City of Chicago liquor license: what it actually takes

Last updated 2026-07-25

What license do you actually need to sell alcohol in Chicago?

If you're opening a bar or restaurant in Chicago, you need two separate liquor licenses, not one. The first is a state license from the Illinois Liquor Control Commission (ILCC). The second is a City of Chicago local liquor license issued through the Department of Business Affairs and Consumer Protection (BACP). Neither substitutes for the other. The Illinois Liquor Control Act requires that no person may manufacture, import, distribute, or sell alcoholic liquor in the state without first obtaining the appropriate license from the state authority, under 235 ILCS 5/5-1 ^[1], and Chicago's municipal code separately requires a local retail license before you pour a drop within city limits ^[2]. This two-layer system trips up a lot of first-time operators who assume the state license is the whole ballgame. It isn't. Chicago runs its own application, its own local approval process (including alderman notification and community input in some cases), and its own fee schedule tied to license class. You need both licenses active before you open, and the city license generally can't be issued until your state application is at least filed and often approved. The practical order most operators follow: secure your lease, confirm your zoning allows the use you want, apply for the Chicago local license through BACP, and apply for the Illinois state license in parallel. Some paperwork overlaps (your corporate documents, your floor plan, your background check materials) so doing both applications close together saves you from re-collecting the same records twice.

How much is a liquor license in Chicago?

There's no single number. Chicago's local liquor license fee depends on the license class you're applying for (tavern, restaurant, package goods, late hours, outdoor patio, and several more), and the city has historically structured fees on a sliding scale tied to the space's capacity or square footage for some classes. On top of the city fee, you owe the separate Illinois state license fee set by the ILCC, which itself varies by license class (retailer, manufacturer, brewer, and so on) ^[3]. Because both fee schedules get revised periodically and vary by license type, don't anchor your budget to a number you saw in a forum post from three years ago. Confirm current Chicago license fees directly with BACP's liquor licensing page and confirm current state fees with the Illinois Liquor Control Commission before you build a budget or sign a lease ^[3]. Beyond the license fee itself, plan for real ancillary costs: a liquor liability insurance policy (often required as a condition of the license), possible zoning or building permit costs if your space needs a change of use, background check and fingerprinting fees for owners and managers, and the cost of BASSET training for staff who serve alcohol, which Illinois requires under state law. None of these are optional line items you can skip to save money; skipping them just moves the cost to later, usually as a violation fine. For a general breakdown of how license classes and fee structures work across states, our state guides hub is a decent starting point before you dig into Chicago specifics.

How do you get a liquor license in Chicago, step by step?

Getting a Chicago liquor license is a sequence, not a single form. Here's the realistic order of operations, based on how BACP and the ILCC structure their processes. First, confirm your location's zoning allows alcohol sales for your intended license class. Chicago has zoning restrictions and, in some wards, moratorium areas that cap new liquor licenses regardless of what the zoning code otherwise allows. This step alone kills more deals than people expect, because operators sign a lease before checking. Second, notify or engage your alderman's office. Chicago's local liquor licensing process has historically involved community notice requirements and, depending on the license type and location, a public notice posting period. This isn't universal to every license class, but for many retail liquor licenses in Chicago, the alderman's support or at least awareness matters practically even where it isn't a hard legal veto. Third, file your local liquor license application with BACP, including your business license application (Chicago requires a general business license alongside the liquor license for most operators), floor plan, lease or proof of occupancy, corporate formation documents, and background information on all owners with 5% or greater ownership stakes. Fourth, file your Illinois state retailer's liquor license application with the ILCC in parallel ^[1]. The state reviews your corporate structure, ownership, and compliance history. Fifth, complete required BASSET alcohol training for anyone who will sell or serve alcohol, since Illinois law requires this training for servers, sellers, and on-site managers at licensed establishments. Sixth, pass your inspections. Depending on your space, this can include fire department sign-off, building code compliance, and health department review if you're serving food. Only after both the city and state approve your applications can you legally sell alcohol. Treat this as a 60 to 120+ day process at minimum, and longer if your location needs zoning relief or falls in a moratorium or precinct with local option restrictions.

