Any business that manufactures, distributes, or sells alcoholic beverages in Indiana needs an alcohol permit from the state Alcohol and Tobacco Commission (ATC) before opening its doors. The ATC issues more than 60 distinct permit types, with fees running from $50 for a temporary beer and wine permit to $25,000 for a gaming-site retailer permit, and processing takes up to 90 days after the agency receives a complete application. That clock does not include the local board investigation most retail and dealer applicants must clear first, so realistic planning starts several months before you intend to pour a drink.
Who Qualifies to Hold a Permit
Indiana’s eligibility rules are stricter than in many states. For retail, dealer, and liquor wholesaler permits, every individual applicant must have been a continuous, bona fide Indiana resident for at least five years before the application date. A corporation applying for one of these permits must have at least 60 percent of its outstanding common stock owned by people who meet that same five-year residency test.1Justia Law. Indiana Code Title 7.1, Article 3, Chapter 21 – Restrictions on Issuance of Permits Limited partnerships and LLCs face the same 60-percent ownership threshold, and every officer, stockholder, general partner, or member must individually satisfy every other qualification that would apply to a solo applicant.
The ATC runs background checks on all applicants. Some prior convictions are disqualifying at the application stage; others trigger mandatory revocation if they occur while a permit is active. Convictions under Indiana’s gambling statutes (IC 35-45-5-3, 35-45-5-3.5, or 35-45-5-4) fall in the second category and leave the commission no discretion.2Indiana General Assembly. Indiana Code 7.1-3-23-2 – Fine, Suspension, and Revocation of Permits
Matching the Permit to Your Business
The ATC does not issue a single generic “liquor license.” Each permit is tied to a specific business model, beverage category, and consumption format, and picking the wrong one wastes time and money.3Indiana Alcohol and Tobacco Commission. License Types
Retail and Dealer Permits
Retail permits cover on-premises consumption at restaurants, hotels, social clubs, fraternal clubs, civic centers, and excursion boats. Dealer permits cover off-premises carryout sales at grocery stores, drug stores, and package liquor stores. Within each group, the permit specifies which beverages you can sell: beer only; beer and wine; or beer, wine, and liquor. A beer retailer permit for a restaurant costs $500, a full liquor, beer, and wine retailer permit for a hotel costs $1,000, and fraternal club permits run $250 regardless of beverage type.4Indiana Alcohol and Tobacco Commission. Complete ATC Fee Schedule
Wholesale Permits
Wholesaler permits authorize distribution to licensed retailers and dealers. Indiana separates these by beverage: beer wholesaler, wine wholesaler, and liquor wholesaler each require their own permit, and each costs $4,000 for a two-year term.4Indiana Alcohol and Tobacco Commission. Complete ATC Fee Schedule Wholesalers must maintain detailed transaction records showing what was sold, to whom, and when.
Manufacturing Permits
Breweries, wineries, and distilleries need a manufacturing permit before producing any alcohol in Indiana. A standard brewer’s permit or distiller’s permit costs $2,000; a farm winery permit and a small brewer’s permit each cost $500.4Indiana Alcohol and Tobacco Commission. Complete ATC Fee Schedule Small brewers producing no more than 90,000 barrels a year across all their facilities gain additional privileges under Indiana Code 7.1-3-2-7, including limited direct sales to retailers, an attached restaurant, and Sunday carryout.5Indiana General Assembly. Indiana Code Title 7.1 Alcohol and Tobacco 7.1-3-2-7
Temporary Permits for Events
Organizations hosting festivals, fundraisers, or other one-time events can apply for a temporary beer and wine permit at $50. It allows beer and wine sales at a specific location for a limited duration, and staff serving alcohol at the event are held to the same enforcement standards as permanent permit holders.4Indiana Alcohol and Tobacco Commission. Complete ATC Fee Schedule
Employee and Volunteer Permits
Individuals who serve or handle alcohol at a licensed establishment need their own permits. A standard employee permit costs $45 and lasts three years; a volunteer permit costs $15 for three years. Workers ages 18 to 20 can obtain a restricted employee permit for $30, valid for two years or until they turn 21, and they may serve only in a restaurant or hotel dining area under the supervision of someone at least 21 who has completed certified server training. Starting in February 2026, all new and renewal employee and salesman permit applications must be submitted through the ATC’s online portal; paper applications will no longer be accepted.6Indiana Alcohol and Tobacco Commission. Alcohol Permit Applications and Forms
How the Application Moves Through the System
For retail and dealer permits, the ATC schedules a public investigation before the local alcoholic beverage board in the county where the proposed premises sits. The board evaluates whether you are a fit applicant and whether the permit is appropriate for the location. Hearings are open to the public, and the board can take sworn testimony, receive affidavits, and consider other information.7Justia Law. Indiana Code Title 7.1, Article 3, Chapter 19 – Procedures for Investigation
The commission generally follows the local board’s recommendation. It can override that recommendation only if it is arbitrary, contrary to law, unsupported by substantial evidence, or violates constitutional rights. In practice, the local board holds significant power over who gets a permit in its area.
