Starting your own liquor store in Texas is not as simple as opening another kind of retail outlet. Liquor stores have their own set of specific licensing regulations in addition to all the restrictions that the state places on any retailer. You have to follow all the rules for starting a retail business, and at the same time, you must satisfy the requirements for obtaining a Texas liquor license from the Texas Alcohol Beverage Commission (TABC).

The First Steps Toward Starting a Texas Liquor Store

First of all, you need to draw up a business plan for the liquor store that will calculate your expenses and the income you expect to generate from your sales. This would include all the steps from start-up to when your store is established. That way, you and any financial institutions from which you may seek financing can see if your sales projections are being met.

When you register your new business as a partnership, sole proprietorship or corporation, the Internal Revenue Service (IRS) will issue you a federal employer identification number. The next step before acquiring your Houston liquor license is to obtain a sales tax permit from the Texas Comptroller of Public Accounts.

One of the most important decisions you can make when starting any retail outlet is the location. A liquor store depends on regular customers as well as walk-ins, so finding a high-traffic area can really make or break your store. If your store is within 1,000 feet of a public school, you will have to obtain a $10,000 bond. If it is farther than 1,000 feet, you only need a $5,000 bond. Therefore, your proximity to a any school can have a significant effect on your start-up expenses.

Once you have found your location, get a lease for the property. Before moving in, try to make the lease dependent on whether you can secure your liquor license.

Obtaining Your Liquor License

To start your own liquor store in Texas, you need to contact the TABC to set up a pre-licensing interview. Your partners, you and any potential investors must be present at the meeting. Your responsibilities will be explained, and you will receive the instructions and forms you need to apply for your license. A Texas licensing service can be a great help during this process.

You must post the notices that the TABC will provide in the window of your store for 60 days prior to receiving your liquor license if the storefront has not been used for selling liquor for the previous two years. These signs must be displayed prominently to notify the public of your pending hearing for your liquor license. Then, you can schedule an inspection of your location with the TABC.

Finding Funding

At this point, you should get a small-business loan or some other type of financing if you cannot fund the store on your own. You must show the lender your business plan so that they can feel comfortable that your plan is solid, and you will not default on their loan.

The fees for obtaining a liquor license in the Texas can vary so getting the help of a Texas licensing service can help alleviate confusion and these experts take care of the paperwork and filing. Once you have paid for your license, you need to find a good beer, wine and liquor distributor to stock your store. This may require working with a few vendors because some of the larger breweries prefer to distribute their products themselves.

Then, you will have a hearing at the county courthouse to determine if you can receive a liquor license. Local citizens may protest your location or suitability.

Once you have been approved for your license, place your first order with your distributors. The final step is to open your store and to begin conducting business.

On September 14, 2015, Deep Ellum Brewery took legal action against the Texas Alcohol Beverage Commission (TABC) in an effort to overturn what the company describes as an archaic law that unfairly limits its ability to compete with brewpubs, distilleries and wineries in the state. Many of the laws governing the sale of alcoholic beverages in the Lone Star State were enacted during Prohibition and have not been seriously revisited since that time. In 2013, the increasing popularity of craft beer led to reduced restrictions on its sale for on-site sales and consumption at microbreweries and brewpubs; however, more must be done to even the playing field for all companies with a current TABC license.

Unequal Treatment of Businesses

The law prohibiting breweries from selling their products for off-site consumption is particularly unfair because other businesses are not constrained by these regulations. For instance, wineries and distilleries can sell their products on-site for carryout and consumption elsewhere. This difference in how businesses are treated under TABC regulations can have a significant effect on the profitability of craft breweries in the competitive marketplace. The lawsuit filed by Deep Ellum Brewery is intended to even the playing field for breweries and to provide added options for consumers in the state of Texas.

