Site Content

How to Apply for a Liquor License

Obtaining a liquor license can be complicated, but with preparation and knowledge, we can easily get you on your way to selling alcohol at your business.  Offering beer, wine, or liquor will help you increase your establishment's profits with very little extra effort and can also help turn your restaurant into a neighborhood hangout.  Whether you own a restaurant, bar, grocery store, or liquor store, obtaining a liquor license can be a smart choice. 

We've put together a step-by-step guide to assist you through your process of applying for a liquor license.  Read up on each of these topics bellow.  Obtaining a Liquor License can sometimes be daunting and overwhelming.  So don’t hesitate to call us to assist you through the process if needed. 

1. Understand Arizona's Liquor Laws
2. Arizona is a Quota License State. What Does That Mean For You?
3. Do You Know For sure What Class of Liquor License You Need?
4. Preparing to File a Liquor License Application.
5. How Much Does a Liquor License Cost and Are There any Available?
6. Filing Your Application for a Liquor License.
7. Arizona Department of Liquor License and Control - If You Do It Wrong, It Can Be A Costly Nightmare!

1. Understand Arizona Liquor Laws                                                        

Every state is unique and has very specific laws regarding the distribution, sale, and consumption of alcohol. The first step in getting your liquor license is to KNOW Arizona state liquor laws.  In addition, every license type has specific laws and privileges, unique to it. Every state’s Alcoholic Beverage Control agency is unique. In Arizona, it’s the Arizona Department of Liquor Licensing and Control (commonly known as DLLC) “DLLC” is the governing body that enforces the rules and laws pertaining to alcohol, as well as actively enforcing all other state laws.  In addition, most counties and towns have their specific rules and ordinances that need to be adhered to.  You can find Title 4 Liquor laws on the DLLC web page at www.azliquor.gov.          

2. Arizona is a “Quota License” state.  What Does That Mean For You?

“Arizona Dedicated Liquor License Consultants “AZDLLC” is one of the top liquor license brokers in Arizona.  We can assist you with purchasing, or selling a Series #6, #7, or #9 quota liquor license.  Through our network of contacts in the industry, we can assist in getting you the best price, as well as assist you through the entire process. 

If you're planning on opening a Bar, #6 license, a Beer & Wine Bar, #7 license or a Liquor Store, #9 license, understand that these are considered a “Quota License”. This means the license must be obtained on the open market, are county specific and vary in price, based on supply and demand.  However, once per year, DLLC does have the ability to hold an “AUCTION” for these series of licenses. This is done at the discretion of the DLLC Director, and only if there has been a county population increase of 10,000 or more, OR if there has been a license that has been revoked or reverted in a county, the Director may auction that license in the same county. (A.R.S. 4-206.01) You must be familiar with and understand this, or you could be waiting to open your new business for a very long time! Here’s an example. If you’re opening a Series 7 Beer & Wine Bar in Maricopa County, the license alone will cost you approximately $36,000. However, if you’re opening that same Beer & Wine Bar in Santa Cruz County, it’ll only cost you $6,200. Again, it comes down to supply and demand. So please, call us immediately if you need assistance. Saving money, doing it on your own, is sometimes the most expensive thing you can do!

3. Do You Know For Sure What Class of Liquor  License You Need?

Here is a list of all Liquor Licenses and what they are for.

Series 1 - In-State Producer -  This non-transferable liquor license allows an in-state producer to produce or manufacture beer, wine and distilled spirits (all spirituous liquor) and sell/deliver the product to a licensed wholesaler. A person who holds an In-State Producer license may also sell to on-site patrons liquor produced or manufactured on the licensed premises. A.R.S. §4-243. Also see Internet Sales & Residential Shipping.

Series 2 - Out-Of-State Producer - This non-transferable liquor license allows an out-of-state producer, exporter, importer or rectifier to ship beer, wine and distilled spirits to Arizona liquor-licensed wholesalers. An out-of-state producer or supplier may not sell its products to an Arizona wholesaler at a cost higher than the lowest price at which the item was sold by the producer or supplier to any other wholesaler. An out-of-state producer, exporter, importer or rectifier must comply with the provisions of Title 4 as if an in-state producer.

