Liquor Licensing

The New York Alcoholic Beverage Control Law (ABC) requires that persons or companies who wish to manufacture, distribute, or retail alcoholic beverages apply for and obtain a license. In New York, these licenses are issued by the New York State Liquor Authority (SLA). The on-premises license that is required in order to operate at the retail level is commonly referred to a “liquor license.”

In New York State, the alcohol beverage licensing system operates on a three-tier structure to ensure proper distribution and regulation of alcoholic beverages.

1. Manufacturer License: This tier includes producers of alcoholic beverages such as wineries, breweries, and distilleries. Manufacturers are licensed to produce alcohol for sale but cannot sell directly to the public in most cases without additional permissions.
2. Wholesaler License: Wholesalers are responsible for purchasing alcohol from manufacturers and distributing it to retailers like bars, restaurants, and liquor stores. They act as the middleman between the producer and the end seller, ensuring proper supply and regulation.
3. Retailer License: Retailers are the businesses that sell alcohol directly to consumers. This category includes liquor stores, bars, restaurants, and other establishments where individuals can purchase or consume alcohol. Retailer licenses vary depending on the type of alcohol being sold (beer, wine, spirits) and the establishment’s hours and operations.

In general, individuals and businesses can only hold a license within one of these three tiers. However, there is an important exception: manufacturers can also hold a wholesaler license, creating significant overlap between the manufacturing and wholesale tiers. This flexibility allows manufacturers to distribute their own products while still adhering to the state’s regulatory framework.

Each tier operates under strict regulations to maintain control over alcohol distribution, prevent illegal activity, and ensure that alcohol is sold in a responsible manner.

General Licensing Application

Securing a liquor license in New York involves navigating a detailed and often complex process that requires careful attention to legal requirements and local regulations. The application itself is extensive, demanding precise documentation, compliance with local laws, and adherence to both state and municipal requirements. Mistakes or incomplete information can result in significant delays, rejection, or additional scrutiny that can prolong the process for months. This is where an experienced attorney, particularly one with expertise in liquor licensing, becomes invaluable.

Attorneys at Korngut Paleudis can offer our in-depth knowledge of both the legal intricacies and the practical considerations involved in obtaining a liquor license. We have a proven track record in navigating the specific challenges of liquor license applications, including understanding the requirements of the SLA and local governing bodies. The firm has extensive experience working with clients across various sectors—including bars, restaurants, or retail establishments—ensuring that the application is complete, compliant, and well-prepared for approval.

Statutory Disqualifications

The following individuals are prohibited by statute from owning an interest in or serving as an officer or director of entities  holding an alcoholic beverage retail license:

• An individual who is not a United States citizen, lawful permanent resident, or a national of a country having a reciprocal trade agreement with the United States.
• An individual who does not meet the age requirement, pursuant to which applicant must be 21 or older
• An individual convicted of any felony (unless he or she has a Certificate of Relief from Civil Disabilities), promoting or permitting prostitution, or the sale of liquor without an alcoholic beverage license. 
• A police officer or other law enforcement official.
• An individual who holds an interest in a wholesale liquor license.
  
  

Types of Retail Licenses

In New York, liquor licenses are divided into off-premises and on-premises categories, based on where alcohol is consumed: 

• Off-Premises Liquor License: This license allows businesses to sell alcohol to be consumed off-site (like at home or a party). Examples: Liquor stores, grocery stores, and other retail outlets selling bottled spirits, wine, and beer.
• On-Premises Liquor License: This license allows businesses to sell alcohol that is consumed on-site (at the establishment, like at a bar, restaurant, or club). Examples: Bars, restaurants, clubs, and other venues where customers drink alcohol on the premises.