TL;DR

TABC permits are non‑transferable — so buyers must apply for new licenses while sellers cancel theirs post‑closing. Both parties should coordinate on compliance, due diligence, and required applications for a smooth transition.

Transferring a TABC Permit When Buying or Selling a Bar in Texas

TABC permits attach to the license holder and are generally not transferable. Buyers must apply for a new permit, post the required 60‑Day Sign, register a new business entity, and obtain all applicable city and county approvals. Sellers must resolve outstanding violations, disclose any compliance issues, and cancel their permit once the deal closes.

Buyers should begin the permit application process as early as possible. This process can take 45 to 60 days or more depending on the complexity of the business and local approval timelines. A signed lease, proof of control over the premises, and accurate floorplans will be required. During the waiting period some buyers may negotiate a management agreement allowing them to operate under the seller’s permit. However, this is only permitted with TABC approval and proper documentation.

Sellers should provide documentation of any prior enforcement actions, pending renewals, or license conditions that might impact the buyer. Buyers should conduct careful due diligence to uncover hidden liabilities, unpaid taxes, or permitting issues that could delay their own application.

If the new owner plans to relocate the business, then the process depends on where the new location is. A change‑of‑location application may suffice if it remains in the same county. Moving to a different county requires applying for an entirely new permit.

Because TABC does not allow permits to be transferred, successful bar acquisitions hinge on timing, paperwork, and coordination. Having both legal and compliance support on hand helps ensure a smooth transition and avoids costly delays.

Ready to Buy or Sell a Bar in Texas? We’ll Help You Get It Right.

At Castroland Legal we guide buyers and sellers through every step of the TABC transition process. From due diligence to permit applications and management agreements, we make sure your deal closes cleanly and compliantly. Let’s talk about how to keep your transaction on track.