Except for as permitted in A.R.S. §4-205.04(C)(9) through (G), Internet Sales & Residential Shipping are limited in this state.

Series 2D - Out-of-state Craft Distiller -   An Out-of-state Craft Distillery is located outside of Arizona and produces not more than 20,000 gallons of distilled spirits annually.

An Out-of-state Craft Distillery that produces not more than 1,189 gallons of distilled spirits in a calendar year may self-distribute which means they may sell and deliver spirits produced on the premises to businesses licensed to sell distilled spirits in and out-of-state. Sales of distilled spirits produced by other craft distillers may not exceed 20 percent of sales by volume.

Series 2L - Limited Out-of-state Winery - This non-transferrable liquor license allows an out-of-state winery to sell/deliver not more than 240 gallons of wine produced on the premises to Arizona liquor-licensed wholesalers. The licensee must report annual gallonage delivered to a licensed wholesaler in the state. This license has no direct to consumer privileges. A.R.S. §4-205.04 and A.R.S. §4-209(B)(15)

Series 2W - Out-of-state Farm Winery - The Out-of-State Farm Winery license has specific privileges based on these production limits:

· Must produce at least 200 and not more than 40,000 gallons of wine per calendar year, or

· If producing, not more than 20,000 gallons of wine per calendar year, may operate in all three tiers.

Except for as permitted in A.R.S. §4-205.04(C)(9) through (G), Internet Sales & Residential Shipping are limited in this state. The licensee must report annual production gallonage to the Arizona Department of Liquor annually.

Series 2M - Out-of-state Microbrewery - This non-transferable liquor license allows an out-of-state microbrewery which produces more than 5,000 gallons and less than 6,240,000, of beer during a calendar year (A.R.S. §205.08(B) to sell and ship the beer into the state to Arizona-licensed wholesalers. An out-of-state Microbrewery must comply with the provisions of Title 4 as does an in-state licensee. Internet Sales & Residential Shipping is allowed. The licensee must submit an annual production report to the Arizona Department of Liquor.

Series 3 - In-state Microbrewery -   This non-transferable liquor license allows for on & off-sale retail privileges for a licensed in-state microbrewery which produces more than 5,000 gallons, and less than 6,240,000, of beer during the 12-month reporting period (A.R.S. §205.08(B). Sales or beer produced by other microbreweries may not exceed 20% of the licensee's annual sales by volume on the licensed premise.

With this license, when production is no more than 1,240,000 gallons per calendar year, the in-state microbrewery may make sales and deliveries of beer to any retail license licensed to sell beer except for its retail licenses on or adjacent to the microbrewery. Internet Sales & Residential Shipping is allowed and the licensee must submit an annual production report to the Arizona Department of Liquor.

Series 4 - Wholesaler- This non-transferable liquor license allows a wholesaler to warehouse, sell and distribute all types of spirituous liquor (beer, wine, distilled spirits) to Arizona-licensed retailers.

Series 5 - Government - If you're a government entity, call me directly and I will walk you through all you need to know.

Series 6 - Bar - The bar (series 6) liquor license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows the holder both on- & off-sale retail privileges. This license allows a bar retailer to sell and serve all types of spirituous liquors, primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises. A retailer with off-sale ("To Go") privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. A.R.S. 4-206.01.F. states that after January 1, 2011, the off-sale privileges associated with a bar license shall be limited to no more than 30% of the total annual sales receipts of liquor by the licensee at that location. Payment must be made no later than the time of delivery. Off-sale ("To Go") package sales of spirituous liquor can be made on the bar premises as long as the area of off-sale operation does not utilize a separate entrance and exit from the ones provided for the bar. A hotel or motel with a Series 06 license may sell spirituous liquor in sealed containers in individual portions to its registered guests at any time by means of a minibar located in the guest rooms of registered guests. The registered guest must be at least twenty-one (21) years of age. Access to the minibar is by a key or magnetic card device and not furnished to a guest between the hours of 2:00 a.m. and 6:00 a.m. Internet Sales & Residential Shipping. 

