How to Get a Colorado Liquor License?

Many owners begin the journey excited, only to find themselves overwhelmed by paperwork, conflicting guidelines, and confusing terminology. Even once they secure a liquor license, they may not realize that everyone who sells or serves alcohol must also be trained.

In this guide, we'll break down how to get a liquor license in Colorado, explain the different license types, walk through application steps, highlight common mistakes, and show why staff alcohol training is crucial. Whether you're a business owner, manager, or aspiring bartender, this article will help you stay compliant and informed.

In Colorado, liquor licenses are managed by both local governments and the Liquor Enforcement Division (LED) of the Colorado Department of Revenue. The process begins at the local level, where the business must get approval from the city or county before the state will consider the application.

This structure exists to ensure that businesses align with local zoning and public safety standards. Once the local jurisdiction approves, the application is sent to the state for final review and issuance.

It's important to note that a liquor license is for businesses, not individuals. It grants the legal right to sell or serve alcohol under specific conditions. In contrast, individuals who serve alcohol—such as bartenders and waitstaff—are often required or encouraged to obtain alcohol service certification.

• Note: We do not provide liquor licenses. However, we do offer the official Colorado Alcohol Awareness Training for anyone who sells or serves alcohol. This training helps businesses reduce liability and ensures employees understand Colorado’s alcohol laws.

Selecting the appropriate license type is foundational to the process. Each license permits specific types of alcohol and determines where and how it can be served. Here are the most common licenses:

• The Hotel and Restaurant License allows full-service dining establishments to serve all types of alcohol.
• The Tavern License is designed for bars and pubs where alcohol sales exceed food revenue.
• A Beer and Wine License permits the sale of only beer and wine for on-premise consumption.
• A Brew Pub License enables businesses to manufacture malt beverages and sell them on-site, combining retail and production.
• The Retail Liquor Store License permits the sale of sealed bottles for off-site consumption.
• A Distillery Pub License is for distilleries wanting to manufacture and serve their products in a public setting.
• The Limited Winery License suits small-scale wine producers who sell directly to customers.

Each license type has different application requirements, fees, and rules for service and sales.

Your journey starts with the city or county clerk’s office. Requirements vary but often include background checks, floor plans, zoning approval, public notices, and sometimes a public hearing.

Once approved locally, your application moves to the state LED for review. This review checks your compliance with state regulations and may include an inspection.

Licensing costs vary by license type and locality. For example, a tavern license may cost between $500 and $1,200, not including local fees. The full process can take 60 to 90 days.

Securing your license is only the beginning. Colorado enforces strict rules:

• Alcohol cannot be sold to minors under any circumstances.
• Businesses may be liable under Dram Shop Laws for overserving intoxicated customers.
• Inspections and undercover compliance checks are routine.
• Licenses must be renewed annually and displayed publicly.

One of the most important but often overlooked steps is ensuring that all employees are trained in responsible alcohol service.

Many municipalities, insurers, and employers require or encourage staff to complete Responsible Vendor Programs (RVP) like the one we offer.

The Colorado Alcohol Awareness Training is a quick, state-compliant program designed for:

• Bartenders and servers
• Store clerks and alcohol sellers
• Restaurant managers and owners

The benefits of certification include reduced liability, better customer service, and sometimes lower insurance premiums. Certification is also a valuable credential for job seekers in the hospitality industry.

1. Navigating State and Local Regulations: The dual-level application process can be confusing, as businesses must apply through both local municipalities and the Colorado Department of Revenue Liquor Enforcement Division (LED).
2. Choosing the Correct License Type: With a wide range of license types—from Tavern to Brew Pub to Limited Winery—many business owners struggle to select the right one.
3. Meeting Legal Requirements: The documentation, public notices, and sometimes public hearings required by cities and counties can delay applications.
4. Costs and Budgeting: Many entrepreneurs underestimate the total cost of obtaining and maintaining a liquor license due to both local and state fees.
5. Employee Compliance and Training: Business owners may not realize that their staff needs alcohol service training even after the business itself is licensed.
6. Lack of Transparency in the Process: There is limited guidance on what to expect post-application, including potential inspections or required modifications.
7. Risk of License Revocation: Infractions such as serving minors or overserving  can lead to license suspension, creating operational and legal risks.

1. Digital Licensing Portals: Colorado has introduced online resources through the LED to simplify application tracking and renewals.
2. Increasing Demand for Responsible Vendor Certification: Businesses are voluntarily requiring staff to complete alcohol awareness training to reduce liability.
3. Growth of Specialized Licenses: Interest in Distillery Pub, Limited Winery, and Brew Pub licenses has grown, driven by local production trends.
4. Mobile Bar and Event Licensing: Pop-up bars and mobile vendors are seeking special event permits, increasing the need for streamlined approval systems.
5. Insurance Discounts for Certified Staff: Many insurance providers now offer reduced premiums to businesses whose staff complete Responsible Vendor Programs.

1. Start Early: Begin the application process well before your planned opening date.
2. Do Your Research: Understand what license your business needs before you apply.
3. Consult Locally: Contact your city or county clerk for exact requirements—they vary widely.
4. Train Your Team: Avoid violations and build customer trust by ensuring all alcohol-handling staff are certified.
5. Track Deadlines: Set calendar reminders for license renewals, training expirations, and inspection dates.
6. Post Licenses Publicly: Failure to display your license can result in fines.

Opening or managing a bar, restaurant, or liquor-selling business in Colorado is exciting but requires diligence. From selecting the right license to navigating state and local approvals, the process can feel like a maze. But with proper planning, the right resources, and trained staff, you can launch and run your alcohol-serving business responsibly and successfully.

Remember: The liquor license allows your business to operate legally, but your team also needs to be trained and certified to sell or serve alcohol. That’s where we can help.

Ready to train your team? Get started today with our official Colorado Alcohol Awareness Training to ensure your business runs safely and in compliance with Colorado law.