How to Start a Bar in Pocatello: State, Bannock County and City Liquor License Fees

If you want to open a bar in Pocatello, the liquor license is the part that takes the most planning. Idaho does not issue one license that covers everything. You apply for a state license through the Idaho State Police first, then obtain a city license from the City of Pocatello and a county license from Bannock County. Each layer has its own fee, its own paperwork and its own timing.

Searching for a pocatello liquor license usually turns up scattered fee sheets from different agencies. This guide puts the numbers side by side, explains what each one covers, and lays out the order that keeps you from paying for an application that stalls because a prior step was missing. Confirm every figure with the named agency before you pay, because local forms and fees change.

What a Pocatello bar license costs

Idaho has no state general business license. Registering your entity with the Idaho Secretary of State is a registration, not a license. Liquor is different because it is a regulated activity, so the fees below are the license costs you will pay on top of entity filing fees, insurance and build-out.

License layer	Issued by	Liquor by the drink	Beer and wine
State liquor license	Idaho State Police	$750 annual fee (city over 3,000 people, Idaho Code 23-904)	Confirm the state fee for beer and wine with Idaho State Police
City of Pocatello	City of Pocatello	$562.50 (includes wine)	Beer off-premise $50, beer on-premise $150, wine $200
Bannock County	Bannock County	$187.50 (25% of the state fee)	Draft, bottled and canned beer on premise $100, wine $100

Idaho Code 23-916 caps local fees at 75% of the state fee for the city and 25% for the county. That is where the $562.50 city and $187.50 county figures come from for liquor by the drink. Add the three layers and a liquor-by-the-drink bar in Pocatello should budget $1,500.00 in state, city and county license fees before any transfer, location change or other local charges.

Other Pocatello and Bannock figures you may face: city golf-course liquor $300, city alcohol catering $20 a day, city proprietor or owner transfer $25, city location change $50, and Bannock County transfer $20. The Bannock County figures come from its 2025 application, so confirm them against the current form.

What to gather before you start

• A business name that passes the Secretary of State name test, plus a registered agent with a physical Idaho street address (P.O. boxes are not accepted).
• Your formation document, such as the Certificate of Organization for an LLC or Articles of Incorporation for a corporation.
• An IRS employer identification number (EIN).
• A signed lease or purchase agreement for the premises, and the exact street address you will license.
• Ownership and personal information the Idaho State Police application asks for. Each owner should expect to provide it.
• A simple floor plan and a description of the service you plan to offer, including hours and whether you will host live entertainment.
• Enough cash for the fees above plus entity filing fees, which are $100 online or $120 on paper for an LLC certificate of organization.

Step-by-step: opening a liquor-by-the-drink bar in Pocatello

Step 1: Form the entity and check the name

Start with the entity, because every license application asks for it. Search your proposed name on the Secretary of State business search at sosbiz.idaho.gov/search/business. Under Idaho Code 30-21-302(d), an LLC name must contain a phrase such as limited liability company, LLC or L.L.C. Under Idaho Code 30-21-301, the name must be distinguishable from existing, reserved and registered names. If you need time, a name reservation costs $20 and lasts 120 days.

File the certificate of organization online through SOSBiz at sosbiz.idaho.gov/forms/business/ for $100, or on paper for $120. Business filings are processed in approximately 7 to 10 days. If you need faster service, expedited options add a $40 surcharge for evidence of filing within 8 working hours, or a $100 surcharge for same day service on filings submitted before 1:00 p.m. Mountain time.

If you will operate under a bar name that differs from the LLC name, file a Certificate of Assumed Business Name, the Idaho DBA, with the Secretary of State, not the county. It costs $25 online or $45 on paper. Confirm the form and fee at sos.idaho.gov/business-forms/ before you file.

Step 2: Confirm the address works for a bar

Before you sign a lease, ask the City of Pocatello planning and zoning staff whether the address allows a bar or tavern with on-premise alcohol sales. Ask for the answer in writing. Pocatello does not require a general business license, so the licenses you will deal with are the ones issued by type. A zoning answer protects you from paying the liquor fees for a location the city will not approve.

Step 3: Check the quota and decide between a new license and a transfer

Idaho Code 23-903 caps liquor licenses at one per 1,500 residents of the city or fraction of 1,500. That cap is why licenses trade hands. Ask the Pocatello City Clerk and Idaho State Police how many licenses are currently issued for the city and whether any are available for a new applicant. If a license is available for purchase, the transfer process is a separate path with its own fees: $25 for a city proprietor or owner transfer and $20 for a Bannock County transfer. Confirm the state transfer requirements with Idaho State Police.

Step 4: Apply to Idaho State Police first

The state license comes first. For a city over 3,000 people, the Idaho Code 23-904 annual fee is $750. Your county and city applications depend on it, and the Bannock County application asks you to attach the state license. Ask Idaho State Police how long it expects to take to act on a new application, because your local filings may be waiting on it.

