How to Get a Montana Liquor License

Last updated: September 11, 2026

Montana rations all-beverages licenses by population, and when one becomes available the state does not hand it to the first qualified applicant — it auctions the right to apply. Under MCA 16-4-201 a town of 500 or fewer residents gets two retail all-beverages licenses, a city of 501 to 3,000 gets three for the first thousand and one more per additional thousand, and a city over 3,000 gets five for the first three thousand and one per additional 1,500, all measured within a five-mile straight line of the city limits. When a quota area has an opening, MCA 16-4-430 requires a competitive bidding process with a minimum bid of 75 percent of the market value of comparable licenses, and the winner has 60 days to apply. A license issued through that bid cannot offer gambling. The state’s own annual fee once you hold the license is modest — $400 to $800 depending on the city’s size — and every employee who sells or serves, plus their supervisor, must complete approved training within 60 days of hire.

Training: Every Server and Supervisor, Within 60 Days, Every Three Years

Montana’s Responsible Alcohol Sales and Service Act puts the obligation on the licensee. MCA 16-4-1005 requires a licensee to ensure that each employee who is authorized to sell, serve or deliver alcoholic beverages, and the employee’s immediate supervisor, successfully completes training to ensure compliance with state law on the sale and service of alcohol. The deadline is 60 days from the employee’s date of hire — or, for the existing staff of a newly licensed business, 60 days from the date of licensure — and a refresher is required every 3 years after the initial training. The licensee must maintain employment records verifying completion.

The Department of Revenue’s training resources page states the rule the same way — anyone serving or selling alcohol trains within 60 days of being hired, with renewal training every three years — and points to state-approved providers. The certificate belongs to the employee; the record-keeping duty and the exposure at a compliance check belong to you.

The Quota and the Bid

MCA 16-4-201 fixes the number of all-beverages licenses that may be issued in each incorporated city or town and within five miles of its limits, by population: not more than two in a town of 500 or fewer; three for the first 1,000 inhabitants and one for each additional 1,000 in a city of 501 to 3,000; five for the first 3,000 and one for each additional 1,500 in a city over 3,000. The five miles are measured in a straight line from the nearest entrance of the proposed premises to the nearest corporate boundary, and where two quota areas overlap the boundary is drawn equidistant between the cities, with named exceptions for Helena and East Helena, Pinesdale and Hamilton, and Polson and Ronan.

When the department determines that a quota area is eligible for a license, MCA 16-4-430 requires a competitive bidding process to decide who may apply. The minimum bid is 75 percent of the market value of applicable licenses in the quota area or a similar area; the highest bidder pays the bid amount before the license is approved and must submit the application and applicable fees within 60 days of the department’s notification. The bid is not a way to flip a license: it is forfeited if the holder applies to transfer the awarded license within one year (except on the death of an owner), proposes in the first year a location that held the same type of license within the prior 12 months, does not use the license within one year, or stops using it within five years. A license issued under 16-4-430 is not eligible to offer gambling under Title 23, chapter 5, parts 3, 5, or 6; the Department of Revenue prints the same bar on the competitive-bid page. That page also publishes every awarded bid: a 2025 all-beverages floater in Bozeman carried a minimum of $805,000 and a winning bid of $888,888. The department runs the bidding on its TransAction Portal and posts the windows — as of September 5, 2026 the window then open ran August 20 through 11:59 p.m. on September 17, 2026 — and the terms and conditions for each opportunity are published with it.

Fees Once You Hold It

MCA 16-4-501(6) sets the annual fee for a license under the 16-4-201 quotas by the population of the city or town it serves: $400 outside an incorporated city or in a city under 2,000, $500 for 2,000 to 5,000, $650 for 5,000 to 10,000 and $800 for a city of 10,000 or more or within five miles of one. A unit of a nationally chartered veterans’ organization pays $250, $350, $500 or $650 on the same bands. A retail beer and wine license is $400 a year and off-premises beer or table wine licenses are $200 each under subsection (1). The resort retail all-beverages license is the outlier, with a $100,000 fee on issuance.

