If you own a bar then lease the business out to someone else do they legally have to have a bus. license???

Answer 1

Legally, there is no such thing as leasing a business. You can lease the BUILDING, if you own it, or if you rent it with permission from your landlord to sublease.

So, if another party is running the business for you, then there are really only three scenarios under which you can be operating:

1. They have bought all or part of the business, so they are now the full or partial owner;

2. They are managing the business for you, so you should have a management agreement with them, in which case you are still the business owner but may not be the business operator, depending on your local state and city laws and the nature of your agreement with them; or

3. They are your employee (or independent contractor), so you are clearly still the 100% owner and operator.

First, you need to define which of these is the true nature of your business deal with them. Then, act accordingly.

Under scenarios 1 or 2 you probably do need to make business license changes, but you may have a bigger problem. The alcoholic beverage licensing commission in your state may have a big problem with you making a change in business ownership or operator without advising them and changing your alcoholic beverage sale permits, so they may suspend your license to sell alcoholic beverages. Also, if the other party can claim you actually sold them all or part of the business but the terms are unclear, you potentially have an expensive legal dispute on your hands. Under scenario 3 probably no licensing changes are required, but you have a bigger problem there too, because you are legally liable for everything your employee or independent contractor does.

Better find a good business lawyer in your community and get some advice on how to set up contracts around this arrangement to manage your risks, and do it quickly.

Answer 2

yes the operator must be licensed no mater who the owner is.
also without an iron clad lease/operators agreement, you can be held as a codependent in any legal action against the bar

Answer 3

They are basically leasing the equipment and location. The business would be theirs and would require a business license. Otherwise, it's your business and they're managing it.

Answer 4

Any change in a liquor license ownership has to be approved by the liquor licensing committee or you can lose your liquor license. Someone can be your manager, but any ownership or prortion of has to be approved same as if you were to purchase a new license. (State of MI)

Answer 5

Yes, unless you would like to held responsible for everything that goes wrong there. And They DEFINATELY need a liquor license.

Answer 6

i would think so.... at least a DBA.... do you want to be the responsible party for thier business?