You have secured financing, found the perfect location, and developed your concept. Now comes the part that determines whether you can actually open: obtaining your Texas Alcoholic Beverage Commission (TABC) permit. The TABC controls who can sell alcohol in Texas, and operating without proper authorization is a criminal offense under the Texas Alcoholic Beverage Code. The application process involves multiple government agencies, mandatory waiting periods that can stretch past 60 days, and requirements that vary based on your business type, location, and personal history.
This guide walks through each stage of the TABC permitting process, from determining which permit fits your business model to receiving your authorization and beginning operations.
Understanding the Texas Alcohol Regulatory Structure
Texas operates under what regulators call a three-tier system, established by the Texas Alcoholic Beverage Code. Manufacturers produce alcoholic beverages, distributors and wholesalers deliver them, and retailers sell directly to consumers. Each tier requires different permitting, and the TABC restricts certain overlapping ownership between tiers. This structure affects your operations: once permitted, you must purchase alcohol through licensed distributors and wholesalers rather than from retail stores or directly from manufacturers.
As a bar owner, you fall into the retail tier. The specific permit you need depends on what you plan to sell and how you plan to sell it.
Determining Which Permit Your Bar Needs
Before beginning any application paperwork, identify the correct permit type. Applying for the wrong permit wastes time and fees.
Mixed Beverage Permit (MB)
The Mixed Beverage Permit, designated as permit type “MB” in TABC records, authorizes the sale of distilled spirits, wine, and malt beverages for on-premises consumption. This permit is governed by Texas Alcoholic Beverage Code Chapter 28. This is the permit a traditional bar needs. The permit covers cocktails, shots, beer, and wine consumed at your establishment.
This permit includes authority to transport alcoholic beverages from the place of purchase to your permitted premises. Hotels with this permit may also provide guestroom minibars under conditions specified in Chapter 28.
Wine and Malt Beverage Retailer’s Permit (BG)
If your establishment plans to serve only beer and wine without distilled spirits, the Wine and Malt Beverage Retailer’s Permit (permit type “BG”) may be appropriate. This permit is governed by Texas Alcoholic Beverage Code Chapter 26 and authorizes the sale of wine and malt beverages for both on-premises and off-premises consumption. Some restaurants and entertainment venues operate under this permit rather than a Mixed Beverage Permit.
The Food and Beverage Certificate (FB) Question
Mixed Beverage Permit holders may need to obtain a Food and Beverage Certificate (permit type “FB”) depending on their business model and location. Texas Alcoholic Beverage Code § 28.18 establishes requirements for this certificate related to the ratio of food sales to alcoholic beverage sales. The TABC’s published guidance indicates the certificate requires that the permittee either:
- Derive at least 50 percent of gross receipts from the sale or service of food and non-alcoholic beverages, or
- Ensure that alcoholic beverage sales do not exceed 60 percent of gross receipts
The certificate affects more than compliance. Texas Alcoholic Beverage Code § 28.1001 authorizes certain alcohol-to-go sales by Mixed Beverage Permit holders with a Food and Beverage Certificate when purchased in conjunction with food, subject to container and sealing requirements specified in that section. The certificate also affects location eligibility: Texas Alcoholic Beverage Code § 251.80 addresses how Food and Beverage Certificate holders may operate in certain areas where other mixed beverage sales are restricted by local option elections.
Confirming Permit Availability at Your Location
Before investing significant time in the application process, verify that the permit you need is available at your intended location. Texas has a local option system under Texas Alcoholic Beverage Code Chapter 251 that allows counties, cities, and justice of the peace precincts to determine what types of alcoholic beverages can be sold within their boundaries.
Local option status changes over time as communities hold elections. Your proposed location may allow beer and wine but prohibit mixed beverages, or allow all sales, or prohibit everything. Some locations permit alcohol sales only by establishments holding a Food and Beverage Certificate.
Check the TABC’s interactive wet/dry map at tabc.texas.gov/public-safety-local-government/local-option-elections/wet-dry-map/. Verify this information before signing a lease or purchasing property.
