How to Open a Package Store in Texas: TABC Package Store Permit Rules

If you want to sell bottled spirits, wine and beer for customers to take home, you need a Texas Alcoholic Beverage Commission (TABC) Package Store Permit, usually called the P permit. Many people search for a texas liquor store license, but in Texas the state permit for this business is the package store permit, and TABC issues it. Neither the county nor the Texas Secretary of State issues it.

This guide walks through the steps in the order most applicants handle them, with the costs we can verify and clear notes on what to confirm with the agency before you commit money or sign a lease.

Disclaimer: This article is informational only. It is not legal, tax or licensing advice. Alcoholic beverage law is detailed, local rules vary, and rules change. Talk with a licensed Texas attorney and a certified public accountant (CPA) before you sign a lease, buy an existing store or form an entity.

What a Texas Package Store Permit Covers

The P permit lets you sell spirits, wine and beer for off-premise consumption, which means customers take the product home. The permit also lets you hold product tastings on the premises and make limited deliveries. Read the permit scope carefully before you design your business plan, because a package store is not a bar or restaurant, and its permit does not work like a mixed beverage license.

A package store is a retail business. Your revenue comes from selling sealed product off the shelf, so your planning should focus on location, inventory, staffing, compliance and cash flow, not on a seating plan or a kitchen.

Materials and Information You Need Before You Start

Gather these items before you begin the TABC application. Missing documents are the most common reason applications stall.

• A written business plan with your store address, projected inventory mix, staffing plan and the names of every owner and officer.
• Proof of the premises, such as a signed lease or deed, plus a site map that shows the store and its entrance.
• A certificate of occupancy from the city or county for the building. Ask the local building department what it requires for a retail use at your address.
• Your entity documents, such as a Certificate of Formation for an LLC (Form 205) or a corporation (Form 201), filed with the Texas Secretary of State.
• A registered agent with a physical street address in Texas.
• A federal employer identification number (EIN) from the IRS, if your entity needs one for banking and tax filings.
• Personal information for each owner, including the details TABC asks for on its application forms. Confirm the complete list on the TABC application before you start.
• Funds for the state fee and filing costs. The cost table below lists what we could verify.

Step-by-Step: Opening a Package Store in Texas

Step 1: Confirm the location is in a wet area

Texas allows alcohol sales only where local voters have approved it. A location in a dry precinct or dry city cannot hold a package store permit, even if the building is otherwise suitable. Check the local-option election status for the exact address before you sign anything. Ask the city and county, and confirm the answer with TABC, because a precinct can have a different status than the city around it.

A wet county can still have dry precincts, and a city can have a different status than the unincorporated area next to it. Do not rely on a general statement that the county is wet.

Step 2: Check distance rules near churches, schools and hospitals

Under Alcoholic Beverage Code 109.33, a city or county may bar package store sales within 300 feet of a church, public school or public hospital. The distance to a public school can be extended to 1,000 feet if the school requests it. Local ordinances control the details, so check the ordinance for your city or county and ask how the distance is measured, such as from the nearest property line or from the store entrance. Get the answer in writing if you can.

This is the step applicants most often skip. A site can look ideal on a map and still fail because a school or church sits inside the local distance.

Step 3: Choose your business structure and form the entity

Most package store owners form a limited liability company (LLC) or a corporation. A sole proprietor operates under the owner's own name and can use an assumed name. Each path has different filing steps and costs.

For an LLC, the Certificate of Formation (Form 205) costs $300 at the Texas Secretary of State. File through SOSDirect at SOSDirect, or review the agency's guidance at the Texas Secretary of State corporations page. The Secretary of State does not publish a guaranteed standard turnaround. Electronic filing is the fastest standard option, and paid expedite tiers are the only way to get guaranteed timing.

Your LLC name must be distinguishable from existing names in the Secretary of State records and must include an organizational designation such as LLC or Limited Liability Company. The name may not imply a purpose the company is not authorized to pursue or falsely suggest a government affiliation. Check availability at the Texas Secretary of State business search, or call (512) 463-5555 for preliminary name availability. If you need time to line up financing or a lease, you can reserve the name for 120 days for $40 using the name reservation form.

