- Agency
- The Liquor Commission of the City and County of Honolulu
- Form or filing
- A transfer application by the new applicant, followed by a public hearing and a Commission decision
- Timing
- Plan for a long wait and confirm current steps with the Commission or a liquor attorney, since the license usually runs longer than the rest of the sale
Common snag: Closing on the business before the license is ready. The buyer cannot pour until the Commission acts, so protect both sides in the contract.
This guide is general information and is not tax or legal advice. Confirm every step with your attorney and the Liquor Commission.
The Commission Controls the License
Liquor licenses on Oahu are issued by the Liquor Commission of the City and County of Honolulu. A license belongs to a licensee at a location, so a sale is not a simple handoff of paper.
The new owner usually applies for the license to be transferred to it, and the Commission decides.
Hearings and Public Notice
Public notices from the Commission list each transfer application with the new applicant, the current licensee, the trade name, the address and the license class. A hearing follows.
The notices say objections may come from registered voters living within 500 feet of the premises, so a bar next to homes should expect a little attention. Confirm the current rules and deadlines with the Commission.
Changes in Ownership of the Company
Sometimes a sale is a change in who owns the shares of the company that holds the license, not a transfer of assets. Rules for those changes can differ from a full transfer, so ask the Commission or your attorney which applies.
Build the Delay Into the Contract
Because the license can take longer than the rest of the deal, contracts often make the transfer a condition of closing, or set a holdback until it is approved. Your attorney will know what fits your deal.
Ask the landlord about lease timing too, since both approvals often move together.
Steps for Sellers
- Call the Commission early and ask what the buyer must file.
- Have your attorney decide how the contract handles the waiting period.
- Keep the business compliant until the Commission acts, including your tax accounts.
- Plan staff and supplier handoffs around the approval date.
What Buyers Ask Sellers
A buyer will want to know the license class, the hours it allows and whether the business has had any violations. Pull those records before you list, since they affect both the Commission and the price.
Your attorney can also check the license against the premises description.
Common Mistakes
Sellers often tell staff the sale is final before the Commission has acted, or let the old license lapse by mistake. Either one can leave the bar unable to serve on the day the buyer expects to open.
Keep renewals, fees and compliance current until the transfer is complete.
Where This Fits in the Sale
Read how restaurants and bars are priced and what landlord consent involves. See the tax clearance guide, then ask what your business is worth.
