California Liquor License Guide: $19,840 Priority Drawing Application and $1,545 Annual Fee
California Liquor License Guide: $19,840 Priority Drawing Application and $1,545 Annual Fee
Choosing a California liquor license decides more than what you can pour. It sets your startup budget, your timeline, and whether you can open at a given location at all. The Department of Alcoholic Beverage Control (ABC) is the only agency that issues alcohol licenses. No city or county grants one, but local zoning still applies to your site, so check with your city or county before you commit. This guide covers the license categories, the 2026 fees, how general licenses are won, and the quota rules that cap how many exist in each area.
Informational content only: This guide is not legal or tax advice. Liquor licensing depends on local zoning and your specific site. Talk to a qualified attorney and a CPA before you sign a lease, buy an existing license, or commit to a budget.
General vs. Non-General Licenses
ABC sorts licenses into two groups, and this split matters more than any other factor in your plan.
- General licenses carry the broadest privileges. They include Types 21, 47, 48, 57 and 75, plus a few other general-type licenses. You can only obtain one through ABC's annual priority drawing.
- Non-general licenses are narrower and mostly cover beer and wine. Examples are Types 20, 41 and 42. You apply directly and pay a $1,135 application fee plus the annual fee.
Beer and wine on-sale licenses (Types 40, 41 and 42) and manufacturer licenses (Types 02, 23 and 74) are available year round with no drawing. If your concept is a restaurant that serves beer and wine, a non-general license may be a faster path to opening than waiting on a general license.
How General Licenses Are Won
General licenses are issued through one priority drawing per county each year. The 2026 registration window ran from September 14 to 25, 2026, so it has closed for this year. Watch ABC's priority registration drawings page for the next window, and put it on your calendar before it opens.
To enter, you must have been a California resident for 90 days (Business and Professions Code 23961). Being drawn is the first step, not the last. A drawing winner pays an application fee of $19,840 plus the first annual fee. The $19,840 application fee applies to Types 21, 47, 48, 57, 71, 72, 75, 87 and 88, effective January 1, 2026.
Build your budget around that number before you enter. An applicant for a Type 47 license in a city over 40,000 people would face $21,385 in combined first-year fees ($19,840 plus $1,545), before rent, build-out, equipment, insurance, or staff training.
2026 Fee Tables
The fees below are effective January 1, 2026 and include surcharges. ABC's fees rose 2.72 percent on January 1, 2026 and are scheduled to rise 3.31 percent on January 1, 2027, so confirm figures with ABC before you budget for a later year.
| License | Privileges | Application fee | Annual fee |
|---|---|---|---|
| Type 47, 48 or 75 | General license | $19,840 (drawing) | $1,545 in a city over 40,000; $1,260 in a city of 20,000 to 40,000; $985 in a city under 20,000 or an unincorporated area |
| Type 21 | General, off-sale | $19,840 (drawing) | $1,009 |
| Type 20 | Off-sale beer and wine | $1,135 | $500 |
| Type 40 | On-sale beer | $1,135 | $500 |
| Type 41 | On-sale beer and wine, eating place | $1,135 | $565 |
| Type 42 | On-sale beer and wine, public premises | $1,135 | $705 |
| Type 58 | Caterer's permit (added to another license) | Confirm with ABC | $290 |
| Type 23 | Small beer manufacturer (60,000 barrels or less) | Confirm with ABC | $500 |
| Type 01 | Beer manufacturer above 60,000 barrels | Confirm with ABC | $2,450 |
| Type 74 | Craft distilled spirits manufacturer | Confirm with ABC | $1,037 |
| Type 02 | Winegrower | Confirm with ABC | $155 up to 5,000 gallons; $215 for 5,001 to 20,000; $425 for 20,001 to 100,000; $500 for 100,001 to 200,000; $705 for 200,001 to 1,000,000 |
Type 58 is not a stand-alone license, so its row describes an add-on. See the caterer's section below.
Type 47 and Type 21: The Two General Licenses Most Operators Weigh
The Type 47 license is the on-sale general license for an eating place, the one a full-service restaurant usually pursues to serve distilled spirits, beer and wine with meals. The Type 48 license is the on-sale general license for public premises such as bars.