Other Legal Challenges to TABC

Earlier this year, Wal-Mart filed suit against the TABC to overturn legislation that prevents the mega-corporation from selling alcohol. TABC regulations prevent public companies from selling hard alcohol of any kind and limit private companies to ownership of five or less liquor stores unless the permits for additional stores are purchased from a blood relative. If this lawsuit is successful, Wal-Mart could soon enter the retail alcohol market in Texas, presenting even more competition for breweries that cannot even offer carryout sales for their current customers.

Big Corporations Still Calling the Tune

The 2013 legislation that offered a small measure of relief for beleaguered craft beer producers was orchestrated in part by Rick Donley, the president of the Beer Alliance of Texas. While his efforts did provide some much-needed breathing room for small-scale craft breweries, the adjustments fell far short of the changes needed to ensure profitability and public access to the products of small craft brewers. Donley has advised a wait-and-see attitude for craft breweries interested in pursuing further reforms and changes to bring Texas law into the 21st century. Many brewers, however, feel that they have waited long enough for their chance to compete on a level playing field with other businesses in the Texas alcoholic beverage industry.

Fast Growth Fuels Friction

One obstacle to TABC reform is the pressure from other elements of the industry to retain the status quo. Craft beer producers have seen an enormous increase in popularity over the past decade. These added sales are due in large part to increased consumer awareness of the quality and variety of products available through these small-scale breweries. Larger companies and distributors have a real stake in preventing craft breweries from making further inroads into their markets and have brought pressure to bear on regulators to stop any further expansion of opportunities in this fast-growing sector of the industry.

Depending on the outcome of both the Deep Ellum and the Wal-Mart lawsuits, craft breweries may see significant changes in the next few years. Acquiring and maintaining a Houston beer license can be the key to taking advantage of the potential new opportunities in the take-out alcohol marketplace. Additionally, a Houston liquor license can allow these businesses to operate under current laws and to serve customers who wish to consume beverages on-site during their visit. By staying on the right side of the law and working to improve the regulatory environment for their operations, craft breweries can continue to achieve growth and profitability in the Houston marketplace.

The laws for obtaining a Texas liquor license can be confusing and counterproductive to some business owners. It seems that many of the Texas Alcoholic Beverage Code (TABC) provisions are only in place to benefit old favorites and restrain new competitors. However, those days may be coming to an end.

Wal-Mart recently challenged the constitutionality of numerous anticompetitive clauses concerning the sale of distilled spirits for off-site consumption. The problem is also being addressed by new legislation before the state House and Senate.

Texas businesses must get a package store permit prior to selling liquor. Most states require the same type of license, but Texas prohibits companies that are publicly traded from receiving them. Additionally, no individual or company may have more than five liquor licenses.

However, that law does not seem to apply to certain businesses that hold an Austin or Houston alcoholic beverage license. In Austin, for example, there are over a dozen Twin Liquors stores. How do they curry such favor? They merely squirm through a loophole permitting closely related family members to pool their licenses. To make matters even more confusing, hotels are exempt from the five-store limit.

The Houston liquor license laws do not have any basis in public safety or health. A publicly traded company does not have access to liquor that is stronger than the same product sold by a private company. Any sort of protection once afforded by the five-store limit is negated by the large exemptions given to some businesses. It seems the law’s true purpose is to benefit certain companies as opposed to protecting the public health.

This type of regulation smacks of crony capitalism in which businesses enlist the government’s power to protect them from the strains of fair competition, which is nothing new. Taxi companies have entreated cities to regulate Uber enough to force it out of business in their area. Steel companies demand tariffs on steel imports to keep the less-expensive goods out of the U.S.

Rather than improving a product or service in the wake of a competitor’s better offering or lower price, businesses turn to legislators to get the new companies declared illegal. The consumer loses out when these schemes are put into play.

Restriction can stay on the books for decades beyond the point where anyone can recall the reason for their original addition. For instance, the limit of five stores has a grandfathering clause that only applies to stores that have been in business since before 1949.

