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How to Open a Sports Bar Business in Illinois

Opening a sports bar allows you to embrace your passion for sports and provide a place for friends to gather to watch the hottest games and sporting events. But opening a sports bar takes more than beer and big-screen TVs. You must consider all aspects of the business, from funding to business licenses required by the state of Illinois.

  1. Funding

    • Lack of funding is one of the biggest reasons new businesses fail. Opening a bar requires a lot of money to purchase the property and to stock the bar with dishes, liquor and food. In addition, it may take several months or more before you begin to see a profit, so you will need capital to pay employees, restock supplies and keep up with utilities and other bills. Create a business plan and make sure you have enough capital to keep your doors open until the profits start coming in. Funding sources to consider include a business loan, investors or partners.

    Location

    • You may buy and take over an existing sports bar, convert an existing restaurant or building to a sports bar or build your bar from the ground up. You may also consider leasing a property. Consider your location carefully. Don't open your bar next door to an existing sports bar. Additionally, make sure that the zoning regulations permit your business at the location you are considering.

    Taxes

    • As a new business, you will need to get a federal Employee Identification Number for tax purposes from the Internal Revenue Service. In addition, get an Illinois Business Tax Number by registering your business with the Department of Revenue. This number is used for state and sales taxes.

    Local Liquor License

    • You must get a local liquor license. Check with your municipality to find out what department to contact to apply for the license. For example, if your bar is in Chicago, you apply for the local license with the Chicago Department of Business Affairs and Consumer Protection. Or if your bar is in Peoria, you will apply for the liquor license at the city clerk's office. Specific requirements to do so vary but may include health and fire inspections, submission of business and financial information and an opportunity for local residents to protest the license application.

    Federal Permit

    • You will need a Basic Permit from the U.S. Department of Treasury to comply with the federal Alcohol Administration Act. This application includes owner and business information and information about the types of liquor that you will serve.

    State License

    • Finally, you will need a state Retailer Liquor License from the Illinois Liquor Control Commission. You must include the business and owner information, your local and federal license information, a Certificate of Insurance which verifies that you have liability insurance coverage of at least $300,000 and your tax identification numbers.

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