How to Apply for an ABC Permit in North Carolina

Introduction

To serve alcohol at your business in the state of North Carolina, you need to hold an ABC permit, commonly known as a liquor license. Fortunately, in North Carolina, you can apply for this permit through a simple application and some inspections. Depending on the size of the city where you are opening your restaurant, you can expect to complete the application steps in 1-3 weeks.

Understanding the Basics of Alcohol Sales in North Carolina

Before applying for an ABC permit, it is essential to know some basic rules about alcohol sales in North Carolina:

• You can only serve alcohol to adults aged 21 and older.
• “Happy hours” and limited-time reduced prices are not allowed.
• Alcohol can be sold from Monday to Saturday from 7 am to 2 am and on Sundays from 10 am to 2 am, subject to local rules.
• Permits are non-transferable; they are specific to one person at one location.
• Owners must keep alcohol invoices and receipts for 3 years for inspection.
• Owners are responsible for the actions of their employees.
• Two restrooms are required to obtain an ABC permit.
• Owners must recycle with a recycling contract or handle recycling on their own.
• Businesses cannot display brand advertisements outside in public view.
• Retail permit holders can only purchase alcoholic beverages from licensed wholesalers.
• Liquor is purchased at an assigned NC ABC store location.
• Each bottle of liquor must have a tax stamp.
• Tax stamps on mixed beverage bottles must be defaced as soon as the bottle is empty.
• Refilling liquor bottles is illegal.
• Premixed drinks can be sold with ABC commission approval and recipe submission.
• On-premises beer and wine permit holders can sell beer and wine off-premises.
• Businesses can only serve one drink at a time, except for a beer and a shot served together.
• A pitcher can only be served to two or more people.
• ABC permits expire on April 30th of each year. You pay the full price upon application, and the dollar value is not prorated.

Restaurants vs. Private Clubs

In North Carolina, bars as such do not exist. You will be regulated as a restaurant or private club (among others like hotels, breweries, etc.).

Restaurants:

• Must have at least 36 seats.
• Food sales must exceed 30% of combined food and beverage sales.
• Food must be available during all business hours.

Private Clubs:

• Not open to the general public, only to members and their guests.
• Must maintain a membership list.
• A membership card must be issued to each member.
• Membership cannot be solicited at the door when the general public arrives. No house guests are allowed.

Types of Permits

On-Premises Malt Beverages:

Allows the sale of malt beverages (beer) for consumption on the permit holder’s premises and also allows the sale of malt beverages off-premises in the original container.

On-Premises Unfortified Wine:

Allows the sale of wine with less than 16% ABV for consumption on the business premises and also allows the sale of wine off-premises in the original container.

On-Premises Fortified Wine:

Allows the sale of wine with 17-24% ABV, such as strong dessert wines, for consumption on the business premises and also allows the sale of wine off-premises in the original container.

Mixed Beverages in Restaurants:

Allows the sale of mixed beverages containing liquor to be sold on the restaurant premises.

Mixed Beverages in Private Clubs:

Allows the sale of mixed beverages containing liquor to be sold on the private club premises.

Who Should Apply for the ABC Permit

Individuals:

Any individual business owner.

General Partnerships:

Each general partner.

Limited Partnerships:

General partners file the application, limited partners do not.

Corporations (Non-Permit Holders in NC):

Each shareholder with 25% or more and each officer must file separate applications.

Corporations (Current Permit Holders):

An officer of the corporation files the application.

LLCs (Non-Current Permit Holders):

Anyone with more than a 25% interest must file the application. If no one owns more than 25%, only the managing members need to file the application.

Criteria for Evaluating the Application

The North Carolina ABC Commission considers the following factors when issuing a permit:

• The reputation, character, and criminal record of the applicant.
• The number of locations that already have ABC permits in the neighborhood.
• Parking facilities and traffic conditions in the neighborhood.
• Types of businesses already existing in the neighborhood.
• Whether the establishment is located within 50 feet of a church or public school.
• Zoning laws.
• Recommendations from the local government body.
• Any other evidence showing whether the applicant would comply with ABC laws and whether operating their business at that location would be detrimental to the neighborhood.

Completing the ABC Permit Application and Additional Forms

Download Forms:

Visit the NC ABC website to download the necessary forms. Follow the application instructions exactly.

Main Application and Notary:

This is the main form. Everyone needing to submit this form must complete it and sign it in the presence of a notary.

FEIN/SSN Verification Form:

Complete this form in the applicant’s name.

Authorization for Release of Information:

Authorizes the state to use your fingerprints to verify your criminal history.

Ownership Document and Notary:

Lists the owners/members of the corporation or LLC and the percentage interest they own.

Recycling Compliance Form:

Describes how you comply with the recycling obligation.

Proof of Alcohol Seller/Server Training:

You must take a training course and attach the certificate of completion.

Other Additional Requirements:

These may vary depending on the type of establishment (hotel, private club, restaurant, etc.).

Inspections and Local Government Opinion

Zoning Compliance:

Take it to the county or city planning department for signature.

Building Department Compliance:

Schedule an inspection with a county building inspector.

County Fire Chief Compliance:

Schedule an inspection with the fire inspector.

Local Government Opinion:

Final step before obtaining the ABC permit. In larger cities, it can take 2-3 weeks.

Review the Complete Package

Ensure the package includes:

• NC ABC Permit Application
• Certified check payable to the North Carolina ABC Commission
• FEIN/SSN Verification Form
• Authorization for Release of Information
• Fingerprint Card
• Ownership Document
• Articles of Incorporation/Organization and Operating Agreement for LLCs
• Proper Recycling Form
• Proof of Alcohol Seller/Server Training + Certificate of Completion
• Zoning/Inspection Compliance Form
• Local Government Opinion
• Copy of Driver’s License
• Copy of lease agreement (or deed if owning the property)
• Diagram of premises
• Photograph of premises

Submit the Application

Send the complete package via FEDEX to the Raleigh office to complete your application. If submitting in person, arrive early in the day.

Conclusion

Contact the North Carolina ABC Commission for additional information about the permitting process and the responsibilities of permit holders. Make sure to read everything carefully and understand what you are signing.

This article is for informational purposes only, and the process may change at any time at the discretion of the NC ABC Commission or by law through the North Carolina General Assembly. Feel free to contact us if you have questions about the ABC permit process or about commercial real estate for your business.

Possible Future Blog Subtopics

Common Mistakes When Applying for an ABC Permit:

Frequent errors and how to avoid them. Tips for ensuring a successful application.

Benefits of Having an ABC Permit:

Advantages of operating a business with an ABC permit. How an ABC permit can improve credibility and business opportunities.

Types of ABC Permits and Their Benefits:

Detailed descriptions of different types of permits and their specific advantages.