How to Get a Liquor License in Illinois: Local License First, Then the State

Opening a bar, restaurant, or retail liquor store in Illinois requires navigating a two-step licensing process that catches many applicants off guard. You must apply for a local liquor license first, then a state license from the Illinois Liquor Control Commission (ILCC). Skip either step or reverse the order, and you'll face delays or rejection. This guide walks you through the entire process, from local approval to the state license and employee training requirements.

What You'll Need to Prepare

Before you contact your local liquor commissioner or file with the ILCC, gather the following documentation:

• Government-issued photo ID (for principal owners, officers, and managers)
• Proof of business formation (Articles of Organization for an LLC, Articles of Incorporation for a corporation, or proof of sole proprietorship)
• Federal Employer Identification Number (EIN) from the IRS, or Social Security Number
• Detailed business plan or operational proposal (hours of operation, menu, service model, square footage of licensed premises)
• Premises diagram showing dimensions and layout (especially for restaurants and bars)
• Proof of property ownership or current lease agreement
• Financial statements or bank statements showing sufficient capitalization
• List of principal owners and their ownership percentages
• Three to five professional references
• Proof of any required local zoning compliance or municipal approvals
• Criminal background check authorization (both local and state may request this)

Requirements vary by municipality, so contact your local liquor commissioner's office first to confirm what they specifically need before investing time in gathering everything.

Step 1: Research Your Local Liquor Licensing Requirements

Illinois liquor licensing starts at the local level. The first licensing authority you deal with is your city or village liquor commissioner, or the county liquor commissioner if you are in an unincorporated area. Local license classes and quotas vary significantly by town, meaning your city may issue only a certain number of beer-and-wine licenses, or may prohibit certain types entirely.

Start by identifying your jurisdiction. Are you opening in Chicago, a Cook County suburb, or an unincorporated area? Your answer determines which local official to contact. Search your city or county name plus "liquor commissioner" or visit your city or county clerk's website to find the correct office.

Ask the local commissioner these key questions:

• What license types are available in this jurisdiction (on-premise, off-premise, restaurant, bar, caterer, grocery store)?
• Are there quota limits on the number of licenses issued?
• What is the application fee and initial license fee for each type?
• What is the current processing timeline?
• Do you require a public hearing or community approval?
• What use restrictions apply to this location (distance from schools, parks, or residential areas)?
• Are there any local zoning or conditional-use permits required before I can apply?

Local fees and processes are not standard across Illinois, so this conversation is essential before spending money on application fees or deposits.

Step 2: Complete the Local License Application

Once you know your jurisdiction's requirements, obtain the local application form from your liquor commissioner's office. Prepare your documentation package and submit your application with the required local filing fee.

Most municipalities require you to submit:

• Completed application form
• Ownership and financial information
• Detailed description of the premises and proposed operations
• Lease or deed for the location
• Any local zoning approval or conditional-use permit
• Local filing fee (amount varies by jurisdiction)

Many jurisdictions hold a public hearing on contested or special-use applications. If your location is near a school, residential zone, or another licensed premises, or if local law requires a hearing, you may need to present your case publicly. Attend prepared with documentation of your business plan, management qualifications, and community safeguards (if applicable).

Processing timelines vary widely. Some municipalities issue local licenses within 30 to 60 days; others take four to six months. Ask your local commissioner for an estimated timeline and stay in contact during the review period.

Step 3: Obtain Your Local License

Once your local application is approved, you receive a local liquor license issued by your city, village, or county. This is your foundation for the state process, but the local license alone does not grant you the right to serve or sell alcohol until you also obtain your Illinois Liquor Control Commission license.

Keep your local license in a safe place. You will need to reference it when you file with the state and will be required to display it at your licensed premises.

Step 4: Apply for Your Illinois Liquor Control Commission Retailer License

Once you hold a valid local license, apply for your state retailer license from the Illinois Liquor Control Commission. Two common ILCC retail license types are a standard retailer license for on-premise (bars, restaurants) or off-premise (liquor stores) sales, and a caterer retailer license for businesses serving alcohol at events.

The ILCC retailer license fees are:

• Retailer license: $750 initial / $600 renewal (per year)
• Caterer retailer license: $500 initial / $350 renewal (per year)

To apply, submit your local license copy, detailed business documentation, and the ILCC application form. Application procedures, required forms, and current fees are available through the ILCC website (ilcc.illinois.gov). Confirm current filing procedures and any recent changes with the state before submitting.

