How to Open a Bar or Brewery in Texas: TABC Permits, Taproom and Brewpub Rules

If you want to sell drinks in Texas, the license you need depends on what you pour, whether you brew, and where you open. Most people searching for a “texas bar license” need a Mixed Beverage Permit (MB) from the Texas Alcoholic Beverage Commission (TABC). A “texas brewery license” is usually a Brewer’s License (BW), which is the manufacturer tier. A “texas brewpub permit” is a Brewpub License (BP), which is a retail-tier license that must be held together with an MB, BG or BE. Mixing these up is one of the most expensive early mistakes, so this guide sorts them out before you spend money.

The steps below cover the full sequence: choose your model, confirm the address can legally sell alcohol, form the entity, set up your state tax accounts, file with TABC, and clear local approvals. It is written from a practical filing standpoint and is meant to help you prepare questions for the agencies and your advisors.

Disclaimer: This article is informational content, not legal or tax advice. Rules, fees and agency practices change. Confirm every figure with the agency named before you commit money. For ownership structures, leases, financing or tax elections, talk to a qualified attorney and a CPA.

Which Texas alcohol license you need

Texas does not issue a license called a “bar license” or a “brewery license.” TABC regulates alcohol sales, and the permit types below are what you will actually apply for. The state fees shown come from the TABC state fee chart effective September 1, 2021. Confirm current amounts on that chart before budgeting.

License	Who it fits	What it allows	State fee (per the 9/1/2021 chart)
Mixed Beverage Permit (MB)	Bars, restaurants and venues selling drinks on-site	On-premise sale of spirits, wine and beer	$5,300 original, $2,650 renewal
Brewpub License (BP)	Restaurants or bars that brew their own beer	Brew and sell your own beer to consumers, on-premise or off-premise. Must be held with an MB, BG or BE.	$1,100 (check for changes)
Brewer’s License (BW)	Breweries that manufacture beer for sale	Manufacturer tier. Consumer sales are allowed only under conditions, including a taproom sales cap.	Confirm on the TABC fee chart

A brewpub is a retail license layered on top of a bar or restaurant permit. It cannot also be a manufacturer or distributor. If your plan is to brew at volume and sell through wholesalers, you are describing the BW manufacturer tier, and the brewpub model is the wrong route.

Local option controls where you can open at all. Texas cities and counties can be wet, dry, or partly wet, and the status can limit or prohibit alcohol sales at your address. Check the status with TABC and with the city or county before you sign a lease.

Materials and information you need before you apply

• Business entity documents. A Certificate of Formation for an LLC (Form 205) or a corporation (Form 201). The state filing fee is $300 for either.
• Name reservation or name check. Optional reservation is $40 and holds a name for 120 days.
• Registered agent details. A Texas street address where someone can be served in person during business hours, plus the agent’s written consent.
• Federal EIN. Your employer identification number from the IRS.
• Premises package. Signed lease or purchase contract, floor plan, seating plan, and a certificate of occupancy from the city or county.
• Owner and officer information. Names, addresses and background details for every owner and officer. Expect TABC to require personal disclosures and background checks. Pull the current forms from TABC.
• Startup budget. Permit fees, build-out, brewing equipment, kitchen equipment, deposits, insurance, and working capital.
• Insurance quotes. Liquor liability and general liability coverage, which landlords and lenders often request.
• Sales tax permit application. Issued by the Comptroller at no charge.
• Business bank account in the entity’s name.

Step-by-step: opening a Texas bar, brewpub or brewery

Step 1: Pick your license model before you sign anything

Decide whether you are a bar that sells purchased beer, wine and spirits (MB), a restaurant or bar that brews a limited amount of its own beer (BP held with an MB, BG or BE), or a production brewery that sells beer through a taproom and distributors (BW). Write down your expected annual barrel output and your sales mix. Those two numbers determine which rules apply and which caps you must stay under.

