How to Get a Liquor License in Texas

Texas makes you check the map first

A guy I talked to signed a lease on a bar space in a suburb outside Houston. He started the buildout, ordered equipment, and then applied for his liquor license. The TABC rejected him. The precinct was dry — no alcohol sales allowed. He lost the deposit, the buildout costs, and three months of rent. He had no idea dry areas still existed in Texas.

Before you do anything else in Texas, you need to confirm that your location is in a wet area. Texas is one of the few states where entire counties, cities, or even individual precincts can prohibit alcohol sales outright. The Texas Alcoholic Beverage Commission (TABC) will not issue a permit for a dry location, no matter how good your application is.

Step 1: Check your local option status

Texas uses a "local option" system. Each county, city, or justice precinct votes on whether to allow alcohol sales, and the rules vary by type of sale:

Wet: All types of alcohol sales are legal.
Dry: No alcohol sales of any kind.
Moist: Some sales allowed — for example, beer and wine but not liquor, or on-premises consumption but not package sales.

You can look up your location's status on the TABC website under "Local Option Status." Enter the county and it shows exactly which types of permits are available in each precinct. Do this before you sign a lease. Do this before you call a contractor. Do this first.

If your area is dry or moist and you want full liquor service, the only path is a local option election — a petition and public vote to change the status. That process takes months and costs money for the petition drive, and there is no guarantee the vote passes. Most people just pick a different location.

Step 2: Pick the right TABC permit

Texas uses the word "permit" for liquor and "license" for beer, but in practice everyone calls them all licenses. The TABC issues dozens of permit and license types. Here are the ones that matter for bars and restaurants:

Mixed Beverage Permit (MB): Full liquor — beer, wine, and spirits — for on-premises consumption. This is the standard bar and full-service restaurant permit. Costs $6,281 for the initial two-year term. For a full cost breakdown, see our Texas liquor license cost guide.
Wine and Malt Beverage Retailer's Permit (BG): Beer and wine only, on-premises. Good for casual restaurants that do not need a full bar. $1,006 for two years.
Beer Retail Dealer's On-Premise License (BE): Beer only, on-premises. $150 for two years. Some brewpubs start here.
Package Store Permit (P): Full liquor for off-premises sale — liquor stores. $3,531 for two years. Texas still prohibits liquor sales on Sundays and after 9 PM.
Brewer's Permit (BP): For manufacturing beer. $1,500 for two years. If you also want to sell pints on-site, you may need additional permits depending on your production volume.
Winery Permit (G): Manufacturing and selling wine. $1,000 for two years. Includes on-premises tasting room privileges.

If you hold a Mixed Beverage Permit and serve food, you also need a Food and Beverage Certificate (FB) — $381 for two years. This is separate from your health permit and separate from your MB permit. Many applicants miss it.

Want to serve past midnight? You need a Late Hours Certificate — $1,506 for two years. Without it, you must stop serving at midnight. With it, you can serve until 2 AM (or 1 AM in some jurisdictions).

Step 3: Meet the eligibility requirements

The TABC has baseline requirements every applicant must meet:

Age: You must be at least 21.
Residency: For most permits, at least one owner must be a Texas resident. For a Mixed Beverage Permit, you must have been a Texas resident for at least one year before applying.
Criminal history: A felony conviction within the last five years is disqualifying. Certain misdemeanors — particularly alcohol-related offenses — can also result in denial. The TABC reviews criminal history case by case, but recent convictions are very difficult to overcome.
Financial interest restrictions: Manufacturers (breweries, distilleries) generally cannot hold retail permits, and vice versa. Texas has strict "tied house" rules separating the tiers of the alcohol industry.
Tax compliance: You cannot owe delinquent taxes to the state. The TABC checks with the Comptroller's office.

If you are forming an LLC or corporation, every member or officer with a financial interest must meet these requirements individually. A single disqualified partner means the whole application gets denied.

Step 4: Prepare your application

The TABC moved most of its application process online through its portal. You will need:

Completed application forms — filed through the TABC's online system. Includes business entity details, ownership information, and the specific permit type requested.
Surety bond — required for Mixed Beverage Permits. The bond amount is $10,000. You purchase this through a bonding company, and the annual premium is typically $100 to $300 depending on your credit.
Lease or deed — proof of legal right to the premises. The address must match exactly.
Floor plan / premises diagram — showing the area where alcohol will be stored and served. The TABC is particular about this. If the diagram does not match the physical space, you fail inspection.
Fingerprints — for every person with ownership interest. Texas uses electronic fingerprinting through approved vendors.
Entity documents — if you are an LLC or corporation, you need your formation documents filed with the Texas Secretary of State.

The application fee is paid at the time of submission. For a Mixed Beverage Permit, that is $6,281 upfront. It is refundable only if the TABC denies your application for reasons related to local option status — not for other denial reasons.

Step 5: Post the notice and wait

Once the TABC accepts your application, you must post a sign at the premises. Texas requires a 60-day posting period — twice as long as most states. The sign must be placed where it is visible to the public and include specific language about the type of permit applied for.

During this period, anyone can file a protest with the TABC. Common sources of protests:

Residents within 300 feet of the premises
Churches, schools, daycare centers, or hospitals within specified distances
Local officials or neighborhood associations

Texas has strict distance restrictions. For a Mixed Beverage Permit, your premises cannot be within:

300 feet of a church, public school, or public hospital (measured property line to property line)
1,000 feet of a public school if the permit was not previously held at that location (some cities enforce this stricter distance)

If a protest is filed, the TABC schedules a hearing at the State Office of Administrative Hearings (SOAH). This adds months. Do your distance measurements before you apply — not after.

