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Wholesaler License

Wholesaler License

Wholesaler Licensing Requirements & General Information

    A Wholesaler license, as defined by MCL 436.1113(8), is issued by the Michigan Liquor Control Commission to sell beer, wine, or mixed spirit drink to retailers or other licensees, and that sells sacramental wine as provided in MCL 436.1301.  A Wholesaler licensee includes a person that may also act as a master distributor unless prohibited from doing so by its supplier or manufacturer in a written agreement.

     A Wholesaler licensee must have a warehouse located in Michigan, which may be part of the licensed premises for the Wholesaler license or a separate storage facility for which a Warehouser license has been issued.

Required Forms, Fees, and Documents

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

Application Form

Inspection Fee

A $70.00 nonrefundable inspection fee is required.

License & Permit Fees

The initial and annual renewal fee for a Wholesaler license is $300.00, which includes one delivery vehicle.  Additional delivery vehicles cost $50.00 per delivery vehicle .

Livescan Fingerprints

Applicants that are not currently licensed through the Michigan Liquor Control Commission and will hold 10% or more interest in a liquor license must be fingerprinted.  After reviewing your application, the MLCC will provide you with a copy of the Livescan Fingerprint Background Request (LCC-105) form that you will need when you are fingerprinted by a Livescan Agency.

Federal Basic Permit

Applicants must provide a copy of the federal Basic Permit issued by the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) prior to issuance of the Wholesaler license.  This is not required to be submitted at the time of application with the Commission, but should be applied for through the TTB as soon as possible, as the TTB process may take longer to complete than the Michigan licensing process.

Property Document

  • 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:

Licensing Process

  • The Licensing Division reviews the application and corresponding documents for completeness and verifies the appropriate fees have been received. If additional documents, fees, or corrections to documents are needed, Licensing will notify the applicant.
  • Once all the necessary documents have been received Licensing will submit the request to the Enforcement Division for its investigation. If an applicant has applied for and meets the requirements for a conditional license, the request will be considered by the Commission
  • The Enforcement Division will contact the applicant to schedule an interview with the applicant (and current licensee for license transfers). At this meeting an investigator will review with the applicant documents, including:
  • purchase agreement
  • financial documents
  • property documents
  • other items pertaining to the application
  • After the interview, the investigator will prepare a report for the Commission regarding the investigation and submit the request back to Licensing for further processing.
  • Licensing reviews the report from Enforcement and any additional documents received during the interview process. The request is prepared for the Commission to consider and placed on a docket for an upcoming licensing meeting.
  • The Commission considers the request, including:
  • the liquor license operating history of the applicant (if a current or prior licensee)
  • the arrest and conviction record of the applicant
  • whether the applicant meets the requirements for a license
  • the applicant's financial information
  • opinions of the local legislative body or police department, if received.
  • The Commission will approve or deny the request based on these factors. Occasionally, the Commission will request more information from the applicant before making a final decision.
  • After the Commission makes a decision on the request, the file is returned to Licensing for final processing.
  • Approval orders are sent to the applicant requesting any final items before the issuance of the license.
  • Denial orders are sent to the applicant and the applicant may appeal the decision.
  • When all the final items are received by Licensing, the completed request is forwarded to the Renewal Unit for the issuance of the physical license documents. Any changes in financial provisions at the time of closing which do not conform to the terms previously indicated and investigated may require submission of new forms and possible additional investigation.

Michigan Department of Agriculture & Rural Development Requirements

Facilities that store food and alcoholic products in Michigan must be licensed through the Michigan Department of Agriculture & Rural Development (MDARD) in addition to licensure through the Commission.  You may contact MDARD regarding the licensing requirements for the type of establishment for which you are applying by calling, toll-free, 800-292-3939 or visiting www.michigan.gov/mdard.

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.

Excise Tax Reports

Wholesaler licensee are responsible for the reporting and payment of excise taxes on beer, wine, and mixed spirit drink products that they distribute for suppliers.  Tax reports and payments are due no later than the 15th day after the end of each quarter (April 15, July 15, October 15, and January 15).

Excise Tax Rates

  • Beer - $6.30 per barrel.  A barrel is 31 gallons.
  • Wine - $0.135 per liter for wine 16% alcohol by volume or less; $0.20 per liter for wine above 16% alcohol by volume.
  • Mixed Spirit Drink - $0.30 per liter.

For further questions relating to excise tax reporting and payment, 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.

Retailer Price Posting Requirements

Wholesaler licensees are required to file periodically with the Commission a schedule of net cash prices of their beer, wine, and mixed spirit drink products that they charge retailer licensees for their products:

Distribution By Wholesalers

All sales of beer, wine, and mixed spirit drink products to retailer licensees must be made through licensed Wholesalers unless the manufacturer self-distributes its products in compliance with the law.

Outstate Sellers of Beer, Outstate Sellers of Wine, Outstate Sellers of Mixed Spirit Drink, Mixed Spirit Drink Manufacturers, Brewers, Micro Brewers, Wine Makers, and Small Wine Makers must provide each of their Wholesalers with a written territory agreement specifying the brand or brands of beer, wine, or mixed spirit drink and the territory in which the Wholesaler will have distribution rights.   Wholesalers are prohibited from selling alcoholic beverages to any retailer licensee whose establishment is located outside of their assigned sales territories.  The territories assigned must be exclusive.  There can be no overlapping sales territories.

 

Salesperson Licenses

Any person employed by a Wholesaler 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 that only build displays, mark prices, rotate brands, or drive delivery vehicles 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.