FAQs for Texas

What are the TABC's requirements for a liquor license?

Age Requirement: To be eligible for a liquor license, applicants must be at least 21 years old. This age restriction aligns with the legal drinking age in the United States and ensures that individuals involved in selling and distributing alcohol are of legal age themselves.

Clean Criminal Records: Applicants seeking a liquor license in Texas must have a clean criminal record with no felony convictions within the past five years. This requirement underscores the seriousness with which Texas regulates the sale and distribution of alcohol, ensuring that only individuals with good moral character obtain these licenses.

No Tier Interference: Applicants must not have any vested interest in a TABC permit within a different tier of the system. Texas's Alcoholic Beverage Code enforces a strict three-tier system, separating manufacturers, distributors, and retailers. Typically, a company or individual is not permitted to hold licenses in more than one tier simultaneously.

No Recent Moral Turpitude Violations: Within six months of applying for a liquor license, applicants must not have committed any moral turpitude violations. Crimes involving immoral behavior or dishonesty, such as fraud or theft, fall under this category. This ensures that those involved in the sale of alcohol adhere to ethical standards.

Essential Requirements: These criteria are part of Texas's regulatory system to manage the alcohol industry effectively. Meeting these requirements is crucial before applying for a liquor license in Texas. Failing to meet them will result in the denial of the application, leading to a waste of both time and resources.

How much do liquor licenses cost?

TABC fees differ depending on the type of license required. You can find the fee chart on the TABC website: https://www.tabc.texas.gov/services/tabc-licenses-permits/new-tabc-licenses-permits/tabc-license-permit-fees-chart/

Our consulting fees are in addition to the TABC fees and are determined based on the specific details of each project.

How long does it take to get a license?

It’s important to begin the application process as soon as possible. The overall process can take three months or more depending on local government requirements, how long it takes to set up business entities, whether a sign needs to be posted, etc. Once a COMPLETED application is submitted to the TABC, the approximate processing time is 30-35 days. This time frame can vary depending on the type of license or permit for which you applied. It may take longer in some situations as the TABC may need additional information.

How often do I need to renew my liquor license or permit?

A license or permit is good for two years. It expires on the second anniversary of the date it is issued.

What is a 60-day sign?

When applying for a new license or permit, you might be required to display a sign at your business location to inform the public of your intention to sell alcohol. The necessity of this sign depends on whether your location has been licensed or permitted for on-premises sales within the two years prior to our initial review of your application.

If a sign is required, it must be prominently displayed to the public for 60 consecutive days before the TABC can issue your license or permit. Failure to display this sign could result in delays in the application process.

Red River Licensing Consultants, PLLC will research whether you need a sign and arrange to have the sign created pursuant to TABC requirements and posted.

What are the three tiers of the alcohol industry?

Following the end of Prohibition in 1933, the U.S. established a three-tier system for alcohol distribution to prevent the issues that led to Prohibition and to create a regulated market. This system divides the alcohol industry into three distinct tiers:

Producers: This includes brewers, winemakers, distillers, and importers responsible for creating and bringing alcoholic beverages into the market.

Distributors: Entities that purchase alcoholic beverages from producers and sell them to retailers. They help ensure product safety, fair taxation, and market balance.

Retailers: These businesses sell alcoholic beverages directly to consumers. They are the final link in the distribution chain.

This system was designed to prevent "tied houses," where producers controlled retail outlets, leading to excessive consumption and aggressive sales tactics. It also aimed to create a balanced and secure market.