How long does it take to get a Chicago liquor license, and how should that shape your opening date?

Nobody can promise you a timeline, and anyone who does is guessing. Realistically, a straightforward Chicago liquor license application with no zoning issues, no moratorium conflict, and a clean ownership background can move in a couple of months. Add zoning relief, alderman pushback, community objections, or an incomplete application, and it stretches to four to six months or longer. The biggest planning mistake we see: operators sign a lease with a hard opening date, then start the license application after signage goes up and staff are hired. Work backward instead. If you want to open in, say, early fall, you should be filing both your state and city applications by late winter or early spring, not summer. Build in a buffer for at least one round of requests for additional information from BACP or the ILCC, because that's common, not exceptional. If you're building a full opening timeline that accounts for lease signing, license filing, staff training, and inspections, our $199 License Roadmap Builder exists specifically to back-plan from your target opening date so you're not guessing at how many weeks each step actually eats.

Can you serve alcohol without a liquor license in Chicago?

No. Selling or serving alcohol without both a valid Illinois state license and a valid City of Chicago local license is illegal, full stop. The Illinois Liquor Control Act's licensing requirement applies statewide and doesn't carve out exceptions for small pours, private events held at a commercial venue, or soft openings ^[1]. Chicago's municipal code layers its own local licensing requirement on top ^[2]. There are narrow exceptions that don't apply to bars and restaurants: certain private, non-commercial gatherings, and some limited special event permits for one-off occasions (like a licensed caterer serving at a permitted event). But a restaurant or bar that pours drinks to paying customers, including a "friends and family" soft-open night, needs its licenses in hand first. Operating without one exposes you to fines, forced closure, and it can taint your eventual license application, since both the city and state review an applicant's compliance history. If you're tempted to open food service first and add alcohol later without a license "just for a few weeks," don't. It's a common and expensive mistake.

How do you get a bartending license, and does Chicago require one?

Illinois doesn't require a statewide bartender's license the way some states do, but it does require alcohol service training. Anyone selling, serving, or checking ID for alcohol at a licensed Illinois establishment must complete BASSET (Beverage Alcohol Sellers and Servers Education and Training) certification, per the Illinois Liquor Control Act's training provisions administered by the Illinois Department of Human Services and the ILCC. This applies to bartenders, servers, and often managers on duty. So when people ask "how do I get a bartending license," what they usually need in Illinois is BASSET certification, not a separate professional license like a cosmetology or contractor license. BASSET courses are offered online and in person through state-approved providers, typically take a few hours, and need renewal periodically (check current renewal intervals with the Illinois Department of Human Services, since training validity periods can change). Some Chicago employers require BASSET before your first shift; others give new hires a short grace period. Either way, don't assume you can pour drinks legally without it, and don't assume your employer's word is the final answer, since the license holder (the business) bears legal responsibility if staff aren't properly trained.

How do license quotas and moratoriums work in Chicago?

Chicago doesn't have a single citywide liquor license quota the way some states cap licenses by county population, but it does have precinct-level and ward-level restrictions that function similarly. Illinois law allows local option elections that can make a precinct "anti-saloon" territory, prohibiting alcohol sales entirely in that voting precinct, under the local option article of the Illinois Liquor Control Act, 235 ILCS 5/9-1 et seq. ^[4], and Chicago has numerous dry precincts scattered throughout the city as a result of these local option votes. Separately, Chicago has at times designated moratorium areas, specific zones (often within a ward or portion of a ward) where the city temporarily stops issuing new liquor licenses of certain classes, usually in response to neighborhood saturation concerns or community complaints. These moratoriums get added, modified, or lifted through city council action, so a location that was open to new licenses last year might not be today, and vice versa. Before you sign a lease, check three things: whether the address sits in a dry precinct, whether it falls inside an active moratorium zone for your license class, and whether your particular ward has additional local restrictions your alderman's office enforces informally. BACP and your alderman's office are the two calls to make. Skipping this check is how operators end up with a signed lease and no legal path to a liquor license at that address.

What does the Chicago liquor license application actually require?