Series 7 - Beer and Wine Bar - The beer and wine bar (series 7) liquor license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows the holder both on- & off-sale retail privileges. This license allows a beer and wine bar retailer to sell and serve beer and wine (no other spirituous liquors), primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises. A retailer with off-sale ("To Go") privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. A.R.S. 4-206.01.F. states that after January 1, 2011, the off-sale privileges associated with a bar license shall be limited to no more than 30% of the total annual sales receipts of liquor by the licensee at that location. Off-sale ("To Go") package sales can be made on the bar premises as long as the area of off-sale operation does not utilize a separate entrance and exit from the one provided for the bar. Payment must be made no later than the time of delivery. Internet Sales & Residential Shipping.

Series 8 - Conveyance - This non-transferable, on-sale retail privileges liquor license allows the owner or lease holder of an operating airline, railroad or boat to sell all spirituous liquors in individual portions or in original containers for consumption only on the plane, train or boat.

Boats:

1. Applicant must designate a dock as the home port for the boat.
2. Notice of the application must be prominently placed on the dock that is the home port.
3. The boat must have a displacement of not less than fifty (50) tons and a passenger capacity of eighty (80) persons or more.
4. The boat must have a current Coast Guard certification.
5. No spirituous liquor sales may be made on a boat in dock earlier than fifteen (15) minutes prior to departure and shall not be served after a boat returns to the dock.

Series 9 - Liquor Store - The liquor store (series 9) license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows a spirituous liquor store retailer to sell all types of spirituous liquors, only in the original unbroken package, to be taken away from the premises of the retailer and consumed off the premises. A retailer with off-sale privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. Payment must be made no later than the time of delivery. Series 9 (liquor store) licensees and applicants may apply for unlimited sampling privileges by completing the Sampling Privileges form. Internet Sales & Residential Shipping.

Series 10 - Beer and Wine Store - This non-transferable, off-sale retail privileges liquor license allows a retail store to sell beer and wine (no other spirituous liquors), only in the original unbroken package, to be taken away from the premises of the retailer and consumed off the premises. A retailer with off-sale privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. Payment must be made no later than the time of delivery. Series 10 (beer and wine store) licensees and applicants may apply for unlimited sampling privileges by completing the Sampling Privileges form. 

Series 11 - Hotel/Motel - This non-transferable, on-sale retail privileges liquor license allows the holder of a hotel/motel license to sell and serve all types of spirituous liquor solely for consumption on the premises of a hotel or motel that has a restaurant where food is served on the premises. The restaurant on the licensed premises must derive at least forty percent (40%) of its gross revenue from the sale of food. The holder of this license may sell spirituous liquor in sealed containers in individual portions to its registered guests at any time by means of a minibar located in the guest rooms of registered guests. The registered guest must be at least twenty-one (21) years of age. Access to the minibar is provided by a key or magnetic card device and may not be furnished to a guest between the hours of 2:00 a.m. and 6:00 a.m.

Series 12 - Restaurant- This non-transferable, on-sale retail privileges liquor license allows the holder of a restaurant license to sell and serve all types of spirituous liquor solely for consumption on the premises of an establishment which derives at least forty percent (40%) of its gross revenue from the sale of food. Failure to meet the 40% food requirement may result in revocation of the license.

Series 13 - In-state Farm Winery - An In-state Farm Winery is a winery located in Arizona that produces at least 200 gallons but not more than 40,000 gallons of wine annually.

