•
Purchase agreements must specifically indicate that the liquor license is being
sold and provide the purchase price and terms of the sale.
•
Purchasers of on-premises licenses must have at least 10% of the purchase
price of the business, excluding real estate.
•
Purchase agreements that are not for cash only sales and include real estate
must list the personal property, including the licenses, and real estate with the
terms and price for each.
•
If the personal property and real estate are being purchased by separate people
or entities, the purchase agreement must indicate those names and who is
purchasing which items.
•
If the applicant will not pay the full purchase price at closing, the balance due
may be covered by a security agreement or promissory note. Alcoholic beverage
inventory cannot be included on a security agreement or promissory note.
•
Property Document – Applicants must provide documentation that demonstrates
they will have control over the property that comprises the proposed licensed
premises. Property documents include deeds, land contracts, and lease agreements.
•
A provision to reassign the license in the event of a default on a land contract or
termination of a lease agreement may be included, but may only provide for the
reassignment subject to Commission approval.
•
If the applicant is a company and its members or stockholders own the real estate
as individuals or under another company, a lease agreement is needed.
•
If the applicant is an individual and he or she owns the real estate with a spouse
or someone else who will not be named on the license, a lease between the
applicant and the owners of the real estate is needed.
In addition to the documents required by all applicants:
Corporations must submit the following information per Administrative Rule R
436.1109:
•
Copy of current, filed Articles of Incorporation.
•
Current Certificate of Good Standing from the state where incorporated and
Certificate of Authority to Do Business in Michigan, if incorporated outside of this
state.
•
Certified copy of the minutes of a meeting of its board of directors or a statement
signed by an officer of the corporation naming the persons authorized by
corporate resolution to sign the application and other documents required by the
Commission (or Part 3 of Form LCC-301).
•
Report of Stockholders/Members/Partners (Form LCC-301)
Limited Liability Companies (LLC) must submit the following information pursuant
to Administrative Rule R 436.1110:
•
Copy of Articles of Organization and copies of any amendments to the Articles of
Organization.
•
Current Certificate of Authority to Do Business in Michigan, if the LLC is a non-
Michigan LLC.
•
Copy of Operating Agreement entered into by members.