How To Transfer a Liquor License in Ohio

If you found this article, you may be wondering how to properly transfer a liquor license in Ohio. To begin, you should know that in Ohio, a liquor license cannot be transferred by itself – but must be transferred along with assets and goodwill of an existing business. Ohio Administrative Code 4301:1-1-14 governs these transfer and states:

a transfer must be in connection with the bona fide sale of the business or personal property assets of such permit holder and the other person and the location meet all other requirements under rule and law.

Well it’s not exactly clear how many assets must be transferred to qualify as a bona fide sale, most asset transfers include things such as stock and inventory, tables and chairs, and other food or beverage equipment. The key is that you cannot just sell a permit – but instead must compensate the seller for the assets that are transferred along with the permit. In general, there are 5 main categories of liquor license transfers:

Transfer of ownership at the same location;
Transfer of location of an existing business;
Transfer of ownership and location;
Transfer of shares of stock in a corporation;
Transfer of membership interest in a limited liability company.

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There are ten main steps in the transfer of a liquor license. Since the regulatory process can be confusing to first time buyers and sellers, we recommend seeking legal counsel to aid in the transfer process. In sum, the 10 steps for the transfer of a liquor license is as follows:

Step 1

Notification is sent to the legislative authority and police department of the political subdivision for which the application is filed.

Step 2

Notification of any transfer of ownership is sent to the Ohio Department of Taxation. No transfers are approved until the Department of Taxation notifies the Division of Liquor Control that all taxes are current.

Step 3

Notification of any transfer that involves a change of location from the original permit premises is sent to the county Board of Elections.

Step 4

A physical inspection of the proposed premises and the surrounding area is conducted by a Division compliance officer to determine if there are any institutions such as schools, churches, playgrounds, libraries or township parks within a 500 foot radius.

Step 5

Authorities in control of institutions within a 500 foot radius are notified that an application for a liquor permit has been filed.

Step 6

Local legislative authorities and institutions within a 500 foot radius are given the opportunity to file objections to the issuance of the permit and request a hearing.

Step 7

If an objection is filed and a hearing requested, the Division of Liquor Control notifies the permit applicant by certified mail as to the date, time and place of the hearing.objections to the issuance of the permit and request a hearing.

Step 8

The Division checks the police record of all transfer applicants, including any partner, office holder, managing member, any five percent or more stockholder or member, and any spouse that will work on the permit premises.

Step 9

Upon completion of processing, the applicant is notified to return the old permit and identification card to the Division. The new permit is mailed to the permit premises location by law.