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978-741-1177
Muggeo & Associates

Massachusetts Liquor License & Business Licensing Lawyer

Opening or buying a restaurant, bar, package store, shop or other licensed business in Massachusetts means getting through local licensing boards and, for alcohol, the state Alcoholic Beverages Control Commission (ABCC). Applications are public, hearings are often contested, and small mistakes can delay an opening or put an existing license at risk. Muggeo & Associates represents business owners in Salem and across the North Shore in liquor license applications, transfers, local business licensing and licensing violation hearings.

Liquor License Services

  • New license applications for restaurants, bars, hotels, clubs and package stores under Sections 12 and 15 of Chapter 138.
  • License transfers, including purchase and sale agreements, escrow, tax and lien clearance, and approval of the new owner and manager.
  • Changes of manager, officers, directors, stockholders, premises or license category, which require approval before they take effect.
  • Pledges of a license as collateral for financing, which require local and ABCC approval.
  • One-day and seasonal licenses for events, festivals and seasonal businesses.
  • Violation hearings before local boards and the ABCC, including sales to minors, overcrowding, after-hours service and other alleged violations.
  • Appeals of local decisions to the ABCC and of ABCC decisions to court.

How Massachusetts Liquor Licensing Works

Alcohol licensing in Massachusetts is governed by G.L. c. 138 and ABCC regulations. For retail licenses, the process generally runs in three steps: the local licensing authority grants the license after public notice and a hearing, the ABCC reviews and approves it, and the city or town issues the license once fees are paid. Key rules include:

  • Quotas. Section 17 caps the number of on-premises (Section 12) and package store (Section 15) licenses each city and town may issue, based on its population in the most recent federal census.
  • Schools and churches. Section 16C restricts licenses for premises within 500 feet of a school or church unless the local board finds, after a hearing, that the license would not be detrimental, or another exception applies.
  • Eligibility. Applicants must be at least 21 and meet residency and character requirements. Certain criminal convictions disqualify applicants. A 2024 economic development law removed the U.S. citizenship requirement for restaurant license holders and managers, so lawful permanent residents may now qualify.
  • Package store limits. One person or company may hold no more than nine package store licenses statewide.
  • Annual renewal. Section 12 and 15 annual licenses must be renewed each November.
  • Short appeal deadlines. Local licensing decisions generally must be appealed to the ABCC within five days of written notice.

Proposals to let cities and towns set their own number of restaurant and bar licenses, without special legislation, have passed the State Senate in past sessions but had not become law as of November 2026. Until they do, many communities still rely on home rule petitions to add licenses.

Local Business Licenses and Permits

Most of the licenses a Massachusetts business needs are issued locally. We help clients apply for, renew, amend and defend licenses including:

  • Common victualler licenses for businesses serving food for consumption on the premises (G.L. c. 140, § 2).
  • Entertainment licenses for live or recorded music, dancing, performances and similar activities (G.L. c. 140, § 183A), and Sunday entertainment licenses.
  • Business certificates (DBA filings) with the city or town clerk for businesses operating under a trade name.
  • Board of health permits for food establishments, tobacco sales and other regulated activities.
  • Motor vehicle dealer licenses (Class I, II and III), second-hand dealer, pawn and junk dealer licenses.
  • Lodging house, innkeeper and short-term rental registrations.
  • Fortune telling and psychic fair licenses, which Salem’s Licensing Board regularly hears.
  • Outdoor dining, sidewalk and sign permits, and zoning approvals such as special permits and changes of use.
  • Cannabis business licensing, which requires a Cannabis Control Commission license and a host community agreement and local zoning approval from the city or town.

Licensing Violations and Disciplinary Hearings

A licensing board can suspend, modify or revoke a license after notice and a hearing. Common issues include sales to minors, overserving, overcrowding, noise and neighbor complaints, operating outside licensed hours, unapproved changes of manager or ownership, and food or building code problems. A record of discipline can affect future renewals and the value of the business when it is sold. We prepare licensees for hearings, gather records and witnesses, negotiate with town counsel and police, and pursue appeals where appropriate.

Buying a Business With a License

A license does not automatically pass with the sale of a business. The buyer, the new manager and the premises must be approved, and the deal should be conditioned on those approvals. We coordinate the purchase agreement, license transfer application, escrow and closing, and review the seller’s compliance history before you commit. See our business formation guide for setting up the entity that will hold the license.

Licensing Resources

Serving Salem and the North Shore

We appear before licensing authorities in Salem, Peabody, Beverly, Lynn, Danvers, Marblehead, Gloucester and communities throughout Massachusetts. See all areas we serve and our business law practice.

Frequently Asked Questions

Who issues a liquor license in Massachusetts?

Retail licenses for restaurants, bars and package stores are granted by the local licensing authority, such as a licensing board or select board, and must then be approved by the state Alcoholic Beverages Control Commission (ABCC) before the city or town issues the license. Manufacturer and most wholesale licenses are issued by the ABCC.

What if my city or town has no liquor licenses available?

Section 17 of Chapter 138 limits the number of on-premises and package store licenses based on population. When a municipality reaches its quota, the usual options are buying and transferring an existing license from a current holder, or asking the city or town to file a home rule petition for special legislation creating an additional license.

How long do I have to appeal a local licensing decision?

An applicant or licensee aggrieved by a local licensing authority decision on a liquor license generally has five days from receiving written notice of the decision to appeal to the ABCC. ABCC decisions can then be appealed to the Superior Court. These deadlines are short, so act immediately.

Do I need a lawyer for a liquor license hearing?

It is not required, but licensing boards weigh the applicant’s preparation, management plan and responses to neighbors and police. Legal help is especially valuable for transfers, contested applications, properties near schools or churches, and violation hearings where a suspension or revocation is possible.

What other licenses does a restaurant need?

Typically a business certificate if operating under a trade name, a common victualler license, a board of health food permit, building and occupancy approvals, and, if there will be music or performances, an entertainment license. Requirements vary by city and town.

Opening a business, buying a license, or facing a licensing hearing? Contact Muggeo & Associates or call (978) 741-1177. Our Salem office represents business owners before licensing boards across the North Shore and Massachusetts.

This page is general information, not legal advice. Licensing rules, fees, quotas and local procedures vary by city and town and change over time. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee future outcomes. Last reviewed November 2026.