If you are looking to open a bar, club, or lounge in California, the acquisition of the proper liquor license is an important step on your path to business. The Type 48 Liquor License is intended for a business that sells alcoholic drinks only to customers who are 21 years and above. If you are looking to start a new business or buy one, becoming familiar with the details of this license will allow you to gain a smooth entry into the application process.
This guide will address the major features of a Type 48 Liquor License, from its advantages and requisites to the process of how to get or sell one.
What Is a Type 48 Liquor License?
A Type 48 Liquor License is a type of on-sale general license from the California Department of Alcoholic Beverage Control (ABC). The license authorizes businesses to sell beer, wine, and distilled spirits for on-premises consumption. It differs from other liquor licenses that are only authorized when food service is provided, since this particular license is designed for businesses that deal entirely with alcohol sales. It is suitable for bars, nightclubs, and lounges.
Key Features of a Type 48 Liquor License
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21+ Age Limitation – Only patrons aged 21 and above are allowed to enter businesses that have this license.
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Full Liquor Service – Companies are allowed to serve beer, wine, and liquor, providing a wide variety of beverages.
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On-Premises Consumption – Customers are required to drink their drinks on the premises, and alcohol cannot be consumed outside the premises.
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No Food Requirement – There is no requirement for food service like in some other licenses.
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Transferable – A Type 48 Liquor License may be purchased, sold, or assigned to a new location or owner.
Steps to Acquire a Type 48 Liquor License
Purchasing a Type 48 Liquor License requires several steps to achieve compliance with California laws. Below is a general outline of the process:
1. Determine Your Eligibility
Prior to applying, ensure that your business qualifies. Zoning regulations and local ordinances can affect your eligibility.
2. Obtain Local Approvals
You might need to get local approval prior to submitting your application. Some cities have zoning permits or special use permits for alcohol-selling businesses.
3. Obtain a Seller's Permit
A seller's permit from the California Department of Tax and Fee Administration (CDTFA) is needed for businesses selling taxable products, such as alcoholic drinks.
4. File the ABC Application
The ABC Application for a Type 48 Liquor License must be filled out and filed with the ABC, along with supporting documents and fees.
5. Post a Public Notice
Following your application submission, you are required to post a public notice in your business for a period of 30 days. This provides the local community with time to raise any objections.
6. Pass Background Checks
Candidates will be required to undergo fingerprinting and background checks to confirm their legal suitability to obtain a liquor license.
7. Attend a Public Hearing (If Necessary)
If your application is objected to, you might have to appear at a public hearing to answer questions and show your business plan.
8. Receive Final Approval
After meeting all the requirements, the ABC will grant you your Type 48 Liquor License, which will permit you to serve liquor at your business.
It takes careful research and budgeting to purchase a Type 48 Liquor License. As these licenses are of limited quantity, supply can depend on location and demand. It is necessary to first check the market, the trends in prices, and come up with a budget that would be appropriate since prices can be anything from tens of thousands to hundreds of thousands of dollars. Once a prospect is found for a license, it is essential to check the validity of the license, if it is good standing, and without any violation. Once these facts have been verified, the buyer will then be required to fill out paperwork, sign the final purchase agreement, and satisfy all legal obligations. The last part is presenting the transfer application to the California Department of Alcoholic Beverage Control (ABC), who are required to authorise the transfer before the company is lawfully able to conduct business using the license.
For sellers who wish to sell a Type 48 Liquor License, the process starts with evaluating its market worth. Demand, location, and legal factors determine prices, hence market research is necessary. Having established a reasonable asking price, sellers must have all documents required, like the original license certificate and compliance reports, ready for a hassle-free sale. Offering the license for sale on profession-specific websites should attract suitable purchasers. After one is identified who is interested in purchasing, agreement on terms is negotiated and ultimately the sale executed. Similar to buying, it is the approval of the transfer by the ABC that ensures compliance with all legislative requirements before officially operating under the Type 48 Liquor License.
Final Thoughts
The Type 48 Liquor License is a valuable resource for individuals considering opening a profitable bar or nightclub in California. Familiarity with the application process, market value, and transfer process will make the process smoother, whether purchasing or selling a license.
If you are ready to move forward, stop by here to learn more about your options, or call us for professional assistance in obtaining your Type 48 Liquor License.
Visit here to streamline your application process today!