Pre-Application Requirements
Several preliminary steps must be completed before submitting your application to the TABC.
Business Registration
Your business entity must be registered with the Texas Secretary of State and the Texas Comptroller of Public Accounts. If operating as a corporation, limited liability company, or partnership, ensure your formation documents are properly filed and current.
The TABC application requires information about all owners, officers, stockholders, trustees, and beneficiaries holding ownership interests. Gather identifying information for everyone who falls into these categories before starting the application.
Personal History Information
Each person with an ownership interest or management role must provide personal history information. This includes residential addresses for the previous five years, employment history, and disclosure of any criminal history.
If any applicant has not lived in Texas for the previous 12 months, the TABC requires an official criminal background check from the FBI or from the state police of any state where that person lived during the previous five years.
Understanding Criminal History Considerations
The TABC may deny an application based on criminal history, though the agency evaluates cases individually.
Texas Alcoholic Beverage Code § 11.46 sets forth factors the commission may consider when evaluating an application, including whether the applicant has been convicted of a felony in the five years immediately preceding the application, whether the applicant has the reputation of being a peaceable and law-abiding citizen, and whether the applicant is of good moral character.
A conviction does not automatically disqualify an applicant. The specific impact depends on the nature of the offense, how much time has passed, and other circumstances. However, applicants should understand that making false statements on the application is a criminal offense under Texas Alcoholic Beverage Code § 101.69. If you have criminal history concerns, disclose them honestly and consider consulting with an attorney familiar with TABC proceedings before investing application fees.
Location Certification
You must obtain certifications from multiple government entities regarding your proposed location:
| Certification Source | Purpose |
|---|---|
| City (or county if outside city limits) | Confirms compliance with local zoning, distance requirements, and other municipal regulations |
| County | Confirms compliance with county-level requirements |
| Texas Comptroller of Public Accounts | Confirms your business is registered for tax purposes |
| Texas Secretary of State | Confirms your business entity registration is current |
These certifications verify that local authorities have no objection to alcohol sales at your proposed location. Without them, your application is incomplete and cannot be processed.
Each jurisdiction has its own process for issuing these certifications. Some can be obtained in days; others may take several weeks. Begin this process early.
The 60-Day Sign Requirement
For certain permit types, applicants must post a public notice sign at the proposed location for 60 days before the TABC can issue the permit. This is often the longest single delay in the application process, and strategic timing can prevent it from extending your timeline unnecessarily.
16 Texas Administrative Code § 33.5 establishes the sign posting requirement for permits authorizing on-premises consumption of alcoholic beverages when the location was not previously permitted by the TABC for on-premises consumption during the two-year period before the application.
The 60-day sign notifies the community that an application to sell and consume alcoholic beverages has been proposed for the location. It provides contact information for the local TABC office where community members may file protests.
Sign Specifications
The sign must be at least 24 by 36 inches with letters at least 2 inches tall. The TABC provides downloadable templates at tabc.texas.gov/services/applications-forms/public-notice-sign-templates/. You must fill in your specific information, including the permit type, applicant name, location address, the local TABC office phone number, and the date you post the sign.
Post the sign prominently outdoors at your proposed location where it is visible to the public. The sign must remain posted for the full 60 days. TABC staff may conduct drive-by inspections to verify the sign is properly displayed.
You may post the sign before submitting your application. This is a critical strategic decision. Many experienced applicants post the sign as soon as they have control of the location, allowing the 60-day period to run while they gather other documents and certifications. If you wait to post the sign until after submitting your application, you add 60 days to whatever time the TABC needs to process your paperwork.
If your location was previously permitted for on-premises consumption within the past two years, you may not need to post the 60-day sign. Check previous permitting history using the TABC’s Public Inquiry System at publicinquiry.tabc.texas.gov.
Publishing Notice
In addition to posting the 60-day sign, you must publish notice of your application in a newspaper of general circulation in your county. 16 Texas Administrative Code § 33.13 addresses publication timing requirements; for most permit types, publication must occur within 10 days after submitting your application.
