Common Mistakes License Holders Should Avoid

Check before you spend money

Contact ATCC before taking any step that costs money, including:

• Signing a lease
• Buying cooking or production equipment
• Changing your licensed premises
• Adding food service
• Hiring vendors or representatives
• Advertising a new service or event
• Entering a business partnership
• Starting activity at another location

You may not be allowed to do the activity, or you may need approval before moving forward.

Moving, changing your space, or adding services

Your licensed premises, business activities, and approved services matter. Contact ATCC before making changes to how or where your business operates.

Common mistakes include:

• Moving your business without informing ATCC
• Signing a lease for a new location before confirming whether the move can be approved
• Adding food or food service without informing ATCC
• Buying cooking equipment before confirming that food service is allowed
• Adding new business services without checking whether your license allows them
• Hosting private events that may not be allowed under your license
• Changing how your licensed premises are used without notifying ATCC

Before you make changes, contact ATCC to confirm what your license allows and whether approval is required.

Production activities away from your licensed premises

Production activities may need to occur only at your licensed premises or at a location approved by ATCC.

Common mistakes include:

• Conducting production activities off-site without informing ATCC
• Using another location for production without ATCC approval
• Assuming temporary, shared, or borrowed space is allowed
• Paying for equipment, storage, or production space before confirming that the activity can be approved

Contact ATCC before any production activity occurs away from your licensed premises.

Ownership, financial interests, and business relationships

Changes in ownership or financial interests can affect your license. Some business relationships between license holders may also create compliance issues.

Common mistakes include:

• Changing ownership structure without informing ATCC
• Adding investors, members, partners, or other financial interests without checking whether approval is required
• Partnering with a person or business that has a direct or indirect financial interest in another licensed business
• Creating relationships between different license tiers that may not be allowed
• Entering manufacturer-to-retailer or wholesaler-to-retailer relationships without checking with ATCC first

Do not assume a business relationship is allowed because it is informal, indirect, or handled through another company.

Ask before entering a business relationship

Some partnerships or financial interests may create compliance problems, especially when the businesses hold licenses in different tiers. Contact ATCC before signing an agreement, accepting investment, or allowing another business to influence your licensed activity.

Brand representation and solicitor permits

A person may need a solicitor permit before representing your brand or business.

Common mistakes include:

• Allowing someone to promote, sell, or represent your brand without confirming permit requirements
• Using brand ambassadors, sales representatives, consultants, or third-party marketers without checking whether a solicitor permit is required
• Assuming a contractor, influencer, or unpaid representative does not need a permit
• Paying influencers a percentage of online sales

Before someone presents your brand or business to others, confirm whether they need a solicitor permit.

License and permit expiration

Do not allow your license or permit to expire. An expired license or permit can interrupt your business operations and create compliance issues.  Selling alcohol without a valid license could even result in a criminal citation.

Common mistakes include:

• Missing renewal deadlines
• Continuing business activity after a license or permit expires
• Assuming a renewal has been approved before receiving confirmation
• Forgetting to renew related permits
• Assuming that your license covers activities after expiration.

Track renewal dates and submit required materials before your license or permit expires.  If you decide to not renew your license, carefully consider how to plan to dispose of any remaining product, and reach out to the ATCC to discuss options.

Off-Site events

Off-site events may require advance notice, approval, or specific permissions. Your license may also limit what you can sell at an event.

Common mistakes include:

• Failing to submit your Intent to Participate for an off-site event
• Submitting event information too late
• Selling specific alcoholic beverage products that your license does not allow at the event (e.g. mixed cocktails)
• Assuming approval for one event applies to future events
• Selling products other than alcoholic beverages, such as glasses, shirts, or other merchandise, without a trader’s license

Before participating in an off-site event, confirm what your license allows and what information must be submitted.

Before an off-site event, confirm:

• Whether you need to submit an Intent to Participate
• Which alcoholic beverages your license allows you to sell
• Whether your approval applies only to that event
• Whether you need a trader’s license to sell non-alcohol products

Advertising, Coupons, Sweepstakes, and Promotions

Advertising and promotions have specific rules. Before you advertise an event, offer a coupon, run a sweepstakes, host a tasting, or accept promotional help from another alcohol business, review the advertising and promotion requirements.

Common mistakes include:

• Advertising a promotion before confirming it is allowed
• Offering coupons or sweepstakes without required review
• Letting a supplier, wholesaler, manufacturer, brand owner, or third party help pay for advertising
• Accepting signs, displays, branded items, prizes, or giveaways without checking whether they are allowed
• Advertising a tasting, dinner, or off-site event before confirming the event is allowed

Do not assume advertising or promotions are allowed because another business has done something similar.

Required reports

Some license holders must submit reports to ATCC, the Comptroller, or both. Reporting requirements may still apply even when there was no activity during the reporting period.

Common mistakes include:

• Failing to submit required reports to ATCC
• Missing report deadlines
• Failing to submit “zero” reports to the Comptroller when no production or sales activity occurred
• Assuming no report is needed because there were no sales or production activities

For example, a Class 6 limited wine wholesale license holder (for self-distribution only) may have no activity for one or more quarters because it is a winery that primarily sells from its tasting room or website. A “zero” report will still be required by the Comptroller.

ATCC handles licensing and enforcement. The Comptroller handles certain tax and reporting requirements.  However, failure to be compliant with tax filing requirements may be used by the ATCC as a factor when reviewing a renewal application.

ATCC and the Comptroller have different roles

• ATCC handles alcohol licensing and enforcement.
• The Comptroller handles certain tax and reporting requirements.

You may need to report to one agency or both, depending on your license and activity.

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