Michigan Department of Licensing and Regulatory Affairs

Liquor Control Commission (MLCC)

Constitution Hall – 525 W. Allegan, Lansing, MI 48933
Mailing Address: PO Box 30005, Lansing, MI 48909
Toll Free 866-813-0011 – www.michigan.gov/lcc

Brewer or Micro Brewer Licensing Requirements & General Information

A Brewer license, as defined by MCL 436.1105(14), is issued by the Michigan Liquor

Control Commission to a person located in Michigan to manufacture and sell to licensed
wholesalers, beer produced at the licensed brewery facility, and to customers for
consumption on or off the premises at a tasting room located on its manufacturing
premises where it also holds an On-Premises Tasting Room Permit.

A Micro Brewer license, as defined by MCL 436.1109(5), is issued by the Commission

to a person located in Michigan to manufacturer no more than 60,000 barrels per year
and sell to licensed wholesalers, beer produced at the licensed brewery facility, and to
customers for consumption on or off the premises at a tasting room located on its
manufacturing premises where it also holds an On-Premises Tasting Room Permit. A
qualified Micro Brewer licensee that manufactures fewer than 1,000 barrels a year may
also self-distribute its beer to retailer licensees.

How to Apply

All applicants requesting a new Brewer or Micro Brewer license, seeking to transfer
ownership of a Brewer or Micro Brewer license, or transferring interest (stock or
membership interest) in a Brewer or Micro Brewer license must submit the following:

• Application Form
For a new Brewer or Micro Brewer license or to transfer a Brewer or Micro Brewer
license - Manufacturer License & Permit Application (Form LCC-150)

To transfer interest in a Brewer or Micro Brewer license – License Interest Transfer

Application (LCC-101)

• Inspection Fee - A $70.00 nonrefundable inspection fee is required for each license
requested in an application. For example, if an applicant has requested a new Micro
Brewer license in conjunction with a new Small Wine Maker license, the inspection
fee would be $140.00.

• Local Approval – If the applicant intends to sell beer it manufactures under its Brewer
or Micro Brewer license in an approved tasting room located on the manufacturing
premises under an On-Premises Tasting Room Permit, it must obtain the approval of
the local legislative body of the local governmental unit where it will be licensed. The
Manufacturer License & Permit Application (Form LCC-150) contains a Local
Governmental Approval form (LCC-106a) that can be used by the local governmental
unit to approve or disapprove the request for the On-Premises Tasting Room Permit.
 Local approval is not necessary for the Commission to consider approval and
issuance of a Brewer or Micro Brewer license when the applicant does not intend to
sell its beer to customers on the premises where it manufactures the beer and has not
applied for an On-Premises Tasting Room Permit; however, applicants will still need
to comply with any local ordinances specific to manufacturing operations.

• License & Permit Fees – The initial and annual renewal fee for a Brewer or Micro
Brewer license is $50.00. Additional fees will vary based upon whether additional
licenses and permits are requested in conjunction with a Brewer or Micro Brewer
license. If the Brewer or Micro Brewer license applicant plans to sell its beer at retail
on its manufacturing premises in a tasting room, it must also apply for an On-Premises
Tasting Room Permit, for which the initial and annual renewal fee is $100.00.

• Livescan Fingerprints – Applicants that have never been licensed through the
Michigan Liquor Control Commission must submit fingerprints through the Livescan
fingerprinting process - Livescan Fingerprint Background Request Form.

• Property Document – Applicants must provide documentation that demonstrates

they will have control over the property that comprises the proposed licensed
premises. Property documents include deeds, land contracts, and lease agreements.
• A provision to reassign the license in the event of a default on a land contract or
termination of a lease agreement may be included, but may only provide for the
reassignment subject to Commission approval.
• If the applicant is a company and its members or stockholders own the real estate
as individuals or under another company, a lease agreement is needed.
• If the applicant is an individual and he or she owns the real estate with a spouse
or someone else who will not be named on the license, a lease between the
applicant and the owners of the real estate is needed.

• Federal Brewer’s Notice – Applicants must provide a copy of the federal Brewer’s
Notice issued by the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) prior
to issuance of the Brewer or Micro Brewer license. This is not required to be submitted
at the time of application with the Commission, but should be applied for through the
TTB as soon as possible, as the TTB process may take longer to complete than the
Michigan licensing process.

