How to Start a Bar / Brewery in 2026: Costs, LLC, & Licenses

Write a Business Plan

Define your target customer, pricing, competitive advantage, and financial projections. A business plan is required by most lenders and helps you clarify your path to profitability. Budget the first year at $275,600 and project revenue to confirm your break-even point.

→ Estimate startup costs by city

Form an LLC (Recommended)

Most bar / brewery owners should form an LLC to protect personal assets. An LLC separates your business debts and liabilities from your personal finances. Formation costs $35–$500 in state filing fees, plus optional registered agent and operating agreement services.

→ LLC formation costs by state

Get an EIN from the IRS

An Employer Identification Number (EIN) is your business's tax ID — required for payroll, opening a business bank account, and filing business taxes. Apply free at IRS.gov. You'll receive it immediately online.

Open a Business Bank Account

Keep business finances separate from personal to protect your LLC status and simplify taxes. You'll need your EIN, LLC formation documents, and a government-issued ID. Many online banks offer free business checking with no minimum balance.

Obtain Licenses & Permits

Requirements vary by state and city. Common licenses for a bar / brewery include:

• •General business license (city/county level)
• •State business registration / DBA if operating under a trade name
• •Industry-specific licenses required by your state
• •Zoning / occupancy permit for your location
• •Seller's permit / sales tax license (if selling taxable goods)

Budget $500–$2,500 for licenses and permits in year one.

Get Business Insurance

At minimum, you'll need general liability insurance (covers customer injuries and property damage). If you have employees, workers' compensation is required in most states. Commercial property insurance covers your equipment and inventory.

• •General liability: $400–$1,500/year
• •Workers' comp: varies by state and payroll (see employee cost calculator)
• •Commercial property: $750–$2,500/year

Set Up Accounting & Payroll

Track income and expenses from day one. Accounting software simplifies tax filing and helps you spot profitability issues early. If you hire employees, payroll software handles tax withholding, deposits, and quarterly filings automatically.