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In the state of Illinois, there are number of steps an applicant must take in order to obtain a liquor license. However, before the process begins, an applicant will have to determine what type of liquor license it needs, and if any additional related licenses are needed. There are a number of different types of liquor licenses, including those for taverns, packaged goods (mainly for liquor stores), caterers, or private clubs. Related licenses may include those for food service, live entertainment, late hours or even gaming equipment, such as pinball machines, pool tables, etc. Each type of license involves different fees and requirements.
After determining what type of liquor license best suits their business, the applicant must request the application or applications for the city, district or municipality in which the license is intended for use. In some cases, municipalities may not even issue an application until the applicant makes a presentation before the Board of Trustees or Village staff. It is often helpful for the applicant to meet with the city's business license department, economic development director, or other municipal staff member who will explain the application process and any other requirements.
In many cases the initial meeting is informal, as the applicant may be required to provide answers to standard questions on a pre-printed form, in other cases, an applicant may need to make a thorough presentation, including the businesses’ value to the community (economic impact, job creation), size, hours of operation, floor plan, target market, menu, managerial experience, etc.
As part of the process, the applicant should investigate the types of restrictions that may impede or prevent a business from obtaining a liquor license, as license restrictions and special regulations are set by both cities and the State of Illinois. In Chicago, there are some areas of City wards which have a moratorium, a prohibition on the issuance of a particular class of liquor license, for example packaged goods or a tavern license, while that area may permit a restaurant with an incidental liquor sales license. In the entire State of Illinois, a liquor license will not be issued to a business that is located within 100 feet of a school, church, hospital, daycare, library, or nursing home.
As part of the license application, the city's zoning department or its municipal equivalent may require the applicant to submit a floor plan and business site plan. In most cases, liquor license applicants will be required to pass scheduled inspections from the plumbing and ventilation department, fire department and health department and undergo a police background check. Chicago and many municipalities require the owner, manager and even staff to be trained to be a responsible server – or present proof that he/she is BASST trained.
Once the applicant has been issued a liquor license from the city or municipality, the business must file an application with the Illinois Liquor Control Commission and pay the required fees. Applicants are also required to register with the Alcohol Tobacco Tax and Trade Bureau of the United States Department of Treasury.
After receiving all necessary licenses and permits, the business must comply with the rules and regulations of the both the municipality and the ILCC. Any violation of these rules could result in a fine, or a suspension or revocation of the liquor license. Businesses that develop a reputation for harboring violent behavior or require constant police presence due to violence or other lawbreaking practices also risk revocation of the their liquor licenses.
It is important that a business with a liquor license is pro-active and has policies and procedures in place to prevent violations, including service to minors and over service. Many companies use ID scanning technology, install digital security cameras, use cash register software that prevents a sale unless an ID is checked, offer regular training to employees, require employees to sign contracts when they are hired explaining the business’ alcohol policies, and more. Once your business receives the licenses, you need to do all you can to protect it.