• Purchase Agreement – Applicants requesting to transfer a license from another

licensee must submit an executed purchase agreement or other documentation
signed by both the applicant and the current licensee, which details the sale of the
liquor license(s) and other business assets.

• Purchase agreements must specifically indicate that the liquor license is being
sold and provide the purchase price and terms of the sale.
• Purchasers of on-premises licenses must have at least 10% of the purchase
price of the business, excluding real estate.
• Purchase agreements that are not for cash only sales and include real estate
must list the personal property, including the licenses, and real estate with the
terms and price for each.
 • If the personal property and real estate are being purchased by separate people
or entities, the purchase agreement must indicate those names and who is
purchasing which items.
• If the applicant will not pay the full purchase price at closing, the balance due
may be covered by a security agreement or promissory note. Alcoholic beverage
inventory cannot be included on a security agreement or promissory note.

In addition to the documents required by all applicants:

Corporations must submit the following information per Administrative Rule R

436.1109:
• Copy of current, filed Articles of Incorporation.
• Current Certificate of Good Standing from the state where incorporated and
Certificate of Authority to Do Business in Michigan, if incorporated outside of this
state.
• Certified copy of the minutes of a meeting of its board of directors or a statement
signed by an officer of the corporation naming the persons authorized by
corporate resolution to sign the application and other documents required by the
Commission (or Part 3 of Form LCC-301).
• Report of Stockholders/Members/Partners (Form LCC-301)

Limited Liability Companies (LLC) must submit the following information pursuant
to Administrative Rule R 436.1110:
• Copy of Articles of Organization and copies of any amendments to the Articles of
Organization.
• Current Certificate of Authority to Do Business in Michigan, if the LLC is a non-
Michigan LLC.
• Copy of Operating Agreement entered into by members.
• Copy of most recent annual statement filed with the Corporations Division, if an
existing LLC.
• Statement signed by a manager of the limited liability company or by at least 1
member if management is reserved to the members naming the person
authorized to sign the application and other documents required by the
Commission (or Part 3 of Form LCC-301).
• Report of Stockholders/Members/Partners (Form LCC-301)

Partnerships must submit the following information per Administrative Rule R

436.1111:
• Partnership Agreement, if a Limited Partnership.
• Report of Stockholders/Members/Partners (Form LCC-301)

Licensing Process

• The Licensing Division reviews the application and corresponding documents for
completeness and verifies the appropriate fees have been received. If additional
documents, fees, or corrections to documents are needed, Licensing will notify the
applicant.
• Once all the necessary documents have been received Licensing will submit the
request to the Enforcement Division for its investigation.

• The Enforcement Division will contact the applicant to schedule an interview with the
applicant (and current licensee for license transfers). At this meeting an investigator
will review with the applicant documents, including:
o purchase agreement
o financial documents
o property documents
o other items pertaining to the application

• After the interview, the investigator will prepare a report for the Commission regarding
the investigation and submit the request back to Licensing for further processing.

• Licensing reviews the report from Enforcement and any additional documents
received during the interview process. The request is prepared for the Commission
to consider and placed on a docket for an upcoming licensing meeting.

• The Commission considers the request, including:

o the liquor license operating history of the applicant (if a current or prior licensee)
o the arrest and conviction record of the applicant
o whether the applicant meets the requirements for a license
o the applicant’s financial information
o opinions of the local legislative body or police department, if received.

• The Commission will approve or deny the request based on these factors.
Occasionally, the Commission will request more information from the applicant before
making a final decision.

• After the Commission makes a decision on the request, the file is returned to Licensing
for final processing.
o Approval orders are sent to the applicant requesting any final items before the
issuance of the license.
o Denial orders are sent to the applicant and the applicant may appeal the decision.

• When all the final items are received by Licensing, the completed request is forwarded
to the Renewal Unit for the issuance of the physical license documents.
o Any changes in financial provisions at the time of closing which do not conform to
the terms previously indicated and investigated may require submission of new
forms and possible additional investigation.