The Type 21 license is the off-sale general license, the one a liquor store needs to sell distilled spirits, beer and wine for consumption away from the premises. Its $1,009 annual fee is near the low end of the Type 47 range ($985 to $1,545). The application fee is the same $19,840 for both, and both go through the same drawing and quota rules.
If you are weighing a restaurant concept, read the guide on how to start a restaurant business in California. For a store, see how to start a liquor store business in California.
Quotas: How Many Licenses Each Area Gets
Quotas cap the number of general licenses based on county population. Business and Professions Code 23816 limits on-sale general licenses to one per 2,000 inhabitants of a county. Business and Professions Code 23817 limits off-sale general licenses to one per 2,500 inhabitants. For example, a county of 500,000 people would be capped at about 250 on-sale general licenses under that formula.
Type 20 off-sale beer and wine is limited to one per 2,500 inhabitants. If a county is at its limit, the public convenience or necessity route in Section 23817.7 is the exception path. ABC reviews that route on its own terms, so confirm the process with ABC before you rely on it.
Quotas explain why a license in a full county is hard to get through the drawing. Ask ABC how many licenses of your type are available in the county you want before you sign a lease.
Transferring an Existing License
Buying an existing license is often how an operator gets into a quota-capped area. ABC charges $975 for a premises-to-premises transfer and $1,565 for a person-to-person transfer with a general license. ABC does not set or publish what a license sells for, so any purchase price is a private negotiation. Have an attorney review the purchase agreement, and confirm the transfer steps with ABC.
Caterer's Permit (Type 58)
A Type 58 caterer's permit is not a stand-alone license. The holder of an on-sale general or on-sale beer and wine license adds it, along with a few other license types. The annual fee is $290. Each event also needs its own authorization:
- $100 for fewer than 1,000 expected guests
- $325 for 1,000 to 4,999 expected guests
- $1,000 for 5,000 or more expected guests
A single premises may host no more than 36 events a year unless ABC finds substantial public demand. If catering is the core of your plan, see how to start a catering business in California.
To-Go Cocktails
Business and Professions Code 23401.5 allows to-go drinks in limited cases. The holder of an on-sale license for a bona fide eating place with off-sale privileges (Types 41, 47 and 75, for example) may sell them. So may a beer, wine or craft distilled spirits manufacturer that runs an eating place at its production premises. The rules are:
- Drinks must be sold in sealed containers.
- No more than two drinks per meal.
- No more than 4.5 ounces of spirits per cocktail.
AB 2663, signed September 30, 2026, extends this program through December 31, 2029. Confirm the current text and any local conditions with ABC before you build a to-go program into your menu.
Training and Local Rules
Responsible Beverage Service certification applies to servers and managers. Build training time into your opening schedule, and confirm current certification requirements with ABC. Your city or county also controls zoning and local permits for your site, so resolve those questions before you sign a lease.
Next Steps
- Pick your license type. Decide between a general license through the annual drawing and a non-general license you can apply for year round.
- Form your entity. File Articles of Organization (Form LLC-1, $70) through bizfile Online with the California Secretary of State. An LLC organized in 2024 through 2026 owes the $800 minimum annual franchise tax from its first year. An LLC whose first taxable year begins in 2027 through 2029 may owe a lower first-year amount, so confirm that with the Franchise Tax Board.
- Check your local rules. Ask your city or county about zoning, local business tax or registration, and any conditions on alcohol sales at your address.
- Watch for the drawing or apply directly. Check ABC's priority registration drawings page at abc.ca.gov for the next window, or file your non-general application.
- Confirm fees with ABC. Fees change on a published schedule, so verify each figure before you commit money.
Related Guides by Business Type
- How to start a bar business in California
- How to start a restaurant business in California
- How to start a brewery business in California
- How to start a winery business in California
- How to start a liquor store business in California
- How to start a catering business in California
This guide is informational, not legal or tax advice. Confirm current fees, deadlines, and requirements with ABC, the Secretary of State, and a qualified professional before you act.