How to Get an Alabama Liquor License

Last updated: September 11, 2026

Alabama’s state fees are among the lower figures on the ABC Board’s schedule — $300 a year for a lounge liquor license, $300 for a restaurant liquor license, $150 for beer or table wine — but the two $300 licenses are not the same, and the Board cannot grant either until your city council or county commission has approved the application first. A restaurant license is for a place whose customary and primary business is meals: at least fifty-one percent of revenue from food. A lounge license is the bar. Every applicant pays a $50 filing fee per license, shows a liquor liability policy of at least $100,000 per occurrence, and clears an ALEA background check for every owner of ten percent or more. Training is voluntary: Alabama’s Responsible Vendor Program certifies the business, not the bartender, and rewards certification with limited protection of the license rather than requiring it.

Training: Voluntary for the Business, With a Deadline If You Opt In

Alabama does not license bartenders or servers. What it offers instead is the Responsible Vendor Program, which the ABC Board describes as “a voluntary program that allows licensees to become certified.” Certification attaches to the licensee, and it requires the licensee to train all employees who are involved in the management, sale or service of alcoholic beverages.

The obligations come with the certificate, not the license. Under the Board’s Chapter 20-X-12 rules, a certified responsible vendor must have every new or transferred seller, server and manager complete the course of instruction and pass the examination within 30 days of commencing employment. Certified vendors also hold meetings for servers, sellers and managers at least semi-annually, keep a register of who attended, and maintain program records open to inspection. The course may be delivered online or by computer as well as in a classroom, and course content is reviewed by the Board at least annually.

The reason to do it is written into the same rules: certification comes “with limited protection of the alcoholic beverage license against revocation or suspension,” and mitigation may be considered in administrative proceedings for violations of the Board’s regulations and state law. A suspended license, by contrast, can be grounds for canceling the certification, and a decertified vendor must retrain all servers, sellers and managers before reapplying. The statutory authority is the Responsible Vendor Act, Code of Alabama §28-10-1 and following.

The City or County Votes First

Code of Alabama §28-3A-23(e) is the gate: each retail liquor license application “must be approved by the governing authority of the municipality if the retailer is located in a municipality, or by the county commission if the retailer is located in the county and outside the limits of the municipality, before the board shall have authority to grant the license.” The Board’s Chapter 20-X-5 rules put the legwork on you: the applicant provides a copy of the completed application to the local governmental authority for processing, and the local authority sends the Board written confirmation of its decision. The pre-application checklist asks for that approval signed by an authorized individual of the governing authority.

A restaurant retail liquor license is not a cheaper bar. Rule 20-X-5-.05 issues it only to locations that are habitually and principally used for preparing and serving meals, and the Board defines that as a minimum of fifty-one percent of revenue from food. If the room is a bar, the lounge license is the class; the restaurant class is the food house.

A separate license is required for each place where alcoholic beverages are sold, and a license may be transferred once in a license year to another location within the same governing jurisdiction, or to another person for the same location, upon Board approval — the transferee pays a non-refundable $50 filing fee and files a transfer application within 20 days of taking control.

Insurance, Background Checks and the License Year

Rule 20-X-5-.14 requires liquor liability (dram shop) insurance of at least $100,000 per occurrence, exclusive of attorney fees and defense costs, and the checklist wants the certificate to name the applying entity exactly as it appears on the application, with coverage dates valid for the term of the license. Background checks are run by the Alabama Law Enforcement Agency for every individual holding ten percent or more of the profit or proprietary interest in the applicant, and ALEA sends the results to the Board directly — the Board does not accept them from applicants. Alabama ABC licenses run on the state fiscal year and expire every September 30; the renewal window is June 1 through July 31, and the state does not prorate the license fee.

What It Costs

License or requirement	What it does	State fee
Lounge retail liquor license (Class I on- and off-premises; Class II package)	Liquor, wine and beer — the bar license	$300
Restaurant retail liquor license	Liquor, wine and beer; customary and primary business is meals — at least fifty-one percent of revenue from food	$300
Club liquor license	Class I / Class II	$300 / $750
Retail beer license	On- and off-premises, or off-premises only	$150
Retail table wine license	On- and off-premises, or off-premises only	$150
Special retail license	30 days or less / more than 30 days	$100 / $250
Special events retail license		$150
Food or beverage truck license		$300
Brewpub license		$1,000
Filing fee	Per license, with the application (credit card or electronic check only)	$50
Liquor liability insurance	Minimum per-occurrence coverage on the certificate	$100,000 coverage
Local privilege or license tax	Any wet county or municipality may levy its own tax on these licenses (§28-3A-21(c))	Set locally
Alabama LLC	Certificate of Formation, Secretary of State	$200

A Cheap License With Two Expensive Conditions: Local Approval and Insurance

Alabama’s schedule is simple to read because the state keeps its own fees low and lets the locality decide the rest. Section 28-3A-21(c) authorizes any county or municipality where sales are permitted to “fix and levy privileges or license taxes” on the licenses located there, conditioned on the Board issuing the license — so the $300 you send to Montgomery is the floor, not the total. The same section forbids any local tax on a liquor store, which tells you where the state’s own interest lies.

