How to Get a California Off-Sale Liquor License: A Guide for Opening a Liquor Store

Every business in California that sells alcohol needs a license from the state. There are many different license types, but for a liquor store, you'll most likely want a Type 21, which lets you sell beer, wine, and spirits. If you're only selling beer and wine, a Type 20 is enough.

This guide covers how to get either license, whether you can apply for a new one or need to buy one, what it costs, and each step of the application.1

Which liquor license do you need to open a liquor store in California?

To open a liquor store in California, you need an off-sale license. "Off-sale" means the same thing as off-premise: customers buy alcohol in sealed containers and drink it somewhere else. 

Licenses are issued by California's Department of Alcoholic Beverage Control, usually just called the ABC. This is not to be confused with ABC states, where the state itself controls some or all alcohol sales. California is a license state, which means private stores can sell beer, wine, and spirits as long as they hold the right license. 

What are the off-sale liquor license types in California? 

• Type 20 (Off-Sale Beer and Wine): Lets you sell beer and wine in sealed containers for customers to drink elsewhere. 
• Type 21 (Off-Sale General): Lets you sell beer, wine, and spirits in sealed containers. 
• Type 86 (Instructional Tasting): An optional add-on for stores that already hold a Type 20 or Type 21. It lets you host supplier-led tastings in a designated area of the store.

Can you apply for a new off-sale liquor license in California, or do you have to buy one?

California caps both off-sale license types at one for every 2,500 residents: Type 20 licenses are counted by city or county, and Type 21 licenses by county. In San Francisco, Type 20 and Type 21 licenses are counted together, with a stricter cap of one for every 1,250 residents.

The two license types handle that cap differently:

• Type 20: where a city or county is over the cap (the ABC calls this a moratorium), the ABC won't issue a new license unless your city or county finds that your store would serve "public convenience or necessity" (PCN) – more info on this later. Where it isn't over the cap, you can apply directly, with no drawing. The ABC publishes a list of moratorium cities and counties, updated about every five years, so check your specific city, not just your county.
• Type 21: new licenses only become available when a county's population grows enough to make room under the cap. The ABC releases them once a year, and if more people apply than there are licenses, it holds a drawing. The 2026 authorization included new off-sale general licenses in 19 counties, including Los Angeles, San Diego and Orange.

That leaves you with two ways to get either license: apply for a new one where they're available, or buy an existing license from a current owner.

Applying for a new Type 21 license through the ABC's yearly drawing 

Each year, the ABC checks how many off-sale general licenses each county has against its population. If a county has room under the cap, the ABC opens an application window for new Type 21 licenses. In 2026, applications were accepted from September 14 to September 25, and the filing fee was $19,840.

If more people apply than there are licenses, the ABC holds a drawing. To enter, you must have lived in California for at least 90 days before the drawing date. 

If you win, you get 90 days to file a full application for your store's location. If you don't, you get your fee back minus a $100 service charge, and you keep your place in line for the next year.

Buying an existing Type 20 or Type 21 license

Instead of applying for a new license, you can buy an existing one from a current owner. This works for both Type 20 and Type 21 licenses. For a Type 21, it's often the practical choice, since new licenses are only released once a year through the drawing, and only in counties that have room under the cap.

There are three kinds of transfers, depending on what's changing:

• Person-to-person transfer: the license changes owners but stays at the same address.
• Premises-to-premises transfer: the license moves to a new address.
• Double transfer: the license changes owners and moves to a new address.

If the license is moving to a new address, the ABC reviews the new location just as it would for a new license. If the new location is in a high-crime area or already has more licenses than the county average, your city council or county board will first need to formally decide that your store would still benefit the community, which is called a PCN finding. Without it, the ABC can't approve the move. A Type 21 also has an extra limit: it can only move to a different county if you win the ABC's yearly intercounty transfer drawing. 

The price of the license is negotiated privately between you and the seller, and it varies widely by county. When you pay for a license, the money has to go through escrow, and the escrow company can release it to the seller only after the ABC approves the transfer. You'll also need to record a notice of the sale with your county recorder before you file your application.

If you're buying a store and keeping it at the same address, you can also ask for a temporary permit. It allows you to run the store and sell alcohol for up to 120 days while the ABC reviews the transfer, and the ABC can extend it for another four months if needed. To qualify, the store must have operated under a license within the last 30 days, and the seller has to agree to it. The ABC issues temporary permits at its discretion, so approval isn't guaranteed, and they aren't available for new licenses or for licenses moving to a new address.

How much does a California off-sale liquor license cost?

