On the surface, obtaining a liquor license in Illinois appears a straight forward process. Readily available online applications for the state Liquor License and most municipalities exist for the convienence of the applicant. The reality is that this process can be a dizzying maze of requirements. The Liquor Control Act of 1934 provides the broad outlines of what steps are required to attain a license. Yet the Liquor Control Act and state liquor licensing are only a small part of a complicated legal process to get you liquor service business up and running in Illinois.
If you are interested in opening a business or obtaining a special event permit, there are some basic qualifications that you must meet. Some of the requirements have to do strictly with residency and the moral character of the business owner. These include being free of any convictions related to any felony conviction, or misdemeanor convictions relating to sexual conduct, fraud, gambling or prostitution. Other qualifications for an Illinois Liquor License, in particular those applying to out of state corporations, are more involved and require resolution under other state laws such as the Business Corporation Act of 1983.
First, before applying to the state, you must apply for an receive a local liquor license from the community your business will serve. Each locality has very specific and often varied local liquor licensing requirements. Some localities in Illinois have a moratorium on issuing new liquor licenses. Others, like the city of Chicago, require approval of a local alderman or city council member to even submit the application. If there is a moratorium in place, to start a liquor service business you must find someone willing to sell or lease premises with an intact liquor license. The license must be up to date on fees and taxes, and the holder of that license must be willing to relinquish it. As with any scarce resource, the price on an intact license may be high and a certain level of negotiating skill may be necessary in order to obtain it. This is only one of the areas where the right business attorney can expediate the licensing process.
Once purchased/leased, or as part of the acquisition process, the business owner must apply and pay for a transfer of license. The fees can be significant. Both new and transfer fees must be received with the Illinois liquor license application. Another issue that can halt obtaining a liquor license is the will of the voters. Some cities, like the City of Chicago, allow entire precincts to vote themselves as a dry precinct. It is best to enlist the aide of a qualified attorney need to research the locality laws prior to application, else you may be wasting your application fees. If the voters have spoken and created a dry precinct, you have no recourse for opening a liquor business there. There are often other local restrictions, such as allowable distance from schools and libraries.
Once a business owner successfully acquires the requisite state and local licenses, they must ensure that they are familiar with and follow all local, state and Federal regulations regarding the advertising, sale, sanitation and disposal of alcohol. Title 11 in Illinois allows for a revocation of a liquor license, even if violation of local, state or Federal law is not proven in court, if the Illinois Liquor Commission decides that there is merit to the violation.
An experienced liquor licensing lawyer can help on a multitude of levels: establishing a liquor licensed business, assist in compliance, employee training, policy development and violation defense. It is also critical for a national chain to have a local presence as well as local experts to successfully launch their chain in the tight licensing environment of Illinois. Finally, a liquor licensing expert can help non-profit organizations obtain special event permits, for when a generally non-alcoholic venue will serve alcohol for a special event or other limited period of time.
However, there are many other provisions within the liquor laws. Closeconsultation with an attorney specializing in Illinois Liquor Law is critical to successfully starting and maintaining a business that serves liquor in the state of Illinois. Beyond licensing concerns, an experienced business lawyer can help you navigate other business permitting concerns, structure your company in the most tax-advantageous manner, and help you ensure that your business will avoid any arcane legal pitfalls for your industry.