Litigation seems to be the only recourse to the seemingly arbitrary and outdated TABC regulations. However, lawsuits are expensive and time-consuming. It would make more sense if the Legislature updated the law proactively. Senate Bill 609 and House Bill 1225 aim to end the corporation prohibition and the five-store limit. That would level the playing field for the licensing of spirits sales.

Recent legislation has opened the market for craft breweries in Texas. Microbreweries were restricted by laws that seemed weighted toward the larger breweries. Now, they are able to sell their brews for off-site consumption, which has created an influx of tourists who wish to sample craft beers from Texas. In fact, Texas is embracing a newfound recognition for their numerous craft brews since the laws went into effect. The microbreweries are also enjoying enhanced distribution rights that have encouraged the building of new breweries to cover distribution across the state. These new businesses help to stimulate the economy and create jobs.

A similar type of relaxing of the statutes concerning spirits would modernize the industry and create a more competitive marketplace. Laws must be kept current so that new technologies and established business practices can merge for the benefit of the consumer.

Texas is one of only 10 states in the U.S. to maintain and enforce lifetime bans on food stamp programs for those convicted of drug offenses. This policy was first put into place as part of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, a federal law designed primarily to reform welfare and to encourage those on public assistance to reduce or eliminate their dependence on these programs. In the state of Texas, businesses must meet certain requirements to accept food stamps. Companies that offer Texas license services can often provide valuable guidance on the application process and the restrictions in place for these assistance programs.

Changes on the Way

A bill passed by the state legislature and signed into law by Texas Gov. Greg Abbott will allow some drug offenders to qualify for food stamps. Texas Senate Bill 200 will take effect on September 1, 2015, and offers felons convicted of first-time drug offenses to apply for and receive federal food stamps after they have completed their sentences. Violating parole, however, would disqualify these individuals from receiving federal food stamp benefits for two years; a second drug offense conviction would result in the same lifetime ban that currently applies to all drug felons. This marks a major departure from the zero-tolerance policy Texas has traditionally applied to these types of offenses and is expected to allow those who have paid their debt to society to access the help they need to get back on their feet financially.

Leveling the Playing Field

As more states reconsider their food stamp policies, one-time drug felons and their families may have access to added financial resources to help them break the cycle of poverty. This can create increased opportunities even in difficult economic times and can reduce the likelihood that these individuals will engage in criminal activities to make ends meet. By taking a more measured approach to drug offenses, the state of Texas hopes to reduce recidivism while supporting families and individuals dealing with substance abuse and addiction issues. This can potentially level the playing field for those previously convicted of drug offenses and struggling to find work in the modern job market.

Smoothing the Transition from Prison to Productivity

Allowing drug offenders to receive federal benefits during the critical months immediately after their release from prison can provide a valuable safety net for these individuals. This can significantly improve their chances of finding gainful employment by ensuring that they have adequate financial resources throughout their reentry into society. The upcoming changes to Texas law will also have a beneficial effect for children in the state who may have been negatively impacted by the ban in place for one or both of their parents.

The Impact of Increased Eligibility

The Texas Health and Human Services Commission estimates that approximately 3.7 million people receive food stamp benefits each year. It is not yet known to what degree the loosened restrictions on drug felons will have on this number; however, businesses that accept food stamps in Texas will likely see at least some increase in the number of customers utilizing these federal benefits in their stores. Maintaining full compliance with all regulations governing food stamp transactions can help these businesses ensure that they receive their fair share of the added revenues possible as a result of this new legislation.

Working with a company that specializes in Houston liquor license and other license applications can provide added assistance for companies interested in accepting food stamps at their establishments. By consulting with these professionals when making application for a Texas alcoholic beverage license, food stamp permit or other necessary business licenses, Houston businesses can ensure that all aspects of the process go smoothly and are completed in a timely manner.

The Texas dance hall is an iconic part of the Lone Star State’s history and has been around for more than 140 years. Most of the classic dance halls in this area were built by Czechoslovakian and German immigrants as meeting places for these cultural groups. By attending community events at these locations, immigrants could share their traditions with each other and with their children through music, dancing and other cultural activities. These hard-working families also enjoyed the chance to relax and blow off some steam after a long week on their farms and ranches. Today, many of these historic dance halls still stand and maintain a current Texas alcoholic beverage license, allowing them to continue to serve their communities and clientele.