Expect to assemble a substantial packet. Typical requirements across the city and state applications include: a completed business license application (Chicago requires this alongside the liquor license), a completed state retailer's license application, corporate formation documents (articles of incorporation or organization, operating agreement), a lease or proof of site control, a detailed floor plan showing where alcohol will be sold and consumed, financial disclosure and background information for every owner with a qualifying ownership stake, and proof of liquor liability insurance. Most jurisdictions, Chicago included, also run background checks on principal owners and sometimes managers, checking for disqualifying criminal history related to alcohol offenses or fraud. If any owner has a liquor license revoked in another jurisdiction, disclose it; concealment is worse than the underlying issue in almost every review process. For a restaurant specifically, you'll likely also need health department food service licensing running in parallel, plus any required fire and building inspections tied to occupancy changes. None of these processes talk to each other automatically. You, or whoever manages your application, has to keep them moving together.

How much is a liquor license in Florida, and how does that compare to Chicago?

This comes up a lot because people researching Chicago licensing often also compare notes with Florida, since both states have reputations for complexity, just different kinds. Florida's liquor license costs depend heavily on license type. The state's quota liquor licenses (the ones that allow full liquor, beer, and wine sales, tied to county population under Florida Statute 561.20) are the expensive category, because in built-out counties they're only available through transfer on the secondary market, sometimes costing well into six figures depending on the county and demand ^[5]. Florida's non-quota licenses (like beer and wine only licenses, or licenses tied to specific business types such as hotels with a minimum room count) cost far less and involve a standard state fee rather than a market-driven transfer price ^[5]. Chicago and Illinois don't run a statewide population-based quota system the same way; Illinois liquor license availability is governed more by local option (dry precincts), municipal moratoriums, and license class rather than a fixed statewide formula tied to county population ^{[1] [4]}. That makes direct dollar-for-dollar comparison between "a Chicago license" and "a Florida license" pretty meaningless. They're structured on different logic entirely. If you're weighing markets, it's worth reading how Florida's system works specifically, since the quota mechanics genuinely differ from Chicago's approach; our Florida bar guide covers that in more depth.

Wait, can anyone take the bar exam? (And why people confuse this with liquor licensing)

This question shows up constantly in liquor license research because of simple keyword overlap, so it's worth answering directly: the bar exam is the licensing exam for practicing law, administered state by state through each state's bar admission authority, and it has nothing to do with liquor licenses or opening a bar business. Eligibility to sit for a bar exam generally requires graduating from an ABA-accredited law school (or meeting specific alternative requirements some states allow) and passing character and fitness review; requirements vary by state bar ^[6]. If you're opening a bar or restaurant and searching "bar exam" alongside liquor license questions, you almost certainly want liquor licensing information, not legal bar admission information. If you actually do need to check an attorney's bar status for, say, hiring counsel to help with a complicated license transfer, resources like a Florida bar member search or general California bar information exist for that separate purpose, but they're unrelated to whether you can pour a beer in Chicago.

Where do liquor license transfers fit into all this?

If you're taking over an existing bar or restaurant space in Chicago, rather than opening in a brand-new location, you may be dealing with a license transfer rather than (or in addition to) a fresh application. Illinois liquor licenses generally aren't freely transferable between unrelated parties the way a car title is; a change in ownership typically requires a new license application reviewed under the new owner's name, even if the location and license class stay the same ^[1]. What can transfer more smoothly is the location's zoning compliance and, in some cases, its standing regarding moratorium exemptions, since a location that already holds an active liquor license is sometimes grandfathered against a moratorium that would block a brand-new license at that same address. This is exactly the kind of detail worth confirming with BACP directly before you assume a space is a safe bet just because the previous tenant poured drinks there. Don't assume a purchase agreement for a bar's assets automatically hands you the liquor license. In nearly every state, including Illinois, the license belongs to the licensed entity, not the building, and the new owner has to apply and get approved in their own right.

Frequently asked questions

How much is a liquor license in Chicago?

It depends on the license class (tavern, restaurant, package, late hours, and others) and the city's current fee schedule, which changes periodically. There's no flat citywide number. Confirm current fees directly with the Chicago Department of Business Affairs and Consumer Protection and the Illinois Liquor Control Commission before budgeting.

