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By Sanjeev Kumar
Founding Attorney

How long does it take to obtain a liquor license in Texas?

Starting your own liquor line or opening a liquor store can be a profitable endeavor. Alcohol tends to have high profit margins, but opening a liquor related business comes with some challenges. You will need to meet stringent liquor licensing requirements in the state of Texas. The process can take months and not all applicants will ultimately succeed. Our Austin, Texas business formation lawyers discuss some vital considerations for those contemplating opening a liquor related business.  

Develop a Business Plan

Whether you are starting your own liquor line, opening a liquor store, or buying a bar, you will need to map out a solid business plan. Your business plan should include a list of your necessary expenditures and projected income. Your business plan will not only assist you in honing the business concept, it will prove vital if you are going to seek financing. Lenders will often want to review your business plan before approving you for a loan.

Select the Right Corporate Entity

With your business concept fully developed, you will need to register a corporate entity for your new business. You can select from several options, but most liquor related business will register as a corporation or an LLC. Your entity selection is important because it will have an impact on your ability to expand your business, how much you pay in taxes, and more. Consult with a business law attorney for assistance with choosing the right entity and registering the proper paperwork with the state and the federal government.

Obtain a Liquor License

For those interested in opening a liquor store, you will need to find the right location for the business and secure a lease, preferably one contingent upon obtaining a liquor license. You will need to meet with the Texas Alcoholic Beverage Commission or TABC to find out more about your role as a liquor retailer. Texas law requires that you post a notice that you have applied for a liquor license in the window 60 days before receiving the license. The TABC will need to inspect the location.

The process varies slightly for those looking to start their own liquor brand. You will need to obtain a license to distill the liquor and sell it in the state of Texas. You will need to comply with labeling practices and alcohol content laws. While you will save time by not needing to secure a building, liquor sellers often meet obstacles in obtaining the needed licenses from the state.  Your attorney will assist you through all stages of the licensing process.

If you are thinking about opening a liquor related business, contact an experienced business formation attorney. They

About the Author
Sanjeev Kumar is the founder and principal at the Kumar Law Firm, which provides a wide range of legal services to entrepreneurs and business owners in the area of business & corporate law and intellectual property along with related areas of interest to clients such as business succession planning, wealth preservation through estate planning, and alternate dispute resolution.