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I am 20 years old and would like to buy/sell alcohol. I need…

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I am 20 years old...
I am 20 years old and would like to buy/sell alcohol. I need to acquire the licenses to sell alcohol 17 and 20 in the state of California. Can I do that?
Submitted: 8 months ago.Category: Criminal Law
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Answered in 21 minutes by:
11/19/2017
Criminal Lawyer: WiseOwl58, Law Professor replied 8 months ago
WiseOwl58
WiseOwl58, Law Professor
Category: Criminal Law
Satisfied Customers: 4,564
Experience: Real Estate Lawyer and Broker
Verified

No you have to be 21 under California law, pal.

Please rate 4 or 5 stars and close out the question. Good luck to you. I wish you all the best.

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Customer reply replied 8 months ago
If I create an entity, an LLC, can I acquire the license if put it under the LLC?
Criminal Lawyer: California Lawyer, Lawyer replied 8 months ago
California Lawyer
Category: Criminal Law
Satisfied Customers: 1,099
Experience: Licensed to practice law in California
Verified

Hello,

I will try and help. The short answer is no. There are a number of reasons, but the simplest is that you would still be the one possessing/selling it. From a practical standpoint the state is not going to give a liquor license to someone who cannot legally possess alcohol.

I hope this helps.

DCG

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Customer reply replied 8 months ago
But the law states that a person over 18 can possess and package alcohol. A person over 18 can even be a bartender. Also the license would be transferred from another person who currently has the license under his company. So what do you think?
?
Criminal Lawyer: California Lawyer, Lawyer replied 8 months ago

Hello,

The other person has the license. That's the key. Teenagers can stock grocery shelves, ring up beer and carry it to people's cars too. They are not legally possession the alcohol - in part because they are supervised and the possession is transitory (fleeting). You could work in a packing plant. Try and take one home and that is a different matter.

DCG

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Customer reply replied 8 months ago
License 17 and 20 are both off sale licenses. Another Lawyer told me that if I would obtain the license through an entity like an LLC and buy/sale through the entity that I would be okay. I am a bit confused. The law does not say that a person over 18 has to be supervised. In regards ***** ***** entity I was be DBA my business LLC. The transfer would be to the LLC not me and and LLC is a separate entity from me.
Criminal Lawyer: James Daloisio, Lawyer replied 8 months ago
James Daloisio
Category: Criminal Law
Satisfied Customers: 741
Experience: 30 years experience in criminal law, continuing education.
Verified

Hi, my name is Jim.

Please refer to the ABC guidelines for conducting investigations into license applications/transfers, specifically, section III-H, "Minors." A minor is a person under 21, and it states simply "Minors may not be licensed." Here's the link:

http://www.nllea.org/documents%5Cenforcementpolicies%5CCALicensingInvestigationsProcedures.pdf

An LLC cannot be a licensee. There has to be a qualifying member no matter what form of business entity you are using.

Thanks for using Just Answer.

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Customer reply replied 8 months ago
Even if I buy the licenses from someone else? In other words, even if the licenses are transferred to the LLC I created and I am DBA my LLC?
Criminal Lawyer: James Daloisio, Lawyer replied 8 months ago

The licensee has to be a real person, not an entity. And the real person has to be at least 21.

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Customer reply replied 8 months ago
Then what do I have to do? This is my situation, I bought a business that sells beer and wine wholesale comes with licenses 17 and 20. The former owner and I agreed to do the transfer of name in January. My birthday is ***** 11 next year when I turn 21. My plan was to do the LLC in January and then do the transfer of the business and licenses in January since I thought there would be no problem getting the licenses over to me. What should I do? How does the qualifying member need to be setup in my company?I really appreciate your help.
Criminal Lawyer: James Daloisio, Lawyer replied 8 months ago

This is speculation on my part because I haven't had this situation come up before, but if you submit your application for a license with the proviso that it will be issued, all other things being ok, on or after your 21st birthday, I don't see why ABC would have a problem with it. They have a minimum of 30 days before they could approve you; it usually takes at least twice that long or longer. In the meantime, there's nothing preventing you from completing the purchase of the business; however, I'd want to be sure that I qualified for the license before spending the money on the business.

There are forms that you'll have to fill out along with the license transfer application that will detail your position with your LLC. Here's a link to the LLC questionnaire:

https://www.abc.ca.gov/FORMS/ABC256LLC.pdf

and here's the link to the forms page: https://www.abc.ca.gov/forms/PDFApp.html

If I'm reading this correctly, you haven't formed your LLC yet. Stick with your plan and don't form it until after the 1st of the year; sounds like you've already done your homework on that issue. Otherwise you'll get hit with that $800 franchise tax twice.

So you've got two projects: Creating the LLC which will purchase the business, and then getting the license transferred into your name. If you submit your license application after mid January it'll probably take until after your birthday to get approved.

And supervision isn't your issue. All you need to be concerned with is the fact that ABC won't approve a license for a minor (i.e., under 21). As a licensee, you may employee minors 18 and over to make sales unsupervised. But first, you need to become a licensee!

I'd try to establish a line of communication with the ABC as soon as you're ready to submit your application, make sure they are aware that you're 21st birthday is ***** and that you're not trying to pull a fast one on them, that you're anticipating the timing of the transfer to occur after your birthday, and you should be ok.

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Customer reply replied 8 months ago
Ok thank you, ***** ***** long does a transfer take?
Criminal Lawyer: James Daloisio, Lawyer replied 8 months ago
ABC says their investigations take 55 to 65 days but don’t hold them to it.
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Customer reply replied 8 months ago
Let’s say I do the LLC and i give a family member who is over 21 5% ownership, when I do the transfer she is the one to get the licenses under her name, would this be valid?
Criminal Lawyer: James Daloisio, Lawyer replied 8 months ago
Except for the fact that it would have to be at least 10%, yes, it would be valid.
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