Type 21 Liquor License: An In-Depth Overview
If you’re looking to run a retail business that sells a variety of alcoholic beverages in California, obtaining a liquor license is a vital step in your establishment’s journey. Among the many options available, the Type 21 Liquor License is specifically designed for businesses that want to sell beer, wine, and distilled spirits for off-premise consumption. This guide will cover everything you need to know about the Type 21 liquor license, including its features, the application process, and how it compares to other liquor licenses in California.
What Is a Type 21 Liquor License?
The Type 21 Liquor License is an off-sale general license issued by the California Department of Alcoholic Beverage Control (ABC). It authorizes businesses to sell all types of alcoholic beverages, including beer, wine, and spirits, in sealed containers for off-premises consumption. This license is primarily sought by liquor stores, supermarkets, and convenience stores looking to provide a full range of alcohol options to their customers.
Key Features of a Type 21 Liquor License
Commonly Issued for Retail Establishments: This license is typically held by liquor stores and convenience stores, catering to consumers looking to purchase alcohol for personal consumption at home.
Comprehensive Alcohol Sales: The Type 21 license allows for the sale of beer, wine, and spirits, providing flexibility for retailers to offer their customers a wide selection of alcoholic beverages.
Off-Premise Consumption: Unlike on-sale licenses, a Type 21 license restricts the sale of alcoholic beverages solely to sealed containers that customers take off the premises.
Regulatory Compliance: As with all liquor licenses, the Type 21 is regulated by the ABC and requires compliance with specific alcohol beverage laws and regulations.
Transferable: A Type 21 liquor license can be transferred to another individual or location. If your business relocates, the transfer process is straightforward, allowing for flexibility. Additionally, if you decide to close your business, your license maintains a traded value based on the current marker. At License Brokers, we specialize in assisting clients with the buying and selling of Type 21 liquor licenses, ensuring a smooth transition for both sellers and buyers
Application Steps for a Type 21 Liquor License
Acquiring a Type 21 liquor license involves several steps to ensure compliance with state regulations. Here’s a step-by-step guide to help you navigate the application process:
Determine Eligibility: Assess whether your business meets the necessary requirements for selling alcoholic beverages at retail. This may include having the right facilities and adhering to zoning regulations.
Obtain Local Approval: Before the ABC will review your application, you need to secure approval from your local city or county planning department. This may require obtaining conditional use permits or other zoning clearances.
Secure a Seller’s Permit: Apply for a seller’s permit from the California Department of Tax and Fee Administration (CDTFA). This permit is essential for any business selling tangible goods.
Complete the ABC Application: Fill out the ABC application form, providing detailed information about your business, its layout, and personal information about the applicant(s).
Pay the Application Fee: Upon completing your application, you will need to pay the required fee. This fee varies based on your location and can range from hundreds to thousands of dollars.
Provide Required Documentation: Submit all necessary documents, including fingerprints for background checks and proof of citizenship or legal residency.
Post a Public Notice: After your application is accepted, display a public notice at your establishment for 30 days. This informs the community about your intent to sell alcohol and allows for any objections.
Attend a Public Hearing (If Required): If there are protests regarding your application, you may need to attend a public hearing to address community concerns and provide information about your business.
Obtain ABC Approval: If successful, the ABC will issue a Conditional Letter of Approval, detailing any conditions that must be met before finalizing your license.
Pay the License Fee: Finally, pay the annual license fee to complete the acquisition of your Type 21 liquor license.
In summary, understanding the distinctions between the Type 21 liquor license and other liquor licenses will empower you to make an informed decision about which license best suits your business model. If you’re interested in acquiring or selling a Type 21 liquor license, reach out to us, and we can assist you with the entire process.
How Does a Type 21 Liquor License Compare to Other Liquor Licenses?