What It Costs

License or requirement	What it does	Fee
All-beverages license, competitive bid	The right to apply for a newly available quota license; not eligible for gambling	Minimum bid 75% of market value; paid before approval
All-beverages competitive-bid award (Bozeman 2025 floater)	Example from the Department of Revenue awarded-bid table	$805,000 minimum / $888,888 winning bid
All-beverages annual fee — outside a city or city under 2,000	Liquor, beer and table wine at retail	$400
All-beverages annual fee — city of 2,000 to 5,000		$500
All-beverages annual fee — city of 5,000 to 10,000		$650
All-beverages annual fee — city of 10,000 or more		$800
Veterans’ organization unit	Same population bands	$250 / $350 / $500 / $650
Retail beer and wine license	Annual	$400
Off-premises beer only / off-premises table wine	Annual, each	$200
Resort retail all-beverages license	Fee on issuance	$100,000
Server training	Every seller, server, deliverer and immediate supervisor, within 60 days of hire and every 3 years	Course price set by the approved provider
Montana LLC	Articles of Organization / annual report	$35; annual report waived if filed before April 15, $35 after

An Auctioned License and a Capped Lawsuit: Montana’s Two Prices

Montana replaced a lottery for new quota licenses with competitive bidding, and the statute is built to make the bid a commitment rather than a speculation. The 75 percent floor ties the state’s price to what existing licenses actually trade for; the one-year transfer bar, the one-year use requirement and the five-year continuous-use rule all end in forfeiture. Massachusetts limits its licenses by population too, but leaves the price to private sale between holders and, since 2025, offers wine and malt licensees a trade-in instead. Montana’s approach is the opposite: the state sets the floor, runs the sale and keeps the buyer honest for five years.

The second price is set by MCA 27-1-710, which is both a dram shop statute and a shield. Furnishing alcohol is not grounds for liability unless the consumer was under the legal drinking age and the furnisher knew it or made no reasonable attempt to find out, the consumer was visibly intoxicated when served, or the furnisher forced or coerced the drinking or misrepresented the beverage as non-alcoholic. A claimant must send notice of intent to sue by certified mail within 180 days of the sale or service, describing the visual or audible indicators of intoxication the furnisher would have observed, and must file within 2 years. Noneconomic damages for all claimants are capped at $250,000 per event, punitive damages at $250,000, and the section is the exclusive remedy: a furnisher may not be found civilly liable under any other statute, theory or common-law claim for the same event. Alabama’s statute uses a similar visible-intoxication trigger without a cap; Maryland’s courts have declined to create the cause of action at all.

Together the two statutes describe a state that treats a liquor license as a scarce asset with a public price, and treats the harm that can follow from it as a defined, insurable risk. The training rule is the hinge between them: the 60-day requirement is what the notice letter’s “visual or audible indicators” language will be measured against.

How to Get Licensed, In Order

1. Find your quota area’s status with the Department of Revenue — whether a license is available, and if so when the next competitive bidding window opens on the TransAction Portal.
2. Register the entity — Montana Articles of Organization are $35 at the Secretary of State.
3. Bid. Read the terms and conditions for the opportunity; the minimum is 75 percent of the market value of comparable licenses, the highest qualified bidder pays the bid before approval, and a license issued through the bid cannot offer gambling.
4. Apply within 60 days of notification with the department’s application and the applicable fees, or forfeit the award.
5. Site the premises inside the quota area — and not at a location that held the same type of license in the prior 12 months, which forfeits a first-year award.
6. Train every seller, server, deliverer and immediate supervisor within 60 days of hire, or of licensure for existing staff, through a state-approved provider, and keep the records.
7. Open within a year and stay open. Not using the license within one year, or stopping within five, forfeits it.

Staying Licensed

The five-year rule is the one to remember. A license won at competitive bid is forfeited if the holder stops using it within five years, and it cannot be transferred in the first year except on the death of an owner.

Retrain on a three-year cycle. Every employee who sells, serves or delivers, and their immediate supervisor, refreshes the training every three years after the initial course, and the licensee keeps the employment records that prove it.