Humble Beginnings

Many of the original Texas dance halls did not serve hard liquor to their customers, who were expected to provide the alcohol themselves. Instead, these venues offered mixers that could be combined with alcohol to create mixed drinks on site. For those dance halls that did serve alcoholic beverages, beer was the most commonly offered drink. Singing and dancing were generally the focus of the evening; instrumental performances were also popular attractions in these community centers. Many groups who later performed at music festivals in Texas got their start in these local dance hall environments. The earliest Texas dance halls were built by German settlers; Czechoslovakian immigrants typically held their dances in private homes until the early 1900s, when widespread building projects were funded by fraternal organizations dedicated to supporting the Czech way of life.

Modernization and Assimilation

As more Texas residents left behind the farming and ranching life for the allure of jobs in the big city, dance halls became less representative of individual cultures and more reflective of the spirit of the Lone Star State as a whole. While ethnic music and dancing were still practiced in these venues, dance halls began to embrace a wider range of cultural traditions. As the separations between ethnicities in the dance hall environment became less pronounced, interactions between those of different social classes, racial backgrounds and life experiences allowed greater exposure to a wide range of traditional songs and instrumental techniques. The blending of various musical styles led naturally into the development of entirely new styles of music that included Texas swing, conjunto, Tejano and honky tonk. By combining the rhythms and folk melodies common among the immigrant populations of this area with new sounds, dance halls continued to have a major impact on the cultural traditions of Texas residents.

A Link to the Historic Past

Houston, Texas saloons and dance halls typically serve up live country music and plenty of room on the dance floor along with plenty of cold brew at the bar and a current Houston beer license. According to Texas Dance Hall Preservation. Inc., the number of currently active dance halls in Texas has fallen from more than 1,000 during their heyday to a few hundred currently in business. However, Texas dance halls have recently enjoyed a revival in popularity driven by their historic importance and their unique appeal. Many of these venues maintain a family-friendly atmosphere in keeping with their traditional role as community gathering spots for residents of the Lone Star State.

Although many of the original dance halls have fallen into disrepair or have been abandoned due to the expense of maintaining them, Houston establishments continue to carry on the traditions of the dance hall for new generations of patrons. For these modern descendants of these traditional venues, obtaining and maintaining a Houston liquor license can ensure that patrons can quench their thirst after a rousing round of the Texas two-step. Working with a professional firm can streamline the liquor license application process and can ensure that dance hall owners stay on the right side of all Texas regulations when making a little history of their own.

Some Texas bars may have been systematically shortchanging customers by serving up lower-cost drinks in place of the top shelf brand names ordered by their clientele. The Texas Alcoholic Beverage Commission (TABC) is currently investigating claims made against 21 bars throughout the state that they substituted lower-cost alcohol products for the brands actually requested by their customers and that they charged those patrons at the higher rate for the drinks in question. Investigators indicated that four bars in the Houston area were involved in this activity. Serving counterfeit drinks could lead to the revocation of the Houston alcoholic beverage license held by these establishments and may result in added fines and penalties when the TABC investigation is concluded.

Operation Bottoms Up

After receiving numerous complaints from consumers, the TABC conducted an undercover operation this spring at 68 establishments across the state of Texas. At each stop, the investigators sampled top-shelf liquors and performed tests to determine that these drinks were genuine. At 21 licensed bars, counterfeit liquor was served to the undercover officials. Administrative notices have already been filed against 14 of the offending establishments; the remaining seven are under continuing investigation for multiple violations of the terms of their Texas liquor license. If these licenses are revoked, the bars in question will likely have to shut down for good.

