Anaya Nolan
There are a plethora of laws and regulations that govern the operation of bars, including those concerning licenses, taxes, worker safety, liability, sexual harassment, and insurance. The legal requirements to open a bar vary depending on the location, with some states, counties, and cities having more complex laws and regulations than others. All states require a liquor license to sell alcoholic beverages, and these licenses dictate the type of alcohol that can be sold, as well as the operating hours of the bar. In addition to a liquor license, bars may also need a variety of other permits and licenses, such as a food service license, a music license, and a signage permit.
| Characteristics | Values |
|---|---|
| Business structure | Sole proprietorship, partnership, LLC, or corporation |
| Business license | Required in the US; cost varies from $25 to a few thousand dollars |
| Liquor license | Required to sell alcohol; regulations vary by jurisdiction |
| Food license | Required to serve food |
| Entertainment license | Required to host live events or play copyrighted material |
| Health and safety | Compliance with local health and safety standards is required |
| Employment law | Compliance with labor laws, including wages and worker safety |
| Tax law | Compliance with local, state, and federal tax laws, including sales tax and employment taxes |
| Zoning laws | Compliance with local zoning ordinances that dictate where a bar can operate |
| Planning permission | May include restrictions on operating hours and noise levels |
| Record-keeping | Detailed records of alcohol received from suppliers are mandatory |
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What You'll Learn
Liquor licenses
To open a bar, you will need to obtain a variety of permits and licenses, including a liquor license. The specific requirements vary depending on the location of the bar. In the United States, for example, you will need a federal business license from the Alcohol and Tax and Trade Bureau (TTB) and a state business license. Each state has its own licensing procedures, and the renewal dates and fees for these licenses vary as well. For instance, California requires a license from the local Division of Alcoholic Beverages and Control, while New York mandates a specific distance between bars and schools or places of worship.
In addition to liquor licenses, bars may need health permits, food service establishment permits, and certificates of occupancy. The latter requires an inspection by the local government to ensure the building is safe for customers. Depending on the type of liquor served, additional licenses may be necessary, such as a beer and wine license. Furthermore, some cities require licenses for specific forms of entertainment, such as live music or pool tables.
It is crucial to be diligent in obtaining the necessary permits and licenses to avoid fines or even business closure. The process can be complex, so it is advisable to start the applications well in advance. Additionally, consulting legal counsel or a lawyer can help ensure compliance with all applicable laws and regulations, including those related to worker safety, liability, sexual harassment, and tax regimes.
To summarise, opening a bar requires navigating various legal requirements, including obtaining the necessary liquor licenses and other permits. The specific needs depend on the bar's location, and legal professionals can provide valuable guidance in ensuring compliance with all relevant laws.
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Food licenses
While there are no laws that dictate when a bar can open, there are laws that dictate the conditions under which a bar can operate. For example, during the COVID-19 pandemic, New York state implemented a law that required bars to sell food in order to serve alcohol, in an attempt to prevent large party scenes that could spread the virus. This meant that for each patron in a seated party, a food item had to be purchased with the initial alcoholic beverage(s).
If you plan to open a bar, there are several permits and licenses you need to obtain. These vary depending on the location of your bar, so it is important to check the specific requirements of your city and state. Here are some common food licenses and permits that you may need:
Food Handler Permit/Certificate
If your bar serves food, you will need a food handler permit or certificate. This applies to all employees who handle food, including those who prepare, store, or serve it. In California, new employees have 30 days to obtain this permit from an ANAB-accredited training provider. As the employer, you must maintain records to show that each employee handling food has a valid permit.
Food Service License
A food service license demonstrates that your bar meets food preparation, storage, and safety regulations. It shows that your business complies with all food safety laws. To obtain this license, you must first pass an inspection by the city or county Health Department. They will also conduct regular assessments to ensure that standards are consistently maintained.
Catering Permit
If you plan to provide food and alcoholic beverages at a private indoor function, you will need a catering permit. This allows you to serve food and alcohol off-premises, but you may only serve the types of alcoholic beverages that you are licensed to sell at your regular premises.
In addition to food licenses, there are several other permits and licenses you will need to operate a bar, including liquor licenses, music licenses, and signage permits. These requirements can be complex and time-consuming, so it is important to do your research and plan accordingly.
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Music licenses
Music is an essential part of a bar's atmosphere and overall customer experience. However, playing recorded or live music in your bar requires you to be aware of licensing restrictions to avoid potential lawsuits from music licensing organizations. These organizations, known as Performance Rights Organizations (PROs), represent songwriters, composers, lyricists, and music publishers, and they negotiate licenses with various establishments, including bars and restaurants. The three main PROs in the United States are SESAC, ASCAP, and BMI, and they ensure that music licensing laws are followed and that artists receive their rightful compensation.