Keep documentation of the publication, including an affidavit from the publisher. You will need to include this with your application materials.
Submitting Your Application
The TABC strongly encourages applicants to use its online Alcohol Industry Management System, known as AIMS. Online applications through AIMS process faster than paper applications.
Creating an AIMS Account
Visit the TABC’s AIMS portal at aims.tabc.texas.gov and create an account. The system guides you through the application process step by step, indicating which documents are required and allowing you to save your progress.
If you already operate a TABC-permitted business and need to claim that business in your account, the system has a process for that as well.
Paper Applications
The TABC still accepts paper applications submitted by mail, but processing takes longer. Paper applications must be mailed to the address provided on the TABC website with all required documents, certifications, and payment included.
Whether applying online or by paper, the application must be signed and notarized. All questions must be answered completely.
Application Fees and Budget Planning
Understanding the full cost structure before you begin prevents unpleasant surprises. Permit fees vary significantly based on permit type, and state fees represent only part of your total permitting expense.
The TABC publishes current fees at tabc.texas.gov/services/applications-forms/license-permit-and-certificate-fees/. Fees are assessed for two-year permit periods. As of the most recent published fee schedule, state fees for common bar permits include:
| Permit Type | Two-Year State Fee |
|---|---|
| Mixed Beverage Permit (MB) | $5,287.50 original application; $2,643.75 renewal |
| Wine and Malt Beverage Retailer's Permit (BG) | $1,837.50 |
| Food and Beverage Certificate (FB) | $1,050 |
| Late Hours Certificate (LH) | $1,050 |
Fees are subject to change. Verify current amounts at the TABC fee schedule page before submitting your application.
Local Fees
Cities and counties may assess their own fees in addition to state fees. Texas Alcoholic Beverage Code § 11.38 addresses local fees; subsection (a) limits local fees to no more than one-half of the state fee for the permit.
For Mixed Beverage Permit holders specifically, Texas Alcoholic Beverage Code § 11.38(e) delays local fee assessment until three years after the permit is first issued. This delays a significant expense but does not eliminate it. Wine and Malt Beverage Retailer’s Permit holders face no such delay and may owe local fees upon permit issuance.
Contact your city and county to determine their specific fee amounts before finalizing your budget.
Additional Cost Categories
Beyond state and local permit fees, budget for:
| Cost Category | Notes |
|---|---|
| Surety bond | Required for certain permits; premium varies by bond amount, bonding company, and applicant qualifications |
| Newspaper publication | Cost varies by newspaper; obtain quotes from newspapers of general circulation in your county |
| Professional assistance (if used) | Optional; fees vary by provider and complexity |
Your actual costs depend on your specific permit combination, location, and circumstances. Obtain specific quotes for each category before finalizing your budget.
Surety Bonds
Certain businesses must post a surety bond before receiving their permit. The bond provides financial protection to the state if the permit holder violates alcoholic beverage laws.
Bond requirements depend on permit type and, in some cases, location. Texas Alcoholic Beverage Code § 61.71 establishes escalating bond requirements for on-premises retailers in counties with populations exceeding 1.4 million (which includes Harris, Dallas, Tarrant, and Bexar counties). Under this section, permit suspensions can trigger bond forfeiture and increased bond requirements, with potential automatic cancellation after multiple suspensions.
Contact a surety bond company or your insurance provider to arrange the bond and obtain pricing. The TABC cannot issue your permit until the bond is in place.
Processing Timeline
The TABC indicates on its website that processing time is approximately 30 to 35 days from the date a complete application is submitted. However, this timeframe assumes a fully complete application with no deficiencies.
Several factors can extend the timeline:
| Factor | Impact |
|---|---|
| 60-day sign requirement | Runs independently; permit cannot issue until complete |
| Missing documents or deficiencies | Applicant has 10 business days to respond; failure results in application removal and fee refund |
| Community protests | May require SOAH hearings, adding weeks or months |
| Complex ownership structures | May require additional TABC review |
| Unusual locations | May require additional verification |
Planning conservatively, anticipate the entire process from beginning to end taking 60 to 90 days or longer. If your location requires the 60-day sign and you have not posted it before applying, add that time to your estimate. Start the process well before your intended opening date.