Step 2: Confirm the address is legal for alcohol and zoning

Before you sign a lease, confirm three things. First, the local option status for the address allows the sales you plan. Second, the city or county zoning code permits a bar, brewery or brewpub at that location. Ask for the zoning answer in writing if you can. Third, TABC and local rules may restrict locations near certain protected sites. Ask TABC how distance rules apply to your address.

Make the lease contingent on TABC approval and a certificate of occupancy for your intended use. A landlord who will not agree to that is telling you something about risk.

Step 3: Form the entity and handle the name

File the Certificate of Formation with the Texas Secretary of State through SOSDirect at SOSDirect. The filing fee is $300 for an LLC or a corporation. The name must be distinguishable from existing filings and must include an organizational designation such as LLC or Limited Liability Company. It may not suggest a purpose the entity is not authorized to pursue or imply a government affiliation. Search the Secretary of State business search and call (512) 463-5555 for a preliminary availability check.

Expedite service is optional and costs extra. Standard Expedite is $50 per document, typically processed within two to three business days. Next Day Expedite is $500 per document, processed by close of business the next business day for filings received by 12:00 p.m. Same Day Expedite is $750 per document, processed by close of business the same day for filings received by 12:00 p.m. Expedite fees are in addition to the filing fee. Preclearance of a draft instrument is $50. Paying for expedite only makes sense if your lease or lender timing requires it.

Every Texas entity must keep a registered agent and registered office. The office must be a physical Texas street address. A post office box or mail forwarding service alone does not qualify, and the entity cannot serve as its own agent. A change of agent or office costs $15.

If you will trade under a name different from your entity name, you need an assumed name certificate. For an LLC or corporation, file Form 503 with the Secretary of State for $25. Since September 1, 2019, registered filing entities no longer file with the county clerk as well. Sole proprietors and general partnerships file with the county clerk instead.

Step 4: Set up your Texas tax accounts

Texas does not require a general state business license, and counties do not license businesses beyond the assumed name filing for sole proprietors. Texas also has no state income tax and no publication requirement. What you do need is a set of activity-specific permits and tax registrations. The Texas Business Licenses and Permits Guide, published by the Business Permit Office within the Texas Economic Development and Tourism Office, is the state’s reference for identifying them.

Apply for a Texas sales and use tax permit through the Comptroller’s permit page. The permit is issued at no charge and typically takes two to three weeks to process. The state sales tax rate is 6.25 percent, and local add-on rates may apply at your address, so confirm your combined rate with the Comptroller before you set menu prices.

Texas levies a franchise tax rather than a corporate income tax. For the 2026 and 2027 report years, the no tax due threshold is $2,650,000 in total revenue. Entities at or below that amount owe no tax but must still file a Public Information Report with the Comptroller by May 15 each year. Above the threshold, the rate is 0.375 percent for retail and wholesale entities and 0.75 percent for other entities. An EZ Computation rate of 0.331 percent applies to entities with under $20 million in total revenue. Which rate fits a bar with food, a brewery with a taproom, or a mix of both is a classification question, so confirm it with the Comptroller or a CPA.

Step 5: File the TABC application and pay the state fee

File the application for the permit type you chose. The state fees on the 9/1/2021 chart are $5,300 for an original MB, with a $2,650 renewal fee. The Brewpub License fee is listed at $1,100, but confirm it because fee charts change. A local fee of up to half the state fee may also apply, and the amount depends on the city or county. Budget for the state fee, the possible local fee, and the renewal cost in future years.

Expect TABC to review your ownership, premises and background. Do not guess at processing times. Ask TABC for its current estimate and plan your lease, build-out and opening date around the answer.

We did not verify any 2025 or 2026 change to Texas brewery or bar law. Before you file, check the TABC legislative updates page and confirm that nothing has changed since this article was written.

Step 6: Clear the federal and local approvals

Brewers need federal authorization from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before brewing for sale. Confirm the current filing requirements with TTB before you order equipment or brew commercially.

