New or “quota” licenses
Having a liquor license can greatly increase revenue to you business. However, pursuant to MCL 436.1531(1), the Michigan Liquor Control Commission (“MLCC”) may not grant in excess of one license for each 1,500 of population, or major fraction thereof. Moreover, the legislative body of the local unit of government where the business is located must adopt a resolution approving issuance of an on-premise license.
Consequently, the competition for one of the invariably few available licenses is often fierce.
Transferring a Liquor License
The Michigan Liquor Control Code of 1998 provides that a liquor license shall not be transferred without the prior approval of the MLCC. MCL 436.1529. While the MLCC routinely approves such transfers the transferee needs to follow the seven-step process.
Essentially, there are seven (7) steps to securing a new liquor license:
Step 1. For an existing license - Identify the license (and permit) issued to the business and the status of the license
Step 2. Complete the license application.
Step 3. Submit financial information to the field commission investigator who must prepare a report for the MLCC detailing (1) the proposed location of business for the applicant; (2) financial accounts of the applicant and each individual associated with the applicant; and (3) the applicant’s record book.
Step 4. Handle law enforcement and local government matters (i.e., police and fire clearances and the issuance of a resolution recommending transfer by the local governmental authority).
Step 5. Present the application and report to the MLCC for favorable consideration.
Step 6. Complete the closing, which includes . . .
a. the Contract for Licensing package (furnished by the MLCC)
b. the Proof of Financial Responsibility (Form LC-95)
c. an updated Report of Corporate Officers, Board of Directors &
d. the bill of sale for beverages sold under each license
e. the MLCC-supplied form for the assignment of license
Step 7. Comply with any additional city, county, state, or federal requirements.
If you’re considering a liquor license for your business please give us a call.
DISCLAIMER: All information contained in this website is for education purpose only. Law Offices of RL Johnson PLLC, its agents and affiliates cannot and will not render any legal or tax advice of any kind, unless said agent is duly licensed by the applicable state and/or federal authority to give said advice.
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39111 Six Mile Road
Livonia, MI 4815