Changes after Original Qualification – Wholesalers & Importers

Changes with respect to the information shown on the previously submitted application must be filed with the Alcohol and Tobacco Tax and Trade Bureau’s (TTB) National Revenue Center in Cincinnati, Ohio.

CHANGE IN PROPRIETORSHIP

A change in proprietorship occurs when there is a change in the entity which owns and operates the business.  It is synonymous with change in ownership, or it may be due to a change of entity type (for example a change from sole proprietor to LLC; from a partnership to a corporation, etc.).  Either way, the entity which owned the business no longer operates or owns the operations at that location.

The Federal Alcohol Administration Act (FAA Act) provides for continuity of business operations and allows a successor owner to continue to operate, if within 30 days of the change an application is filed for a new Basic Permit.  In that case, the outstanding Basic Permit will remain in effect until such time as TTB takes final action on the new application.

To ensure continuity of operations, all conditions and/or requirements of Federal laws and regulations must be met; therefore, it is imperative that an application for basic permit, along with other qualifying documents, are filed timely.  If a change in proprietorship occurs, and a new application is not filed within the required 30-day period, all regulated operations must cease until approval is granted in writing by TTB.  Failure to do so may initiate an adverse action against the permit.

CHANGE IN CONTROL

A change in actual or legal control occurs when there are changes in stock ownership, LLC membership ownership, or possibly major changes in the corporate officers or directors of a corporation.  In such situations, the legal business entity which operated the business in the past continues to operate the subject business.  In other words, the same legal entity remains in existence which continues to operate the business in question.

A Basic Permit issued under the Federal Alcohol Administration Act is not transferable by reason of a change in actual or legal control of the company.  The proprietor’s Basic Permit will automatically terminate unless within 30 days of the change an application for a new Basic Permit is filed with TTB.  If an application is filed within the required 30-day period, the outstanding Basic Permit will remain in effect until TTB takes final action on the new application.

To ensure continuity of business operations, all conditions and/or requirements of Federal laws and regulations must be met; therefore, it is imperative that an application for basic permit, along with other qualifying documents, are filed timely.

If a change in control occurs, and a new application is not filed within this 30-day period, all regulated operations must cease until approval is granted in writing by TTB.  Failure to do so may initiate an adverse action against the permit.

In addition, if a new LLC member or stockholder holds more than 10 percent stock or interest, and is not already on record, a Personnel Questionnaire, TTB Form 5000.9, must be filed.