If you plan to operate under a different name than the legal name of your entity, file an Assumed Name Certificate. Entities such as LLCs and corporations file it with the Secretary of State for $25. Sole proprietors and general partnerships file with the county clerk in each county where they do business, and county fees vary, so confirm the amount with that clerk. Information is at the Secretary of State name filing FAQ.

Step 4: Appoint a registered agent with a real Texas address

Every domestic filing entity must continuously maintain a registered agent and a registered office in Texas. The agent must be a Texas resident individual, a domestic entity, or a foreign entity that is qualified to do business in Texas. The entity cannot be its own registered agent. The agent must have consented in writing or electronically.

The registered office must be a physical street address where the agent can be personally served during normal business hours. A post office box, mail forwarding service or answering service alone does not meet this requirement. A change of registered agent or office costs $15.

Step 5: Check the ownership limits before you buy

TABC materials cap ownership at an interest in no more than 250 package store permits. An owner also cannot obtain more than 15 new package store permits per person per calendar year. Buying an existing store does not count toward that 15-permit limit, but it still counts toward the 250-permit cap.

If you are buying into a multi-store group or an investor group, map every owner's interests against these limits before you sign. Ask TABC how it treats corporate and LLC ownership, because eligibility rules for entity owners are specific and can change the answer.

Step 6: Secure the premises and the certificate of occupancy

Sign a lease or purchase agreement only after you confirm the wet-area status, the distance rules and the local zoning for retail alcohol sales. Then obtain the certificate of occupancy from the city or county for the building use you plan. TABC will expect the premises to be the approved location, so do not change the address after you file without asking the agency how a change affects your application.

Lease terms matter here. Ask the landlord to confirm in writing that the space can be used for a package store, and include a contingency that lets you exit the lease if the permit or the certificate of occupancy is denied.

Step 7: Apply for the TABC Package Store Permit (P)

File the TABC application for the P permit with all required entity, premises and owner information. The state fee for the P permit was listed as $1,800 on the TABC fee chart dated 9/1/2021. Confirm the current amount with TABC before you budget, because the fee may have changed since that chart. Ask TABC to confirm the processing timeline for your application as well, since the agency controls that schedule and it is not a figure this guide can promise.

Ask TABC about corporate ownership eligibility before you file. Errors in ownership disclosure are a common reason for delays, so review every owner's information line by line before you submit.

Step 8: Register for state tax and keep your filings current

A package store sells taxable goods, so most businesses in your position need a Texas sales and use tax permit from the Comptroller. The permit is issued at no charge and typically takes two to three weeks to process. Apply at the Comptroller sales tax permit page, and find general tax information at the Comptroller tax site. The state sales tax rate is 6.25 percent. Confirm with the Comptroller how sales tax applies to the specific products you plan to sell.

Texas has no state income tax and no corporate income tax. Instead, most entities pay the Texas franchise tax, which is a privilege tax administered by the Comptroller. For the 2026 and 2027 report years, the no tax due revenue threshold is $2,650,000. Entities at or below that total revenue owe no franchise tax, but they must still file the Public Information Report, which is due May 15 each year to the Comptroller. Entities above the threshold pay at 0.375 percent for retail and wholesale and 0.75 percent for other entities. A 0.331 percent EZ Computation rate applies to entities under $20 million in total revenue. A package store will often fall under the threshold, but confirm your filing status with a CPA each year.

Texas does not require a general state business license, and counties license nothing except the assumed-name filing by sole proprietors. Ask your city whether it requires a local business or occupancy registration for your address. Texas also does not require a publication requirement for an assumed-name certificate.

Step 9: Open, operate and renew on schedule

Once TABC approves your permit, you can open for business under the permit's terms. Keep the permit posted as TABC requires, keep records of every purchase and sale, and track the permit and entity renewal dates. Set calendar reminders for May 15 to meet the Public Information Report deadline, and renew the assumed name certificate before its term expires. An assumed name certificate may state a term of up to 10 years and must be refiled before it expires.

Keep every filing with the entity's minute book or compliance folder. Lenders, landlords and buyers will ask for these documents, and missing records can slow a sale or refinancing.

Costs at a Glance

The table below lists the costs this guide can verify. Costs marked for confirmation are not settled figures, so check the named agency before you budget.