Responding to TABC Requests
When the TABC reviews your submitted application, staff may request additional information or documents. These requests arrive through AIMS.
You have 10 business days to respond to deficiency notices. If you do not respond within that window, the TABC removes your application from processing and refunds your application fee. This does not prevent you from reapplying, but it restarts the entire process.
Monitor your AIMS account regularly after submitting your application. Prompt responses to information requests help keep your application moving forward.
Protests and Hearings
Community members, including neighbors, local officials, or competing businesses, may file protests against your application. The 60-day sign provides contact information for filing such protests.
Common grounds for protest include concerns about increased traffic, noise, proximity to residential areas, the applicant’s character or history, or the general welfare of the community. Not every complaint constitutes a valid legal protest, but the TABC evaluates each filing.
If protests are filed, the TABC evaluates whether the protest raises issues that require a hearing. Not all protests result in hearings, and not all hearings result in denial. Many protests are resolved through negotiation or withdrawn after the applicant addresses concerns.
If a hearing is scheduled, you receive notice and have the opportunity to appear and present your case. Hearings are conducted by the State Office of Administrative Hearings (SOAH). The hearing process adds time to the application timeline and may require legal representation depending on the nature and complexity of the protest.
Receiving Your Permit
Once the TABC approves your application and all requirements are satisfied, you receive your permit. You can print your permit through AIMS.
You must display the permit at your premises in a publicly visible location as required by Texas Alcoholic Beverage Code § 11.04. TABC agents and other peace officers have the right to enter and inspect your premises, and failure to display your permit properly can result in violations.
After Receiving Your Permit
Receiving your permit marks the beginning of ongoing compliance obligations, not the end of regulatory involvement.
Required Signage
Beyond displaying your permit, you must post various signs at your establishment. Texas Health and Safety Code § 411.103 requires signs warning about the dangers of alcohol consumption during pregnancy to be displayed at each restroom exit. The TABC provides sign requirements and templates on its website.
Employee Requirements
Texas Alcoholic Beverage Code § 106.09 establishes minimum age requirements for employees who sell, serve, or handle alcoholic beverages. Generally, such employees must be at least 18 years old.
While Texas law does not require TABC seller/server certification for all employees statewide, many employers require it because of the protections it provides. Texas Alcoholic Beverage Code § 106.14 establishes a defense for employers when a seller/server certified employee is deceived by a minor using false identification that would deceive a reasonable person.
Certain permit holders, specifically Mixed Beverage Permit holders and Private Club Permit holders that are not restaurants, must ensure that employees required to have seller/server certification also complete an annual opioid-related drug overdose awareness course as required by Texas Alcoholic Beverage Code § 28.22. This course is available through the TABC Education Center.
Purchasing Alcohol
Retail permit holders must purchase alcohol through licensed channels appropriate to the product type. The three-tier system requires retailers to purchase from licensed distributors and wholesalers rather than from other retailers, manufacturers, or out-of-state sources.
Texas law establishes specific payment requirements for alcoholic beverage purchases. Texas Alcoholic Beverage Code § 102.32 addresses payment timing for malt beverage purchases. For distilled spirits and wine purchases, Texas Alcoholic Beverage Code § 28.09 establishes credit limits; exceeding permitted credit terms can result in violations for both the retailer and the supplier. The specific requirements vary by product category, so consult the TABC or an attorney if you have questions about purchasing procedures.
TABC rules address handling of damaged or defective products. 16 Texas Administrative Code § 45.105 establishes general restrictions on returns, though specific procedures and any exceptions should be confirmed with the TABC or your distributor.
Record Keeping
All alcoholic beverages on your premises must be covered by invoice. Maintain invoices on-site and be prepared to present them during any inspection. If an inspector finds product without a corresponding invoice, you face potential violations.