This non-transferable, In-state Farm Winery liquor license has on- and off-sale retail privileges and allows the holder to sell and deliver wine produced on the premises to businesses licensed to sell wine in and out-of-state, and to serve wine produced on the premises for on and off-sale consumption and for the purpose of sampling. A in-state farm winery that produces not more than 20,000 gallons of wine in a calendar year may make sales of wine produced on premises to consumers who order by telephone, mail, fax, catalogue or internet per A.R.S. §4-205.04(C)(9)(a)-(g). The licensee may apply for two (2) remote tasting rooms (series 19) which are located in the state of Arizona. A.R.S. §4-205.04(D)

Series 14 - Private Club -  This non-transferable, on-sale retail privileges liquor license allows the holder of a club license to sell and serve all types of spirituous liquor for consumption only on the premises owned, leased or occupied by the club, and only to bona fide members of the club and their bona fide guests. A "club" is defined in the statutes as including veterans and fraternal organizations and their building associations, golf, social and airline clubs.

Series 15 - Special Event Permit - Special Event applications must be received by the Department of Liquor 10 days prior to the event. This temporary, non-transferable, liquor license with retail privileges that allows a political party or campaign ballot measure, government entity, or non-profit entity to sell and serve spirituous liquor for consumption on the premises where the spirituous liquor is sold, and only for the period authorized on the license. Off-sale privileges apply only to special events holding auctions/wine or distilled spirit pull.

The applicant for a special event license must fill out a special event application and file the application with the local governing body where the special event is to take place, for approval or disapproval. If held at a licensed premises, no local governing body approval is required.

If the application is approved by the local governing body, and the event meets the requirements for granting the license, the director may issue a special event license to the qualifying organization. Qualifying organizations will be granted a special event license for no more than ten (10) days in a calendar year. Events must be held on consecutive days and at the same location or additional licenses will be required. The license is automatically terminated upon closing of the last day of the event or the expiration of the license, whichever occurs first. The qualified organization must receive at least twenty-five percent (25%) of the gross revenues of the special events. 

Series 16 - Festival/Fair - Fair/Festival applications must be received by the Department of Liquor 10 days prior to the event. A Fair/Festival license allows a licensed farm winery or craft distillery to serve products they produce at a festival, sanctioned county or state fair or within the premises of a licensed special event. Liquor produced under the provisions of the farm winery or craft distillery license may be served for consumption on the fair/festival premises or "to-go" in the original, sealed container. This application requires state approval, and may require the approval of the local government where the fair/festival will take place. A.R.S. §4-203.03, 4-203.02 and 4-205.11.

Series 17W - Direct-to-Consumer Wine Shipment - The Arizona Direct-to-Consumer Wine Shipment License allows United States-licensed wineries to ship limited amounts of wine produced at their winery to Arizona residents. The application will serve both in- and out-of-state applicants. An Arizona Transaction Privilege Tax (TPT) license is required. To report your annual shipment into the state of Arizona, please use the template below. You will be required to submit this report online using the Direct Shipment Portal. The link to the portal as well as instructions will be included here after January 1, 2019. The Direct-to-Consumer Wine Shipment law is A.R.S. §4-203.04.

Series 18 - In-state Craft Distiller - An In-state Craft Distillery is located in Arizona and produces not more than 20,000 gallons of distilled spirits annually.

This license has on- and off-sale retail privileges. The licensee may serve spirits produced on the premises for consumption on the premises, sampling, and in the original, sealed container for sales "to-go". The licensee may sell and deliver to consumers who order by telephone, mail, fax, catalogue or internet per A.R.S. §4-205.10(7). Internet Sales & Residential Shipping are limited in this state. An In-state Craft Distillery that produces not more than 1,189 gallons of distilled spirits in a calendar year may self-distribute which means they may sell and deliver spirits produced on the premises to businesses licensed to sell distilled spirits in and out-of-state. Sales of distilled spirits produced by other craft distillers may not exceed 20 percent of sales by volume.

This license is non-transferable (person-to-person or location-to-location).The licensee may apply for two (2) Remote Tasting Room (series 19) which is to be located in the State of Arizona. The licensee must report annual production gallonage to the Arizona Department of Liquor annually. A.R.S. §4-205.10

Series 19 - Remote Tasting Room - Remote Tasting Rooms are located in Arizona and are owned and operated by a licensee that concurrently owns one of these four Arizona liquor licenses:

1. Out-of-state Farm Winery - Series 2W
2. Out-of-state Craft Distillery - Series 2D
3. In-state Farm Winery Application Kit - Series 13
4. In-state Craft Distiller Application Kit - Series 18

When tied to a Remote Tasting Room license the above license becomes the Master License and must be in "active" and good standing for the Remote Tasting Room to operate. The Remote Tasting Room is a retail location.