Keep the annual fee current. Quota-license fees are $400 to $800 by city size under MCA 16-4-501(6), paid annually. A fee delinquent on July 1 of the renewal year (or one year after the anniversary) can draw a late fee of 33 1/3 percent, then 66 2/3 percent on August 1, and 100 percent on September 1.

Treat the 180-day letter seriously. A claimant under 27-1-710 must notify you by certified mail within 180 days describing the indicators of intoxication; your training records and your staff’s recollection of that night are the defense the statute contemplates.

Frequently Asked Questions

How much is a liquor license in Montana?

Two numbers. The annual state fee for an all-beverages license under the population quota is $400 outside a city or in a city under 2,000, $500 for a city of 2,000 to 5,000, $650 for 5,000 to 10,000 and $800 for a city of 10,000 or more (MCA 16-4-501(6)); a retail beer and wine license is $400 and off-premises beer or table wine licenses are $200. The larger cost is acquiring the license: when a quota area has an opening, MCA 16-4-430 requires competitive bidding with a minimum bid of 75 percent of the market value of comparable licenses, paid before approval. The Department of Revenue’s awarded-bid table lists a 2025 Bozeman all-beverages floater at a $805,000 minimum and an $888,888 winning bid.

How does Montana’s liquor license lottery work?

It is no longer a lottery. Under MCA 16-4-430, when the Department of Revenue determines a quota area is eligible for a license it runs a competitive bidding process on its TransAction Portal; the minimum bid is 75 percent of the market value of applicable licenses in the area, the highest bidder pays the bid before the license is approved, and must apply within 60 days of notification. The license is forfeited if transferred within a year, not used within a year, or abandoned within five.

How many liquor licenses can a Montana town have?

MCA 16-4-201 sets the all-beverages quota by population: not more than two in a town of 500 or fewer; three for the first 1,000 residents plus one per additional 1,000 in a city of 501 to 3,000; five for the first 3,000 plus one per additional 1,500 in a city over 3,000. The quota area extends five miles from the corporate limits, measured in a straight line from the premises’ nearest entrance to the nearest corporate boundary.

Do you need a license to bartend in Montana?

Not a license, but training is mandatory. MCA 16-4-1005 requires the licensee to ensure that every employee authorized to sell, serve or deliver alcoholic beverages, and the employee’s immediate supervisor, completes approved training within 60 days of hire — or within 60 days of licensure for existing staff of a new licensee — and a refresher every 3 years, with employment records kept to verify it.

Does Montana have a dram shop law?

Yes, and it is capped. Under MCA 27-1-710 a furnisher is liable only if the consumer was underage and the furnisher knew or made no reasonable attempt to check, was visibly intoxicated when served, or was forced or deceived into drinking. The claimant must send notice by certified mail within 180 days describing the visual or audible indicators of intoxication and sue within 2 years; noneconomic damages are capped at $250,000 per event and punitive damages at $250,000, and the section is the exclusive remedy.

When is the next Montana liquor license bidding window?

The Department of Revenue posts each competitive bidding opportunity on the TransAction Portal, under the Alcoholic Beverage Control tile. As of September 5, 2026 the window then open ran from August 20 through 11:59 p.m. on September 17, 2026; check the department’s competitive bid page for the current list of quota areas and license types.

Can a Montana competitive-bid liquor license offer gambling?

No. MCA 16-4-430(8) says a license issued through the competitive bidding process is not eligible to offer gambling under Title 23, chapter 5, part 3, 5, or 6, and the Department of Revenue repeats the bar on the competitive-bid page. Existing all-beverages licenses bought from a current holder can be a different story; a bid license is not.

What does a Montana LLC cost?

Articles of Organization are $35 at the Secretary of State, plus $50 for each series member of a series LLC. The annual report fee is waived for reports filed before April 15 and is $35 after that date.