Texas Alcoholic Beverage Code § 101.04 authorizes the TABC and other peace officers to enter and inspect permitted premises, vehicles, books, and records. Refusing to permit inspection or interfering with an inspection is a separate violation that can result in permit suspension or cancellation.
You must maintain daily sales summaries showing separate totals for alcoholic beverage sales, food sales, and other categories. This documentation is critical if you hold a Food and Beverage Certificate, which requires that alcohol sales not exceed 60 percent of gross receipts.
Hours of Operation
Texas Alcoholic Beverage Code § 105.03 establishes the hours during which alcoholic beverages may be sold. The following table shows the general state-level framework, but local option elections and municipal ordinances frequently impose additional restrictions:
| Day | Standard Prohibited Hours | With Late Hours Certificate |
|---|---|---|
| Monday through Friday | Midnight to 7:00 a.m. | 2:00 a.m. to 7:00 a.m. |
| Saturday | 1:00 a.m. to 7:00 a.m. | 2:00 a.m. to 7:00 a.m. |
| Sunday | Midnight to 10:00 a.m. or noon (varies by local option) | 2:00 a.m. to 10:00 a.m. or noon |
Important caveats regarding hours:
- Sunday morning hours depend on local option status. Texas Alcoholic Beverage Code § 105.03 contains provisions allowing sales beginning at 10:00 a.m. in areas that have approved such sales; other areas require noon.
- Local jurisdictions may impose more restrictive hours than the state framework permits.
- Late Hours Certificate availability depends on local option elections authorizing extended hours in your area.
- Texas Alcoholic Beverage Code § 105.05 requires that consumption cease within a specified period after the end of legal selling hours.
Before opening, verify the specific hours that apply to your permit type and location with both the TABC and your local authorities.
Renewal
Permits are valid for two years from the date of issuance. You are responsible for renewing before expiration. The TABC sends renewal notices, but the responsibility remains yours.
If your permit expires, you cannot legally sell alcohol. Texas Alcoholic Beverage Code § 11.12 addresses renewal procedures and provides for a grace period for filing late renewals, but you may not sell alcoholic beverages during any lapsed period until the renewal is processed and appropriate fees are paid. Mark renewal dates on your calendar and begin the renewal process well before expiration.
Incident Reporting
Texas Alcoholic Beverage Code § 11.61 requires permit holders to report certain incidents to the TABC. Reportable incidents include breaches of the peace on the licensed premises, disturbances, fights, and incidents involving serious bodily injury. The statute specifies reporting deadlines; failure to report required incidents can result in violations independent of any underlying conduct issues.
Common Application Mistakes
Understanding where other applicants have encountered problems can help you avoid the same issues.
Location Issues
Applying for a permit type that is not available at your location due to local option status remains a common and costly mistake. Once you have paid application fees, signed a lease, and invested in build-out, discovering that your location cannot support your intended permit type creates serious problems. Verify wet/dry status before making any financial commitments.
Distance requirements from schools, churches, hospitals, and other protected locations also create problems. Different permit types have different distance requirements. 16 Texas Administrative Code § 33.3 establishes measurement standards; the TABC measures distances from property line to property line, not building to building. Cities may impose additional restrictions beyond state minimums. Measure distances carefully and confirm requirements with local authorities.
Incomplete Applications
Submitting applications without all required documents, certifications, or signatures causes delays. The TABC cannot process an incomplete application. Use the AIMS checklist to ensure you have gathered everything before submitting.
Failure to Post 60-Day Sign
If the sign is required and not posted, or posted incorrectly, or removed during the 60-day period, your application cannot be approved until the requirement is properly satisfied. This can add months to your timeline. Take a dated photograph of your posted sign as documentation.
Criminal History Disclosure
Failing to disclose criminal history, or making false statements on the application, can result in denial and potential criminal charges. The application requires you to attest that all information is true and correct. The TABC conducts background checks and verifies information. Be truthful and complete in your disclosures.
