A Texas Wine and Malt Beverage Retailer’s Permit, coded BG by the Texas Alcoholic Beverage Commission, lets a business sell wine, beer, and other malt beverages for both on-premise and off-premise consumption without carrying a full liquor license.1Texas Alcoholic Beverage Commission. New TABC Licenses and Permits Plan on at least $903 in state fees in most counties, local fees on top of that, and a real-world timeline closer to 90 days than the 30-to-35 days TABC advertises, because a mandatory 60-day public notice sign catches most first-time applicants off guard.
What the BG Permit Lets You Sell
Under Chapter 25 of the Texas Alcoholic Beverage Code, a BG permit holder can sell wine and malt beverages for drinking on the premises and for customers to carry home in sealed containers.2Justia. Texas Alcoholic Beverage Code Chapter 25 – Wine and Malt Beverage Retailer’s Permit That dual on/off scope is why the permit fits restaurants, cafés, brewpubs, and specialty grocery stores. You cannot resell any product purchased under the permit to another retailer or distributor.
The ceiling is wine up to 24% alcohol by volume and malt beverages of any strength. Distilled spirits are off limits. One practical workaround: customers may bring their own spirits and consume them on site, provided your establishment holds no separate mixed beverage or private club permit and no local ordinance bans the practice. Your staff still owes the same duty to monitor intoxication and refuse service to a visibly intoxicated patron, even when the bottle came from the customer’s bag.
What It Costs
The state fee for a BG permit in most Texas counties is $350, plus a $553 surcharge, for a $903 state total.3Texas Alcoholic Beverage Commission. Fee Chart for Liquor Permits In Bexar, Dallas, Harris, and Tarrant counties, the state fee jumps to $2,000 for an original permit, which combined with the $553 surcharge brings the state total to $2,553.
Local governments add their own fees. Most cities and counties can charge up to $350 for an original BG permit; those four large metro counties can charge up to $2,000.4Texas Alcoholic Beverage Commission. TABC Maximum Fees for Local Governments A new BG permit in downtown Houston or Dallas can therefore run over $4,500 in combined state and local fees. Fees are due at filing, so budget for them before you start the application.
Renewal fees come in lower. The local fee drops from $350 to $175 in most counties on renewal, though the state portion and surcharge still apply.
Who Qualifies and Where You Can Operate
Personal and Criminal History
Every individual applicant must be at least 21 and a U.S. citizen. TABC runs a background check on every person with a significant role in the business.
TABC must deny the application if you or your spouse were convicted of a felony within the five years before you apply, or if five years haven’t passed since the end of any sentence, parole, or probation tied to that felony.5State of Texas. Texas Alcoholic Beverage Code ALCO BEV 25.06 The same five-year bar covers convictions for drug offenses, gambling, prostitution, firearms offenses, and bootlegging. A prior Alcoholic Beverage Code violation that resulted in a canceled license or a fine of $500 or more within that window is also a mandatory disqualifier. Spousal history counts.
Beyond mandatory denials, TABC has discretion to deny for other reasons: a code violation in the two years before filing, debt owed to the state for unpaid alcohol taxes or fees, a poor reputation in the community, or operating the premises in a way that threatens public safety.6State of Texas. Texas Alcoholic Beverage Code ALCO BEV 11.46
Location Rules
Your premises must sit in a “wet” area where voters specifically approved the sale of wine and malt beverages through a local option election.7Justia. Texas Alcoholic Beverage Code – Local Option Status If the precinct voted dry or only approved a different category of alcohol, no application will save the location.
State law also prohibits selling alcohol within 300 feet of a church, public school, private school, or public hospital. For schools, local governments can extend the buffer to 1,000 feet by resolution at the school district’s request. Distances are measured along the shortest path of ordinary pedestrian travel, property line to property line. A TABC agent will verify the measurement independently.
You need to document legal control of the property with a signed lease or recorded deed identifying the exact address and boundaries of the licensed premises.8Texas Alcoholic Beverage Commission. TABC New License and Permit Forms
What to Gather Before You File
All applications go through TABC’s online Alcohol Industry Management System (AIMS). Pull these together first so you can file in one sitting:
- Entity formation documents: Articles of Incorporation for corporations or Certificate of Formation for LLCs, showing company structure and every owner.
- Personal History Sheets for every person holding a 10% or greater interest and for all officers and managers. Errors and gaps here are the single most common cause of processing delays.
- A copy of the signed lease or recorded deed with the exact address. The lease term ideally covers the two-year initial permit period.
- Financial disclosures. Bank statements or loan documents tracing the capital used to start the business and purchase inventory, so TABC can confirm no disqualified or hidden person is funding the operation.
- Local certification. A document signed by the city secretary or county clerk verifying the location is in a wet area for wine and malt beverage sales. This requires an in-person visit to the local office.
- School notice documentation if your premises is near a school.