Item	Cost	Notes
TABC Package Store Permit (P) state fee	$1,800 on the 9/1/2021 TABC chart	Confirm the current amount with TABC before you budget.
LLC Certificate of Formation (Form 205)	$300	Filed with the Texas Secretary of State.
Corporation Certificate of Formation (Form 201)	$300	Filed with the Texas Secretary of State.
Name reservation	$40 for 120 days	Optional, for holding a name while you prepare.
Assumed Name Certificate	$25 with the Secretary of State	Sole proprietors file with the county clerk, and county fees vary.
Expedited filing	$50 standard, $500 next day, $750 same day, per document	Optional. Expedite fees are in addition to the filing fee.
Change of registered agent or office	$15	Only if you change the agent or address.
Texas sales and use tax permit	No charge	Typically takes two to three weeks to process.
Texas franchise tax	No tax due at or below $2,650,000 total revenue for 2026 and 2027	The Public Information Report is still required each year, due May 15.

Budget for your lease deposit, inventory, insurance, professional fees and the build-out or fixtures that your city requires. Those costs often exceed the government fees by a wide margin, and this guide does not estimate them.

Expected Timeline and Results

A realistic plan puts the entity formation, registered agent and tax registration in the first few weeks. The TABC permit review usually takes the longest, and the timing depends on the agency's workload and the completeness of your file. Plan for the possibility that TABC will request additional information or that the local distance or wet-area check will require extra work. A complete, well-documented application may move faster than an incomplete one, but no guide can promise a specific number of days.

Most new owners can expect to open once all approvals are in hand, the inventory is delivered and the store passes local inspections. If any approval is delayed, the store may not be able to open on the date you planned, so keep your lease and financing terms flexible. Revenue projections should be built on a conservative schedule rather than on the fastest possible approval.

Tips for a Smoother Application

• Start with the location. Confirm wet-area status and local distance rules before you negotiate a lease. A good space in a dry area is not a usable package store site.
• Get local answers in writing. Ask the city or county about the distance measurement, the certificate of occupancy and any local registration, then keep the emails or letters.
• Match names across every document. The entity name on the Secretary of State filing, the lease, the bank account and the TABC application should be identical.
• Plan your ownership structure early. Map each owner's interests against the 250-permit cap and the 15-new-permit annual limit before you bring in investors.
• Use the SBDC for planning help. The Texas Small Business Development Center Network offers free advisory support. Find your nearest center at the Texas SBDC Network site.

Common Mistakes to Avoid

• Signing a lease before checking the wet-area status. A dry precinct or city can make the site unusable, and the lease may not allow an exit.
• Assuming the county status covers the whole address. Precinct and city status can differ, so check the exact location.
• Ignoring the distance rules. A church, public school or public hospital within the local distance can block sales, and a school can request a 1,000-foot distance under Alcoholic Beverage Code 109.33.
• Using a mail drop as the registered office. A post office box or mail forwarding address does not meet the physical street address requirement.
• Letting the entity name lapse out of sync. A name that is not distinguishable from an existing record can be rejected, so run the search before you file.
• Missing the May 15 Public Information Report. Filing is required even when no franchise tax is due.
• Forgetting the sales tax permit. Most package stores sell taxable goods, and the permit typically takes two to three weeks, so apply early.
• Buying a store without checking the ownership cap. The 250-permit cap applies to your total interests, and buying an existing store does not change the 15-new-permit annual limit.

When to Talk to a Professional

Bring in a licensed Texas attorney if you plan to buy an existing store, bring in investors, or hold ownership through a corporation or multi-entity structure. An attorney can review the TABC ownership disclosures, the lease and the purchase agreement. A CPA can advise on the franchise tax threshold, sales tax treatment, entity choice and year-end filings. Both are worth the cost for a business that carries a state permit and significant inventory.

For questions on the specific TABC eligibility rules, contact TABC directly. The agency's answer controls your application, and an answer in writing is worth more than a recollection of a phone call.

Next Steps

Start with the location check, then form the entity, appoint the registered agent, file the tax registrations and prepare the TABC application package. Confirm every fee and processing timeline on the official agency page before you commit funds. If you work through the steps in order and document every answer, you will know where your application stands at each point.

Disclaimer: This article is informational only and is not legal, tax or licensing advice. Confirm current requirements with the Texas Alcoholic Beverage Commission, the Texas Secretary of State, the Texas Comptroller and a qualified professional before you act.