Opening a liquor store in Texas requires much more than choosing a location and filling your shelves. Before you can legally sell a single bottle, you must obtain the proper license—and the process is detailed, highly regulated, and easy to get wrong if you’re unprepared. Many businesses experience delays simply because they overlooked a requirement or submitted the wrong documentation.
If you’re planning to launch a new store or add alcohol sales to an existing business, understanding the basics of Texas licensing rules will save you time, money, and frustration. Here are five key points every retailer should know before applying.
1. A License Is Mandatory Before You Can Sell Liquor
In Texas, selling liquor without an active permit from the Texas Alcoholic Beverage Commission (TABC) is illegal. There’s no provisional period or temporary approval that allows you to operate while you wait. Violations can lead to steep fines or even forced closure.
Starting with the proper license helps protect your business by:
- Avoiding legal penalties that could jeopardize your opening
- Ensuring suppliers can work with you confidently
- Keeping your operations uninterrupted and compliant
A valid license reinforces that your store is committed to meeting state requirements from day one.
2. Texas Has Multiple License Types—Choose Carefully
Texas offers more than 30 different alcohol-related permits, and not all are intended for retail liquor stores. The type you need depends on the products you plan to sell and whether consumption occurs on or off your premises.
For most retailers, the standard option is the Package Store Permit (P), which allows the sale of distilled spirits for customers to take off-site. If you want to offer beer and wine as well, you may need to combine the P permit with other appropriate licenses, such as the Wine and Malt Beverage Retailer’s Permit (BF).
Understanding the purpose of each permit ensures you only apply for what your store actually needs and avoid paying for licenses that don’t apply to retail environments.
3. Local Approval Comes Before State Approval
Even if the TABC would normally approve your license, your city or county must first confirm that your chosen location is eligible. Local governments determine where alcohol can be sold and may enforce additional rules.
Before committing to a lease, make sure to:
- Verify that the area allows alcohol sales
- Confirm your store isn’t too close to schools, hospitals, or churches
- Check zoning rules to ensure the property is approved for retail alcohol sales
- Prepare for any required hearings, notices, or city inspections
Addressing these items early helps prevent expensive setbacks or the need to find a new location later.
4. The Licensing Process Requires Time and Financial Planning
Budgeting for your license is an important part of preparing to open. The application process typically takes several months and requires upfront payments.
Costs and timelines to expect include:
- Fees for a Package Store Permit, plus any additional permits needed
- Fingerprinting charges for all required individuals
- Possible city-level fees depending on where you operate
- A waiting period of 60 to 90 days while your application is reviewed
Once approved, you’ll need to renew your license every two years. Missing renewal deadlines can result in fees or temporary suspension of your ability to sell alcohol.
5. Organize Your Documentation Before You Apply
A complete, accurate application package is essential for avoiding delays. The TABC requires detailed documentation about your business, ownership, and location.
Prepare the following before you submit anything:
- Proof of property control, such as a lease or deed
- Business formation documents, including LLC or corporation filings
- Required forms, diagrams, and location plans submitted through the AIMS portal
- Your Texas Sales and Use Tax Permit and employer identification if you plan to hire staff
Having everything ready in advance keeps the process moving and greatly reduces the chance of issues later.
Using Your POS System to Maintain Compliance
After you obtain your license, staying compliant becomes a daily responsibility. A liquor-focused point of sale (POS) system can help you uphold state regulations and keep your operations organized.
A strong POS system supports compliance by:
- Scanning IDs to prevent underage sales
- Tracking your alcohol inventory accurately
- Producing detailed sales and inventory reports for audits
With the right tools, managing regulations becomes far more manageable, allowing you to focus on customers and operations without worrying about compliance risks.
