What to Know About Legal Restrictions When Opening a Bar in Texas

There are a lot of laws and regulations concerning the sale of alcohol in Texas. Whether you are obtaining your liquor license or are trying to enforce compliance, you need to have a general understanding of the laws. Read on to learn more about some of the liquor laws in the state. 

Tied House

Texas has a three-tiered system that divides the alcoholic beverage industry into three segments, retail, wholesale, and manufacturing. The tied house laws prevent a company in one segment from owning an interest in another. There are also prohibitions against giving valuable gifts from one industry to another. However, there are many exceptions to these rules. Reading these exceptions can make your life a lot easier. 

Licensing

Getting proper TABC licensing could take months or years, especially if you face wet/dry, school, church, hospital, or zoning issues. Plus, this process requires your local jurisdiction’s officials to sign off on your state application. Make sure that you are up to date on the licensing process so that it can go smoothly. 

Compliance

Once you get your business open, the regulations do not end. You may be faced with monthly mixed beverage sales tax reports, wholesaler and manufacturer’s reports, private club membership committees, breach of peace reportings, and other compliance issues. To ensure you do your best to comply with state laws, you must stay up to date on TABC policies. 

Auditing

State organizations conduct periodic audits of mixed beverage sales tax, gross receipts tax, private clubs, and food and beverage certificate holders. To make these inspections go as smoothly as possible, ensure that you know what will be expected of you and can provide documentation when asked. 

Owning a bar or restaurant in Texas is not easy. However, understanding the basics of the tied house, licensing, compliance, and auditing laws can help make your job a little smoother.