The second condition is the one that changes how you plan a bar. The Board has no authority to grant a retail license until the governing body has approved it, and the Board’s rules make you the courier: you deliver the application to city hall or the county commission and they write to the Board. Budget the council calendar into your opening date. Where Vermont routes the same local step through a state portal that forwards to the town automatically, Alabama leaves the sequencing to the applicant. And if you apply as a restaurant rather than a lounge, the Board’s own licensing chapter adds a food test: fifty-one percent of revenue from meals, not drinks.

Alabama’s dram shop statute, §6-5-71, frames the insurance requirement. A person who serves an adult of lawful drinking age “shall not thereby become liable” for the intoxication that follows — but a spouse, child, parent or other injured person has a right of action for actual and exemplary damages against anyone who knowingly sells or serves contrary to law to a visibly intoxicated individual, when that service is the proximate cause. The statute defines “knowingly” as knew or should have known under the circumstances, and requires that visible intoxication be shown from the totality of the circumstances at the time of service, by direct evidence or circumstantial evidence that does not require the finder of fact to speculate. The consumer cannot recover from the provider. The $100,000 policy on your checklist is the state’s way of making sure that judgment is collectible.

How to Get Licensed, In Order

1. Confirm the location is wet and identify the governing authority — the municipality if you are inside city limits, otherwise the county commission.
2. Register the entity — an Alabama LLC Certificate of Formation is $200 at the Secretary of State.
3. Print the pre-application and the LCD-2 checklist from the ABC Board and schedule an appointment with your division office.
4. Bind liquor liability coverage of at least $100,000 in the exact name on the application, and start the ALEA background check for every ten-percent owner.
5. Take the application to the governing authority and obtain its written approval, signed by an authorized official — the Board cannot act without it.
6. File with the Board: the $50 filing fee per license, the checklist documents, the health permit for on-premises locations, and the local approval.
7. Decide on Responsible Vendor certification. If you opt in, every seller, server and manager trains and passes the exam within 30 days of hire, and you hold semi-annual meetings.

Staying Licensed

Renew in the summer window. Licenses expire September 30 and renew online between June 1 and July 31. The state does not prorate, so a license issued in August costs the same as one issued in October.

Report changes within 20 days. A licensed corporation notifies the Board in writing within 20 days of electing new officers or directors, and a transfer application is filed within 20 days of a transferee taking control.

Keep the policy current. The liquor liability certificate must carry coverage dates valid for the term of the license; a lapse is a licensing problem before it is a lawsuit problem.

If you are a Responsible Vendor, act like one. The 30-day training deadline, the semi-annual meetings and the attendance register are what the mitigation committee will ask for, and a suspension can cost you the certification itself.

Frequently Asked Questions

How much is a liquor license in Alabama?

The ABC Board’s schedule sets the state fees: $300 a year for a lounge retail liquor license, $300 for a restaurant retail liquor license, $300 for a Class I club and $750 for a Class II club, $150 for a retail beer license and $150 for a retail table wine license. The restaurant class is not interchangeable with the lounge: the Board requires at least fifty-one percent of revenue from food. Every application carries a $50 filing fee per license. Under Code of Alabama §28-3A-21(c), any wet county or municipality may add its own privilege or license tax on top of the state fee.

Does the city or county have to approve an Alabama liquor license?

Yes. Code of Alabama §28-3A-23(e) says each retail liquor license application must be approved by the governing authority of the municipality, or by the county commission if the location is outside city limits, before the ABC Board has authority to grant the license. The Board’s rules make the applicant responsible for delivering the application to the local authority, which then sends the Board its written decision.

Do you need a license to bartend in Alabama?

No. Alabama does not license bartenders or servers, and the state’s Responsible Vendor Program is voluntary. A licensee who chooses to be certified must have every new seller, server and manager complete the course and pass the exam within 30 days of hire, hold semi-annual meetings, and keep training records — in exchange for limited protection of the license against revocation or suspension.

Is liquor liability insurance required in Alabama?

Yes. ABC Board Rule 20-X-5-.14 requires liquor liability (dram shop) insurance of at least $100,000 per occurrence, separate from defense costs, and the pre-application checklist requires a certificate naming the applying entity exactly as it appears on the application with coverage valid for the license term.

Can an Alabama bar be sued for over-serving?

Under Code of Alabama §6-5-71, a spouse, child, parent or other person injured by an intoxicated individual has a right of action for actual and exemplary damages against anyone who knowingly sells, furnishes or serves alcohol contrary to law to a visibly intoxicated individual, when that service is the proximate cause of the injury. “Knowingly” means knew or should have known, and visible intoxication is judged on the totality of the circumstances at the time of service. The intoxicated consumer cannot recover from the provider.

When do Alabama liquor licenses expire?

Every September 30. Alabama ABC licenses run on the state fiscal year; the renewal period is June 1 through July 31, renewals are completed online, and the state does not prorate the fee for a license issued mid-year.

Who gets a background check for an Alabama ABC license?

