ABC License Transfers in California –
If you’re buying or selling a business that sells alcohol in California, you’ll need to navigate the ABC license transfer process. At Secured Trust Escrow, we’ve helped thousands of clients smoothly transfer liquor licenses across the state. In this guide, we’ll explain everything in simple terms so you can understand:
– What an ABC license transfer is
– When you need one
– How the process works
– Why escrow is essential
– Common mistakes to avoid
What Is an ABC License Transfer?
An ABC (Alcoholic Beverage Control) license transfer is the legal process of changing ownership of a liquor license in California. The state strictly regulates alcohol sales, so you can’t simply sell or inherit a license—it must go through an official approval process.
When Is a Transfer Needed?
You’ll need to transfer an ABC license when:
✅ Buying or selling a business that sells alcohol (bars, restaurants, liquor stores, breweries, etc.)
✅ Changing business ownership (even if it’s just adding/removing a partner)
✅ Moving a business to a new location
✅ Inheriting a business with a liquor license
Without a proper transfer, the new owner cannot legally sell alcohol, which could force the business to shut down.
Who Needs an ABC License Transfer?
1. Business Buyers
If you’re purchasing a restaurant, bar, or retail store with a liquor license, you must complete a transfer before taking ownership.
2. Business Sellers
Selling your business? The liquor license is often one of the most valuable assets—you’ll need to legally transfer it to the new owner.
3. Partners or Heirs
Even if the business name stays the same, any change in ownership (like adding a partner or passing the business to family) requires ABC approval.
4. Businesses Relocating
Moving to a new address? Your liquor license is tied to your location, so you’ll need to transfer it.
How Does the ABC License Transfer Process Work?
The transfer process involves multiple steps and can take 30-90 days (sometimes longer for complex cases). Here’s how it works:
Step 1: Open an Escrow Account
Since liquor licenses are valuable (often worth thousands to millions of dollars), funds are held securely in escrow until the transfer is approved. This protects both buyer and seller.
(At Secured Trust Escrow, we specialize in ABC license transfers and ensure a smooth, secure transaction.)
Step 2: Submit Transfer Application to the ABC
The buyer (new owner) must submit:
✔ Application forms (ABC-218 for person-to-person transfer)
✔ Fingerprints & background check (all owners must be cleared)
✔ Fees (varies by license type)
✔ Supporting documents (lease agreements, financial statements, etc.)
Step 3: ABC Review & Approval
The California Department of Alcoholic Beverage Control (ABC) will:
🔍 Review the application
🏢 Inspect the business location (if required)
📝 Verify there are no legal issues (unpaid taxes, violations, etc.)
Step 4: Close Escrow & Complete Transfer
Once approved:
✔ The license is officially transferred to the new owner
✔ Escrow releases funds to the seller
✔ The buyer can now legally sell alcohol
Why Escrow Is Essential for ABC License Transfers
Since liquor licenses are high-value assets, escrow protects both buyers and sellers by:
🔒 Holding funds securely until the transfer is approved
📜 Ensuring all legal requirements are met before money changes hands
⚖️ Preventing disputes—everything is documented
Without escrow, buyers risk paying for a license that never gets approved, and sellers risk handing over a license before getting paid.
Common Mistakes to Avoid
❌ Not starting early – The process takes time; delays can hurt your business.
❌ Incomplete paperwork – Missing documents = rejected applications.
❌ Ignoring local zoning laws – Some cities restrict liquor sales in certain areas.
❌ Skipping escrow – Without protection, you risk financial loss.
Need Help with an ABC License Transfer?
At Secured Trust Escrow, we specialize in fast, secure ABC license transfers across California. Our experts handle all the details so you can focus on running your business.
📞 Contact us today for a free consultation!
