Getting a liquor license can open significant opportunities for business owners.
Although licensing can take some time and investment, the benefits of obtaining one comes with a substantial profit margin of 17% to 100%.
A thriving alcohol business market is worth $6 billion in Michigan, according to data from the Michigan Liquor Control Commission.
But first, you’ll need to jump through a few hoops.
Different types of liquor licenses have requirements that vary by location.
Local Michigan Liquor Control Commission offices can offer resources and guide you through the process, but here is a rundown of a few need-to-know facts to get you started on your way to a successful business that includes alcohol.
Know the Michigan Liquor Laws and Restrictions
Check out the Michigan Liquor Control Commission, and take note of the specific laws, rules, and regulations that need to be followed before obtaining a license.
Some examples:
- A licensee cannot allow any staff members younger than 18 to sell alcoholic beverages
- You must be at least 21 to possess a liquor license
- Holiday restrictions exist, such as on Christmas Eve and for the entirety of Christmas Day
- A face-to-face meeting with an Enforcement Division Investigator and documentation are needed to obtain a license
Additional information on the liquor license applications, and the criteria for each, can be found by going to the Department of Licensing and Regulatory Affairs at www.michigan.gov.
Know What Type of Michigan Liquor License You Will Need
Requirements can vary depending on the type of license you are applying for, so you will need to identify which license you want to apply for.
To begin, there are 3 tiers of liquor licenses in Michigan for:
- Suppliers (also referred to as manufacturers)
- Distributors who sell to wholesalers and importers
- Retailers who sell to the general public
Out-of-state sellers, microbrewers and distillers are all included in Tier 1.
Tier 2 is often referred to as a “wholesaler tier,” and includes licenses for distribution to wholesalers and storage of alcoholic beverages.
The retailer tier consists of stores, restaurants, hotels, bars, and clubs that hold licenses which allow the sale of alcohol to consumers.
There are 14 retailer license types in Tier 3, both for an on-premises license (customers consume alcohol on premises) and an off-premises license.
On-premise licenses include:
- A and B Hotels
- Taverns
- Class C Restaurants or Bars
- G-1 or G-2 Golf Clubs
- Brewpubs – Allows a Class C, Tavern, A-Hotel, or B-Hotel licensee to manufacture, sell, and serve its own beer to its customers
- Aircraft
- Trains
- Clubs
- Special License for one day, issued to a nonprofit organization for fundraising purposes
Off-premise licenses are for Specially Designed Merchants or Distributors, as well as Third Party Facilitator Services.
For more information on the specifics of each liquor license type, check out the State of Michigan’s tier descriptions sheet.
Obtain a Liquor License For Your Michigan Business
To obtain a Manufacturer or Wholesaler license (Tiers 1 and 2) the steps are:
- Complete the Manufacturer License & Permit Application (LCC-150)
- Submit Livescan fingerprints and complete a Livescan Fingerprint Background Request Form
- Pay inspection, license, and permit fees
- Provide corporate documents
- Get local government authorization
- Provide a lease, deed, or land contract
For an on-premises Class C license, the steps are:
- Fill out an On-Premises Retailer License & Permit Application Form (LCC-100a) for a new license or a License Interest Transfer Application (LCC101) to transfer ownership
- Pay a nonrefundable inspection fee of $70 for each license requested
- Pay an initial and annual fee of $600
- Submit Livescan fingerprints and complete a Livescan Fingerprint Background Request Form
For an off-premises Class C license, the steps are:
- Fill out an Off-Premises Retailer License & Permit Application Form (LCC-100b)
- Submit Livescan fingerprints and complete a Livescan Fingerprint Background Request Form
- Pay Inspection, License, and Off-Premises Permit Fees defined in application
- Provide Corporate (Stockholder and Membership) Documents
- Provide Multi-Tier Organizational Chart if applicant has more than 3 levels of ownership, including trusts
Liquor licenses are effective from May 1 to April 30 of each year. Renewal applications are mailed by the middle of March to the business address unless a different address is on file.
Liquor Sales Worth Looking Into
Doing your homework to know the laws, restrictions, license types, and how-to of obtaining a specific license is worth it.
The Michigan Liquor Control Commission boasts that there is a thriving alcohol business market that is worth $6 billion.
The Michigan state website has timeline that you can view, as well, to get you on your way to getting a liquor license and taking on a profitable venture.
Cheers!
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