Getting a liquor license is one of the most critical investments an alcohol retailer in Texas can make.
But the application process is notoriously complex, time-consuming, and can become extremely expensive if you make mistakes along the way. With application fees, legal costs, and potential delays, the wrong approach can turn this profit-boosting opportunity into a frustrating money pit.
Smart retailers understand that securing a Texas liquor license isn't just about completing paperwork — it gives you access to a business asset that can boost sales and open you up to new audiences. And the difference between success and failure often comes down to having the proper guidance and systems in place, before you even begin the application process.
In this comprehensive guide, we’ll walk you through everything you need to know about how to get a liquor license in Texas.
Let’s dive in.
First, let’s answer a critical question: How much does a Texas liquor license cost?
The upfront investment for a liquor license in Texas can vary significantly based on the type of permit you need for your business. While state fees typically range from $500 to over $5,000 for a two-year period, understanding the full cost is essential for proper business planning.
Related Read: How To Sell Liquor in Texas: 3 Steps for Success
Let's break down what you can expect to pay based on the latest Texas Alcoholic Beverage Commission (TABC) fee schedule.
For retail operations, here's what you'll pay directly to TABC:
These fees only represent the state licensing costs. Local fees from your city or county will add to this total and vary by location. For example, some Texas municipalities charge additional permit fees ranging from a few hundred to several thousand dollars.
Related Read: TABC Reporting Tips: 4 Expert Insights for Liquor Stores
The state and local permit fees are just the beginning. You’ll also need to budget for these additional expenses:
These hidden costs can easily add 50%–100% to your stated license fees, so don’t let them catch you by surprise.
Let’s face it: Navigating the various TABC permit options can be confusing. Let's clarify the main retail permits and which one is right for your business.
This permit allows for the sale of wine, malt beverages, and beer with an alcohol content not exceeding 17% by volume for on-premise consumption.
Best for: Restaurants, bars, and entertainment venues that want to serve beer and wine without hard liquor
Key requirements:
Limitations: No distilled spirits or liquors can be sold under this permit.
This is the most comprehensive permit, allowing the sale of all alcoholic beverages (beer, wine, and distilled spirits) for on-premise consumption.
Best for: Full-service restaurants, bars, nightclubs, and entertainment venues
Key requirements:
Special considerations: This permit carries the highest fees, but also allows for the widest range of alcoholic beverage sales. That being said, it’s not the right option for liquor stores or package shops.
Related Read: Do You Need Liquor Liability Insurance? [Plus 3 Top Providers]
This permit allows for the retail sale of distilled spirits, wine, and malt beverages in sealed containers for off-premise consumption.
Best for: Dedicated liquor stores or retailers focusing primarily on alcohol sales
Key requirements:
Special considerations: Package stores face the strictest regulations and ownership restrictions among retail permits, so watch out for those restrictions during your application process.
This permit allows for the retail sale of wine and malt beverages for off-premise consumption only, with alcohol content not exceeding 17% by volume.
Best for: Convenience stores, grocery stores, and markets that want to sell beer and wine, but not liquor
Key requirements:
Limitations: You can’t sell any liquor with this license, and all beverages must be consumed off-premises.
Once you’ve determined the type of liquor license you need, you’re ready to begin the application process. Getting your liquor license in Texas can feel overwhelming, but breaking the process into manageable steps makes things much easier to navigate.
Here are the five steps you need to take to get through the TABC licensing process and get your business up and running.
Before submitting any paperwork, understand exactly what regulations apply to your specific location and business type. You should:
Pro tip: Don't sign a lease or purchase a property until you've confirmed it qualifies for the type of permit you need. Many retailers have made costly mistakes by securing locations that later couldn't be approved.
Related Read: Crafting a Business Plan for Your Liquor Store: 8 Essential Steps
Gathering all required documentation beforehand saves time and stress, and helps prevent delays in your application processing. So, what documents do you need to have on hand? Some commonly requested documents include:
Pro tip: Make copies of everything — the TABC often requires multiple submissions, and having backups prevents delays if documents get lost in processing.
Next, you’re ready to submit your application. You’ll need to submit your application either online through the TABC website or in person at regional TABC offices. First-time applicants may want to submit in person, as it allows them to familiarize themselves with the office and ask questions as needed.
Common application mistakes to avoid:
You must also publish notice of your application in a newspaper of general circulation in your county once you’ve applied. This notification must run once within 10 days of application submission. Keep proof of publication for your records.
Pro tip: Be prepared to pay your application and licensing fees at the time of submission. These are nonrefundable, even if your application is denied.
Related Read: How Much Does It Cost To Get a Liquor License?
Once you’ve submitted your application, you’re in for a long, anxious wait — but how long? The TABC officially states 45–60 days for processing, but actual timelines can vary:
During the approval process, you’ll undergo a TABC investigation. A TABC agent will conduct a site inspection of your store, verify all your submitted information, review owners’ background records, and interview key personnel.
During this waiting period, you can prepare your location and train staff, but cannot purchase or sell alcohol until your permit is approved and issued.
If the TABC has issues with your application, they’ll issue a deficiency notice. You’ll need to respond to any deficiency notices ASAP to prevent further delays.
Pro tip: You can check your application status by contacting your assigned TABC agent. You can also call your regional TABC office for an update if you haven’t heard anything from your agent in 30+ days.
Once you receive your license, you might think the task is complete — but you still have a few outstanding items to cover if you want to maintain it.
Immediately after approval, you need to post your permit in a clearly visible location on the premises, as required by law. You then need to set up your alcohol storage areas according to the requirements outlined by your permit type.
Inventory tracking and reporting systems are crucial for ongoing compliance, as are strict age verification processes. Thankfully, a robust point of sale (POS) system can help you manage all these steps.
Take the following steps to train your staff appropriately:
Finally, you need to set up processes for renewals and ongoing compliance. Mark your calendar for at least 60 days before your license expires, and be prepared to submit your renewal application at least 30 days before expiration. You must also update any changes in ownership or management with the TABC and be prepared for compliance inspections at the time of renewal.
By following these steps and maintaining rigorous compliance practices, you'll protect your liquor license and avoid costly violations that could jeopardize your business.
Securing a Texas liquor license involves a significant investment of time, money, and effort — but when you complete the process, you can boost profits and reach a whole new audience through alcohol sales.
However, obtaining your license is just the beginning. Protecting and maintaining your license requires ongoing compliance with the complex web of TABC regulations — and this is where having the right technology partner becomes essential. The most successful businesses recognize that a specialized point of sale system (designed specifically for alcohol sales) is an absolute must if you want to avoid costly violations.
Bottle POS was built from the ground up for alcohol retailers, with built-in compliance features that help protect your license investment. Our all-in-one solution automatically enforces ID checks, maintains required records, restricts sales during prohibited hours, and generates the reports you need for TABC inspections.
Our technology takes the guesswork out of compliance, so you can focus on growing your business instead of worrying about violations. Schedule a demo with Bottle POS today to see how our system helps you protect your liquor license and boost your bottom line.