How to Get a Liquor License in Chicago

Opening a bar, restaurant, or liquor store in Chicago requires a liquor license. Unlike some states with simplified processes, Chicago's licensing system involves both the city and the state, multiple approval layers, and specific distance rules from schools and other protected institutions. This guide walks you through the exact steps, costs, and timeline for getting licensed.

Types of Chicago Liquor Licenses

Chicago issues these main types of on-premises and off-premises liquor licenses through the Chicago Department of Business Affairs and Consumer Protection (BACP), which operates under the Chicago Local Liquor Control Commission. Each type serves a different business model and carries different fees and restrictions.

Consumption On-Premises (COP) Incidental

This license allows restaurants and cafes to sell alcohol for consumption on the premises. The cost is $4,400 per two-year renewal period, plus a $40 publication fee. This license is most common for sit-down restaurants where alcohol is secondary to food sales. A key advantage: restaurants seeking COP licenses are exempt from Chicago's moratorium on new licenses in certain districts.

Tavern License

A tavern license permits the sale of alcohol (beer, wine, and liquor) for consumption on-premises in a bar setting where alcohol is the primary product. This also costs $4,400 per two years plus the $40 publication fee. Taverns must follow stricter operational rules than COP locations and are subject to Chicago's moratorium restrictions, meaning new tavern licenses may not be available in some neighborhoods.

Packaged Goods License

This off-premises license covers liquor stores, grocery stores, and convenience stores that sell beer, wine, and spirits in sealed containers for consumption elsewhere. The fee is $4,400 per two-year renewal cycle plus $40 for publication. If your location falls in a moratorium district, a packaged goods license is generally not available.

Outdoor Patio License

Restaurants and bars can add an outdoor patio license to serve alcohol outside. The cost is $1,760 per two years. The patio must be a privately owned outdoor space next to a Tavern or COP licensed premises, must close by 11 p.m. Sunday through Thursday and midnight Friday and Saturday, and may not have live or recorded music.

Late Hour License

This is an add-on license for establishments that want to serve alcohol past 2 a.m. (the standard closing time in Chicago). The late hour license costs $6,000, is available to Tavern and COP licensees, and allows sales until 4 a.m. Monday through Saturday and 5 a.m. on Sunday.

Key Restrictions Before You Apply

Chicago's liquor licensing includes strict location requirements. Before investing in a location, verify these restrictions with the Chicago Department of Business Affairs and Consumer Protection.

Distance Rule (100 Feet)

No liquor license can be issued for a location within 100 feet of a school, church, hospital, home for the aged, or library unless a distance reduction is granted. If your proposed location is near any of these facilities, verify the exact distance before committing to the lease.

Moratorium Districts

Chicago has enacted moratoriums on new liquor licenses in certain areas to limit oversaturation. These districts vary by neighborhood and are updated periodically. The key exception: restaurants seeking a COP (consumption on-premises incidental) license are generally exempt from moratoriums, making this the only path forward for some locations. Tavern and packaged goods licenses are subject to the moratorium.

Dry Precincts

A handful of Chicago precincts prohibit the sale of liquor entirely. Check whether your proposed location falls in a dry precinct before proceeding; if it does, licensing is not possible regardless of your business type.

Step-by-Step Process for Getting a Chicago Liquor License

Step 1: Confirm Your Location is Eligible

Contact the Chicago Department of Business Affairs and Consumer Protection to verify that your intended location is not in a dry precinct or subject to a moratorium (unless you qualify for an exemption). Ask specifically whether your location meets the 100-foot distance requirement from schools, churches, hospitals, homes for the aged, and libraries. This step takes 1 to 2 business days and can save you weeks of wasted effort if the location is ineligible. You can also consult the alderman's office for your ward, who often has zoning and licensing maps.

Step 2: Identify Your License Type

Choose which license type matches your business: COP incidental for restaurants, tavern for bars, packaged goods for off-premises retail, patio for outdoor service, or late hour for extended service. If you plan to serve alcohol on-premises and outdoors, you will need both a primary license (COP or tavern) and a patio license.

Step 3: Prepare Required Documents

Gather the following before applying:

• Proof of ownership or a lease agreement (if you do not own the property)
• A floor plan of your premises showing seating, service areas, and entrances
• Your business plan or narrative describing the business and its hours of operation
• Your Retail Food Establishment license or application, if you will serve food
• A list of all shareholders or partners and their contact information
• Fingerprints for the fingerprint-based background check of every controlling person
• Your federal Employer Identification Number (EIN) if you are a corporation or partnership

Requirements vary slightly depending on whether you are opening a restaurant, bar, or retail location. Confirm the exact checklist with the Chicago Department of Business Affairs and Consumer Protection before submitting.

Step 4: Submit Your Application

Submit your completed application, documents, and the required fees to the Chicago Department of Business Affairs and Consumer Protection. Applications can be submitted online through the city's business license application system or in person at the BACP Small Business Center. Include the $40 publication fee with your application.

Step 5: Public Notice and Community Input

Once your application is received, the BACP publishes notice in a local newspaper. This step is mandatory and protects the community's right to be heard. Your application is also sent to your alderman, the police commander for your district, and all voters within 250 feet of your proposed location. These parties can voice support or objections; ask BACP for the current comment window. Expect some back-and-forth with your alderman's office during this period; building goodwill with your aldermanic office early in the process helps.

Step 6: Local Liquor Control Commission Review

After the public comment period, the Chicago Local Liquor Control Commission reviews your application. This body evaluates your business plan, community impact, criminal history (if any), and any objections from neighbors or police. The commission may request a meeting with you to discuss the application. Be prepared to answer questions about your hours of operation, security plans, and how you will manage noise and parking. This stage typically takes 2 to 4 weeks.