ILCC applications typically process in 30 to 90 days depending on completeness and the state's current workload. Your license is valid for one year from the date of issuance and must be renewed annually.

Step 5: Ensure All Employees Complete BASSET Training

Illinois law requires that all employees who sell or serve alcohol complete BASSET (Beverage Alcohol Server-Seller Education and Training) certification within 120 days of their hire. BASSET training covers responsible alcohol service, checking identification, recognizing signs of intoxication, and understanding the legal consequences of improper service.

BASSET is required under 235 ILCS 5/6-27.1. You can find approved BASSET providers through the Illinois Liquor Control Commission. Providers offer online and in-person courses that typically take one to two hours to complete. Your employees must maintain a certificate of completion and have it available for inspection.

While you can begin operating after your ILCC license is issued, you must ensure every server or bartender on staff completes BASSET within the 120-day legal window. Failure to do so can result in fines and jeopardize your license renewal.

Step 6: Renew Your Licenses Annually

Both your local and state licenses require annual renewal. Your local renewal typically occurs on or before the anniversary of your initial approval. Your Illinois liquor license renews annually and requires the renewal fee ($600 for a standard retailer; $350 for a caterer).

Track these renewal dates carefully. Missing a local or state renewal deadline can result in a lapsed license, fines, and in some cases, loss of your operational authority. Set calendar reminders and maintain open communication with both your local commissioner and the ILCC about renewal requirements and timelines.

Tips and Common Mistakes to Avoid

Reversing the licensing order: Do not file with the ILCC before obtaining your local license. You will be rejected. Local licensing is the prerequisite, not a parallel step.

Underestimating local variations: Many applicants assume all Illinois municipalities follow the same rules. They do not. Some towns cap the number of licenses; others prohibit certain types of service. Verify your specific local rules before committing to a location.

Incomplete applications: Missing a single required document can stall your application for weeks. Confirm the complete list of requirements with both your local commissioner and the ILCC, and submit everything at once rather than piecemeal.

Ignoring BASSET deadlines: Employees serving alcohol without completed BASSET training within the legal window create liability for your business. Establish a tracking system for hire dates and training completion for every server and bartender.

Letting licenses lapse: Renew both your local and state licenses before expiration. A gap in licensing can force you to reapply from scratch.

Underbudgeting for local fees: While the Illinois Liquor Control Commission fees are fixed at the state level, local jurisdictions set their own application and license fees. Some municipalities charge several hundred dollars; others charge several thousand. Call ahead and get fee quotes in writing.

Expected Results and Timeline

If your application is complete and meets all local and state requirements, you can typically expect the following timeline (though actual timelines vary by jurisdiction and state workload):

• Local licensing: Typically 30 to 90 days from submission; some jurisdictions take up to six months if a hearing or special approval is required.
• ILCC state licensing: Typically 30 to 90 days from submission after you hold a valid local license.
• Total process: Expect four to six months from start to finish in most cases, potentially longer in high-volume areas like Chicago or Cook County.
• BASSET training: Once hired, employees have 120 days to complete certification; online courses can be finished in a single business day.

Once you hold both your local and state licenses and all employees have completed BASSET training, you are legally authorized to serve or sell alcohol at your Illinois licensed premises.

Disclaimer

This article is informational only and does not constitute legal or tax advice. Liquor licensing laws and local requirements are complex and subject to change. Before opening your business, consult a licensed attorney familiar with Illinois liquor law and your specific jurisdiction, and speak with a CPA about the tax obligations of a licensed alcohol business. Each situation is unique, and relying solely on this guide without professional guidance could result in costly mistakes or license denial.

Key Resources

• Illinois Liquor Control Commission: Issues state liquor licenses and publishes current forms, fees and BASSET provider information. Visit https://ilcc.illinois.gov/
• Your Local Liquor Commissioner: Found through your city or county clerk's office; they issue the local license that is required before you can apply to the state.
• BASSET Training Providers: Approved providers are listed through the Illinois Liquor Control Commission. Confirm current provider lists with the ILCC.
• Legal and tax counsel: A business attorney and CPA familiar with Illinois liquor law can guide you through local variations and help you structure your business appropriately for tax and regulatory compliance.