How to get an ABC License for Your Small Business

by Joshua Botello

Getting an Alcohol Beverage Control license gives an establishment like a restaurant or bar the ability to serve alcohol to customers. Many new business owners may find this process confusing or never apply for the license because it is so daunting. In this video, I’ll explain what the ABC license is, walk you through the process and stay to the end for help with the application.

What is an Alcohol Beverage Control License?

The first thing you need to understand is what is an Alcohol Beverage Control license is. The license allows you to sell alcohol from your establishment legally. There are different categories of licenses but are in 2 general groups: On-Sale or Off-sale and the type of alcohol. 

On-Sale refers to alcoholic beverages that are purchased and consumed on-premises like a Bar and Off-sale is where beverages are prepackaged and not available for consumption on-premises like a convenience store. Each category defines whether or not minors are allowed on-premises.

The other part of the category specifies what alcohol is sold. "General" typically means that all alcohol including distilled spirits is sold. Beer and wine limits to naturally beer and wine or just wine. There are 80 different types of licenses that you can apply for, so knowing what you intend to sell will be your first task. For example, a Type 41 On-sale Beer & Wine license allows Beer and Wine to be sold on-premises where minors can be present, like a restaurant. It also allows for brandy, rum, and liqueurs but for cooking only.

Application Process

Let's take a look at the process of applying for your ABC license with this handy roadmap provided by the Department of Alcohol Beverage Control.

Filing the application

Before you even apply, you can contact the local ABC office for some basic information on the business, the license you want to apply for, and get the correct forms to apply for your license. This will kick off the application process by identifying zoning, establishing an escrow, or starting a Notice of Intended Transfer if you wish to merely transfer a current license to a new owner. Your next step is the notification step.

Notification

A copy of your application will be sent to local officials where the establishment will be located. If you are in a city, this will include the police department, city hall, and zoning. If your establishment is on county property this will be sent to the county supervisors, sheriff's department, and district attorney. The most common setbacks when applying for the license are:

1. Would create a public nuisance
2. Would cause or add to crime in the area
3. Violate any zoning laws
4. Is in a high-crime area or an area that has too many licenses and would not serve public convenience or necessity

The City Council or Board of Supervisors has 90 days to determine this and notify ABC in the case of item 4 above. Provided the City Council or Board of Supervisors does not make a decision within 90 days, ABC may issue the license if the applicant demonstrates to ABC that it would be in the public interest.

Investigation

Let's get to the investigation step. This is the first visible sign to the public that businesses have applied for an ABC license. As required by law, ABC undertakes a comprehensive investigation to determine if the application and the premises are eligible for a license. 

Anyone can object to the issue of a license. Within 30 days of either of the following events, the protestant must file a written protest: 

1. THE DATE ON WHICH THE PUBLIC NOTICE OF APPLICATION IS POSTED FOR THE FIRST TIME ON THE PREMISES,
2. or the date the applicant mails the Notice of Intention to Engage in the Sale of Alcoholic Beverages to persons living within a 500-foot radius 

ABC may issue an Interim Operating Permit if a retail license application has been contested and the Department has recommended approval of the license. An application is ineligible because 

• Applicant lied on the application
• Has a disqualifying criminal background 
• Has a history of persistent inebriation, Isn't the rightful owner, or Isn't at least twenty-one years old. 

A location may unsuitable for a license with these scenarios: 

• The location is too close to a school, church, hospital, playground, nonprofit youth institution, or residence, causing disruption to the facility or residents. 
• The location is in a high-crime area and does not serve the public good or is a public nuisance.
• Or zoning for alcohol sales is improper for your establishment.

There may be some special licensing conditions that may restrict how you can use your license based on the investigation and your application.

Application Responsibilities

Throughout this whole process, it is the responsibility of the applicant to submit all required information for the application and any additional information the ABC asks for. The applicant is also responsible for posting the notification of application in the newspaper, notifying all residents in a 500 ft radius, and getting the zoning permits from the local government. 

Application 

Let’s get to the application document. Head to https://www.abc.ca.gov/licensing/ and scroll down to “apply for a new license”. Here you can check fees, license types like the ones you saw earlier but we want the application, so head to “Licensing forms” and then a “new license”. The application forms are broken down into how your business is structured so you need to know that before you begin. Let's take a look at the main application ABC-217. 

Name and License type

In section 1, you start with your personal name if you are a sole proprietor or the business LLC or corporation. Section 2 and 3 will you the license type you intend to apply for and the license transaction type ie. a new license or a transfer.

Location information and license cost

Section 4 through 10 is the location information for the applicant location or a temporary permit requested for transfers. Section 11 and 12 are the costs associated with the license type on the application.

Criminal Background

Section 13 through 15 is for disclosing any disqualifying felony convictions. If the criminal punishment was served in county jail it's a misdemeanor, if in state prison it's a felony. The ABC may grant a license to a rehabilitated felon. 

Section 16 through 26 will be the transferror's information if this is a transfer application with the same location but there is a change in ownership in the process. 

Financial Information

Section 27 through 35 asks for financial information related to the purchase or transfer of the business including escrow, landlord, accountant, and leasing. 

Signature and Print

Finally, in section 36, the applicant will need to certify all the information on the application is true and correct. As I mentioned before, you will need to print this application out and sign it.

Conclusion

Getting an ABC license is a complex process but can be worth it to increase revenue for your restaurant or bar. The entire process can take up to 65 days providing you have all your documents and the application goes uncontested. The process itself can be arduous should there be a need to appeal and can take more than 6 months. You can always contact us here at the SBDC to help you with applying for the ABC license or any other licenses and permits to start your business.

Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.