Liquor-by-the-Drink (LBD) Restaurant License: Nashville restaurant guide

Tennessee Alcoholic Beverage Commission

What it is

The state license to serve spirits, wine and high-gravity beer on premises. It requires at least 40 seats at tables and more than 50% of gross revenue from meals.

When a restaurant needs it

Serving spirits or wine (or high-gravity beer over 8% alcohol by weight, about 10.1% ABV). Bars that can't meet the 50% food rule may qualify for a Limited Service Restaurant license (higher fees, zoning letter and security plan required).

How to apply

Apply in RLPS and upload the required documents. TABC then does an on-site inspection of the kitchen, seating and likely food-sales ratio.

Documents you’ll need

Deed or lease
Business plan
Menu
Federal Alcohol Dealer Registration (TTB 5630.5d)
TN Sales & Use Tax Certificate
Dept. of Revenue Price Schedule Report
County and city business licenses
Certificate of Occupancy (U&O)
Owner IDs and contact info
Health permit or inspection within 12 months

Fee

$300 application fee + annual license by seating: 40–74 seats $650; 75–125 $750; 126–175 $925; 176–225 $975; 226–275 $1,100; 276+ $1,200

Processing time

2023 average 38 calendar days from filing to approval; complete applications can take under 2 weeks

Renewal

Annual (valid one year from issue)

Who files

Filed in RLPS by the business or its attorney/consultant.

Good to know

Seats must be real tables and chairs, or a bar at least 20 in. deep. Couches and lounge seating don't count. You must be open at least 3 days a week.

Official source

TABC — LBD Restaurant license · TABC — Fee schedule

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Last reviewed 2026-10-06. Guidance only, not legal advice.