Here in the States, I believe such licenses are controlled by each municipality, not by county or state governments. Of course if the establishment is not within the boundaries of a municipality, then the county government has jurisdiction.

It's typical in most U.S. jurisdictions to require a license to serve any alchoholic beverage and an additional license, often called a cabaret license if live entertainment of any type is to be featured. Some jurisdictions have one license for serving beer and wine and another more expensive license for serving liquor. Of course a license to serve any food is another expense altogether.

On top of the licenses, enforcers from the local musician's union may insist that any entertainers working in an establishment be members of the union and be paid union scale. On top of that, ASCAP (American Society of Composers, Authors, and Publishers) representatives will come around to collect royalties for any copyrighted music performed in the establishment. If the owner doesn't have a verifiable list of titles and times played, they have the option of paying a flat fee to ASCAP sufficient to cover any contingency.

Of course there are also the guys in fedoras and dark glasses who make sure every establishment has a jukebox and a cigarette vending machine supplied by their chosen “service” operation.

And still people gather to sing... go figure.

      - Mark