The Best Way to Buy and Sell Liquor Licenses in California

A liquor license is a permit issued by a state government to allow a business or individual to legally sell and serve alcoholic beverages. These licenses are mandatory for any establishment selling alcohol, including restaurants, bars, nightclubs, hotels and liquor stores. The license ensures that the business complies with all state regulations related to the sale and consumption of alcohol.

California offers several types of liquor licenses to accommodate various business needs. Some more common licenses and specific distinctions include:

• Type 20 (Off-Sale Beer and Wine): Allows for the sale of beer and wine for consumption off the premises.
• Type 21 (Off-Sale General): Allows the sale of beer, wine, and distilled spirits for consumption off the premises.
• Type 40 (On-Sale Beer Only): Allows for the sale of beer only and snacks for sale are required.
• Type 41 (On-Sale Beer and Wine – Restaurant): Allows for the sale of beer and wine for consumption on the premises. This license also allows sales of beer and wine to go.  Some ABC offices restrict this privilege. 
• Type 42 (On-Sale Beer and Wine – Bar): Allows for the sale of beer and wine only. No minors allowed.  Food is not required, but can be offered.  Beer and Wine sales to go are allowed under this license. 
• Type 47 (On-Sale General – Restaurant): Allows for the sale of beer, wine, and distilled spirits for consumption on the premises. This license also allows sales of beer and wine to go.  Some ABC offices restrict this privilege. This license now also offers batched cocktails to go under certain conditions. 
• Type 48 (On-Sale General – Bar). Issued to bars and nightclubs. Authorizes the sale of beer, wine, and distilled spirits for consumption on the premises where sold. Authorizes the sale of beer and wine for consumption off the premises where sold. Minors are not allowed to enter and remain. 

There are many other specialized licenses for specific business types and use cases, such as brewpubs, bed and breakfasts, boats, trains and airplanes, private clubs, nonprofits and more.

• A Type 41 license permits the sale of beer and wine for consumption on the premises, such as in restaurants or cafes.
• A Type 47 license allows the sale of beer, wine, and distilled spirits for consumption on the premises, typically in establishments like restaurants, bars, or nightclubs.

The key difference is that a Type 47 license includes the ability to sell distilled spirits in addition to beer and wine.

The process for obtaining a liquor license in California involves several steps:

1. Determine the appropriate license type for your business.
2. Submit an application to the California Department of Alcoholic Beverage Control (ABC), including all required documents and fees.
3. Undergo a background check and fingerprinting process.
4. Ensure your business location complies with local zoning requirements.
5. Attend a public hearing if required.
6. Wait for the ABC to review your application and make a decision before final approval.

The time to obtain a liquor license varies depending on the type of license, the completeness of your application, and the workload of the ABC. On average, it takes 3-4 months but can take several months or even a year or more to complete the process if an application for a license is protested or denied at a public hearing.

The requirements for obtaining a liquor license in California include:

• Being at least 21 years old
• Having a clean criminal record (misdemeanors will pass a background check but fraud-based and alcohol-related crimes will have a harder time.) 
• Completing a background check and fingerprinting process
• Meeting local zoning requirements for your business location
• Paying all required fees
• Providing proof of ownership or a valid lease for your business premises
• Attending a public hearing, if required

Additional requirements may apply depending on the specific license type and the nature of your business.