The cost of a liquor license in California depends mostly on the license type and how you get it. The ABC charges a one-time application fee plus an annual fee, and the first year's annual fee is due when you apply. These are the 2026 fees:

• New Type 20: $1,135 application fee plus a $500 annual fee.
• New Type 21 (through the drawing): $19,840 application fee plus a $1,009 annual fee. If you don't win the drawing, the ABC automatically refunds your application fee minus a $100 service charge.
• Buying an existing license: $1,565 transfer fee for a Type 21. For a Type 20, the transfer fee is $420 if the license stays at the same address, or $1,135 if it's also moving to a new one. You'll also pay the annual fee. All of this is on top of the price you pay the seller, which is negotiated privately and varies widely by county.

The ABC adjusts its fees for inflation every year. On January 1, 2027, all fees go up by 3.31%. 

How to apply for a liquor license in California

Step 1: Choose your license type and location

The first step is choosing which license you want to get. If you plan to sell spirits, you'll need a Type 21 license, but if you'll only sell beer and wine, a Type 20 is enough. 

Next, look closely at your location. The ABC will ask you to list any schools, churches, hospitals, playgrounds, and youth facilities within 600 feet of your store, and any homes within 100 feet. Being close to these doesn't mean an automatic no, but it can lead to extra questions, conditions, or protests.

Step 2: Check zoning and local approvals

Your city or county also has rules about what kinds of businesses can open where, and the ABC won't issue a license if your store would break them. So before you sign a lease, find out what your local government requires.

Zoning: Every property in your city is assigned a zone that controls how it can be used, such as residential, commercial, or industrial. Some zones allow a liquor store and some don't. Call your city or county planning department and ask whether a liquor store is allowed at the address you're considering.

Conditional use permit (CUP): In many cities, a liquor store is allowed in a zone only with special permission, called a conditional use permit. Getting one means filing an application with the planning department, paying a fee, and sometimes going through a public hearing where neighbors can speak. The city may approve it with rules attached, like limited hours. Ask the planning department whether your location needs a CUP and how long the process usually takes.

Public convenience or necessity (PCN): State law adds an extra step when you're opening a new license, or moving one to a new address, in an area that the law considers already crowded or high-risk. This applies in two situations:

• High crime: Your store is in a police reporting district with at least 20% more reported crimes than the average across your local police department's districts.
• Too many licenses nearby: Your neighborhood (measured by census tract) already has more alcohol licenses per resident than the county average.

In any case, your city council or county board has to officially decide that your store would still benefit the community, which is called a PCN finding. The ABC can't approve your license without it. Your local government has 90 days from being notified of your completed application to make this decision. Your ABC district office can tell you early on whether your location will need a PCN.

Step 3: Set up your business and get a seller's permit

Once you've confirmed your location works with local zoning, and you know whether you'll need a CUP or PCN, it's time to set up the business that will actually hold the license. 

Decide how you'll own the store: as an individual, a partnership, an LLC, or a corporation. The ABC will need details on every owner, so this decision has to be made before you can fill out your application.

You'll also need a seller's permit from the California Department of Tax and Fee Administration, since you'll be collecting sales tax on every bottle you sell. If you're new to this, our guide on how to stay compliant with liquor store sales taxes explains what you'll need to track.

You'll also need to register your store with the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) using Form 5630.5d. There's no fee.

Step 4: Gather your documents

With your business set up, you can start pulling together the paperwork for your application.

Much of it builds on work you've already done: your ownership details come from Step 3, and the list of nearby schools, churches, and homes comes from the location check in Step 1. Missing paperwork is one of the most common reasons applications stall. Expect to prepare:

• The main application form and personal information for every owner
• A diagram of your store's floor plan and a diagram of the surrounding property
• A list of nearby homes and sensitive places like schools and churches
• Proof of where your money is coming from, such as bank statements or loan documents
• Your lease, or proof that you have the right to use the property
• If you're buying an existing license, the notice of sale certified by your county recorder

The ABC wants to know that every dollar going into the business comes from a legitimate source, and that there are no hidden owners behind it.

Step 5: Submit your application and pay the fees

Once your documents are ready, you can file with the ABC online, by mail, or in person at your district office. Online filing is only available for new licenses, and not yet for Type 21 drawing winners. If you're buying an existing license or you won a license through the drawing, you'll need to file through your district office.

This is when you pay your application fee (or transfer fee, if you're buying a license) and your first year's annual fee. Every owner listed in your application goes through a background check as part of the review.

Step 6: Post your public notice

After your application is filed, a public notice has to be posted at your store for 30 days. The ABC also sends notice to the local police, sheriff, district attorney, and city council or county board. 

If your location needs a PCN, this is also when your local government's 90-day window to decide begins. In some cases, you'll also need to mail notice to residents and property owners within 500 feet, or publish a notice in the local newspaper.

During those 30 days, anyone can file a protest against your application.

Step 7: Deal with any protests or conditions

If anyone filed a protest during the 30-day notice period, the ABC looks into it as part of the investigation. Some protests are resolved by adding conditions to your license, like limited sales hours or a ban on selling single cans. Others go to a formal hearing, which can add months.

