If you're interested in opening a liquor store or a restaurant that serves liquor in the state of Illinois, you've got some paperwork ahead of you. The process isn't easy and the rules vary from city to city, but once you gather the required materials you should be able to secure a license quickly.
Items you will need
- A complete online application and a hard copy
- Proof of ownership of your business
- A bulk sales release order from the Illinois Department of Revenue
- Proof of insurance for your business
- A Federal Employer Identification Number from the IRS
- Any previous liquor licenses for your business
- A $500 application fee
Illinois licenses liquor sales at both the state and municipal level. The statewide Liquor Control Commission won't give you a license until you've already got one from your local municipality. Rules vary radically from city to city and the process often is onerous. Chicago, for example, has a nine-step application process. Carbondale, meanwhile, offers 10 different liquor licenses and a separate process for licensing beer gardens.
Some cities, such as Chicago, will not grant liquor licenses in specific areas. Check with your local government before buying or leasing any property if you plan to sell alcohol.
On the state level, Illinois offers 13 different kinds of liquor licenses, though many of these deal with selling wine or beer at specific events. Fees and application requirements vary for each type of license, but the most common and important is the retailer's license. This general purpose license allows the bearer to sell liquor, beer and wine.
Most of the items on the list above are standard requirements for all businesses. All businesses are required to carry some form of liability insurance, for example, and all are required to receive a federal EIN from the IRS.
However, the bulk sales release order is somewhat peculiar. The Illinois Department of Revenue uses release orders to prevent sales tax evasion. Basically, you have to apply to the department and receive permission to buy products in bulk. That gives the department a sense of how much revenue it should be expecting from your store or restaurant.
When you have all your documents in order, the hard part is over. Just submit your application to Illinois Liquor Control Commission's offices in Springfield or Chicago. If you've done your paperwork correctly, the process should take 3 to 5 days.