Updated November 5, 2026.
Opening a bar or restaurant in Nashville takes two alcohol approvals, each on its own calendar. Most delays start months before either application is filed. The lease, the business entity, and the tax accounts all have to line up first, and one mismatch can push back an opening date.
This checklist walks through the legal steps in the order they usually happen. Rules and fees change, so treat it as a starting point and confirm the details for your own location.
1. Know which approvals you need
Tennessee splits alcohol licensing between the state and your local government.
The Tennessee Alcoholic Beverage Commission (TABC) licenses spirits, wine, and high-gravity beer, which is beer stronger than 8% alcohol by weight. A restaurant or bar that pours cocktails needs a liquor-by-the-drink license from the TABC.
Regular beer works differently. Beer at 8% alcohol by weight or less needs a beer permit from Metro Nashville’s beer board, and a TABC license doesn’t cover it. State law sets a $250 application fee for the beer permit, plus a yearly privilege tax of up to $100. Most full-service concepts need both approvals, so plan for two applications and two timelines. Our pages on the Tennessee liquor license and the Tennessee beer permit explain each one in more detail.
2. Pick the right license type
The license you apply for depends on what you expect to sell most.
A restaurant license generally fits a business that expects food sales to beat sales of wine, spirits, and high-gravity beer. The TABC reviews your menu, kitchen, and business plan to check that.
A limited-service restaurant license, often called a bar license, generally fits a business that expects to sell more alcohol than food. It needs two extra items. One is a zoning letter from Metro saying the location can operate as a bar. The other is a written security plan that covers capacity, cameras, and staff training.
If you’re not sure which one fits, our guide to the types of liquor licenses in Tennessee compares them side by side.
3. Set up the business before you sign the lease
Most owners form an LLC or a corporation before they open. An entity can help keep the business’s debts separate from your personal assets. It also becomes the applicant on the license.
Name consistency matters more than most owners expect. Your business’s legal name has to match exactly across the formation papers, the lease, the tax accounts, and the license application. If the LLC is “Acme Hospitality LLC,” the lease should name Acme Hospitality LLC as the tenant. It shouldn’t name you or the trade name on the sign. Name mismatches are one of the most common reasons applications stall.
The TABC also reviews every layer of ownership, down to the people who own the business in the end. If your ownership chart has more than a couple of boxes, draw it out before you apply.
4. Read the lease with the license in mind
Your lease is part of the license application, so it needs to work for the TABC as well as for you.
The lease should name your business entity as the tenant, give you exclusive use of the space, and run at least one year past your application date. Shorter terms can be approved but get extra review. If the landlord takes a share of alcohol sales, the TABC wants to know. A share under 5% usually needs nothing more. A share between 5% and 10% needs a landlord affidavit. A share of 10% or more gets a closer look and could keep the license from being approved.
It’s much easier to fix these terms before you sign than after.
5. Register your tax accounts
The TABC can’t approve a license until the Tennessee Department of Revenue confirms your tax accounts and tax bond. That means registering for sales tax, business tax, and liquor-by-the-drink tax, and posting a bond. Registration starts online through the Tennessee Taxpayer Access Point. Build in time for the department to send its confirmation to the TABC.
6. Apply when you’re ready for an inspection
Applications go through the TABC’s online system with a $300 application fee. The TABC recommends applying only when your business is ready for an on-site inspection, or will be within 14 days. An application that stays incomplete for more than 45 days may be denied, which means starting over and paying again.
Before the license is approved, a TABC agent visits the location. The agent checks for at least 40 seats at real dining tables or a bar, a kitchen that can produce your menu, and a current health permit.
Tennessee moves faster than most states once the file is complete. By the TABC’s own numbers, the average application took 38 days from filing to approval in 2023. The steps before the application usually take longer.
7. Plan for day one and beyond
Approval starts an ongoing relationship with the TABC. Anyone serving alcohol needs a TABC server permit within 61 days of starting to serve. The license renews every year, and renewal is a real review, not a formality. Licensed businesses should also expect inspections.
If Metro’s beer board denies a beer permit, the decision can be appealed in court, but the deadline is short. Metro’s agendas list 60 days from the date the board enters its decision.
Where BevLaw Group fits
Licensing is where many Nashville owners first meet us, but it’s only one piece of opening and running a hospitality business. Our flat monthly plans also cover lease and vendor contracts, employment questions, regulatory defense, and the everyday “is this allowed?” calls, so you can ask early instead of after something goes wrong.
If you’re planning a Nashville opening, a short call before you sign the lease can save weeks later.