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Liquor licensing in Illinois requires legal precision and proper funding. Exact steps need to be followed to make the liquor license official, and going through these motions can be quite costly. Procedural standards differ from city to city. After the liquor license has been acquired, however, handling laws are the same throughout the state. Liquor licenses can easily be jeopardized by bad management. Interested businessmen and women should know the steps to obtaining liquor licenses in Illinois, as well as the missteps that could get their licenses taken away.

The first step to obtaining a liquor license in Illinois is filling out paperwork. The local Retail Liquor License application comes first, and will be priced at $500, payable by check or money order. For official approval, liquor licenses must first go through the Department of Business Affairs and Licensing (DBAL), along with the Local Liquor Control Commission (LLCC). Nine major liquor licenses can be obtained in Chicago alone! They range from Late Hour and Tavern Licenses, to Navy Pier Mobile and Packaged Goods Licenses. The State of Illinois Liquor Control Commission can verify whether businesses need additional licensing.

Fees and required inspections depend on the liquor license being sought. Inspections might entail criminal history reviews, or even the involvement of the Local Liquor Control Commission. Health, fire, plumbing, and ventilation inspections may also be mandatory. Costs vary from $1,040 to $6,640 depending on the business. These inspections and fees need to be renewed at least once every two years. A photocopy of the local Retail Liquor License, IL Business Tax (IBT) number, Federal Employer Identification Number (FEIN), and proof of insurance (for onsite consumption) are also vital to the acquisition of State of IL Retailer's Liquor Licenses.

Once the liquor license has been obtained, there are countless ways to have it forcefully removed by the state of Illinois. Events that have a negative impact on the local community are taken into consideration by the DBAL and LLCC. Serving someone too much alcohol and providing alcohol to minors are both major offenses. Too many visits from the local authorities, which could be due to violence or other crimes, could also result in liquor license denial. This can be counteracted through the writing and implementation of plans that properly address community concerns.

Even an application for renewal - mandatory every two years - can be denied. All it takes is enough arrests having occurred within 500 feet of the formerly licensed premises. Events that have affected the neighborhood for the worse are reason enough for liquor license denial. Due to excesses of crime, noise, traffic, rodent infestation, or violence, the local Alderman and law enforcement officials might protest the approval of liquor licenses in writing. Community members who will be affected by the change may object as well. The number of protesters will help determine whether the liquor license should be approved.

Such issues can be avoided or resolved through precautionary measures. Business owners could heighten security with better lighting, video cameras, hired bouncers, metal detectors, and by checking - and possibly scanning - ID cards. Creating occupancy limits also helps, as does keeping intoxicated persons from entering the establishment. The right insulation can even keep noise contained. There's so much that can and should be done by all licensees. Unfortunately, not all businesses take the necessary measures to protect their State of IL Retailer's Liquor Licenses. This often results in not only loss of business and revenue, but loss of the business itself.

Learn more about this author, Shannon Beineke.
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