Advanced Technologies Made Detection Possible

Prior to the spring of 2015, TABC investigators had no definitive way to detect the quality of liquor being served to customers in Texas bars. New technologies, however, made a clear identification possible and provided the impetus for Operation Bottoms Up. It is likely that bar owners were unaware of the new technology and were caught off guard by the investigation, allowing the TABC to nab a number of offenders that might have otherwise continued to defraud the public by serving less expensive drinks in the guise of brand-name liquors.

Texas Liquor License Regulations

To obtain a liquor license in the state of Texas, businesses must agree to follow certain rules and regulations, including the following:

• Prominent placement of health warnings, liquor license permit and other signage required by Texas law
• Restrictions for dry counties and communities
• Codes regarding the sale of package liquors and the allowable areas where these beverages can be sold or consumed legally
• Prohibitions against serving alcohol to minors and requirements to check ID for age and authenticity
• Hours allowable for alcohol sales
• Restrictions on the carrying of firearms in establishments that serve alcohol
• Sale of counterfeit alcohol

Failure to observe these rules can result in fines, shutdowns and the loss of the Houston liquor license held by these companies. After the recent round of investigations by the TABC, it is likely that more bars and taverns will be taking special care to comply with all applicable regulations to protect their business interests in the current regulatory environment.

Companies that specialize in delivering expert advice and guidance for bar owners in obtaining and maintaining their liquor licenses can often provide added help in navigating the complexities of the Texas Alcoholic Beverage Code. These firms typically offer a wide range of services, including the following:

• Assistance in qualifying to accept food stamps under the Texas Assistance for Needy Families or the nationwide Supplemental Nutrition Assistance Program
• Help in applying for liquor licenses from TABC and obtaining the required signage for establishments that serve liquor in the state of Texas
• Permission to sell and redeem Lotto tickets
  Assistance with other commercial license applications and compliance issues in the Houston business community

The professional help available from these companies can ensure the smoothest possible processing for license applications in Houston and the state of Texas. By enlisting the assistance of a liquor license service, bars and other drinking establishments can avoid losing their right to serve liquor to customers and can protect their business interests more effectively.

Bars and restaurant owners who obtain liquor licenses for their business in the Houston area can remain competitive through a variety of economic conditions. However, in order to be successful over the long term, each type of business must first obtain the correct Houston liquor license for their specific establishment. In addition, they need to be capable of attracting repeat customers, and the best way to do this is to make sure that customers never leave the premises with a bad taste in their mouth.

Houston Liquor License

Recent investigations of certain establishments in the areas of Houston, Seattle and Cleveland demonstrate a persistent trend of bad tasting draft beer. The problem starts when patrons of the bar or restaurant detect a foul aftertaste in their beer. According to the investigators, this bad taste has to do with a biochemical reaction that occurs when the line bringing the beer from the keg to the glass gets dirty.

Although it is not common for an establishment to lose a Houston Liquor License on account of dirty lines, this possibility does exist. Patrons who value these businesses should understand the situation as much as possible before planning a strategy of how to bring the problem to the owner’s attention. Whenever possible, try to frame the complaint in a way that shows that you care about the reputation of the establishment and want to see the business succeed. Owners are more likely to be receptive to constructive criticism when it is delivered in a way that is intended to help the business.

Houston Liquor License Service

The amount of lactobacillus that can cause the sour taste necessary to provoke a negative reaction in patrons is relatively small. Lactobacillus is a bacteria found in yogurt, cider, cheese and fermented products and does not pose a health risk but does produce a sour taste. This problem is not unique to any particular area, so beer drinkers can understand the risks involved by getting accurate information about bacteria contamination. A normal response to receiving a beer that does not taste right is to ask for a replacement. This is a natural response for people who are not regular customers; however, patrons who wish to return on a regular basis may check back later to see if the problem is resolved. It is usually one draft beer line in particular that causes a problem for many different people. The beer might taste sour or moldy, and many customers will avoid the issue just to be polite.

