Avoiding Common Pitfalls When Applying for a Liquor License

Applying for a liquor license can be an exciting, yet sometimes overwhelming, process for any business. Whether you’re opening a restaurant, bar, or even just hosting an event, the application process for a liquor license is something you need to get right. The last thing you want is to have your license delayed—or worse, denied—because of a simple mistake. But don’t worry, we’re going to cover the most common pitfalls to avoid when applying for your liquor license, so you can move forward confidently and without unnecessary stress.

Understanding the Basics of a Liquor License

Before jumping into the pitfalls, let’s make sure you’ve got a solid understanding of what a liquor license actually is. Simply put, a liquor license is a permit that gives you the legal right to sell alcoholic beverages. The type of license you need will depend on several factors, such as:

• The type of establishment you’re operating (e.g., restaurant, nightclub, convenience store)
• The kind of alcohol you want to serve (beer, wine, spirits, or all of the above)
• Whether alcohol will be consumed on-site or taken off-site

The requirements can vary depending on the province or territory you’re in, so always check your local regulations first. Now, let’s look at the most common mistakes people make when applying and how you can avoid them.

Pitfall 1: Incomplete or Incorrect Paperwork

One of the most frequent reasons for a liquor license application to be delayed or rejected is submitting incomplete or incorrect paperwork. Each jurisdiction has specific forms and documents that must be provided. Missing even one small piece can put your entire application on hold.

How to avoid it:
Double-check your application checklist. Make sure you’ve filled out all the necessary forms, signed everything that requires a signature, and attached all the supporting documents. These might include things like floor plans, zoning permits, or a lease agreement for your business premises. If you’re unsure, it’s always a good idea to consult a legal advisor who specialises in liquor licensing.

Pitfall 2: Not Budgeting for the Costs

Liquor licenses aren’t cheap, and the total cost can add up quickly when you consider application fees, legal expenses, and renewal costs. Some applicants underestimate these expenses and find themselves scrambling to cover the costs when the time comes. Make sure you research the liquor license cost in Ontario before you make your application so you’ve got a full understanding.

How to avoid it:

Budget for your liquor license early in your business planning. Include application fees, renewal fees, and any other related expenses so you’re not caught off guard later. It’s also a good idea to have a financial buffer in case any unexpected costs arise during the application process.

Pitfall 3: Failing to Understand License Types

Not all liquor licenses are created equal. Depending on the type of business you’re running and the alcohol you’re serving, you might need a specific kind of license. Applying for the wrong license could slow things down or, worse, get your application denied.

How to avoid it:
Familiarise yourself with the different types of liquor licenses available in your area. Are you planning to serve only wine and beer, or will you offer spirits as well? Will alcohol be consumed on the premises, or will customers take it to go? Getting clear on these details early will help ensure you apply for the correct license from the start.

Pitfall 4: Ignoring Background Checks and Fingerprinting

Most provinces and territories require background checks and fingerprinting as part of the liquor license application process. This is to ensure that those applying have no criminal history that would disqualify them from selling alcohol. Failing to complete these checks can cause major delays.

How to avoid it:
Start this process early, as background checks can take several weeks to complete. Some areas even require all partners or managers involved in the business to undergo these checks. Make sure everyone who needs to participate in this process is aware and gets it done on time.

Pitfall 5: Missing Deadlines

Liquor license applications come with strict timelines, from submission deadlines to renewal dates. Missing any of these could result in your application being denied or your license expiring.

How to avoid it:
Create a timeline for yourself. Mark all important dates on your calendar, including submission deadlines, hearing dates (if required), and renewal periods. It’s easy to get caught up in the day-to-day of running a business, so having clear reminders will keep you on track.

Pitfall 6: Skipping Community Input

In some cases, especially when opening a new establishment, community members may have a say in whether your liquor license gets approved. They could raise concerns about noise levels, parking issues, or other potential disruptions. Failing to address these concerns can lead to public opposition, which could delay or derail your application.

How to avoid it:
Engage with your local community early. Attend community board meetings, speak to nearby residents, and address any concerns they may have. Being proactive can go a long way in ensuring smooth approval.

Pitfall 7: Overlooking Training Requirements

In many provinces, your staff will be required to complete responsible alcohol service training. This training teaches servers how to handle situations like refusing service to intoxicated customers and checking IDs.

How to avoid it:
Find out if your province or territory mandates responsible alcohol service training and ensure that your staff is certified before opening day. Having trained staff not only keeps you compliant with the law but also reduces the risk of incidents related to alcohol consumption.

Pitfall 8: Not Meeting Local Zoning Requirements

Just because you want to open a bar doesn’t mean you can open it anywhere. Zoning laws will dictate where you can and cannot sell alcohol. Many cities and towns have specific zones where liquor sales are allowed, and this can affect whether your license is approved.

How to avoid it:
Before you even begin the application process, check with your local municipality to make sure your business is located in an area zoned for liquor sales. If you find out your location isn’t properly zoned, you might need to either apply for a zoning variance or reconsider your business location. Skipping this step is a huge mistake that can lead to delays and potential rejection.

Avoiding these common pitfalls will help you secure your liquor license with fewer headaches and delays. By staying organised, understanding the specific requirements of your local jurisdiction, and planning ahead, you’ll be well on your way to running a successful business that serves alcohol responsibly.