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

Sources

Source	What It Covers
MCA 16-4-201 — All-beverages license quota	Not more than two retail all-beverages licenses in a town of 500 or fewer inhabitants; three licenses for the first 1,000 inhabitants and one for each additional 1,000 in a city or town of 501 to 3,000; five licenses for the first 3,000 inhabitants and one for each additional 1,500 in a city over 3,000; the quota applies within incorporated cities and towns and within 5 miles of their corporate limits, measured in a straight line from the nearest entrance of the premises to the nearest corporate boundary; overlapping quota areas terminate equidistant between the cities, with exceptions for Helena and East Helena, Pinesdale and Hamilton, and Polson and Ronan
MCA 16-4-430 — Competitive bidding process	When the department determines that a quota area is eligible for a license it shall use a competitive bidding process; the minimum bid is based on 75% of the market value of applicable licenses in the quota area; the highest bidder shall pay the bid amount prior to approval of the license and submit an application and applicable fees within 60 days of the department’s notification; the license is forfeited if the holder applies to transfer it within 1 year (unless due to the death of an owner), proposes in the first year a location that held the same license type in the prior 12 months, does not use the license within 1 year, or stops using it within 5 years; a license issued under this section is not eligible to offer gambling under Title 23, chapter 5, part 3, 5, or 6
MCA 16-4-501 — License and permit fees	Subsection (6) annual fees for licenses under the quotas of 16-4-201 by population: outside an incorporated city or town or in a city under 2,000, $250 for a unit of a nationally chartered veterans’ organization and $400 for all other licensees; 2,000 to 5,000, $350 and $500; 5,000 to 10,000, $500 and $650; 10,000 or more or within 5 miles, $650 and $800; resort retail all-beverages license $100,000 fee on issuance; subsection (1) beer and wine retailer $400, off-premises beer only $200, off-premises table wine $200; the department may require a late fee of 33 1/3% of any license fee delinquent on July 1 of the renewal year, 66 2/3% on August 1, and 100% on September 1
MCA 16-4-1005 — Licensees required to ensure training	A licensee shall require each employee who is authorized to sell, serve, or deliver alcoholic beverages and the employee’s immediate supervisor to successfully complete training within 60 days of the employee’s date of hire, or for existing employees of a newly licensed business within 60 days of the date of licensure, and every 3 years after the initial training; the licensee shall maintain employment records verifying completion
MCA 27-1-710 — Civil liability for injuries involving alcohol consumption	Furnishing an alcoholic beverage is not grounds for liability unless the consumer was under the legal drinking age and the furnisher knew or did not make a reasonable attempt to determine age, the consumer was visibly intoxicated when furnished the beverage, or the furnisher forced or coerced consumption or misrepresented that the beverage contained no alcohol; the claimant must provide notice of intent to file by certified mail within 180 days of the sale or service describing the visual or audible indicators of visible intoxication observed prior to service; the action must be commenced within 2 years; total noneconomic damages for all claimants may not exceed $250,000 for each event; total punitive damages may not exceed $250,000; a furnisher may not be found civilly liable under any other statute, theory of recovery, or common law claim for the same event
Montana Department of Revenue — Alcoholic Beverage Retail Competitive Bidding Process	The competitive bidding process lets people and businesses bid on the opportunity to apply for an available license; minimum bid 75% of the market value of the license compared to licenses with the same type and privileges sold in the quota area or a similar area; a license issued through a competitive bidding process is not eligible to offer gambling under Title 23, Chapter 5, parts 3, 5, or 6; the next competitive bidding opportunity will run from August 20, 2026 through 11:59 p.m. on September 17, 2026; all competitive bid opportunities and the ability to submit a bid are located on the TransAction Portal (TAP) under the Alcoholic Beverage Control tile; awarded-bid table includes 2025 All-Beverage License (Floater) City of Bozeman, Kelsey Shepperd, $805,000 minimum, $888,888 winning bid, application approved 8/25/2026
Montana Department of Revenue — Licensee and Responsible Alcohol Sales and Service training resources	Anyone serving or selling alcohol must complete training within 60 days of being hired, with renewal training every three years, through a state-approved program
Montana Secretary of State — Business Services filing fees	Articles of Organization $35.00 plus $50.00 for each series member named in a series LLC; annual report prior to April 15th waived; annual report after April 15th $35.00