Step 5: File the City of Pocatello license

Once the state process is underway, file with the City of Pocatello for the license that matches your service. For liquor by the drink, the city fee is $562.50, and it includes wine. If you also sell packaged beer, the off-premise beer fee is $50. Check the city Business Licenses page for the current application and any inspection requirements, since the city license is tied to the approved premises.

Step 6: File the Bannock County license

Bannock County charges 25% of the state fee for liquor by the drink, which is $187.50. Its 2025 application lists draft, bottled and canned beer on premise at $100 and wine at $100. Attach the state license and any other documents the county requests. Confirm the current form and fee with the Bannock County office that handles alcohol licensing before you submit.

Step 7: Register for state taxes

Apply for a sales tax permit through the Idaho State Tax Commission at tax.idaho.gov/ibr. Idaho's state sales tax rate is 6%, and local sales tax applies only in voter-approved resort cities, so Pocatello sales are taxed at the state rate. Confirm with the Tax Commission which of your sales are taxable. For the owners, Idaho taxes income at a flat 5.3%. A default LLC is a pass-through entity, so members report Idaho income on their personal returns. An LLC that files a partnership or S corporation return owes the $10 permanent building fund tax. Ask a CPA which tax treatment fits your ownership.

Step 8: Handle build-out and other permits

If you hire a contractor for the build-out, Idaho has no statewide general contractor license. Contractors register with the Idaho Contractors Board at DOPL, so check the registration of anyone you hire. For building permits, signs, food service and fire safety, ask the City of Pocatello and your local health authority which approvals apply to your plan. Do not assume a city or county license covers these.

Step 9: Calendar your renewals

The LLC annual report is required every year. It is due before the end of the month in which the certificate of organization became effective, beginning one year after formation, and the Idaho fee is listed as no fee. Liquor licenses renew on their own schedules at the state, city and county levels. Ask each agency for its renewal date and fee, and put all of them on one calendar.

Tips that save time

• File the entity and name check first. Every license application asks for the legal name, and a mismatch can send you back to the start.
• Ask for written answers from zoning staff and the clerks. A phone conversation does not protect you if the staff member changes or the answer is wrong.
• Budget for the transfer market. If a license is available for purchase, its price may exceed the government fees by a wide margin, so get a valuation from a broker or attorney before you commit.
• Use the Business Wizard at business.idaho.gov to generate a checklist of the agencies and permits your activity needs.
• Get free help from the Idaho Small Business Development Center at idahosbdc.org if you are new to business formation.

Common mistakes to avoid

• Treating Idaho as having a general business license. Idaho has no state general business license, and counties issue no general business license. The licenses you need are the liquor license and any permits for the activities you plan.
• Filing the DBA with the county. An assumed business name is filed with the Idaho Secretary of State, not the county.
• Using a P.O. box for the registered agent. The agent must have a physical Idaho street address.
• Signing a lease before the zoning answer. A location that cannot hold a bar wastes every fee you paid after it.
• Filing county or city paperwork before the state license is issued. The Bannock County application asks for the state license, so the order matters.
• Assuming a fee is final. The Bannock County figures come from a 2025 application. Confirm every number with the agency before you pay.
• Missing the annual report. It is required every year, even though the fee is zero.

What to expect

Based on the agency figures above, a liquor-by-the-drink bar in Pocatello may reasonably budget about $1,500.00 for the state, city and county license fees, not counting entity filing fees, sales tax registration, transfer costs, insurance, build-out or the price of a license you buy from someone else. Beer and wine licenses are priced differently, so the budget will change with your service mix.

The timing is less certain. The Secretary of State states that business filings are typically processed in about 7 to 10 days, and expedited service is available. The state, city and county liquor steps depend on agency workloads and on each other, so you should ask each agency for its current processing time rather than planning around a single estimate. Many applicants find that the sequence, not any single fee, sets the opening date.

Get professional help

Pocatello liquor licensing can involve transfers, ownership changes and premises approvals that are not simple paperwork. Talk with an attorney who handles Idaho liquor licensing before you buy a license, sign a lease or choose an ownership structure. Talk with a CPA about the entity and tax treatment, since the 5.3% income tax and the $10 permanent building fund tax apply differently depending on how the LLC files.

Disclaimer

This article is informational only. It is not legal, tax or licensing advice, and it does not create an attorney-client or accountant-client relationship. Idaho Code, agency fees and local requirements change. Confirm current figures and requirements with the Idaho State Police, the City of Pocatello, Bannock County, the Idaho Secretary of State at sos.idaho.gov and the Idaho State Tax Commission at tax.idaho.gov before you apply or pay.