TL;DR
To sell or serve alcohol in Austin, businesses must choose the correct TABC license type and complete state registrations, local approvals, and AIMS filings. Legal guidance can streamline the process, reduce delays, and address compliance or protest issues.
How to Obtain a TABC License in Austin: A Step‑by‑Step Guide for Business Owners
Opening a bar, brewery, or restaurant in Austin is an exciting venture, but there's one crucial hurdle you must clear before you can legally sell or serve alcohol: obtaining a license from the Texas Alcoholic Beverage Commission (TABC).
The licensing process is detailed and involves both state and local steps. Castroland Legal is here to provide a guide that demystifies the process, outlines common pitfalls and explains how a lawyer can help you stay compliant while keeping your focus on running your business.
Understanding TABC and the Three‑Tier System
The Texas Alcoholic Beverage Commission regulates the state's alcohol industry, ensuring that manufacturers, distributors and retailers operate within the law. Texas follows a three‑tier system that separates these roles: manufacturers produce alcohol, distributors and wholesalers deliver products to businesses, and retailers like bars, restaurants and liquor stores sell directly to consumers. Each tier has its own set of licenses and permits, and retailers must secure the appropriate license before opening their doors.
Because the TABC issues dozens of license categories (from mixed beverage permits for bars to package store licenses for liquor retailers) choosing the correct license is the first strategic decision you'll make.
Failing to apply for the correct license can delay your opening and expose you to fines or enforcement actions. When in doubt, consult an attorney or contact your local TABC office for clarification.
Major Types of TABC Licenses for Hospitality Businesses
Mixed Beverage Permit (MB)
Allows bars, restaurants, and hotels to sell spirits, beer, and wine for on‑site consumption. Most full‑service establishments with cocktails require an MB.
Mixed Beverage Permit with Food and Beverage Certificate (MB + FB)
Similar to an MB but offered at a reduced tax rate for establishments deriving 51% or more of revenue from food.
Wine and Beer Retailer's Permit (BG)
Permits the sale of beer and wine for on‑premises consumption, and sales for off‑premises consumption (like a growler refill or packaged wine).
Retail Dealer's On‑Premise License (BE)
Allows convenience stores and grocery stores to sell beer for off‑site consumption. A separate license (BF) covers off‑premise wine sales.
Private Club Registration Permit (N)
Required when customers "bring their own bottle", or when a bar is structured as a private club (common in dry counties).
These are just a few examples. There are also temporary event permits, brewpub and brewery licenses, and licenses for distilleries, wholesalers, and importers.
Each has its own fees, restrictions, and eligibility requirements, so be sure to research the correct permit for your business model.
Step‑by‑Step: How to Get a TABC License in Austin
Securing a license involves more than filling out one form. You must satisfy state requirements, local zoning and signage rules and follow strict timelines. Below is a detailed checklist.
1. Choose the right license and alcohol industry tier
Before starting your application, determine your business's role in the supply chain. The TABC requires applicants to select whether they manufacture, distribute, or retail alcohol. For most Austin (and across the state of Texas) hospitality businesses, you'll be in the retail tier (selling alcohol to consumers), but you may need manufacturing or distribution permits if you brew beer or distill spirits on‑site.
Reviewing license descriptions and contacting your city or county ensures the type you want is available in your area.
2. Register your business with state and federal agencies
The TABC requires all applicants to register their business entity with the Texas Secretary of State and the Comptroller of Public Accounts. If you're forming a new limited liability company (LLC) or corporation, you'll file formation documents and obtain a tax ID number.
It's often wise to engage a business attorney here to ensure your entity structure protects your personal assets. You'll also need to obtain any required federal permits from the Alcohol and Tobacco Tax and Trade Bureau (TTB) if you plan to manufacture alcohol.
3. Create an account in the Alcohol Industry Management System (AIMS)
AIMS is TABC's online portal for licensing, renewals, and reporting. It is the fastest and most straightforward way to apply for a new permit. You'll create an account (use Chrome or Edge, as AIMS does not support Safari) and identify yourself as a principal party or authorized agent. Once registered, AIMS guides you through the application.
4. Gather required signs and publish notices
Texas law requires new applicants to display certain signs. Retailers often must post a 60‑Day Sign at the proposed location notifying the public of their intent to sell alcohol. The sign must be visible for 60 days before TABC will issue the license.
Failing to display the sign or publish required notices (sometimes in a local newspaper) can delay approval. Check TABC's sign requirements and download the sign template in AIMS.
5. Complete local certifications and zoning approvals
Licenses are not solely a state matter. Cities and counties must certify that your business site meets zoning and public-safety requirements. In Austin, the process involves several steps: Apply through AIMS, contact the Office of the City Clerk to begin the city certification process, receive zoning approval from the Development Services Department, and schedule an appointment for the City Clerk's signature.
Other cities in Texas have similar processes, but the contact details and zoning rules vary. Always check with your local city hall or county clerk after submitting your AIMS application.
6. Complete the AIMS application and packets
Inside AIMS you'll complete a Prequalification Packet, Location Packet and Business Packet. You must provide ownership information, lease or deed, floor plans, signage details and the completed local certifications and affidavits. You also need to post a public notice and gather county and state certificates.
Make sure all documents are complete, signed, and notarized; incomplete submissions slow the process.
7. Submit and respond quickly to TABC requests
When your application is ready, submit it through AIMS. TABC staff will review your materials and may request additional information. You have 10 business days to respond to these requests. Failing to respond in time can cause your application to be removed and your fee refunded, forcing you to start over.
8. Plan for the wait and keep track of timelines
Once a complete application is received, TABC typically issues a new license within 30–35 days. Other TABC guidance notes that processing times may vary depending on the license type and local certifications, so it's wise to start the process early and factor in additional time for city approvals and the 60‑Day Sign. Licenses are valid for two years; you must renew them before they expire.
How Castroland Legal helps Secure Your TABC License
Securing a TABC license in Austin involves far more than just paperwork. It involves background checks, protests, employee certifications, and compliance bonds. All of which come with their own creation of obstacles.
That's why working with a knowledgeable business attorney is invaluable. At Castroland Legal, we guide hospitality business owners through every step of the process to help you avoid delays, reduce risk, and stay focused on opening your doors.
Let us help you navigate the red tape with confidence. Reach out today to get started.