Prohibited Practices to Understand Before Opening
Several practices are restricted or prohibited under Texas alcoholic beverage law. Understanding these restrictions before you open prevents inadvertent violations. The specific rules that apply depend on your permit type and circumstances.
Bottle Refilling
Texas Alcoholic Beverage Code § 101.43 prohibits refilling certain containers. For distilled spirits, once a bottle is empty, you must dispose of it rather than refilling it with the same or different product.
Brand Substitution
Texas Alcoholic Beverage Code § 101.41 addresses brand substitution. Serving a different brand than the customer ordered without disclosure violates this provision.
Customer-Supplied Alcohol
Texas Alcoholic Beverage Code § 11.09 restricts the possession and consumption of alcoholic beverages on permitted premises to beverages that are authorized under the permit. The practical effect is that customers generally may not bring their own alcohol onto your premises for consumption. Limited exceptions exist for specific situations; for example, Texas Alcoholic Beverage Code § 28.10 addresses removal of partially consumed wine bottles from certain premises.
Promotional Restrictions
Various provisions of the Texas Alcoholic Beverage Code restrict promotional practices involving alcoholic beverages. The specific restrictions that apply depend on your permit type and the nature of the promotion. Consult the TABC’s marketing practices guidance or an attorney before implementing promotional programs involving free or discounted alcohol.
Working with Professionals
The TABC application process is manageable for applicants who invest time in understanding the requirements and carefully completing each step. Many bar owners successfully navigate the process without professional assistance.
However, certain situations benefit from legal guidance:
| Situation | Reason for Professional Help |
|---|---|
| Complex ownership structures | Multiple investors, corporate entities, or out-of-state participants require careful documentation |
| Distance requirement questions | Locations near schools, churches, or other protected sites need verification |
| Criminal history concerns | May require explanation, documentation, or legal strategy |
| Anticipated community protests | Early preparation and response strategies |
| SOAH hearings | Formal administrative proceedings benefit from representation |
Attorneys who practice liquor law can guide applicants through the process, help identify potential problems before they arise, respond to protests, and represent applicants in hearings.
Your local TABC office remains a valuable free resource. Staff can answer questions about the application process and requirements specific to your permit type and location. Find your regional office at tabc.texas.gov/about-us/contact-us/. Building a relationship with your local office can help you stay informed about compliance requirements after you open.
Next Steps
If you are ready to begin the application process, work through these steps in order:
- Verify location eligibility: Check the TABC’s wet/dry map at tabc.texas.gov/public-safety-local-government/local-option-elections/wet-dry-map/. Contact your city and county to confirm the permit type you want is available at your specific address and that you meet distance requirements.
- Research previous permitting: Use the TABC Public Inquiry System at publicinquiry.tabc.texas.gov to check whether your location was permitted for on-premises consumption within the past two years. This determines whether you need to post the 60-day sign.
- Post the 60-day sign immediately (if required): Do not wait until other paperwork is complete. The sign requirement runs on its own timeline.
- Register your business entity: File with the Texas Secretary of State and Texas Comptroller if you have not already done so.
- Gather ownership information: Collect identifying information and residential history for all owners, officers, and shareholders.
- Obtain certifications: Request certifications from your city, county, Texas Secretary of State, and Texas Comptroller. Start early, as some jurisdictions take weeks.
- Create an AIMS account and complete the application: Once you have all certifications and documents assembled, submit through the online system at aims.tabc.texas.gov.
The process requires attention to detail and patience, but thousands of Texas businesses successfully obtain TABC permits each year. Thorough preparation and careful compliance with each requirement position your application for approval.
This article provides general information about the TABC permitting process for educational purposes. It does not constitute legal advice, and no attorney-client relationship is created by reading this content. TABC requirements, fees, procedures, and applicable law may change. The information in this guide reflects the authors’ understanding of applicable rules as of the publication date, but permit requirements, hours of operation, purchasing procedures, and other specifics vary by permit type, product category, location, and local option status. Verify current requirements directly with the TABC at tabc.texas.gov or consult a qualified attorney before relying on this information for your specific situation.