Permits, Permissions, and Authorizations

On-Premises Tasting Room Permit – This permit allows the Brewer or Micro Brewer
licensee to sell beer it manufactures to customers for consumption on or off in an
approved tasting room located on the manufacturing premises. If the licensee is also
licensed to manufacture wine, spirits, or mixed spirit drink products at the same location
where it is licensed with a Brewer or Micro Brewer license, it may also sell those products
in the approved tasting room that is issued this permit.

A licensee issued an On-Premises Tasting Room Permit must maintain Proof of Financial
Responsibility (liquor liability insurance) as required by MCL 436.1536(7)(e) and MCL
436.1803 [see Proof of Financial Responsibility form (Form LC-95)], and must comply
with the minimum server training requirements for retail sales as required by MCL
436.1535(7)(d) and MCL 436.1906.

On-Premises Tasting Room Permit limits for Brewer or Micro Brewer licenses:
• A Brewer may have no more than 2 On-Premises Tasting Room Permit locations.
• A Micro Brewer making fewer than 30,000 barrels of beer per year may have an
On-Premises Tasting Room Permit at any of its separate manufacturing premises.
• A Micro Brewer making 30,000 barrels of beer or more a year may have an On-
Premises Tasting Room Permit at no more than 3 of its manufacturing premises.
• If a Brewer or Micro Brewer has more than one On-Premises Tasting Room Permit
location it may sell beer it made at any of its manufacturing premises at any of its
On-Premises Tasting Room Permit locations under one of the following conditions:
o Beer made at another location by the same Brewer or Micro Brewer is
transferred to be sold at an On-Premises Tasting Room Permit location that
has an installed and functional multivessel system capable of producing and
fermenting at least 3 barrels of wort in a single batch
o Beer made at another location by the same Brewer or Micro Brewer is
transferred to be sold at an On-Premises Tasting Room Permit location where
the Brewer or Micro Brewer manufactures at least 50% of the volume of beer
at that location that is sold to consumers at that location
o Beer made at another location by the same Brewer or Micro Brewer is
transferred to be sold at an On-Premises Tasting Room Permit location that
was approved by the Commission under an application received prior to
October 1, 2018
• May sell beer for consumption off the premises.
• May sell and serve full size drinks.
• No size or number limit on tasting samples.
• May serve food or have a restaurant in conjunction with the On-Premises Tasting
Room Permit.

Sunday Sales Permit (A.M.) - A permit that allows the sale of beer on Sunday mornings
between 7:00am and 12:00 noon, if allowed by the local unit of government. A Sunday
Sales Permit (P.M.) in not required for beer sales after 12:00 noon on Sunday.

Specific Purpose Permit - A permit that allows specific types of activities (such as the
service of food, sporting activities, meetings, etc.) to occur on the licensed premises
outside the legal hours for the sale of alcohol. A specific purpose permit does not allow
the sale of alcohol outside of the legal hours of sale.

Dance Permit - Allows dancing by patrons of a business with an on premises license.

Often combined with an Entertainment Permit.
Entertainment Permit - Permits certain types of live entertainment at a business with an
on premises license. An entertainment permit does not allow topless activity. Often
combined with a Dance Permit.

Extended Hours Permit - A permit held in conjunction with a Dance or Entertainment

Permit (or both) that allows dancing or entertainment on the licensed premises outside
the legal hours for the sale of alcohol. An Extended Hours Permit does not allow the sale
of alcohol outside of the legal hours of sale.

Catering Permit - Authorizes a holder of a Brewer or Micro Brewer license to sell, deliver,
and serve beer, and wine in the original containers at private events. A licensee must
have a food service establishment license or retail food establishment license to qualify
for this permit.

Beer & Wine Tasting Permit - A permit that allows for a Brewer or Micro Brewer licensee
to conduct a beer tasting event at the licensed premises of a Specially Designated
Merchant (SDM) licensee. A Salesperson licensee representing the Brewer or Micro
Brewer licensee must conduct the tasting event.

Living Quarters Permit - Allows living quarters to be directly connected to the licensed
premises.

Direct Connection permission - Allows connections from the licensed premises to

unlicensed premises.