Local approvals vary by city and county, but most projects involve some combination of these: a health department food service permit if you serve food, a fire marshal inspection, building permits for the build-out, and a sign permit. Ask the city for a single list of approvals for your use so you do not discover a missing permit during inspection week. Final approvals should end with the certificate of occupancy for your intended use.

Step 7: Operate inside the production and sales rules from day one

Your license type sets the limits on how much you can make and how you can sell it. A brewpub is capped at 10,000 barrels of production per year, based on TABC materials. A Brewer’s License taproom has a sales cap of 5,000 barrels under TABC materials, so check the current rule before you plan volume. Before you offer growlers, cans or delivery, check the TABC to-go chart, because off-premise sales are tightly conditioned for manufacturers.

Set up a compliance calendar on day one. Include the May 15 Public Information Report, the Comptroller’s franchise tax deadlines, TABC renewal dates on your permit, the local health permit renewal, and your sales tax filing schedule.

Taproom and brewpub rules at a glance

• Brewpub (BP): Must be held with an MB, BG or BE. Brewing capped at 10,000 barrels per year under TABC materials. Cannot also be a manufacturer or distributor.
• Brewery taproom (BW): Consumer sales allowed only under conditions. Taproom sales cap of 5,000 barrels under TABC materials, which you should confirm against the current rule.
• Bar (MB): On-premise sales of spirits, wine and beer, subject to local option status and premises requirements.
• Off-premise sales: Check the TABC to-go chart before offering any take-home product.

Tips that save time and money

• Call TABC and the city or county before you sign a lease. A written zoning answer and local option confirmation are worth far more than a verbal assurance.
• Build your fee budget from the agencies’ own charts, then add a margin for local fees, build-out and insurance.
• File the sales tax permit application early. It takes two to three weeks and you need it before your first taxable sale.
• Use the Texas Small Business Development Center Network for planning help. Its website is sbdctexas.org.
• If you are in the Dallas-Fort Worth area, the SBA Dallas-Fort Worth district page lists local SBA resources.
• Keep production records by batch and by month from the first brew. Your caps and reports depend on them.

Common mistakes to avoid

• Signing a lease first. Local option, zoning and occupancy problems are expensive to fix after the build-out starts.
• Treating a brewpub as a distributor. A brewpub cannot also be a manufacturer or distributor, so a wholesale plan needs the BW route.
• Ignoring production caps. Plan growth against the 10,000 barrel brewpub cap and the 5,000 barrel taproom cap before you buy equipment.
• Assuming Texas requires a general business license. It does not. The requirement is the set of activity-specific permits that apply to you.
• Using a post office box as the registered office. The office must be a physical Texas street address where the agent can be served in person.
• Filing a brand name with the county. If your LLC or corporation uses a DBA, file the $25 Form 503 with the Secretary of State.
• Confusing the PIR with a state fee. The Public Information Report is filed with the Comptroller by May 15 and does not carry a Secretary of State fee.
• Budgeting from old numbers. Confirm every fee on the agency page on the day you pay it.

Expected results

A complete, well-organized application may help the process move more smoothly, and a clean compliance calendar may make renewals and reports easier to manage. No filing outcome, approval date or sales result can be guaranteed. Approval depends on the agency’s review, your local conditions and your own answers. Plan with conservative timelines and a reserve for delays.

Once permitted, many operators find that tracking barrels, sales and tax periods from the start keeps renewals and reports on schedule. That is an operational habit, not a promise of profit.

Next steps and when to get professional help

Start with the Secretary of State at sos.state.tx.us for entity filings, and the Comptroller at comptroller.texas.gov for tax accounts. Confirm TABC fees, caps and to-go rules directly with TABC, and confirm federal brewing authorization with TTB. Bring your lease, your business plan and your local option answer to a qualified attorney before you sign. A CPA should review the franchise tax classification and your startup costs.

Disclaimer: This article is informational content, not legal or tax advice. It reflects the agency figures available when it was written. Confirm all fees, caps, deadlines and requirements with the relevant agency and consult qualified professionals for your specific situation.