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FAQ

What is the definition of a Liquor License in the State of California? 
  • Owning a liquor license gives you the right to sell and or serve alcoholic beverages. In California, obtaining a liquor license falls under the State of California Department of Alcohol Beverage Control [aka ABC].   
What kinds of liquor licenses are available in California? 
  • Depending on the type of liquor [beer, wine, distilled liquors] you want to sell and how you plan to sell or serve the liquor, will determine the type of license you can apply for from the ABC.  What type of business do you want your license for? Are you a bar, restaurant or store? 

Can anybody sell liquor in California? What type of business do you want your license for? Are you a bar, restaurant or store? 
  • Anyone that wants to sell alcohol in the State of California must have a legitimate liquor license issued by the ABC. 

Where in the State of California can I use my liquor License? 
  • All licenses in California issued by ABC are restricted to the county for which they are issued. You can move your license within the county of issue, except for San Francisco County. 

Can you get a temporary liquor license in California? 
  • The ABC can provide a temporary license during the wait time for the permanent liquor license to be issued under ABC specified conditions. 
Are there any Federal requirements in California to apply for a liquor license? 
  • Have a reliable license locator, consultant or specialist check with the US Treasury, Alcohol and Tobacco Tax and Trade Bureau if a Federal basic permit or special Occupational Tax Stamp is required for the location where you plan to sell  and or serve liquor.  There will be fees associated if any of the above is required. 
How much does a  liquor license cost? 
  • Costs are dependent on the type of license you want, the county where your business is located and how many licenses are available in that county.  A current cost estimate is as low as $15,000.00 up to $200,000.00 plus.  Just a few exceptions may lower the cost of a liquor license, if the actual physical property is either city or county owned where your business is located that you want to get a liquor license for. 

How long does it take to get a license in California? 
  • After your ABC documents are successfully submitted, other factors such as, many counties have multi agency levels that must approve the sale or transfer of a liquor license; the volume of applications and the number of available ABC inspectors that process them.  A realistic period is 30 to 60 days with no problems or protests. 

If I am a buyer what kind of fees should I anticipate? 
  • As a buyer, you will be paying for ABC fees, a license locator or consultant/specialist fees and Escrow fees. 

What are escrow fees? 
  • If there is any purchase price or consideration in connection with the transfer of a business with a liquor license, an escrow must be established with some person, corporation, or association not a party to the transfer, before the filing of a sale or transfer with ABC.  The full amount of the purchase price or consideration must be placed in escrow. Escrow agreements must provide for payment only after the sale or transfer of the license is approved by ABC.  Escrow fees are determined by the escrow company. 
​If I am a seller what charges will I have to pay? 
  • When you have a California liquor license, you will be responsible for the Annual Renewal Fee, which is set by each county. If your rewewal fees are current and you have no tax holds you can sell your license. You may also be paying for a license locator or consultant/specialist to sell your license. 
Do liquor licenses expire in the State of Califonia? 
  • Liquor licenses in the State of California will only expire if the yearly renewal fee is not paid.  Your California license will be revoked if you fail to follow the rules and regulations of the California ABC. If you are awarded a license, you own it until you do not pay the yearly renewal feel or the ABC sanctions you. 

What happens if you let your license expire in California? 
  • If you do not pay your yearly renewal fee your license will be tagged in the ABC data liquor license system and you will not be able to sell or serve liquor until your renewal fee/s are up to date.  After you are current, the tag will be removed by ABC and you can again sell or serve liquor per your license type. 

What happens if you get your license revoked in California? 
  • Depending on the circumstances for license revocation, you will have to give up that license.  You can sell or transfer the license to another party that is in good standing.  There are ABC procedures to have the license taken off revocation status.  This process is lengthy. 

Can you sell your liquor license even if it is expired? 
  • You must pay for any expired renewal fees and get current; you can then sell or transfer the liquor license legally.  If you have legally surrendered you liquor license, you can request a return of license from ABC.  If all applicable fees are paid then you can legally sell the license. 
​What happens with your liquor license if you die? 
  • This depends if you are a sole owner or part of a corporation or limited liability company.  If the license is currently valid, the yearly renewal fee is up to date and there are no other tax holds, the designated/legal heirs can sell.   
What is a Use Permit? 
  • The Use Permit allows your type of business to operate within a specified zone, region or district of a city.  The local municipality, usually the local planning or zoning department approves the Use Permit. 

What are Tax Holds? 
  • Tax holds occur if a business has outstanding sales tax, use tax, or delinquent employment taxes in California.  If either the buyer or the seller has a tax hold, the problem must be resolved to buy, sell, or transfer a liquor license.  

What is a Protested License? 
  • Notification of the local community surrounding your business that you want a liquor license for is required by the ABC.  The notifications allow a response to you selling and or serving liquor in their community.  There is a Public Official and a Private Citizen protest.  Public Official protests could come from the local police department, schools, or city officials.  Private Citizen Protests usually come from private citizens, other competitive businesses, religious organizations or other organized local activists.  This can be a lengthy process.  

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