While the Type 21 Liquor License is tailored for retail businesses wanting to sell a full range of alcoholic beverages for off-premise consumption, it’s important to understand how it compares to other liquor licenses available in California. Here’s an overview of several other common liquor licenses to help you determine which option best fits your establishment’s needs:
- Type 20—Off-Sale Beer and Wine: This license is ideal for grocery and convenience stores that wish to sell beer and wine exclusively for off-premise consumption. It allows these establishments to sell beverages in their original, sealed containers, catering to small retailers and boutique wine shops.
- Type 21—Off-Sale General: Designed specifically for liquor stores, the Type 21 license permits the sale of a broader selection of alcoholic beverages, including beer, wine, and spirits, for off-premise consumption. This license is favored by retail businesses aiming to provide a complete range of alcohol options to their customers.
- Type 41—On-Sale Beer and Wine—Eating Place: This license is similar to the Type 21 but is limited to beer and wine sales. It requires establishments to serve food, making it suitable for cafes and family-oriented dining options that wish to offer a selection of beers and wines without spirits.
- Type 47—On-Sale General—Eating Place: This license allows the sale of all alcoholic beverages, including beer, wine, and spirits, for on-site consumption. It requires that 50% of the establishment’s revenue come from food sales, and it permits minors on the premises, making it a great choice for family-friendly restaurants.
- Type 48—On-Sale General—Public Premises: Meant for bars and nightclubs that do not serve food, the Type 48 license prohibits minors from entering the premises. It allows for the on-site sale of a comprehensive array of alcoholic beverages. Obtaining this license can involve stricter regulations and potential community scrutiny.
Buy a Type 21 Liquor License
If you’re interested in buying a Type 21 liquor license, the process involves several straightforward yet intricate steps. Here’s a comprehensive guide to help you navigate this journey
Research Available Licenses: Begin by exploring the market for Type 21 liquor licenses for sale. Connecting with professionals or liquor license brokers will provide you with insights into pricing trends and the availability of licenses in your area.
Determine Your Budget: Prices for Type 21 licenses can vary significantly based on location and market conditions. Be prepared for costs that can range from several thousand to tens of thousands of dollars. Setting a budget upfront will help streamline your search.
Inspect the License: Before finalizing your purchase, verify the legitimacy of the license. Ensure that there are no encumbrances, compliance issues, or obligations attached to it that could complicate ownership.
Engage a Brokerage Service: Partnering with a reputable brokerage service like License Brokers can expedite the process. We specialize in helping clients buy a Type 21 liquor license, leveraging our extensive network to find competitive offerings and facilitate smooth transactions.
Completing the Purchase: Once you identify a suitable license, work with your broker to finalize the purchase contract. This may involve due diligence checks and possibly legal reviews to protect your interests.
Transfer the License: After signing the purchase agreement, complete the necessary applications with the ABC to register the license under your name. This process may include paying transfer fees and submitting required documentation.
Sell a Type 21 Liquor License
If you’re looking to sell a Type 21 liquor license, License Brokers can significantly streamline the process. Here’s how to effectively go about it:
Assessment of License Value: Start by evaluating your Type 21 liquor license. Consider factors such as market demand, the location of your business, and the overall condition of your establishment. Consulting with industry professionals can provide you with insights to set a competitive selling price.
Prepare Documentation: Collect all essential documentation related to the license, including the original license certificate, compliance records, and any relevant business details that could enhance its appeal to potential buyers.
List Your License with a Broker: Consider listing your Type 21 liquor license for sale with License Brokers. Our expertise in the market ensures that your license gains the visibility it needs to attract qualified buyers.
Marketing and Negotiation: Allow your broker to handle the marketing and negotiation process. They will manage inquiries, arrange viewings, and facilitate discussions with interested buyers to help you achieve a fair selling price
Complete the Transfer: Once a suitable buyer is found, License Brokers will assist you in completing the necessary transfer applications with the ABC. This ensures that both parties comply with all legal requirements and that the transaction proceeds smoothly.
Secure Payment: After all legal obligations are fulfilled, ensure you receive payment as agreed upon. Having a clear contract in place is essential to protect your interests throughout the transaction.