If you’re planning to open a bar, restaurant, liquor store, or host events where alcohol is served, you’ll need to know how to obtain a liquor license in Indiana. The process may seem complicated at first—but once you understand the steps, you can handle it smoothly and avoid costly mistakes.
In this guide, you’ll learn everything you need to successfully apply for a liquor license in Indiana, including types of licenses, application requirements, costs, timelines, and tips to stay compliant with state alcohol laws.
What Is a Liquor License in Indiana?
A liquor license in Indiana is a legal permit that allows your business to sell, serve, or distribute alcohol. Without this license, it’s illegal to offer alcohol to customers—even if it’s part of a meal or event. Whether you’re running a restaurant, liquor store, bar, or planning a one-time catered event, you need to be licensed under Indiana law.
Who Issues Liquor Licenses in Indiana?
In Indiana, the Alcohol and Tobacco Commission (ATC) is the official body that issues and regulates liquor licenses. The ATC oversees applications, license renewals, compliance inspections, and enforcement of alcohol laws in the state.
You’ll be dealing with this agency from start to finish when you apply for your license.
What Are the Different Types of Liquor Licenses in Indiana?
When you’re figuring out how to obtain a liquor license in Indiana, the first step is to decide which type of license fits your business.
Here are the most common types:
- Retail Liquor License: For liquor stores or grocery stores selling alcohol for off-premises consumption.
- Restaurant Liquor License: For restaurants that want to serve alcohol with food.
- Bar or Tavern License: For establishments that primarily serve alcoholic beverages.
- Brewery, Winery, or Distillery License: For alcohol producers.
- Catering/Special Event License: For short-term alcohol service at events.
- Wholesale Liquor License: For businesses that supply alcohol to retailers or restaurants.
Each license type has specific requirements and fees, so it’s important to choose the right one based on your business model.
How Much Does a Liquor License Cost in Indiana?
Costs can vary depending on your location, license type, and the size of your business. Below is a general estimate of what you can expect to pay:
| License Type | Estimated Cost Range |
| Retail Liquor License | $500 – $1,500 |
| Restaurant Liquor License | $500 – $1,500 per year |
| Bar or Tavern License | $1,000 – $2,000 |
| Brewery/Winery License | $500 – $1,500 |
| Event Catering License | $100 – $500 per event |
| Wholesale Liquor License | $1,000 – $2,000 annually |
Keep in mind that these fees can change depending on local demand and availability. In areas where the license quota is full, you might have to buy a license from an existing holder, which can increase costs.
Step-by-Step Guide: How to Obtain a Liquor License in Indiana
Now let’s walk through the full process of how to obtain a liquor license in Indiana, step by step.
Check License Availability in Your Area
Indiana uses a quota system, meaning there are only a limited number of liquor licenses available per area. So before anything else, check if a license is available in your town or county.
You can do this by visiting the Indiana ATC website or contacting the Commission directly.
What if licenses are sold out?
If no new licenses are available, you can still purchase one from someone who currently holds one. The ATC can give you a list of brokers or sellers who deal in license transfers.
Get the Required Forms and Documents
Once you’ve confirmed a license is available (or found one to purchase), the next step is collecting all the required forms and documents.
You’ll need:
- A completed application form (new or renewal)
- A Consent to Transfer form (if buying an existing license)
- Four copies of your floor plans
- A signed lease or proof of ownership of the property
- Your Articles of Incorporation (if you’re forming a legal entity)
- Property tax clearance from your county treasurer
- A Transfer of Location form, if you’re moving the license to a new address
Make sure all documents are accurate and up to date. Missing or incorrect paperwork can delay your approval.
Submit the Application and Pay the Fees
After gathering your documents, submit your application through the ATC. You can do this online through their portal or mail your application package.
You’ll also need to pay the applicable license fee when you apply. The exact amount depends on the license type and location, as discussed earlier.
Attend a Local Alcoholic Beverage Board Meeting
After submitting your application, you’ll need to attend a public hearing in front of your local Alcoholic Beverage Board.
This step is required to ensure your business meets local zoning laws and doesn’t face strong opposition from the community.
During the meeting:
- You’ll present your business plan and proposed alcohol sales
- The board will vote to recommend or reject your application
This recommendation then goes to the state-level ATC, where a final decision is made.
Final Inspection by State Excise Police
Before your license is officially issued, the Indiana State Excise Police will inspect your premises.
They’ll check for:
- Zoning compliance
- Building safety
- Proper signage
- Legal selling space for alcohol
- Health and sanitation standards
Once you pass inspection, the ATC will issue your liquor license.
How Long Does It Take to Obtain a Liquor License in Indiana?
Here’s a general timeline:
- New license: 10 to 12 weeks
- Renewal: 8 to 10 weeks
It’s smart to apply early, especially if your business relies on serving alcohol from day one.
What If You Want to Transfer or Move a Liquor License?
If you’re buying an existing license or changing the address where it’s used, you’ll need to:
- Submit a Consent to Transfer form (signed by the current holder)
- File a Transfer of Location form with the new address
- Ensure all taxes and violations are cleared before the transfer is processed
No license transfer will be approved if back taxes are owed or if violations are unresolved.
What Are the Ongoing Requirements After Getting a License?
Once you obtain your liquor license in Indiana, you must follow strict rules to keep it valid.
Here’s what you need to do:
- Sell alcohol only to those 21 and older
- Stop alcohol sales by 2 AM (unless otherwise restricted locally)
- Keep property safe and clean
- Ensure employees are trained, especially in Responsible Beverage Service (RBS), if required
- Pay your alcohol sales taxes on time
- Renew your license annually, and file all reports as required
What Happens If You Break the Rules?
Failing to follow Indiana liquor laws can result in:
- License suspension or revocation
- Fines from $500 up to $50,000
- Criminal charges for serious violations (e.g., repeated sales to minors)
Don’t take shortcuts. It’s better to stay compliant and avoid losing your ability to sell alcohol altogether.
Common Challenges When Applying for a Liquor License in Indiana
When figuring out how to obtain a liquor license in Indiana, you may run into:
- License shortages: Due to the quota system
- High upfront costs: Especially in high-demand areas
- Slow processing times: If paperwork is incomplete or hearings get delayed
- Community objections: Nearby residents may not support your business model
- Complex zoning laws: You may need special approval if your business is near schools or religious institutions
Final Tips for Getting Your Indiana Liquor License
- Start early: It can take several months to get approved.
- Double-check forms: Small mistakes can lead to big delays.
- Stay professional: At board meetings and with inspectors.
- Know your responsibilities: As a business owner serving alcohol.
- Ask for help if needed: Lawyers or consultants familiar with Indiana liquor law can guide you.
Conclusion
Now that you understand how to obtain a liquor license in Indiana, you’re one step closer to legally serving alcohol in your business. Yes, the process takes time and paperwork—but with the right preparation, you can move through each stage confidently.
Check license availability, gather your documents, attend your board meeting, and follow all the rules. Once you’re approved, you can start pouring drinks legally—and more importantly, responsibly.