Outdoor Service authorization - Authorization granted by the Commission for a license

to sell alcohol outdoors in an area controlled by the licensee. This can be a patio area
next to the licensed premises or a space as large as a golf course

Churches & Schools

A new application to sell alcoholic beverages at retail under an On-Premises Tasting

Room Permit, or a request to transfer location of an existing license that intends to sell
alcoholic beverages under an On-Premises Tasting Room Permit, may be denied if the
contemplated location is within 500 feet of a church or school. The Commission may
waive the church/school provision if the church or school does not file an objection to the
proposed license. If the church or school does file an objection, the Commission shall
hold a hearing before making a decision on the issuance of the license.

Michigan Department of Agriculture & Rural Development Requirements

Facilities that manufacture alcoholic products in Michigan must be licensed through the
Michigan Department of Agriculture & Rural Development (MDARD) in addition to
licensure through the Commission. You may contact MDARD regarding the licensing
requirements for the type of establishment for which you are applying by calling, toll-free,
800-292-3939 or visiting www.michigan.gov/mdard.

Manufacturing & Labeling

Beer must be manufactured in accordance with federal beer regulations published in the
Code of Federal Regulations (CFR) Title 27, Part 25, pursuant to R 436.1611.

All beer products sold in Michigan must have labels approved by the Commission prior to
being sold. All beer sold in Michigan must be labeled in accordance with TTB regulations.
The Commission uses an on-line label registration process through the Michigan
Wholesale Product Registry (MWPR), which requires prior registration with the TTB.
Upon licensure, the applicant will be provided with a password and instructions to access
the on-line registration site. There is no fee for Michigan label registration.

Mandatory label information, pursuant to TTB regulations:

• Brand name.
• Class, type or, in lieu of, a truthful & adequate statement of composition shall
appear on the brand label of the product.
• Name and address of bottler or packer where bottled or packed.
• Net contents.
• Government Warning Statement.
• Alcohol content by volume is optional.

For federal labeling information contact the TTB at 866-927-2533 or www.ttb.gov.

Container Deposits

Beer, mixed wine drink (wine coolers) & mixed spirit drink (spirit coolers) sold in containers
of one (1) gallon or less must comply with the Beverage Container Act (Initiated Law of
1976) by requiring a deposit of not less than 10 cents per container when sold to
consumers. Containers must be clearly labeled with the name of this state and the
deposit amount; “MI” or “MICH” are acceptable abbreviations for Michigan. The
wholesaler who sells the returnable containers to their retail customers initiates the
container deposit.

Beer Excise Tax Reports

Michigan beer excise tax rate is $6.30 per barrel. A barrel contains 31 gallons. Brewers
and Micro Brewers shall pay the Michigan beer excise tax or may designate a wholesaler
to pay the tax on their behalf for all beer manufactured and sold in this state. A Brewer
or Micro Brewer licensee is required to submit a Michigan Beer Tax Report and Michigan
Brewer or Micro Brewer Report of Sales no later than the 15th day after the end of each
quarter (April 15, July 15, October 15, and January 15) regardless of whether a wholesaler
has been designated to pay the taxes. Sales and shipments made to military installations,
Indian reservations or out-of-state by Brewers or Micro Brewers are nontaxable.

Beer that is sold for consumption in an approved tasting room or self-distributed by the
licensee to retailer licensee is subject to the beer excise tax and must be submitted by
the Brewer or Micro Brewer licensee regardless if a wholesaler has been designated to
pay tax on wholesale shipments to retailers.

For further questions relating to beer tax, please contact our Financial Management
Division at: 517-284-6260. Tax forms and instructions may be located on the Commission
website at: https://www.michigan.gov/lara/0,4601,7-154-89334_10570_14177_15067---
,00.html.

Sales to Wholesalers

All sales must be made through licensed wholesalers (except retail sales to customers at
an approved tasting room with an On-Premises Tasting Room Permit). A Micro Brewer
licensee may self-distribute to a retailer licensee if the Micro Brewer licensee does not
sell more than 2,000 barrels of beer a year (see self-distribution information below).

A Brewer or Micro Brewer licensee must grant each of its wholesalers an exclusive sales
territory. A Brewer or Micro Brewer licensee must enter into a written agreement each of
the wholesalers specifying the brand or brands to be distributed and the territory where
exclusive sales are granted. There can be no overlapping of sales territories between
wholesalers of similar brands.