Step 7: Approval and State License

If the Chicago Local Liquor Control Commission approves your application, you receive a local approval. This is not yet your license; it is the city's permission to move forward. You must then apply for the state liquor license through the Illinois Liquor Control Commission (ILCC). Submit your local approval letter, proof of payment of local fees, and any additional documents required by the state. The state typically approves routine applications within 2 to 4 weeks.

Step 8: Receive Your License and Begin Operations

Once the state issues your liquor license, you are authorized to sell alcohol at your location. Display your license prominently in your establishment. Your city license is valid for two years, and the state license renews on its own schedule, so track both renewal dates.

Costs and Fees for a Chicago Liquor License

Be clear on costs before you invest. Chicago liquor license fees are among the highest in Illinois.

License Type	Two-Year Cost	Publication Fee	Total Initial
COP Incidental	$4,400	$40	$4,440
Tavern	$4,400	$40	$4,440
Packaged Goods	$4,400	$40	$4,440
Outdoor Patio (add-on)	$1,760	$40	$1,800
Late Hour (add-on)	$6,000	$40	$6,040

These are Chicago city fees only. Chicago also imposes a 1.5% off-premises liquor tax on packaged goods (in effect as of March 1, 2026), collected by you from customers. On-premises (COP and tavern) establishments are not subject to this tax. Be sure to budget for accounting and legal help; many applicants spend $1,500 to $3,000 on an attorney to navigate the process.

Timeline: How Long Does It Take?

From application to approval typically takes 90 to 150 days, depending on community feedback and the speed of city and state processing. Here is a realistic breakdown:

• Pre-application location verification: 5 to 10 days
• Preparation of documents and application: 2 to 3 weeks
• Public notice and community comment period: 30 to 45 days
• Chicago Local Liquor Control Commission review: 2 to 4 weeks
• State ILCC application and approval: 2 to 4 weeks
• Total: 90 to 150 days in most cases

If your application faces community objections or police concerns, timeline can extend to 6 months or longer. Plan ahead and do not count on a license in a tight timeframe.

Tips and Common Mistakes to Avoid

Tip 1: Build Aldermanic Relationships Early

Your alderman has significant influence over liquor licensing in your ward. Meet with the alderman's office before or immediately after filing your application. Many aldermen expect courtesy notice and a chance to discuss the application. Skipping this step often leads to unnecessary delays.

Tip 2: Know Your Distance Rule

Measure the distance to nearby schools, churches, hospitals, homes for the aged, and libraries carefully. Use a map or hire a surveyor to confirm if you are within 100 feet. Do not guess. Many applications are denied because applicants misunderstood the distance rule.

Tip 3: Check the Moratorium Before Signing a Lease

Chicago's moratorium districts change periodically. Confirm your location is not in a moratorium district before you commit to a lease. If it is, a COP restaurant license may still be possible, but tavern and packaged goods licenses are not. Ask the property owner whether the location has been denied licenses in the past.

Tip 4: Plan for the Community Comment Period

Do not be surprised if neighbors object. Attend any hearings and be prepared to address concerns about noise, parking, and safety. Show that you have a clear operating plan and security measures in place.

Tip 5: Budget for Professional Help

While you can file an application yourself, working with an attorney who specializes in Chicago liquor licensing reduces the risk of errors and speeds approval. The cost is $1,500 to $3,000, but this is often well worth it.

Common Mistake 1: Assuming a License is a Formality

Many first-time applicants treat the liquor license as a given once they sign a lease. It is not. The city can and will deny applications that fail its standards or face community opposition. Treat it as a separate, required process with its own timeline and costs.

Common Mistake 2: Submitting Incomplete Applications

Missing documents or an unclear floor plan will send your application back for resubmission, costing you 2 to 4 weeks. Use the checklist from the Chicago Department of Business Affairs and Consumer Protection and verify every item before you submit.

Common Mistake 3: Ignoring Chicago's New Liquor Tax

New off-premises retailers are subject to the 1.5% liquor tax effective March 1, 2026. Factor this into your pricing and cash flow projections from day one. If you are selling packaged liquor, you collect this tax from customers and remit it to the city.

Expected Results and Next Steps

If approved, you will receive a physical license to display in your establishment. Your license is valid for two years. Renewal is routine if you maintain compliance with local hours, safety, and operational standards. Violations such as serving alcohol to minors, operating outside licensed hours, or failing to pay taxes can result in suspension or revocation.

After licensing, you must register with the Illinois Department of Revenue for sales tax, and with the Chicago Department of Finance for the city liquor tax if you sell packaged goods. Allow 1 to 2 business days for that registration. If you hire staff to serve or sell alcohol, Illinois requires BASSET alcohol server training statewide, completed within 120 days of starting employment.

Resources and Contacts

For official information and current forms, contact:

• Chicago Department of Business Affairs and Consumer Protection (BACP): Handles local liquor licensing applications and permits. Contact the Liquor License section for your ward's aldermanic office information and submission details.
• Illinois Liquor Control Commission (ILCC): Processes state-level liquor licenses after local approval. Visit the ILCC website at https://ilcc.illinois.gov/ for state forms and contact information.
• Illinois Department of Revenue: Handles sales tax and liquor tax registration at https://tax.illinois.gov/. Register at https://tax.illinois.gov/businesses/registration.html once you obtain your local license.

Legal and Tax Disclaimer

This article provides informational content about Chicago liquor licensing requirements. It is not legal, tax, or business advice. Liquor license laws change, and local ordinances vary by ward and precinct. Before submitting an application, consult with a licensed attorney in Illinois and a CPA or accountant familiar with Illinois liquor business taxes. They can review your specific situation, property, and business plan to ensure compliance and help you avoid costly mistakes.