Dangers of Buying a Business with an ABC License

If you are buying a legal entity (LLC or INC) and this entity is licensed to sell alcohol then you should understand the dangers. Many buyers are in the market for purchasing an already licensed location simply to avoid going through the VA ABC application process.  A seller has the option to sell their legal entity without having the buyer undergo a new alcohol license application. The buyer should understand in order to remain in compliance with VA ABC that a change of member/officer/director must be submitted within 30 days of such change. In addition, the buyer should know the following:

  • The VA ABC violation history
  • If there are any pending violation reports filed against the licensee
  • If all state sales and use taxes are current
  • If all city/county meals taxes are current
  • MBAR history