How to Open a Bar in Texas: TABC Permits, Fees, and Signage

To open a bar in Texas, you need to form a legal business entity, obtain a Texas Alcoholic Beverage Commission (TABC) permit that matches what you plan to sell, confirm your location is legally allowed to sell alcohol, apply through the TABC’s online portal with full documentation and a published newspaper notice, and then meet ongoing obligations for taxes, bonds, staff training, and signage. The TABC regulates every phase of the alcoholic beverage industry in Texas, and operating without its authorization carries criminal penalties. Expect roughly 30 to 35 days from a complete application to a permit in hand, assuming nothing in your file raises questions.

Set Up the Business Entity First

Before you file anything with the TABC, you need a Texas business entity on record. Most bar owners form an LLC to keep personal assets separate from business liability. A Certificate of Formation filed with the Texas Secretary of State costs $300.

Once the entity exists at the state level, apply for a federal Employer Identification Number (EIN) through the IRS. The application is free and takes minutes online.1Internal Revenue Service. Get an Employer Identification Number You’ll need the EIN to hire staff, open business bank accounts, and handle employment taxes.2Internal Revenue Service. Employer Identification Number

You also need a Texas Sales and Use Tax Permit from the Texas Comptroller of Public Accounts. It’s free, but without it your TABC application will stall and you’ll face fines for collecting sales tax without authorization.3Texas Comptroller. Sales Tax Permit Requirements

Pick the TABC Permit That Matches Your Concept

Your permit choice decides what you can pour and how late you can pour it. Two permits cover most bar formats:

  • Mixed Beverage Permit (MB): liquor, wine, and beer for on-premise consumption. This is the standard full-service bar permit. The two-year fee is approximately $5,300.
  • Wine and Malt Beverage Retailer’s Permit (BG): wine and beer only, for on- and off-premise consumption. The two-year fee is $1,900.4Texas Alcoholic Beverage Commission. TABC Licensing Fees

If you want to stay open past midnight, add a Late Hours Certificate (LH) for $1,100. It extends service to 2:00 a.m. every night of the week, assuming your city or county allows late-hours sales.5Texas Alcoholic Beverage Commission. TABC License and Permit Types Without it, you must stop serving at midnight on weeknights and 1:00 a.m. on Saturday nights.

Consider the Food and Beverage Certificate

If any meaningful food program is part of your concept, pursue a Food and Beverage Certificate (FB) from day one. You qualify if alcohol sales stay below 60 percent of total gross receipts, or if your establishment meets the state’s restaurant definition by operating a permanent food service facility with commercial cooking equipment and multiple entrees.6Texas Alcoholic Beverage Commission. Food and Beverage Certificate The FB exempts you from the conduct surety bond and changes several signage obligations, both of which matter financially and operationally.

Confirm the Location Is Legal

Texas still has a patchwork of wet, dry, and partially wet jurisdictions. Before you sign a lease, get a signed wet/dry certification from the city secretary (inside city limits) or county clerk (outside). The TABC will not process your application without it.7Texas Alcoholic Beverage Commission. Required Certifications Form L-CERT Cheap leases evaporate fast when the address turns out to be dry for your permit type.

Even in a wet area, Section 109.33 of the Texas Alcoholic Beverage Code lets local governments prohibit alcohol sales within 300 feet of a church, public or private school, or public hospital. That buffer can jump to 1,000 feet for public schools if the school district requests it, and the same applies to private schools if their governing body requests it.8State of Texas. Texas Alcoholic Beverage Code 109.33 – Sales Near School, Church, or Hospital Measurement methods differ for schools versus churches and hospitals, so pay a surveyor to confirm before you commit to the space. That fee is nothing compared to losing a deposit on a location that can never be licensed.

Gather Documents and Apply Through AIMS

TABC applications demand full transparency about ownership. Every owner and officer submits personal information and undergoes a criminal background check. You’ll also need:

  • A lease or deed showing legal control of the premises.
  • Financial records documenting where your startup capital came from, so the agency can confirm no undisclosed investors or questionable funding sources sit behind the business.
  • A clear business description covering operations and entity structure.

Disclose every partner, even small-stake ones, on the forms. Discrepancies the TABC uncovers during its investigation will delay or kill the application.

Bars also need a food establishment permit from the Texas Department of State Health Services or your local health authority. The state classifies any operation that handles ice, garnishes, or glassware as a retail food establishment.9Texas DSHS. Permitting Information – Retail Food Establishments If you put a lime wedge on a glass, you’re a food establishment.

