What Permits Are Needed To Open A Bar In Youngstown?

So you’ve decided that you want to serve alcohol at your restaurant, bar, or brewery in Youngstown or the Mahoning Valley. Assuming that you’ve already decided how to organize your business, the next step is to determine what type of liquor permits you need. This post covers just the permits needed for locations where alcohol is consumed on site. Sorry, brewers, we’ll discuss your manufacture permits another day. We will also wait to discuss the full process to apply for a liquor permit from the Ohio Department of Commerce Liquor Control Division and the US Department of Treasury.

Types of Permits Available in Ohio

Ohio splits liquor permits up according to what you want to do and what type of liquor is involved. The activities are generally grouped by letters, the type of liquor by a number. For example, “A” permits are for manufacture and “A1” is a permit to produce beer in large amounts for sale to distributors. “B” is distribution, “C” is carryout. Which brings us to the meat of today’s post, “D” permits for sales of alcohol to be consumed on site.

A list of the various types of “D” permits will follow. Which permit, or combination of permits, a restaurant or bar chooses to apply for will depend on which drinks they plan to offer for sale and what hours the restaurant or bar plans to keep.

Restaurant and Bar Permits

• D1 Permit, Allows the sale of beer only either in sealed containers for carryout or for drinking on the business premises until 1:00 am. Costs $376 (as of July 1, 2018). Revised Code 4303.13
• D2 Permit, Allows sales of wine and mixed beverages either in original sealed containers for carryout or for drinking on premises until 1:00 am. Costs $564 (as of July 1, 2018). R.C. 4303.14
• D3 Permit, Allows sales of spirits for consumption on site until 1:00 am. Costs $750 (as of July 1, 2018). R.C. 4303.15
• D3A Permit, Extends privileges of D1, D2, and D3 permits to 2:30 am. Holding D1, D2, D3, and D3a together is essentially the same as holding a D5 permit. Costs $938 (as of July 1, 2018). R.C. 4303.16
• D4 Permit, meant for social clubs with membership rosters, such as the Fraternal Order of Eagles or Sons of Italy, allows sales of beer and any intoxicating liquor to members only for on-premises consumption only until 1:00 am. Costs $469. R.C. 4303.17
• D5 Permit, Allows sales of beer, wine, mixed beverages, in original sealed containers for carryout or for on-premises consumption and sales of spirits for on-premises consumption only until 2:30 am. Costs $2344 (as of July 1, 2018). R.C. 4303.18

Permit Quotas and Alternative Permits

The Ohio Department of Commerce Division of Liquor Control assigns a quota of liquor licenses based upon the population of different taxing districts. The Division of Liquor Control maintains a list of available permits on its website.

If no permit is available for the location where you wish to open, you must wait until one becomes available, buy and transfer a permit from an existing permit-holder in the same district, or find a way to qualify for one of the liquor permits that is not tied to the quota system.

The Division of Liquor Control issues a number of permits for special cases that operate outside the usual system. If your business is something other than a bar or restaurant and you wish to know whether something is available, contact me.

While there are many types of alternate D5 permits, D5I permits are the ones a business is most likely to qualify for by their decisions. D5B permits may also be available if you plan to operate within a shopping mall. An attorney will be able to determine whether your location qualifies.

D5I permits

If you are a restaurant owner, good news! You probably qualify for a liquor permit outside the quota system. Restaurants which have a full menu including appetizers, entrees, and sandwiches, are eligible for the D5I permit, which is the same as a D5 permit but is issued outside the quota system. There are some additional restrictions, including that a restaurant must have no more than 25% of its gross receipts from liquor to qualify for the quota-less permit.

What Next?

Once you’ve reviewed your business plan and decided which type of permit is needed to operate the business you want to, you’ll need to apply to the Division of Liquor Control for your permit, and apply to the Alcohol and Tobacco Tax and Trade Bureau of the United States Treasury.

There are a number of complicated steps involved in both the state and federal applications, those will be covered in later posts.

If you have questions, or want assistance with your application for an Ohio Liquor License, contact me today. I can help you determine which form of business idea is best for your restaurant, brewery, or bar. I can also help you with the application process and possible local option issues you may face.