What Happens When the Ownership of your Colorado Liquor Licensed Business Changes?
The Colorado Liquor License Lawyers of LaszloLaw discuss how changes in ownership affect the liquor licenses of your breweries, bars, or restaurants.
When the ownership structure of your Colorado liquor licensed business changes, there are specific things you are required, by law, to do.
First things first, make sure you understand what changes have taken place. Let’s say you’re craft brewery here in Colorado and you’re organized as a Colorado Limited Liability Company (Colorado LLC). Now let’s say one of your members has decided to leave the business. That is a change of ownership because, LLC members are LLC owners. In this scenario, your LLC will need to amend its Colorado liquor license (manufacturer’s license) and its TTB Brewer’s Notice.
Now let’s say your a restaurant in Boulder and you have decided to take on a new 25% investor in the business. Likewise, in this scenario, your business will need to amend its Colorado liquor license (Hotel and Restaurant license).
Before you make the changes to your Colorado Liquor License and TTB Brewer’s Notice, however, you’ll need to amend your Colorado LLC Operating Agreement to reflect the changes. That is because both Colorado and the TTB will require a copy of your Colorado LLC’s Operating Agreement. If you plan to bring on a new member down the road, you will have to do this all over again. Therefore, to the extent possible, it makes sense to strategically plan ownership changes.
So, when you’re thinking of changing the ownership structure of your Colorado Brewery – or any business, including bars or restaurants, that holds a Colorado liquor license, it is critical that you be mindful of the local, state and federal implications. Once you’ve made the ownership changes, the clock is ticking on the time you have to amend your Colorado liquor license and TTB liquor permits. Failure to make the changes can be determined to be a Colorado liquor license violation and result in fines and, worse, suspension of your liquor license.
Colorado Liquor License Lawyers of LaszloLaw
Our Colorado liquor license lawyers are ready to assist in obtaining a Colorado Liquor License and defend your brewery, bar, or restaurant against any Colorado liquor license violations. Whether you need to transfer, modify, or obtain a new liquor license, our beverage attorneys will start by addressing your needs and continue to provide guidance along the way. Your goals and bottom line are our priority. Contact the Colorado liquor license lawyers at LaszloLaw today to discuss your Colorado liquor license needs.