In Michigan, restaurants, bars, and other establishment that sell liquor are regulated by state and local agencies. Like most states, Michigan created its liquor control commission after prohibition ended in 1933. The Michigan Liquor Control Commission (“MLCC”) regulates liquor licenses in the state, distributes new licenses, and establishes limits (or “quotas,” in MLCC parlance) for the number of licenses in each city based on population. For example, in the city of Detroit, the 2017 quota for Class-C “on-premises” licenses (the type of license that a restaurant or bar would need in order to serve liquor) is 476. As of this writing, each of these 476 licenses is owned and in use or being held in escrow.
Once the quota of licenses has been distributed, the licenses in that community become a hot commodity. So how does one acquire a liquor license?
For assistance in navigating the MLCC and local governments in complying with all the regulatory requirements, please contact me to discuss.
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