Do I Need a License or Certification to Operate a Bar Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Aug 25
- 3 min read
Updated: Nov 16
If you're planning to open a cocktail bar, pub, nightclub, craft brewery, piano bar, or karaoke bar, one of the first questions you’ll face is: Do I need a license or certification to operate a bar business? The answer is yes—operating a bar legally requires a combination of licenses, permits, and in some cases, certifications to ensure compliance with federal, state, and local regulations.
At Wexford Insurance, we help bar owners protect their investment with customized bar insurance. In this guide, we’ll walk you through the essential licenses and certifications needed to launch and operate a bar business successfully.
Licenses and Permits Required to Operate a Bar
1. Liquor License
This is the most critical license for any bar. A liquor license allows you to legally sell and serve alcoholic beverages. It’s regulated by your state’s Alcoholic Beverage Control (ABC) agency and may include:
On-premise license (for serving alcohol at your location)
Beer and wine license or full liquor license
Application requirements: background checks, business plans, financial documentation
Costs vary widely and may be subject to local quotas
2. Business License
You’ll need a general business operating license from your city or county to legally conduct commercial activity. This is often a prerequisite for other permits.
3. Employer Identification Number (EIN)
Issued by the IRS, an EIN is required for hiring employees, filing taxes, and applying for federal alcohol permits.
4. Health Department Permit
If you serve food or beverages, you’ll need a health permit to ensure compliance with sanitation and food safety standards. This involves inspections and plan reviews.
5. Certificate of Occupancy
This verifies that your bar’s physical location meets local building, fire, and safety codes. It’s issued after inspections by local authorities.
6. Music Licensing
If you plan to play music—live, recorded, or streamed—you’ll need licenses from Performing Rights Organizations (PROs) like ASCAP, BMI, or SESAC to avoid copyright infringement.
7. Signage Permit
Most cities regulate business signage. You’ll need approval for exterior signs, including size, lighting, and placement.
Certifications That Can Benefit Bar Owners
While certifications are not always legally required, they can enhance your credibility, improve operations, and help with compliance.
1. Certified Bar Manager (CBM)
Offered by the American Institute of Business and Management, this certification covers mixology, bar operations, customer service, staff training, and legal compliance.
2. Certified Professional Food Manager (CPFM)
Recognized by the National Restaurant Association, this certification ensures food safety knowledge and is often required for establishments serving food.
3. ServSafe Alcohol Certification
This program educates bar staff on responsible alcohol service, including checking IDs, preventing over-serving, and handling intoxicated guests.
Why Compliance and Certification Matter
Failing to obtain the proper licenses or ignoring best practices can result in fines, business closure, or legal action. Certifications help bar owners:
Stay compliant with alcohol laws
Improve staff training and customer service
Reduce liability risks
Enhance operational efficiency
Protect Your Bar with the Right Insurance
Licensing and certification are just part of the equation. Insurance protects your bar from financial loss due to accidents, property damage, and other risks. At Wexford Insurance, we offer:
Final Thoughts
Yes, you need licenses—and in many cases, certifications—to operate a bar business legally and successfully. From liquor licenses to food safety certifications, compliance is key. And while you focus on meeting legal requirements, let Wexford Insurance help you protect your investment.
👉Contact Wexford Insurance today.