Submit through the TABC’s Alcohol Industry Management System (AIMS), which walks you through the required steps, lets you save progress, and tracks missing items.10Texas Alcoholic Beverage Commission. Alcohol Industry Management System (AIMS) Paper applications are still accepted but process more slowly.11Texas Alcoholic Beverage Commission. New TABC Licenses and Permits

After submission, you must publish a notice of your pending license in two consecutive issues of a qualified general circulation newspaper, then file the publisher’s affidavit with the TABC.12Texas Alcoholic Beverage Commission. Publishing a Newspaper Notice for Certain Licenses This gives the community a window to protest. Newspaper charges typically run $90 to $165.

Once the notice period closes without a valid protest and the TABC auditor completes review, expect the permit within about 30 to 35 days of a complete application. Errors or follow-up requests stretch that timeline.13Texas Alcoholic Beverage Commission. TABC License and Permit FAQs

Budget for Fees and Bonds

The permit fee is only the beginning. Cities and counties can charge an administrative fee at application. After approval, the city (or county, outside city limits) can assess a local fee of up to half your TABC permit fee. For MB permit holders, that local assessment is delayed for three years.

Most bars must also post a conduct surety bond. It’s $5,000 if your establishment sits more than 1,000 feet from a public school and $10,000 if within. You can satisfy it with a traditional surety bond, a letter of credit, or an assignment of a certificate of deposit. Holding an FB exempts you from the conduct bond entirely.14Texas Alcoholic Beverage Commission. Bonds

BG and BE permit holders in counties with populations over 1.4 million (currently Bexar, Dallas, Harris, and Tarrant) also post a separate performance bond starting at $2,000, which climbs after forfeitures.15Texas Alcoholic Beverage Commission. Packet – Bond Retailers

Know Your Legal Hours and Taxes

Texas sets strict windows for on-premise service:16Texas Alcoholic Beverage Commission. FAQs

  • Monday through Friday: 7:00 a.m. to midnight.
  • Saturday: 7:00 a.m. to 1:00 a.m. Sunday.
  • Sunday: Noon to midnight, or 10:00 a.m. to noon if food is also being served.

Serving outside these hours (without a Late Hours Certificate for the 2:00 a.m. window) is one of the fastest routes to losing a license.

Mixed Beverage Permit holders owe two state taxes beyond standard sales tax:

Both require monthly reports. Paper filers owe the report and payment by the 20th of the following month; electronic filers get until the 25th. A due date on a weekend or holiday shifts to the next business day. Missed deadlines trigger penalties and interest, and repeated failures put your license at risk.

Train Your Staff and Claim Safe Harbor

Texas does not technically require every bartender to hold a seller-server certificate, but skipping it is a serious business mistake. The TABC strongly recommends certification through an approved school, and most owners require it because of Safe Harbor.19Texas Alcoholic Beverage Commission. TABC Certification

Safe Harbor blocks the TABC from taking administrative action against your license if an employee serves a minor or an intoxicated person, provided all of the following are true:20Texas Alcoholic Beverage Commission. TABC Certification FAQs

  • Every employee who sells, serves, or delivers alcohol, along with their direct managers, holds a current certificate from a TABC-approved school and was certified within 30 days of hire.
  • The business maintains written responsible-service policies and ensures every employee has read and understood them.
  • The employer does not directly or indirectly push employees to break alcohol laws.
  • The violating employee is not an owner or officer.
  • Fewer than three such incidents have occurred within a 12-month period.

Without Safe Harbor, one employee’s bad judgment can bring administrative penalties against your license.

Since September 2023, Texas law requires the TABC to provide training on recognizing and responding to opioid-related drug overdoses.21State of Texas. Texas Alcoholic Beverage Code 5-61 – Training Program on Opioid-Related Drug Overdose Sellers and servers at bars and nightclubs must complete this free online course annually.19Texas Alcoholic Beverage Commission. TABC Certification Build it into onboarding.

Post the Required Signage

Once you’re open, the TABC requires several signs posted in specific locations:22Texas Alcoholic Beverage Commission. Sign Requirements

  • Your license or permit, displayed in a publicly visible place on the premises.
  • A complaint sign, posted near the entrance or register where customers can see it.
  • A health risks warning about drinking during pregnancy, posted at the exit of every restroom.
  • A human trafficking sign, required for MB, BG, and BE permit holders without a Food and Beverage Certificate, visible to both employees and the public.
  • The red handgun warning sign (the 51% sign), required at every entrance if 51 percent or more of your revenue comes from on-premise alcohol sales and you do not hold a Food and Beverage Certificate.

The 51% sign carries legal consequences beyond the TABC. When it’s posted, licensed handgun holders are prohibited from carrying firearms on your premises. If your revenue mix shifts and alcohol drops below 51 percent, the sign comes down and the firearm restriction lifts. Track your revenue split carefully, because posting the wrong sign in either direction creates liability. Missing any required signage is a citable violation during TABC inspections, and repeat violations compound into more serious action against your license.