AIMS asks you to declare the specific business type (restaurant, grocery store, bar) in the Location Information section. Supporting documents upload digitally, but the local certification signature has to happen in person before you can finish the online filing.9Texas Alcoholic Beverage Commission. TABC License and Permit FAQs
How Long Approval Actually Takes
Once your documents are in and your local certification is signed, you submit everything through AIMS and pay the state fees. TABC says a complete application takes 30 to 35 days to process from the date they receive it.1Texas Alcoholic Beverage Commission. New TABC Licenses and Permits That’s the floor, not the ceiling.
The 60-Day Sign Requirement
If your location wasn’t licensed or permitted for on-premises alcohol consumption in the two years before you file, you must post a 60-day public notice sign outdoors at the proposed location. It has to be prominently displayed and visible to the public for the full 60 days before TABC can issue the permit.10Texas Alcoholic Beverage Commission. Sign Requirements A missing or improperly posted sign delays approval with no shortcut.
You can post the sign and start the 60-day clock before you submit the application. Post it the day you sign the lease and use the waiting period to assemble documentation. Wait until after filing and you add up to two months to a process that’s already long.
Investigation and Issuance
TABC assigns an agent to investigate. Expect an in-person interview covering your operational plan and the rules on serving intoxicated patrons and preventing underage sales. The agent may also inspect the premises to confirm the layout matches your application and to verify distance from churches, schools, and hospitals.
If no protests are filed and the investigation goes smoothly, TABC issues the BG permit for a two-year term.11State of Texas. Texas Alcoholic Beverage Code ALCO BEV 11.09 TABC can shorten the initial term to balance renewal workloads across the state and will prorate the fee if it does. Holders with a history of violations may be placed on a one-year renewal cycle. Once active, the physical license must be displayed in a spot visible to the public.
Protests That Can Derail You
Anyone can protest your application. On original applications, protests must be received within 60 days before, and up to 15 days after, the date the application appears as “pending” in TABC’s public database.12Texas Alcoholic Beverage Commission. Protest a License On renewals the window closes 60 days after the permit’s expiration date.
A protest has to raise at least one jurisdictional issue, meaning something TABC has the legal authority to address, such as criminal activity at the location or illegal alcohol sales. Complaints about noise, traffic, or parking are not jurisdictional and won’t sustain a protest on their own. A valid protest can be referred for an administrative hearing with formal evidence, testimony, and a written decision, pushing the timeline well past the standard window and sometimes ending in denial.
Federal Registration You Still Owe
The state permit doesn’t cover your federal obligations. The Alcohol and Tobacco Tax and Trade Bureau requires every retail alcohol dealer to register by filing TTB Form 5630.5d before opening.13eCFR. 27 CFR Part 31 – Alcohol Beverage Dealers The form asks for business name, EIN, exact location, and ownership details. Multiple locations can be covered by a single registration with an attached list. No federal tax is owed, but the registration is mandatory.
TTB also imposes recordkeeping. Keep purchase invoices or a ledger showing the quantity, source, and date of every wine and malt beverage delivery you receive, retained for at least three years and available for inspection during business hours. Any single sale of 20 wine gallons (about 75.7 liters) or more to one buyer at one time must be documented with date, buyer’s name and address, what was sold, and a signed delivery receipt.13eCFR. 27 CFR Part 31 – Alcohol Beverage Dealers
You’ll need a federal Employer Identification Number before filing the TTB registration. The IRS issues an EIN online once your legal entity exists with the state and you have the responsible party’s SSN or ITIN.14Internal Revenue Service. Get an Employer Identification Number Form the entity first; the IRS won’t issue an EIN before it exists.
Staying Permitted After Approval
Seller and Server Training
Texas does not legally require seller or server certification under state law, which surprises many new permit holders.15Texas Alcoholic Beverage Commission. TABC Certification FAQs TABC strongly recommends it, and most serious operators treat it as mandatory because of the safe harbor. If every employee who sells, serves, or delivers alcohol, along with their immediate managers, is certified within 30 days of hire, the business gains significant protection from administrative penalties when a violation occurs.
Without that safe harbor, a single bad sale can be costly. Selling or serving alcohol to a minor is a Class A misdemeanor carrying up to $4,000 in fines and a year in jail. Serving a visibly intoxicated person can result in fines between $100 and $500 and up to a year of jail time, with higher penalties for repeat offenses.15Texas Alcoholic Beverage Commission. TABC Certification FAQs Most TABC-approved courses run a few hours online.16Texas Alcoholic Beverage Commission. TABC Certification
Renewals and Ongoing Compliance
Your BG permit expires on the second anniversary of its issue date. Late renewals can mean operating without authorization, which puts your ability to get a new permit at risk.11State of Texas. Texas Alcoholic Beverage Code ALCO BEV 11.09
Keep the federal TTB registration current too. If nothing on your registration has changed, you don’t need to re-register annually. A change in business name, ownership structure, or location triggers an update. If you close the business, federal rules require a discontinuance registration within 30 days.13eCFR. 27 CFR Part 31 – Alcohol Beverage Dealers
TABC agents run compliance checks at permitted locations. Common violations that draw administrative penalties, fines, or suspension include serving minors, serving visibly intoxicated patrons, operating outside legal service hours, and failing to display the permit. Accumulated violations can shorten your next renewal cycle to one year or end in cancellation.