If the proposed premises sits in a residential district, the ATC must also determine whether the operation would unreasonably interfere with residents’ peace and comfort. The commission publishes notice, holds a public hearing where neighbors can speak for or against the permit, and accepts written remonstrances. A finding that the location is residential and the business would unreasonably impair quality of life requires the commission to deny the application.
Buying an existing permit is its own process. The buyer files a transfer application with an affidavit disclosing the purchase price (required by IC 7.1-3-24-3.5), consent-to-transfer forms, a county verification of the location, a property tax clearance schedule, and a manager’s questionnaire. Transfers currently require paper submission.6Indiana Alcohol and Tobacco Commission. Alcohol Permit Applications and Forms
When a Permit Simply Is Not Available
Indiana caps the number of certain permit types by the population and location of a given area under IC 7.1-3-22.8Indiana Alcohol and Tobacco Commission. Trade Practice Manual When no new permits are available in your jurisdiction, the only path is to buy an existing permit through a transfer. Scarcity can push the market price well above the face-value fee, especially in high-demand urban areas. Economic redevelopment permits illustrate the gap: the initial fee is $1,000, but the minimum bid at auction is $35,000.4Indiana Alcohol and Tobacco Commission. Complete ATC Fee Schedule
Keeping the Permit Active
Most retail and dealer permits renew annually; wholesale permits run on two-year cycles. Every renewal requires a property tax clearance schedule proving you are current on property taxes at the licensed premises.6Indiana Alcohol and Tobacco Commission. Alcohol Permit Applications and Forms Letting a permit lapse means you cannot legally sell alcohol until the renewal is processed, and in a quota-restricted jurisdiction, a lapse can mean losing the asset entirely.
Every employee-permit holder must complete a certified alcohol server training program within 120 days of being hired at a licensed establishment. The ATC’s free online course satisfies the requirement, and third-party providers approved by the commission are also acceptable.9Indiana Alcohol and Tobacco Commission. Server Training Classes Allowing uncertified staff to serve exposes the permit holder to enforcement action, not just the employee.
Sale hours are uniform statewide. Alcoholic beverages may be dispensed from 7:00 a.m. to 3:00 a.m., Sunday through Saturday.10Indiana Alcohol and Tobacco Commission. Rules and Laws Serving outside those hours is a permit violation regardless of the day.
The Federal Layer for Manufacturers and Wholesalers
If you manufacture or wholesale alcohol, an ATC permit is only half the picture. The federal Alcohol and Tobacco Tax and Trade Bureau (TTB) requires its own approval before you can legally operate. There is no fee to apply for or maintain a federal TTB permit, but the application requires substantial documentation, and brewers must secure a surety bond before production begins.11TTB: Alcohol and Tobacco Tax and Trade Bureau. Applying for a Permit and/or Registration Brewers file a Brewer’s Notice through TTB’s Permits Online system, working from 27 CFR Part 25.12TTB: Alcohol and Tobacco Tax and Trade Bureau. Brewer’s Notice
Federal law also imposes trade practice restrictions Indiana permit holders must follow. The Federal Alcohol Administration Act prohibits “tied house” arrangements in which a manufacturer or wholesaler controls a retailer, along with exclusive outlet agreements, commercial bribery, and consignment sales. These rules are enforced under 27 CFR Parts 6 and 8.13Alcohol and Tobacco Tax and Trade Bureau. General Trade Practices FAQs
What Violations Cost
The ATC can fine a permit holder, suspend or revoke the permit, or combine a fine with suspension or revocation for any violation of Title 7.1 or commission rules. Continuing violations can be fined per day.2Indiana General Assembly. Indiana Code 7.1-3-23-2 – Fine, Suspension, and Revocation of Permits Furnishing alcohol to a minor, for instance, carries a maximum fine of $4,000 for brewers and distillers, $2,000 for wholesalers, and $1,000 for all other permit types.14Indiana General Assembly. Title 905, Article 2 – Fines and Penalties Suspensions can run up to 30 days per violation, and any proposed suspension longer than three days triggers additional procedural requirements. Unpaid fines can themselves lead to suspension until payment is made, with those additional penalties calculated separately from the original fine.15Legal Information Institute. 905 IAC 2-1-5 – Additional Fines and Penalties
Civil liability sits on top of ATC enforcement. Under Indiana’s dram shop statute, a permit holder can be sued for death, injury, or property damage caused by an intoxicated patron, but only if the server had actual knowledge the person was visibly intoxicated at the time and that intoxication was a proximate cause of the harm.16Indiana General Assembly. Indiana Code Title 7.1 Alcohol and Tobacco 7.1-5-10-15.5 If the injured person is at least 21 and was voluntarily intoxicated, neither they nor their heirs can bring a claim unless that actual-knowledge threshold is met. It is a narrower standard than in many states, and it is why most venues and festivals require proof of liquor liability insurance before allowing alcohol service, even when state law does not.