How to Get a Liquor License to Serve Drinks in Indiana

In Indiana, you may apply for a new liquor license or you may buy one from a current licensee. Getting a license isn't just about whether you're qualified to sell alcohol: Indiana caps the number of liquor licenses allowed in each community. Finding an available license of the kind you need may be your biggest challenge.

Which License Do You Need?

Indiana has more than 50 types of liquor licenses. The state Alcohol and Tobacco Commission (ATC) lists them on its website. Read the list and identify which license you wish to apply for. The range of potential permits covers business that make alcoholic drinks; bars, and places that serve or sell alcohol as part of their business.

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Bartenders and wait staff who physically serve drinks also need to get an employee license, as well.

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Buying a New License

Once you know which license you need, contact the Indiana ATC. Ask if a license is available in your area. Typically, 99 percent of the licenses are already taken. The number of licenses approved is based upon the population, and this number doesn't increase until the population increases, as measured by the census.

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If a license is available, the ATC will send you the necessary forms to complete. You'll need to meet whatever qualifications the state sets and pay the required application and license fees. Business owners must own or have a valid lease for the business property where they wish to serve booze.

Buying Old Licenses

If someone is looking to get out of the business, you can make an offer on their license. If they're willing, contact the ATC for an application of transfer of ownership. If you intend to use the license at a different location, you'll need to complete paperwork to make that change. The ATC won't allow any transfers until the current licensee pays any sales and property taxes they owe, and also settles any license violations.

The License Process

Once you submit your paperwork and the required fees for the state, the time for approval can be as long as three months to complete the process. After you've filed, you'll have to appear at the county alcoholic beverage board to ask for its recommendation. You can address the board, and any residents who have an opinion – either pro or con – can also address the board.

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The board's recommendation isn't final. The recommendation goes to the state ATC, which reviews the decision, then votes as to whether or not to grant you a license. The ATC can also send back your application to the county board. You can appeal a "no" vote from the ATC, but any party opposed to you getting the license can appeal a "yes" vote. If you persist to the end of the process, you may finally be able to open.

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