Step 6: Background investigation

The TABC conducts background checks on every person listed on the application. This includes:

Criminal history through DPS and FBI databases
Review of any prior TABC violations
Tax compliance verification with the Comptroller
Verification that all owners meet the residency requirement

A clean applicant with straightforward ownership usually clears the background check within 30 to 45 days. Complex corporate structures, out-of-state investors, or criminal history issues take longer. The TABC will request additional documentation if anything needs clarification, and every request resets the clock.

Step 7: Premises inspection

A TABC agent inspects the premises before your permit is issued. They verify:

The space matches your submitted diagram
The premises meets the requirements for the permit type
Distance requirements from schools, churches, and hospitals are met
Proper signage is posted
The space is ready for the type of service you applied for

If the agent finds issues, you get a chance to correct them. But if the problem is a distance violation you did not catch, there is no fix — the application gets denied. Measure the distances yourself before you apply. Walk it. Use a measuring wheel. Do not eyeball it.

Step 8: Permit issuance

If everything passes — local option status confirmed, application complete, posting period clean, background clear, inspection passed — the TABC issues your permit. For a Mixed Beverage Permit, the typical timeline from application to issuance is 60 to 90 days when nothing goes wrong. Protests, incomplete applications, or background issues can push it past six months.

Your TABC permit must be displayed at the premises at all times. It is valid for two years from the date of issuance. The TABC sends renewal notices, but it is your responsibility to renew on time. For details on the renewal process, see our liquor license renewal guide.

For a detailed look at processing timelines, see our Texas liquor license timeline guide.

Penalties for selling alcohol without a permit

Do not serve alcohol while your application is pending. Texas Alcoholic Beverage Code Section 11.02 makes it illegal to sell, serve, or distribute alcoholic beverages without a valid TABC permit. Penalties include:

First offense: Class A misdemeanor. Up to $4,000 fine and up to one year in county jail.
Subsequent offenses: Can be charged as felonies with higher fines and state prison time.
Seizure: Law enforcement can confiscate all alcoholic beverages on the premises.
Civil penalties: The TABC can impose additional administrative fines and refuse to issue a permit to anyone convicted of unlicensed sales.

The TABC runs regular compliance checks and undercover operations. They partner with local law enforcement for joint stings. Getting caught is not rare.

Operating with an expired permit carries the same penalties. The TABC does not offer a grace period. If your renewal is late by a single day and you serve a drink, you are operating illegally. For more on what happens when permits lapse, see our expired license guide.

Other permits you need alongside your TABC permit

The TABC permit is the biggest piece, but it is far from the only one. A Texas bar or restaurant also needs:

Food and Beverage Certificate (FB): Required alongside the Mixed Beverage Permit if you serve food. $381 for two years.
City business license / permit: Most Texas cities require a general business permit. Fees vary — typically $50 to $500.
Sales tax permit (Comptroller): Required to collect and remit sales tax. Free to obtain, but you must have one before your first sale.
County health permit: Required if you serve food. Includes a pre-opening inspection and annual follow-ups. See our health inspection prep guide for what they check.
Fire marshal inspection: Occupancy limits, exit routes, fire suppression systems. Required before opening.
Certificate of Occupancy: Confirms the space is approved for your business use. See our Certificate of Occupancy guide.
Sign permit: Required for exterior signage in most Texas cities.
Seller server certification: Texas requires all employees who sell or serve alcohol to complete a TABC-approved seller training course within 30 days of employment. This is an employee-level certification, not a business permit, but failing to enforce it can result in fines against your establishment.

Each of these comes from a different agency, on a different renewal cycle, with different deadlines. None of them coordinate with each other. For a full list based on your city and business type, use the free permit checker.

Tips from people who have been through it

Bar and restaurant owners in Texas consistently mention the same things:

Check local option status before you do anything. This is not a detail you can fix later. If your location is dry, no amount of paperwork changes that. A local option election is expensive and uncertain.
File early. The 60-day posting period alone means you are waiting two months minimum. Add the background investigation and inspection, and you are looking at three months in the best case. File as soon as you have a signed lease.
Measure distances yourself. Do not rely on Google Maps. Walk from your property line to the nearest church, school, and hospital property line. If you are close to the distance limit, hire a surveyor. A $500 survey is cheap compared to a denied application and a wasted buildout.
Budget for the surety bond. Mixed Beverage Permits require a $10,000 surety bond. You pay a premium (usually $100 to $300 per year), not the full amount, but you need it before the TABC will process your application.
Train your staff on seller server certification. Texas takes this seriously. If the TABC catches an employee serving without certification, the fine hits the business, not just the employee. Set up a system to track certifications and expiration dates from day one.

Get your full Texas permit checklist

Use the free permit checker to see every permit your Texas bar, restaurant, brewery, or winery needs. Enter your city, pick your business type, and get the full list with links to the actual agencies, estimated costs, and processing timelines.

Between the TABC permit, the Food and Beverage Certificate, your city business license, the health permit, the fire inspection, the sales tax permit, and whatever else your city requires — each with its own renewal date from an agency that does not talk to the others — it is easy to miss a deadline. One lapsed permit can mean a $4,000 fine, a Class A misdemeanor, or both. The PermitDue dashboard tracks every permit in one place and sends reminders at 90, 60, 30, and 7 days before expiration. When your TABC renewal comes around and a lapse means you stop serving immediately, that is not a deadline worth leaving to memory.