How to Open a Bar in Tennessee: Liquor, Beer, and LBD Licenses

Opening a bar in Tennessee requires a liquor license from the Tennessee Alcoholic Beverage Commission (ABC). But there are different types of licenses depending on what you plan to serve, and each has its own cost, application process, and local requirements. This guide walks you through the licensing path, the steps involved, and what to prepare before you apply.

Key Facts About Tennessee Alcohol Licensing

Tennessee's alcohol licensing system divides licenses by type: beer and wine, distilled spirits, liquor by the drink (a specific type for on-premise service), and catering or special licenses. Each license type has different regulations, different costs, and different approval timelines. Some apply at the state level with the ABC, while others are approved at the local level by your city or county.

Before you invest heavily in a location or a build-out, confirm that the property is in a zone where bars are permitted, and check whether your local jurisdiction even allows the type of license you want. Some Tennessee cities and counties restrict or prohibit alcohol sales entirely.

What You'll Need Before You Apply

• A physical location in Tennessee with the property address and ownership documentation (lease or deed)
• Local zoning approval confirming the property is in a zone that permits a bar or on-premise alcohol sales
• Local ABC board approval or a letter of non-objection from your city or county (requirements vary by jurisdiction)
• Your business formation documents (EIN, Articles of Organization if you've formed an LLC, or sole proprietor ID)
• A background check covering the applicant and any owners with a financial interest in the business
• A premises diagram showing the interior layout of your bar, restrooms, storage areas, and exits
• Proof of financial stability (bank statements or other documentation)
• A list of managers and employees who will handle alcohol service, with their names and dates of birth
• ABC server permits for yourself and any staff who will serve alcohol (these are obtained separately from the liquor license)

For the most current and complete checklist, visit the Tennessee Alcoholic Beverage Commission website and download the application for your specific license type. Incomplete applications are rejected, so getting the full list upfront saves time.

Understand the Types of Alcohol Licenses in Tennessee

Liquor by the Drink License (LBD)

A liquor by the drink (LBD) license allows you to sell individual drinks made with distilled spirits (bourbon, whiskey, vodka, gin, rum, and others) to customers who drink on your premises. This is the classic bar license. If you want to serve mixed drinks, this is what you need.

LBD licenses are regulated at the state level but often require local approval as well. Some Tennessee counties prohibit LBD sales, so you must confirm your location is in a jurisdiction that allows them before you file an application.

Beer and Wine License

A beer and wine license allows you to sell beer and wine for on-premise consumption, but not distilled spirits. This license may be easier to obtain in some jurisdictions, and the application process may be faster. However, revenues from beer and wine only are generally lower than revenues from a full liquor license, so calculate your margin carefully.

Distilled Spirits License

A distilled spirits license (also called a package license or off-premise license) is for selling sealed bottles of spirits to customers who leave your premises with them, like a liquor store. If you want to open a standalone bottle shop, this is the license you need.

Catering and Special Event Licenses

If you don't yet have a permanent location or want to serve alcohol at special events, Tennessee offers catering and event-specific licenses. These have shorter approval timelines but are limited in duration and scope.

Step-by-Step: Applying for Your Liquor License

Step 1: Verify Local Permission

Before you spend money on an application or a lease, contact your city or county clerk to confirm that your intended location is in a zone where bars are legally permitted, and that your jurisdiction allows the type of license you want. Call or visit the planning and zoning department and ask if the address is zoned for on-premise alcohol service. Some jurisdictions require a published public notice or a hearing before a local ABC board before the state will even consider your application.

This step can take a few weeks, so start here.

Step 2: Get Local ABC Board Approval (if required)

Many Tennessee cities and counties operate their own local ABC board that must approve your application before it goes to the state. Some jurisdictions require a public notice and a hearing where neighbors and local officials can voice objections. If your location is in one of these areas, plan for 30 to 60 days for the local process.

Contact your city or county clerk to find out whether a local board approval is required. If it is, ask for the application deadline, hearing schedule, and what documentation you'll need to submit. A letter of non-objection from the local board is what you'll send to the state to accompany your application.

Step 3: Gather and Prepare Your Application Package

Download the Tennessee ABC application form for your specific license type from the ABC website. Complete the application fully, leaving no blanks. Incomplete applications are returned without processing.

Prepare these supporting documents at the same time:

• A detailed floor plan of your premises showing the layout, seating, restroom locations, emergency exits, and storage for alcohol
• Proof of property ownership or a signed lease
• Your business registration documents (EIN, LLC Articles of Organization, or sole proprietor proof)
• Photo ID for all owners and managers
• A summary of your business experience and management plan
• Current personal financial statements showing your ability to operate the business
• If you have a local ABC board approval, include that letter with your state application

Step 4: Submit Your Application to the Tennessee ABC

Mail your completed application and supporting documents to the Tennessee Alcoholic Beverage Commission at the address listed on their website. Some applications may be submitted electronically through their online portal. Check the ABC website for the current submission method and mailing address.

Processing times vary depending on the type of license and the completeness of your application. Budget for at least 30 to 60 days from submission to approval. If you submitted an incomplete application or the ABC has questions, they will contact you with a deadline to respond. Missing that deadline can result in a rejection, requiring you to reapply.

