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Outstate Seller of Beer (OSSB) License

Outstate Seller of Beer (OSSB) License

Outstate Seller of Beer (OSSB) Licensing Requirements & General Information

    An Outstate Seller of Beer (OSSB) license, as defined by MCL 436.1109(11), is issued by the Michigan Liquor Control Commission to a person located in Michigan or in another state to sell beer that has not been manufactured in Michigan to licensed wholesalers in Michigan to be sold to retailer licensees in Michigan.  An OSSB licensee may be the original manufacturer of the beer that resides in another state or a person that imports beer into the United States or into Michigan from another state to be sold to wholesalers. 

Required Forms, Fees, and Documents

All applicants requesting a new Outstate Seller of Beer (OSSB) license, seeking to transfer ownership of an OSSB license, or transferring interest (stock or membership interest) in an OSSB license must submit the following:

Application Form

Applicant or Licensee located in Michigan

Applicant or Licensee located outside of Michigan

Inspection Fee

A $70.00 nonrefundable inspection fee is required.

License & Permit Fees

The initial and annual renewal fee for an OSSB license is $1,000.00.

Federal Brewer’s Notice or Federal Basic Permit

Applicants must provide a copy of the federal Brewer’s Notice or Basic Permit (as applicable) issued by the federal Alcohol and Tobacco Tax and Trade Bureau (TTB).

Property Document (for applicants located in Michigan)

  • 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.

Purchase Agreement

Applicants requesting to transfer a license from another licensee must submit an executed purchase agreement or other documentation signed by both the applicant and the current licensee, which details the sale of the liquor license(s) and other business assets.

  • 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.

In addition to the documents required by all applicants:

Corporations must submit the following information per Administrative Rule R 436.1109:

  • Report of Stockholders/Members/Partners (LCC-301)
  • 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).

Limited Liability Companies (LLC) must submit the following information pursuant to Administrative Rule R 436.1110:

  • Report of Stockholders/Members/Partners (LCC-301)
  • 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.
  • Copy of most recent annual statement filed with the Corporations Division, if an existing LLC.
  • Statement signed by a manager of the limited liability company or by at least 1 member if management is reserved to the members naming the person authorized to sign the application and other documents required by the Commission (or Part 3 of Form LCC-301).

Partnerships must submit the following information per Administrative Rule R 436.1111:

Manufacturing & Labeling

Beer must be manufactured in accordance with federal beer regulations published in the Code of Federal Regulations (CFR) Title 27, Part 25, pursuant to R 436.1611.

Beer products sold in Michigan must be labeled in accordance with TTB regulations and must have labels approved by the Commission prior to being sold.  Beer labels must be registered online in the Sales Inventory Purchasing System (SIPS+) program.  Both labels that have a TTB Certificate of Label Approval (COLA) and labels for products that do not need TTB approval are required to be registered in SIPS+, including nonalcoholic beer products that are considered beer under MCL 436.1105.  Upon licensure, the applicant will be provided with a password and instructions to access the on-line registration site. There is no fee for Michigan label registration.  

Mandatory label information, pursuant to TTB regulations:

  • Brand name.
  • Class, type or, in lieu of, a truthful & adequate statement of composition shall appear on the brand label of the product.
  • Name and address of bottler or packer where bottled or packed.
  • Net contents.
  • Government Warning Statement.
  • Alcohol content by volume is optional.

For federal labeling information contact the TTB at www.ttb.gov.

Beverage Deposit & Container Law

Under Michigan’s Beverage Containers Act (also known as the “Bottle Bill”), a dealer, meaning a person who sells beverage containers to consumers, cannot sell a consumer a beverage in a nonreturnable container.  A “nonreturnable container” means a beverage container upon which no deposit has been paid.  “Beverage” includes beer, ale, malt drink, mixed wine drink, or mixed spirit drink, in addition to nonalcoholic carbonated drinks.  Thus, a licensee who sells products that fall within the definition of “beverage” in a container that does not exceed 1 gallon must collect a deposit of at least 10 cents during the sale.  If a person returns a container to the licensee, the licensee generally must refund the deposit, even to a non-customer, as long as the licensee offers that brand for sale.  For more information on the Bottle Bill, please contact the Michigan Department of Treasury’s Miscellaneous Taxes and Fees Unit at 517-636-0515.

Beer Excise Tax Reports

Michigan beer excise tax rate is $6.30 per barrel. A barrel contains 31 gallons.  An OSSB licensee does not pay the excise tax - the taxes are paid by the wholesaler.  An OSSB license is required to submit the Outstate Sellers Quarterly Report (LCC-3023)  on or before the 15th day of each quarter for the previous quarter’s shipments (April 15, July 15, October 15, and January 15).

For further questions relating to beer tax, please contact our Financial Management Division at 517-284-6260. Tax forms and instructions may be located on the Financial Management Division's Tax Forms & Instructions webpage.

Distribution By Wholesalers

All sales to retailers must be made through licensed wholesalers.  An OSSB licensee must grant each of its wholesalers an exclusive sales territory.  An OSSB licensee must enter into a written agreement each of the Wholesalers specifying the brand or brands to be distributed and the territory where exclusive sales are granted. There can be no overlapping of sales territories between wholesalers of similar brands.

An OSSB licensee may ship and deliver beer only to the licensed premises of a licensed wholesaler.  Beer may not be delivered by an OSSB to a retailer licensee or directly to a Michigan consumer.

Salesperson Licenses

Any person employed by a manufacturer licensee to sell, deliver, promote, or otherwise assist in the sale of alcoholic liquor in this state is required to hold a Salesperson license issued by the Commission. Employees who work exclusively at the manufacturing premises and have no contact with wholesalers, retailers, or consumers off the licensed premises do not need a Salesperson license. Salesperson licensees must be at least 18 years of age and are prohibited from being employed by a retailer-tier licensee on a paid or any other basis. For more details on Salesperson licensee requirements and exceptions to the requirements for certain employees please visit the Commission’s webpage for Salesperson licensing information.

Records Retention and Inspection of Premises and Records

All licensees are required to maintain all sales, purchase, and Salesperson licensee expense records for a minimum of four years. Records may be maintained electronically or otherwise as long as a hard copy of the record can be created upon demand.

A licensee must make the licensed premises available for inspection and search by a Commission Investigator or any law enforcement officer empowered to enforce the Commission’s rules and code during regular business hours or when the premises is occupied. The Commission or its duly authorized agent may examine the books, records, or papers of a licensee.