Every individual with ten percent or more of the profit or proprietary interest in the applicant, excluding publicly traded companies and 501(c) charities. The checks are conducted by the Alabama Law Enforcement Agency, which sends the results directly to the ABC Board; the Board does not accept background checks from applicants.

Forming the company, taxes, insurance, and hiring are covered in our full guide to starting a business in Alabama.

Sources

Source	What It Covers
Alabama ABC Board — License Types & Fees	Lounge retail liquor Class I $300.00 and Class II (package) $300.00; restaurant retail liquor $300.00; club liquor Class I $300.00, Class II $750.00; retail beer on or off premises $150.00; retail beer off premises only $150.00; retail table wine on or off premises $150.00; retail table wine off premises only $150.00; special events retail $150.00; special retail 30 days or less $100.00; special retail more than 30 days $250.00; brewpub $1,000.00; food or beverage truck $300.00
Code of Alabama §28-3A-21 — Fees for licenses issued by the board; local license taxes	Annual license fees levied for licenses issued and renewed by the board: lounge retail liquor license $300, restaurant retail liquor license $300, club liquor Class I $300 and Class II $750, retail table wine $150, retail beer $150; (c) any county or municipality in which the sale of alcoholic beverages is permitted may fix and levy privileges or license taxes on the licenses located or operated therein, conditioned on a permit or license being issued by the board; (d) no county or municipality may levy a license or tax on any liquor store
Code of Alabama §28-3A-23 — Regulation of grant of licenses	(e) Each retail liquor license application must be approved by the governing authority of the municipality if the retailer is located in a municipality, or by the county commission if the retailer is located in the county outside the limits of the municipality, before the board shall have authority to grant the license; (f) a separate license must be secured for each place where alcoholic beverages are sold
Alabama ABC Board — Pre-Application Checklist, Form LCD-2 (February 2026)	Payment for filing fee of $50.00 per license (credit card or electronic check only); liquor liability insurance certificate must clearly state a minimum of $100,000 in liquor liability coverage, insured name and physical address must match the application exactly, coverage dates valid for the term of the license; background checks for individuals with 10% or more profit or proprietary interest, conducted by the Alabama Law Enforcement Agency (ALEA) and sent directly to the ABC Board; approval signed by an authorized individual of the governing authority; health permit for on-premises locations
Alabama ABC Board — Administrative Code Chapter 20-X-5 (Licensing)	Rule 20-X-5-.05 Restaurant Retail Liquor: issued only to locations habitually and principally used for preparing and serving meals; habitually and principally means a minimum of fifty-one percent of revenue from the sale of food items. Applicant provides a copy of the completed application to the appropriate local governmental authority for processing and the local authority provides the ABC Board with written confirmation of its decision; two classes of lounge retail liquor license (Class I on- and off-premises, Class II); a license may be transferred once in any license year, the transferee paying a non-refundable filing fee of $50.00 and filing a transfer application within twenty (20) days; Rule 20-X-5-.14 liquor liability (dram shop) insurance of at least one hundred thousand dollars ($100,000.00) per occurrence exclusive of attorney fees and defense costs
Alabama ABC Board — Administrative Code Chapter 20-X-12 (Responsible Vendor Certification)	Certified responsible vendors require new or transferred sellers, servers and managers to complete the course of instruction and pass the examination within 30 days of commencing employment; servers, sellers and managers attend meetings semi-annually with an attendance register maintained; records sufficiently detailed and available for inspection; course may be online or by computer, content reviewed at least annually by the Board; certification carries limited protection of the license against revocation or suspension and mitigation may be considered in administrative proceedings; suspension of the license may be grounds for cancellation of certification; a decertified licensee must retrain all servers, sellers and managers before reapplying; statutory authority Code of Ala. 1975 §§28-3-49 and 28-10-1 et seq.
Alabama ABC Board — Responsible Vendor Program	The Alabama Responsible Vendor Program is a voluntary program that allows licensees to become certified; the licensee trains all employees who are involved in the management, sale and/or service of alcoholic beverages
Alabama ABC Board — License/Permit Pre-Application (June 2025)	Alabama ABC licenses operate on a fiscal year and expire annually on September 30th; the license renewal period is June 1st through July 31st of each year; the State of Alabama does not pro-rate the license fee; licenses are renewed online annually
Code of Alabama §6-5-71 — Right of action for injuries resulting from the illegal furnishing of alcoholic beverages	A person who sells, furnishes or serves alcoholic beverages to an individual of lawful drinking age shall not thereby become liable for injury, death or damage caused by that individual’s intoxication; every spouse, child, parent or other individual injured in person, property or means of support has a right of action for all damages actually sustained and exemplary damages against any person who knowingly sells, furnishes or serves alcoholic beverages contrary to law to an individual who was visibly intoxicated, when the sale is the proximate cause; “knowingly” means knew or should have known under the circumstances; visible intoxication is based on the totality of the circumstances at the time of service, by direct evidence or circumstantial evidence that does not require the finder of fact to speculate; the consumer may not recover from the provider
Alabama Secretary of State — Limited Liability Companies	Domestic LLC Certificate of Formation filing fee, Secretary of State: $200.00; a Certificate of Name Reservation is required prior to filing formation documents