Step 5: Obtain ABC Server Permits for Yourself and Your Staff

Before you can legally serve alcohol in Tennessee, you must have an ABC server permit (sometimes called an ABC card). This applies to you, your managers, bartenders, servers, and any employee who will handle or serve alcohol. The server permit is proof that you have completed alcohol awareness and responsible serving training.

You can apply for your server permit through the Tennessee ABC or an approved training provider. The training covers responsible alcohol service, age verification, recognizing intoxication, and state laws. Once you pass the training course and exam, you receive your permit. Your employees will need to do the same before they start serving alcohol.

Step 6: Obtain Final Approval and Your License Certificate

Once the Tennessee ABC approves your application, they will issue a license certificate. This certificate must be posted in a visible location on your premises, typically near the entrance or behind the bar. You cannot sell alcohol before you receive this certificate and post it.

Depending on the license type, the certificate is valid for one or two years. Plan to renew before expiration to avoid a lapse in coverage.

Local Jurisdiction Variations

Tennessee law allows individual cities and counties to set stricter rules than the state requires. Some municipalities prohibit certain license types entirely. Nashville, Memphis, Knoxville, Chattanooga, and other major cities each have their own local ABC boards with approval requirements, zoning rules, and operating restrictions.

Before you commit to a specific location, contact that city or county's planning and zoning department or ABC board directly. A few minutes on the phone now prevents an expensive application rejection later.

Common Mistakes to Avoid

• Not checking zoning before leasing. If the address is zoned residential or industrial and not permitted for alcohol sales, your application will be denied. Confirm zoning before signing a lease.
• Submitting an incomplete application. Missing even one required document means a rejection and a restart. Use the state's checklist and have someone else review your package before you submit.
• Assuming local approval is automatic. Many jurisdictions require a public hearing and local board sign-off. If you skip this step where required, the state will request it later.
• Forgetting the server permits. You cannot open and serve alcohol without ABC-certified server permits for yourself and your staff. This is not optional.
• Underestimating the timeline. From zoning confirmation to license in hand is often 90 to 120 days or more. Budget time in your business plan.
• Not understanding your responsibilities. Once you have a license, you are responsible for ensuring all servers have current permits, for checking ID on every customer, and for refusing service to visibly intoxicated patrons. Violations result in fines, suspension, or license revocation.
• Failing to renew before expiration. Set a calendar reminder for your renewal deadline. Operating without a current license is a violation that can close your bar.

What to Expect After Approval

Once you receive your license, you're ready to open and begin serving alcohol. However, your responsibilities are ongoing. The Tennessee ABC conducts compliance audits and inspections. They verify that all servers have current permits, that you're checking ID, and that you're following all regulations. Violations such as serving minors, overserving visibly intoxicated customers, or operating without proper permits can result in fines, suspension, or permanent license revocation.

Keep detailed records of your staff training, maintain your server permits, and stay up to date on any rule changes from the ABC. Many bar owners find it helpful to designate a manager responsible for license compliance and staff training.

Estimated Costs and Timeline

License application and approval: Specific fees are set by the Tennessee ABC and vary by license type. For current, accurate fee information, visit the Tennessee ABC website or contact them directly at the address and phone number listed there. Do not rely on outdated estimates, ABC fees can change.

Local ABC board approval (where required): Usually no fee, but budget 4 to 8 weeks for the local process if your jurisdiction requires a public hearing and local board sign-off.

Server permits: The cost varies depending on whether you obtain your permit through the state ABC or an approved private training provider. Confirm current pricing directly.

Total timeline from submission to open: 60 to 120+ days, depending on local requirements, the completeness of your application, and processing volume at the ABC.

Item	Estimated Cost	Timeline
Local zoning confirmation	No fee	1 to 2 weeks
Local ABC board approval (if required)	No fee	4 to 8 weeks
Tennessee ABC license application	Varies by license type, confirm on ABC website	30 to 60 days
ABC server permit per person	Varies, confirm on ABC website or with approved trainer	1 to 2 weeks
Total from application to opening	Varies	60 to 120+ days

Important: The costs and timelines above are estimates based on typical processes. Actual costs and timelines vary by license type, location, and current ABC processing volumes. For current, verified pricing and procedures, visit the Tennessee Alcoholic Beverage Commission website directly, or call them at the contact number listed there.

Need Professional Help?

Opening a bar involves multiple approvals, detailed compliance, and real financial and legal consequences if done incorrectly. Consulting with an attorney licensed in Tennessee who has experience with alcohol licensing can save you time and prevent costly mistakes. Many lawyers can guide you through the process, attend local board meetings with you, and ensure your application package is complete before submission.

This guide is informational only and not a substitute for legal or tax advice. Licensing laws and fees change, and specific requirements vary by jurisdiction. Before you spend money or sign a lease, confirm current requirements directly with the Tennessee ABC and your local city or county.

Key Resources

• Tennessee Alcoholic Beverage Commission: tn.gov/abc
• Tennessee Secretary of State (business registration): sos.tn.gov/businesses
• Your city or county clerk: Contact information available through your local government website
• Tennessee Department of Revenue (sales tax registration): tn.gov/revenue