Maintaining a Houston Beer License

Restaurant or bar owners may simply be unaware of the existence of an actual problem. They may interpret customer complaints in a variety of ways, but incident reports alone will not locate or solve any actual problems. To complicate matters, the bacteria might accumulate in several locations throughout the entire distribution line. If the keg and the parts are both clean, a problem could develop undetected in an area that cannot be cleaned unless the entire system is serviced. Patrons who wish to bring the problem to the owner’s attention should consider using a diplomatic approach to resolving this issue.

Establishments who are invested in maintaining a Houston beer license will be aware of the dangers in allowing complaints to continue. Patrons who already have a good relationship with the owners are in a unique position to be effective in resolving the situation. These customers can serve as a form of quality control by approaching the owner with awareness. Try to address the issue of cleaning the lines as a way to retain customers and maintain the good standing of the business in the community. Keep in mind that a bad taste could be caused by a variety of issues, so remain polite, and consider providing business information about of a company that specializes in cleaning beer lines.

The ability to serve alcohol in Texas is a privilege, so every alcohol retailer must obtain the appropriate Texas liquor license. The problem is that there are city, county, state and federal licenses and permits, and you may not know which ones you need.

This entire process will be much easier for you if you do not try to take care of this yourself. A Houston liquor license service will take you by the hand from the beginning and remain with you until the process is completed. This type of business will ensure that you perform every step correctly so that this course of action takes the least amount of time possible. This service can also help you renew your Houston liquor license, so your business will always be in compliance with the law.

The Texas Alcoholic Beverage Commission

Alcohol retailers suffer serious consequences when an intoxicated patron or minor injures them self or others after leaving the establishment’s premises. The Texas Alcoholic Beverage Commission (TABC) wanted to reduce the chances that these unfortunate incidents would occur, so they created the “TABC Manager’s Awareness Program.” This program is meant to be a roadmap that helps managers voluntarily comply with the “Texas Alcoholic Beverage Code.”

The Texas Alcoholic Beverage Code

Under the Texas Alcoholic Beverage Code, servers and sellers are required to refuse to serve alcoholic beverages to obviously intoxicated adults and anyone under the age of 21. The code also requires servers and sellers to take things a step further. They must keep a minor from drinking while on the premises, and they must also keep patrons from consuming alcoholic beverages until they are intoxicated. If they are already drunk, the wait staff must stop serving these customers.

Failure to Comply with the Code

Those who fail to follow the Texas Alcoholic Beverage Code’s rules will suffer criminal penalties. A sale to a minor can possibly result in some or all of the following:

• Being charged with a class A misdemeanor
• Receiving a fine as high as $4,000
• Receiving a jail sentence of no longer than one year

A sale to an intoxicated customer may result in some or all of the following:

• Being charged with a misdemeanor
• Receiving a fine between $100 and $500
• Receiving a jail sentence of no longer than one year

A retailer who sells alcohol to a minor or someone who is inebriated will also receive administrative penalties that include a fine and the possibility of losing their sales permit.

The Manager’s Awareness Program

The two-hour Manager’s Awareness Program was designed to instruct managers on how to teach their employees to promote responsible alcohol sales. For example, managers learn about the laws related to serving alcohol to minors and intoxicated adults. They find out how they can be found liable for the injuries that these people cause once they have left the retail establishment. They also discover how to determine when an ID is fake or altered.

The Responsibilities of a Manger

A manager has many responsibilities, and the Manager’s Awareness Program illuminates each one so that retailers that sell alcohol can remain on the right side of the law. For example, managers are required to do the following:

• Ensure that employees are following the rules and regulations
• Provide continuous education for servers about responsible alcohol sales
• Create responsible policies and procedures for the service of alcoholic beverages
• Teach employees how to intervene with inebriated customers
• Assure employees that if they refuse to sell alcohol to a patron, they will never be disciplined for this action
• Ensure that everyone knows the rules for checking IDs

After attending the Manager’s Awareness Program, each individual manager will be able to create policies and guidelines for their businesses that will fit their specific needs.