Do you want to open your own restaurant or club? If you are going to serve alcoholic beverages in your business, then you need a license to sell liquor in Tennessee. In Hispanic Entrepreneurs We explain the steps to follow to obtain it.
Selling alcohol can help your business, but you should be aware of the laws that govern the consumption of beverages in the state. The Alcoholic Beverages Commission (ABC, for its acronym in English) is the one that regulates this aspect throughout the country. In each state there is a board with its own rules.
So you should go to the Tennessee commission to find out about it.
What is a liquor license?
A liquor license is a permit issued by the Alcoholic Beverage Board to businesses that will sell alcohol. There are different types of license and, as mentioned above, each state has its own rules. In Tennessee, you must obtain a license according to the type of business and alcohol you are going to sell.
The Tennessee commission grants several types of liquor-for-beverage (LBD) licenses. These allow "to sell and dispense alcoholic beverages that contain an alcoholic content of eight percent (8%) or more by weight," according to what the ABC website indicates.
If you want to open a Hispanic restaurant, for example, you need a liquor license for a restaurant. Or if you have a special event where you are going to sell or dispense alcohol, you need another type of permit.
The ABC in Tennessee does not regulate beverages that have an alcohol content of less than 8%. So if you want to sell beers in that range, you should go to your local beer board.
Below we summarize the types of beverage licenses
- Restaurant. Allows the sale of high gravity liquor, wine and beer in a restaurant. It lasts one year and the cost depends on the number of seats.
- Special occasion. Awarded for the sale of spirits during a special event. Its duration is 24 continuous hours.
- Hotel / Motel. One of the requirements is that you have 20 or more rooms, the cost will depend on the number of rooms.
- Wine restaurant. This Tennessee liquor license allows the sale of high-gravity beer and wine.
- Airlines, ship and train. It allows the sale of liquors for consumption in the authorized transport facilities.
- Gourmet Catering. Awarded to companies that operate a permanent catering hall. Requirements include having complete and adequate commercial kitchen facilities and having permission from the Department of Health.
- Club. It is awarded to private clubs for the sale and consumption of liquor within their facilities.
- Limited service restaurant. In this case, the percentage of food sales is taken into account.
- Festival license. It allows the sale of liquor in the facilities of a festival event for 7 days.
Steps to get licensed to sell liquor in Tennessee
If you are determined to sell alcoholic beverages in your establishment, these are the steps you should follow.
- Familiarize yourself with the types of beverage licenses, as well as the laws that govern the matter in the state. In addition to the permits we mentioned, the TABC grants licenses for winery, for making wine on the premises, for wine in retail food stores, among others. Evaluate the type of business and see which permit you need.
- When deciding the type of license, go to the TABC website to apply. Sign in Tennessee Alcoholic Beverage Commission and fill out the corresponding forms. You also have to pay the fee for the processing.
- After submitting the request for the alcoholic beverage license you should wait for the board to evaluate it. This can last several months, so you should take precautions if you want to serve liquor from the day you open the business.
- If the license is approved you must pay the rights of the same.
- After obtaining the license, a commission agent will do an inspection at the establishment. In this way, they will verify that the information you provided in the application is correct.
It should be noted that once you are licensed to sell liquor in Tennessee you cannot sell it to a third party. And in case you are not using it, you must return it to the board.
Permit requirements to sell alcohol
Before applying for the license you must have the Employer Identification Number (EIN) of your business. As well as the business license, sales tax, health and zoning permit.
In some cases, a building permit will also be required.
These are the basic requirements, but you should consult the board to find out what do you need according to the license you are going to process.
You know what you need to get licensed to sell liquor in Tennessee. If you have any questions, you can consult the Alcoholic Beverages Commission.