Step 8: Receive your license

Once the investigation is complete, any protests are resolved, and any required PCN has been granted, the ABC can approve your license. By law, it can't be issued until at least 30 days after the notices go out. When it's approved, you can start selling.

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Why do liquor license applications get delayed or denied?

• Missing or incorrect paperwork: A wrong form, a missing signature, or an unpaid fee sends your application back and resets the clock.
• Protests from neighbors or police: Anyone can protest within the 30-day notice period. A protest can lead to conditions on your license or a formal hearing.
• Too many licenses in the area: If your area already has more liquor licenses than the location allows, or has a high crime rate, you'll need a PCN from your city before the ABC can approve you.
• Being close to schools, churches, or homes: Being near these places isn't enough to deny a license on its own. But if the ABC thinks your store would interfere with them, it can deny the application or add strict conditions.
• Unclear funding or hidden owners: If you can't show where your money came from, or someone involved in the business isn't listed as an owner, expect serious delays or a denial.
• Tax debts and liens: When you buy a license, state tax agencies can place claims on the escrow money if the seller owes taxes. This can hold up the deal until it's cleared.
• Selling before you're approved: Selling alcohol without a license or valid temporary permit is one of the fastest ways to lose your chance at one. Don't assume you can operate under the seller's license while a transfer is pending.

What happens after you get your California liquor license?

Once your license is approved, you need to follow the ABC's rules to keep it. The ABC can fine you, suspend your license, or revoke it if you don't. Here's what to stay on top of: 

• Renew every year: Your license has yearly fees, and letting it lapse causes problems you don't need.
• Follow your license conditions: If your license came with conditions like limited hours, they're just as binding as the law itself.
• Never sell to minors: The ABC regularly sends underage decoys into stores to test whether staff check IDs. One sale to a minor can mean a fine or suspension, and repeated violations can cost you the license.
• Train your staff: The ABC offers free LEAD training designed for off-sale stores. It teaches employees how to check IDs, spot fakes, and refuse sales the right way. Make sure every employee is fully comfortable with using your store’s POS system.
• Keep good records: Clean sales records make it much easier to answer questions from the ABC or handle a tax audit.

Santé POS makes running your liquor store easier 

Once you have your license and you're ready to open your store, you'll need a point-of-sale (POS) system to run it. Getting the right POS for your store means less time on paperwork and more time running your store. 

Santé is a point-of-sale system built specifically for liquor and wine stores. Instead of adapting general retail software, it's designed around how liquor stores actually run, from checking IDs at checkout to selling by the bottle or the case. Here's what it includes:

• Age verification at checkout: Prompts cashiers to check ID on alcohol sales, and can create customer profiles directly from an ID scan.
• QuickBooks integration: Sends daily journal entries, bills, and vendor credits to QuickBooks Desktop or Online, so your books are up to date when tax time comes.
• AI invoice scanning: Our AI Invoice scanning turns distributor invoices into inventory records in minutes, with no manual data entry.
• Case and bottle tracking: Tracks sales by the bottle, pack, or case from the same stock.
• Reordering tools: Builds purchase orders on one screen so you don't run out of top sellers.
• Keg and bottle deposit management: Tracks kegs, deposits, and deliveries, and automates bottle deposits by product category.
• Mobile inventory app: Lets staff check and update stock on the shop floor without going back to the register.
• E-commerce and delivery: Includes website templates for liquor stores and connects your inventory to delivery apps, all in the same platform.

If you're opening a new store, you can book a demo to see how Santé works before you commit.

Frequently asked questions

How long does it take to get a liquor license in California?

According to the ABC, the average wait is 55 to 65 days after you file your application. By law, a license can't be issued in less than 30 days, and if someone protests your application, it can take 95 days or longer. 

Local approvals can add more time: how long a CUP takes depends on your city, and if you need a PCN, your city or county has up to 90 days to decide. For a new Type 21, you'll also have to wait for the yearly drawing, and if you win, you get 90 days to file your full application.

Can I start selling alcohol while my application is pending in California?

Only if you're buying an existing store and get a temporary permit, which covers up to 120 days during a person-to-person transfer. If you're applying for a brand-new license, you have to wait until it's issued.

How many Type 21 licenses can a county have?

California allows one off-sale general license for every 2,500 residents in a county. New ones only become available when the population grows past that limit.

Do I need a lawyer or consultant to get a liquor license in California?

No, it isn't required. Many owners still hire a licensing consultant or attorney, especially for Type 21 transfers or locations that are likely to get protests, since mistakes can cost months.

Can I get a liquor license with a criminal record in California?

It depends on the conviction. A record doesn't automatically disqualify you, but the ABC reviews every owner's background. Always disclose it honestly, because leaving it out can be a reason for denial on its own.

Can I move my liquor license to a new location in California?

Yes, through a premises-to-premises transfer. The ABC reviews the new location just like it would for a new application, including the 30-day notice and any protests.

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