The Remote Tasting Room (series 19) license application is first submitted to the city, town, or municipality where the tasting room will be located. Upon approval from the city, town, or municipality, the application will then go to the state. This is the only Arizona liquor application which first is approved by the local government.

Remote tasting room for farm wineries: A.R.S. §4-205.04(F). Remote tasting room for craft distilleries: A.R.S. §4-205.10(D).

Series 20 - Alternating Proprietorship - This license allows for two (2) or more Farm Winery licenses to operate in one licensed premises. Each Farm Winery will need approval to operate as Alternating Proprietorship from the United States Tax and Trade Bureau (TTB). This allows Farm Wineries to utilize the same space for production of wine. Each Farm Winery must have a separate storage space within the licensed premises. Each Farm Winery is responsible for filing individual annual production reports. A.R.S. §4-205.04(D).

Series 21 - Custom Crush The Custom Crush license is an agreement between a "host" Farm Winery and a "tenant" Farm Winery to produce wine on behalf of the tenant.
 

A licensee wishing to participate in a Custom Crush arrangement must hold a permit from the United States Tax and Trade Bureau (TTB) prior to entering a Custom Crush agreement. The host winery will apply for the Custom Crush license and list all tenant wineries on the Custom Crush license. The tenant winery supplying the grapes shall report all volumes from the Custom Crush arrangement on its annual production report.

4. Preparing to File a Liquor License Application.  Can you do it on your own?

Once you've researched the liquor laws in Arizona and you think you’re ready to apply for your liquor license, you'll need to contact DLLC and obtain the necessary applications.  In addition, you’ll need to contact your local governing body “city/county agency” and ask both the following questions:

· Will they allow you to put a liquor license in the location you intend on opening?  If the location has negative history, they may protest your application.  This could seriously impact when you open, or completely stop you from obtaining a liquor license, costing you thousands.  (More often a city issue.) 

· How much does the state/city charge for the initial license(s), yearly renewals and other fees?

· Are there any establishments in your county looking to sell their license (Quota license) or is DLLC going to have an auction in time that may be beneficial to you? 

“You cannot over-prepare with your liquor license application!  That’s why so many businesses hire an Agent to take care of this for them.  It's a good idea to have everything you need ready to go before you apply for your liquor license.  Again – time is money.  Here is a list of just some of the information/documents you will need prior to beginning your liquor license application and where to obtain them:

1. Employer ID number from the IRS

2. Zoning permit from your local zoning commission

3. Business license from your local governing body (city or county)

4. Sales tax permit from your state's website

5. Distance from nearest K-12 school or church – Google Earth or previous DLLC liquor application

6. Diagram of your business-DLLC may have this from a previous liquor application. This is not a blueprint, but must show doors, tables, chair count and full kitchen layout (Can be hand drawn if legible.) 

7. Food handler's permit(s), if applicable, from Arizona Health Commission

8. Building permit(s) from your local zoning commission

9. Signage permit from your local zoning commission

10. Health permit from the Arizona Health Commission

11. Music license (if you'll be playing copyrighted music) from online licensing companies. BMI, ASCAP

 
Delinquent taxes?

Make sure you've paid any delinquent taxes or outstanding taxes before applying for your liquor license. Failure to do so can negatively impact your chances of obtaining a license. This is a big issue with the cities and WILL slow down or stop you from obtaining a license.  

What other Documents Should You Have Ready When You Apply for a Liquor License?

In addition to the documents mentioned above, you may need to provide:

1. Photos of your building's exterior

1. A floor plan of your building's interior “This can cause many issues with DLLC     and the city, if not done correctly.”
2. Your proposed food menu 
3. A copy of your building title
4. Your code compliance certificate
5. Your certificate of incorporation
6. Your company constitution
7. Your partnership agreement (if applicable)
8. Details regarding your age and business experience
9. Proof of financials “This is looked at      very closely by both DLLC and the city. Get assistance if you have any doubts or questions.”