ASCAP, for example, has a vast repertory of over 20 million songs, and their licenses are designed to make it easy and affordable for bars and restaurants to play music legally. They also educate bar owners about their legal obligations and attempt to resolve issues before resorting to legal action. ASCAP collects set lists from performances and pays their writers accordingly, even for cover songs. Similarly, BMI offers music licenses for bars, with fees starting at a little over a dollar per day, depending on factors such as the type of music, frequency of performances, and occupancy.
It is important to understand that your subscription to streaming services like Spotify or Pandora does not grant you the rights to play that music in a public setting. By law, the business owner is responsible for obtaining the necessary licenses to play music in their establishment. Playing music without the proper licensing can result in hefty fees or legal challenges, as PROs may bill establishments without a licensing agreement at a minimum of $750 per song played. Therefore, it is crucial for bar owners to be aware of music licensing laws and ensure they have the appropriate licenses to avoid any legal and financial repercussions.
To summarize, music licenses are a necessary aspect of operating a bar, and it is essential to understand the requirements and fees associated with these licenses. By complying with music licensing laws, bar owners can create the desired atmosphere while supporting artists and songwriters through the distribution of royalties.
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$21.27
Signage permits
When opening a bar, you will need to obtain a variety of permits and licenses to ensure your business remains compliant with local laws. Signage permits are an important consideration, as signage is key to your bar's branding and marketing efforts.
The requirements for signage permits typically include restrictions on the size of the sign, how it is displayed, and its location. For example, some areas may have restrictions on lighting and placement, while others may regulate the brightness and flashing frequency of signs. If you rent your building, you may also have additional specifications to consider, and certain signs may not need permits, such as smaller ones or those painted onto an exterior wall.
The cost of a signage permit can vary, typically ranging from $20 to $50 per sign in the US and around £40 per sign in the UK. However, fees can increase based on the size and location of your sign. Therefore, it is important to research the requirements and costs for your specific location before investing in signage for your bar.
Other Permits and Licenses
In addition to signage permits, there are several other permits and licenses you will need to obtain before opening your bar. These may include, but are not limited to:
- Alcohol license
- Business license
- Music license
- Food service license
- Health permit
- Building permit
- Fire department permit
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Fire safety
Fire Risk Assessment and Emergency Plan
It is the legal duty of bar owners or managers to conduct a Fire Risk Assessment and create an emergency plan. This involves identifying potential fire hazards, implementing preventive measures, and establishing procedures to be followed in the event of a fire. The emergency plan should consider the unique layout of the bar, including any difficult escape routes, and how to safely and quickly evacuate all customers and staff, especially those with mobility issues. Regular fire drills can help staff and customers be prepared and familiar with the emergency plan.
Staff Training
Proper staff training is essential for effective fire safety management. Staff should be trained in maintaining clear fire exits, workplace fire safety, evacuation procedures, and how to use fire equipment, such as fire extinguishers and fire blankets. High staff turnover can be a challenge, so ensuring that new hires are adequately trained and that knowledge is consistently passed on is crucial.
Cooking and Smoking Hazards
Cooking and smoking are common causes of fires in bars and pubs. In the kitchen, ensure regular cleaning and inspection of range hoods, ducting, and grease fans to prevent the buildup of flammable fatty residues. Consider installing automatic wet chemical systems for deep fryers and supplementing them with wet chemical fire extinguishers and fire blankets. Educate staff about the dangers of unattended cooking, overheating oil or fat, and proper storage of flammable liquids.
Regulatory Compliance
Bar owners should be aware of and comply with local and national fire safety regulations. In some places, there may be restrictions on open fires or burning certain materials during specific periods, especially during dry weather to prevent wildfires. Consult with local fire authorities, such as the fire department or government websites, to understand the specific requirements and obtain any necessary permits or licenses for operating a bar.
Insurance and Business Continuity
Having sufficient fire insurance coverage is essential to protect your business financially in the event of a fire. Develop a comprehensive Business Continuity Plan to outline the steps for recovering and resuming operations after a fire. This plan should include strategies for repairing or rebuilding damaged property, replacing equipment, and ensuring the financial stability of the business during the recovery period.
By prioritizing fire safety, bar owners can create a safe environment for their customers and staff, meet legal requirements, and minimize the risk of fire-related incidents.
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Frequently asked questions
You will need a business license from the Alcohol and Tax and Trade Bureau (TTB) and a state business license. You will also need a liquor license to sell any kind of alcoholic beverage. If you plan to serve food, you will need a license from the state public health department. Music requires a license, and you will need a permit for signage.
Alcohol sales hours are set by local jurisdictions. For example, in Iowa, alcohol selling hours run from 8 am to 2 am on Sundays, and 6 am to 2 am on weekdays. In Maine, you can buy alcohol between 5 am and 1 am every day.
Some bars require a permit from the fire department before opening. If you have lit candles, you may need an Open Flame permit. If you have a patio, there are specific requirements regarding alcohol service and consumption laws, as well as health and safety.
You must keep detailed records of all liquor, wine, and beer received from suppliers. You will also need an Employer Identification Number (EIN) to apply for your federal business permit.