How do I get a bartending license in Illinois?

Illinois doesn't issue a separate professional bartender's license, but it requires BASSET (Beverage Alcohol Sellers and Servers Education and Training) certification for anyone serving or selling alcohol at a licensed establishment, under state law administered by the Illinois Department of Human Services and the ILCC.

How can I get a liquor license in Chicago?

You need to apply for both a City of Chicago local liquor license through BACP and an Illinois state retailer's liquor license through the ILCC, in parallel. Requirements include corporate documents, a floor plan, proof of site control, owner background checks, and liquor liability insurance.

How do I get a liquor license if I'm opening a new restaurant?

Confirm zoning first, then file your Chicago local license application and Illinois state application together, complete BASSET training for staff, pass required inspections, and wait for both approvals before serving. Build in months, not weeks, especially if your address sits near a moratorium zone.

How do I obtain a liquor license as an out-of-state owner?

The process is largely the same as for local owners: file with both BACP and the ILCC, disclose all owners with qualifying ownership stakes, and pass background checks. Some states add extra scrutiny or bonding requirements for out-of-state applicants, so confirm specifics with the ILCC directly.

Can anyone take the bar exam?

No. Sitting for a state bar exam generally requires graduating from an ABA-accredited law school (or meeting a state's specific alternative path) and passing character and fitness review. This is unrelated to liquor licensing; it governs who can practice law, not who can open a bar business.

How do I obtain a liquor licence (UK/Canada spelling searches)?

If you're asking about a US location like Chicago, the process runs through your state's liquor control authority plus, in Chicago's case, the city's Department of Business Affairs and Consumer Protection. If you're actually licensing in the UK, Canada, or elsewhere, that's a different regulatory system entirely and this guide won't apply.

How much is a liquor license in Florida?

It depends heavily on license type. Florida's quota licenses, tied to county population under Florida Statute 561.20, are often only available via secondary-market transfer and can cost well into six figures in built-out counties. Non-quota licenses, like beer and wine only or certain hotel-tied licenses, cost far less through a standard state fee.

How much is a liquor licence in Florida for a small bar?

A small bar wanting full liquor sales in a county where quota licenses are maxed out will likely need to buy an existing quota license on the transfer market, which can be expensive depending on the county. A bar willing to serve beer and wine only can often qualify for a cheaper non-quota license instead.

Can you serve alcohol without a liquor license in Chicago?

No. You need both a valid Illinois state license and a valid City of Chicago local license before selling or serving alcohol, including at soft openings or private events at a commercial venue. Operating without one risks fines, forced closure, and can damage your future license application.

How long does it take to get a Chicago liquor license?

A clean application with no zoning conflicts can move in a couple of months; add moratorium issues, zoning relief, or community objections and it can stretch to four to six months or longer. Start your application well before your target opening date, not after signing a lease.

Do I need a separate business license in Chicago besides the liquor license?

Yes. Chicago generally requires a general business license through BACP in addition to the liquor license itself, and most food service operations also need separate health department licensing. These run as parallel, not sequential, applications in most cases.

What happens if I buy a bar that already has a liquor license?

The existing license typically doesn't transfer automatically to you. Illinois generally requires a new owner to apply for their own license, even at the same address and license class, though the location's zoning standing may carry over. Confirm this directly with BACP before finalizing a purchase.

Sources

1. Illinois Liquor Control Act, 235 ILCS 5/5-1 (via Illinois General Assembly): State license requirement for manufacturing, importing, or selling alcoholic liquor in Illinois
2. Municipal Code of Chicago, liquor licensing chapter: City of Chicago requires a local retail liquor license in addition to state licensing
3. City of Chicago BACP, liquor license information: Chicago liquor license classes and fee structure vary by license type
4. Illinois Liquor Control Act, local option provisions, 235 ILCS 5/9-1 (via Illinois General Assembly): Illinois law allows precinct-level local option votes creating dry precincts
5. Florida Statutes, Section 561.20, license quota based on county population: Florida quota liquor licenses are tied to county population and limited in number
6. American Bar Association, bar admission requirements overview: Bar exam eligibility generally requires graduation from an ABA-accredited law school and character and fitness review