 5. How Much Does a Liquor License Cost and Are They Available?

Remember, all licenses are available at any time from the state except for a Series #6, #7 and #9. The costs between these “Quota” Licenses vary greatly, depending on type and what county there located in.  There's really no way to accurately determine what it will cost to obtain a quota liquor license until you talk to your DLLC representative.  Keep in mind that in some situations, you might need licenses for all four levels of government - federal, state, county, and local, which will obviously incur extra costs.

A list can be found on the DLLC website showing the assessed “fair market values” of quota licenses, as of 2020. Remember, supply and demand can dramatically affect these estimates. 

Application and Renewal fees – How much are they? 

Below is a list of the current fees associated with each of the different types of Liquor Licenses. Understand that regardless of when you were issued your liquor license, the expiration date is dictated by the county in which it was issued, not 12 months after it was issued.  DLLC gives you the option to initially pay six months or one year for you license. 

6. Filing Your Application for a Liquor License

Have you gathered all of the necessary materials and think you're ready to file your application for a liquor license? In most cases, you can just go to the DLLC website, at www.azliquor.gov. From there, you can print your application form(s), fill them out, and send them in.  Typically, you'll also have to pay a non-refundable $50-$100 processing fee, depending upon what it is that you’re actually submitting.  For a new license, you will also be required to submit to a background check, as well as fingerprints. 

Will You Need to Defend Your Liquor License Application? 

Ok, you’ve submitted your application, now what? Once you've submitted your application for a liquor license, to DLLC, a notice will be posted at your business that lists name, type of license and the allowed Protest period. During this time period, the state, “DLLC”, your local governing body, or anyone from the local community, residing or owning a business within one mile, may protest your application. If this occurs, you will be required to defend your proposal at a public hearing, before a decision is made on whether you'll receive a liquor license.  If there is no protest, your local government will review your application. Barring any unforeseen problems, your liquor license should be issued within 120 days. 

“Know that this is not a hard number, as many licenses are issued much sooner. However, the state will not speculate on earlier time frames.”

How Do You Avoid Losing Your Liquor License?

Arizona requires you to renew your license every year, unless you pay up front for two years, which involves paying additional renewal fees.  If you're in good standing with DLLC and your local governing body, you should be entitled to renew. 

However, you may not be able to renew, or your liquor license may be revoked if you violate state or city laws or ordinances. The most common violations include:

1. Selling Alcohol to a Minor

2. Over-Serving Patrons

3. Employees Drinking 

4. Repeated Acts of Violence “AOV”

5. Undisclosed/Hidden Owners

6. Failing an audit (Restaurants only)

7. Tax issues

7.  Arizona Department of Liquor License and Control “DLLC” – If You Do it Wrong, It Can Be A Costly Nightmare!

Over my 15 years with DLLC, I arrested owners and managers, who have had both the best and worst of intentions. And, I’ve seen them both lose their Liquor Licenses. Let’s face it, people are human and sometimes do things wrong.  But make no mistake; the DLLC is very good at what they do! I have never been more impressed with a government agency than I am with the Arizona Department of Liquor Licensing and Control. 

The DLLC Licensing staff is extremely proficient, and if treated with respect, will go out of their way to assist you in any way possible.  The Detectives are led by one of the best Chief of Police I have ever had the privilege of working for.  Deputy Director Mike Rosenberger and his team of state certified police officers (Detectives) are exceptional at what they do. If you run an honest business but make a mistake, you will be treated fairly. This doesn’t mean you will get off Scot-free. Mistakes can still cost you thousands! 

However, if you are dishonest and try to skate buy, or cheat the system to make a few extra bucks, YOU WILL GET CAUGHT! And if that’s how you do business, please, don’t call us. If you want to do it right, we can help!  If you need a little assistance from time to time, call us.  If you’re in trouble and need a lot of help to get things right, call us.  This is your business and your livelihood. Let’s do it right, together!