Liquor License Transfer / Business Opportunity Checklist

_____ 1. Has an escrow been opened? (Must be done prior to filing with the Alcoholic Beverage Control)

_____ 2. Have Buyer and Seller completed Application process with the Department of Alcoholic Beverage Control?

_____ 3. Has Buyer applied and qualified for any special licenses or permits which may be required by:
______ a) State of California pursuant to the operation of the particular business?
______ b) County and/or City in which Business is located?
______ 1) Each may have ordinances which may carry a “successor liability” for Non-payment of delinquent or special taxes.
______ 2) Jurisdiction departments or sub-departments of these organs of local Government.
______ c) Have you obtained a Special Tax Stamp from the Department of the Treasury-Bureau of Alcohol, Tobacco and Firearms?

______ 4. Does Buyer have consent of Landlord to occupy premises?

______ 5. Have Seller and Buyer arranged with the companies or governmental departments supplying the following services to the premises to furnish closing bills, to refund and/or post deposits for:
______ a) Electricity and Gas?
______ b) Water?
______ c) Sanitation, including garbage disposal?
______ d) Telephone? Interview with representative for continuation or for new service-advertising contract?

______ 6. Is a resale permit required by State Board of Equalization?
______ a) Has Seller prepared or advised accountant to prepare final return to obtain clearance?
(NOTE: To expedite processing, it is suggested that the final return, together with copies of the last two returns and the evidence of full payment thereof be submitted to the local office rather than Sacramento.)
______ b) Has Buyer obtained resale permit?

______ 7. Are there employees and consequently, taxes accruing to the State of California Employment Development Department?
______ a) Has Seller prepared or advised accountant to prepare final return to obtain clearance?
______ 1) If no employees, Seller would make necessary affidavit to obtain clearance.
(NOTE: To expedite processing, it is suggested that the final return, together with copies of the last two returns and the evidence of full payment thereof be submitted to the local office rather than Sacramento.)
______ b) Has Buyer secured an Employers Tax ID Number?
______ 1) Obtained WORKMEN’S COMPENSTATION INSURANCE?

_____ 8. Has clearance by County Tax Collector, Business Tax Division, been obtained?

_____ 9. Have arrangements been made for taking, evaluating, and preparing statements of inventory covering:
_____ a) Fixtures and Equipment?
_____ b) Supplies?
_____ c) Stock-In-Trade?
_____ d) Accounts Receivable?
(It would be a good idea if both Buyer and Seller signed statements to evidence their agreement and approval.)

______ 10. Has Buyer discussed accounting and record-keeping obligations with people qualified to advice him?
______ a) Allocation purchase price?

______ 11. Has Buyer discussed with his Insurance Agent, and can he obtain insurance coverage recommended by his Agent?

______ 12. Has Buyer filed an affidavit of Fictitious Business name with the County Clerk? Seller must abandon use of the Fictitious Business Name prior to the filing by Buyer. This is required prior to opening a bank account in the name of the business.

_____ 13. Will there be a Covenant Not to Compete?

_____ 14. Have financing arrangements been made?

_____ 15. Are any items, such as personal property taxes, rentals, insurance, etc. to be prorated?

_____ 16. How are fees and charges, including any commissions, to be apportioned between Buyer and Seller?

_____ 17. Will Buyer be responsible for payment of use tax due on sale of fixtures and equipment?

_____ 18. When will possession of business be taken, i.e. prior to close of escrow?

_____ 19. Has an estimated closing date been set?

_____ 20. Have all escrow requirements been satisfied?

THE INFORMATION LISTED ABOVE IS INTENDED TO SERVE ONLY AS A GUIDELINE

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