporary venues like festivals, concerts, conferences, fundraisers, weddings, or private parties.

Some key things to know about special on-sale liquor licenses:

• Allows the sale/service of alcohol for a defined special event rather than daily bar or restaurant operations.
• Often used for pop-up type environments at venues not holding permanent liquor licenses, like event halls, parks, or theaters.
• Requires formal authorization for every event; not as a recurring operational license.

Cost: Application fees for special on-sale liquor licenses are typically cheaper than general on-sale since they are temporary. Fees often range from around $100 per event on the low end to $1,000 or more for large-scale events. Factors like attendance numbers, event length, and non-profit status can impact pricing.

3. Off-Sale License 

Next, we’ll discuss off-sale liquor licenses. An off-sale liquor license allows retail businesses to sell prepackaged alcoholic beverages like beer, wine, and spirits to customers for takeaway and consumption offsite. These licenses are extremely common for liquor stores.

Related Read: Top Liquor Store Promotional Ideas

Some key things to know about off-sale liquor licenses:

• Enables packaged liquor sales to customers at liquor stores, grocery stores, convenience stores, warehouse clubs, and more. Does not allow drinking on site.
• Essential for businesses focused solely on retail alcohol distribution, like independent liquor stores rather than on-location drinking venues.
• Allows stores meeting certain thresholds to operate liquor departments with full spirit offerings alongside other goods like food.

Cost: Application fees for off-sale liquor licenses vary based on location and county requirements but often fall between approximately $3,000 to $13,000. Additional charges may apply for ownership or location changes down the road. Check your county or city guidelines for precise pricing.

4. Catering Permit 

Finally, you might pursue a catering permit. Catering permits authorize professional licensed catering companies to serve beer, wine, and spirits at private catered events in California. You must obtain a permit for each specific event where alcohol will be served.

Some key things to know about catering permits:

• Allows licensed caterers to provide full bar/alcohol offerings at private catered events only. Does not apply to their daily operations.
• Caterers must formally apply and pay fees for every private event where they will serve attendees alcohol, subject to review.
• Useful for weddings, corporate parties, fundraisers, and similar events booked through a caterer wanting to offer drinks.

Cost: Fees for catering permits allowing alcohol service range from around $100 on the low end for small events to $500 or more for large galas, weddings, or high-attendance gatherings. Factors like attendance numbers, event length, and non-profit status will impact your permit price.

How Much Is a Liquor License in California: Running a Profitable Liquor Store 

As you can see, there are many moving parts when it comes to operating a profitable liquor store in California. The first step is understanding your liquor licensing requirements and costs. How much is a liquor license in California? It can be fairly expensive, ranging from $1,000 to $18,000 for a priority license. But the license is just the beginning. You must have the right tools and systems to run a truly successful retail liquor business.

Most critically, you need a point of sale system built specifically for liquor store operations, like Bottle POS. The right POS will help you maintain compliance by providing age verification, industry-specific reporting and analytics, and inventory tracking. Bottle POS offers all of this while providing you with the tools and features you need to manage your employees, process payments, integrate with scanware systems, and more. With the right POS powering your store, you can focus less on paperwork and license regulations and more on crafting an exceptional customer experience.

Bottle POS equips you with the features you need for profitability and compliance if you're planning to open or operate a liquor store in California. Schedule a personalized demo today to learn how Bottle POS provides the all-in-one solution you need for your store.