Getting a license to sell liquor in any state can be a tedious and daunting process. But it's a necessary evil if you want to operate your business without running afoul of the law.
Before you can operate a business selling or distributing liquor in the state of Illinois, there are certain procedures that must be adhered to. The first step is obtaining a liquor license from the State of Illinois Liquor Control Commission (ILCC). All parties who will be involved in operating the business must apply for the license in writing by completing and signing an application form. A corporation must have their president sign the form and this signing is to be witnessed by the company's secretary. You can request your application form from your local Liquor Control Commissioner or downloaded it at www.state.il.us/lcc/licensediv.asp
The license application form contains the name of the establishment to be licensed, the type of business that will be operated, date of charter, state of issuance and other relevant information. Certain pertinent questions are asked on the form such as; whether the premises to be licensed is within 100 feet of any schools, hospitals or nursing homes; whether the applicant has ever been convicted of a crime or misdemeanour, or if they have ever had a license for the sale of liquor revoked. If discrepancies are found on your application form you may not be granted a license. All applications are verified by oath or affidavit.
In addition to the application form, you must submit the following to the local licensing commission:
A copy of the deed to your premises (if you are the owner). If you are not the owner you must submit a copy of the lease or rental agreement for the use of the premises, and the premises must be leased for the full period of the license requested.
The location and description of the premises and a precise diagram to scale of the area to be operated under the license. Specifically, all diagrams must be a scale of one-quarter inch equal to one foot.
Your liquor license classification, whether class A, B, C H. Some classes may require an additional license in order for you to operate. For example, a class A classification authorizes the sale of all types of liquor for consumption on or off the premises. This requires an entertainment license in addition to a liquor license. Each classification also carried a different fee amount.
Proof of insurance. This must be from a reputable insurance company
Illinois Business Tax Number and Federal Employer Identification Number (FEIN)
Any additional information may be obtained by visiting the ILCC website.
So now you have your liquor license. Next, you need to know how to maintain it. Licensees who violate any regulations stipulated under the state of Illinois Liquor Control Act may be subject to revocation of their license and may face other fines and penalties. Special agents from the ILCC Investigations Division frequently inspect licensed premises throughout Illinois in response to complaints they may receive from the general public concerning violations. Some violations include:
Serving alcoholic beverages to minors
Serving two or more drinks to an individual for consumption by that individual
Increasing the volume of liquor sold without proportionately increasing the price regularly charged for that drink on that given day.
"Bottle service" - selling an entire bottle of distilled spirits (rum, vodka, whiskey, etc.) to a table or group of customers.
Advertising any practice prohibited by the "Happy Hour" Law
o Encouraging or allowing games or contests involving drinking liquor or awarding liquor as prizes.
o Serving traditionally "individual" drinks in large pitchers
o Reducing prices of drinks during a specified time of the day or to a specific group of persons.
o Selling, offering or serving unrestricted amounts of alcohol at a fixed price for a specific time period.
Licenses can also be jeopardized when establishments consistently break rules such as overcrowding or operating anywhere that requires a heavy police presence due to fights, gang activity and other similar conduct.
It may be wise to take a look at the Industry Education Division Beverage Alcohol Sellers Education and Training (BASSET) program before you begin. This is Illinois's sellers/servers training program, which provides guidelines to sellers and servers of alcoholic beverages in the state. They can provide you with information on the various liquor laws of Illinois.