Sepulveda Escrow Corporation can assist you in satisfying ABC requirements to successfully transfer the liquor license and facilitate a close of escrow. Did you know that ABC requires an escrow when transferring a liquor license? Sepulveda Escrow can assist you when you sell or purchase a business with or without a liquor license.
There are only a small number of Escrow Companies that have the experience and knowledge to handle the transfer of Liquor Licenses. At Sepulveda Escrow, we are experts with years of experience in liquor license transfers, successfully helping our clients in the sale of a business and avoiding successors' liability and other concerns.
Liquor License Transfers (which include Beer and Wine transfers) can be accomplished together with the sale of a Business (Bulk Sale) or the sale of the license alone (with the license being transferred to a different location). The requirements of a Bulk Sale with a Liquor License are governed by the Business and Professions Code of the State of California. While the escrow process is different from a real estate sale, the concept is the same. The escrow holder draws the Agreement and documentation required and then holds all documents and funds until the Seller and Buyer have completed every condition.
Once the escrow has been opened, the Buyer works closely with the State of California Alcoholic Beverage Control (ABC) to transfer the alcohol license. An extensive application process is performed and completed by the State, including a full federal investigation of the new Buyer(s). Usually, this is simply a formality and should not be a serious concern to the parties.
Ultimately, closing a liquor license escrow can only occur once the liquor license has been transferred. While the liquor license may have been transferred and the escrow technically has closed, the funds and documents must be held in escrow until possession has been transferred to the Buyer (simultaneous with calculating the final Inventory, if applicable) in addition to the Sellers deposit into escrow of Releases from the California Department of Tax and Fee Administration (CDTFA) (formerly the State Board of Equalization), Employment Development Department and the Franchise Tax Board.
Once all conditions to the escrow have been satisfied, then the escrow holder is in a position to release all documents and funds, providing the Seller and Buyer with an itemized closing statement of all the costs and charges in the transaction.