There is no prohibition against offering wholesalers quantity discounts as long as the

discounts are uniformly offered to all wholesalers. The Liquor Control Code requires the
sale and purchase of all alcoholic beverages to be for cash only, at the time of delivery to
wholesalers.

Self-Distribution of Beer

A Micro Brewer may self-distribute beer to a retailer if it does not sell more than 2,000
barrels of beer per year. Beer sold for consumption in a Micro Brewer’s tasting room does
not count toward calculating the 2,000-barrel threshold. All brands of the Micro Brewer
licensee, whether brewed in this state or outside of Michigan, shall be combined to
determine the 2,000-barrel threshold. A Micro Brewer that self-distributes to retailer
licensees must comply with the following:
• The licensee must file a schedule of net cash prices to retailer licensees:
https://www.michigan.gov/documents/lara/Beer_Price_Filing_535194_7.pdf
 • The beer must conform to the bottle deposit requirements of 1976 IL 1, MCL
445.571 to 445.576, commonly referred to as the “Bottle Bill”, as applicable.
• The licensee must register the beer on the Michigan Wholesale Product Registry
(MWPR) and must report and pay the applicable taxes on the products sold.
• The licensee cannot self-distribute to retailer licensees in a sales territory where it
has granted exclusive rights to a Wholesaler licensee for the sale of any brand or
brands of beer.
• The deliveries must be made by the licensee’s own employees. The employees
must be individually licensed with a Salesperson license, unless otherwise exempt
under the law. Please visit the Salesperson License Information webpage on the
MLCC website for more details on Salesperson license requirements.
• The deliveries must be made in vehicles owned by the licensee. These vehicles
must have been issued a delivery vehicle decal by the MLCC. The licensee may
apply for vehicle decals using the Delivery Vehicle Decal Application (LCC-351).

Barrel Deposits

Manufacturers of beer are required to collect a barrel deposit of $30.00 for all barrels, 1/2
barrels, and 1/4 barrels of beer sold to wholesalers. A refund of $30.00 shall be made to
a licensee who has made the deposit and returned the barrels for refund. The Rule does
not allow a deposit in excess of $30.00.

Salesperson Licenses

Any person employed by a Brewer or Micro Brewer licensee to sell, deliver, promote, or
otherwise assist in the sale of alcoholic liquor in this state is required to hold a
Salesperson license issued by the Commission. Employees who work exclusively at the
brewery premises and have no contact with wholesalers, retailers, or consumers off the
licensed premises do not need a Salesperson license. Salesperson licensees must be
at least 18 years of age and are prohibited from being employed by a retailer-tier licensee
on a paid or any other basis. For more details on Salesperson licensee requirements and
exceptions to the requirements for certain employees please visit the Commission’s
webpage for Salesperson licensing information: https://www.michigan.gov/lara/0,4601,7-
154-89334_10570_16941-456243--,00.html.

Record Retention and Inspection of Premises and Records

All licensees are required to maintain all sales, purchase, and Salesperson licensee
expense records for a minimum of four years. Records may be maintained electronically
or otherwise as long as a hard copy of the record can be created upon demand.
A licensee must make the licensed premises available for inspection and search by a
Commission Investigator or any law enforcement officer empowered to enforce the
Commission’s rules and code during regular business hours or when the premises is
occupied. The Commission or its duly authorized agent may examine the books, records,
or papers of a licensee.

Consumer Participatory Brewery (“Brew-On-Premises”) Operation

The Michigan Liquor Control Code requires a license to manufacture and sell beer. While
the Code does allow for home brewing for personal consumption, the home brewing must
be done at a person’s residence. Therefore, a Brew-On-Premise operation whereby a
person provides a facility and equipment allowing consumers to participate in the brewing
process is not recognized as home brewing and is allowable in Michigan only under a
Micro Brewer or Brewer license. The Commission recognizes the licensed Brewer or
Micro Brewer to be the manufacturer of the beer and holds that licensee accountable for
all actions on its licensed premises. The licensee may not lease out their licensed
premises or equipment to any person; however, consumers may participate in the
brewing process under the supervision of the licensee. The Commission recognizes the
licensee to be selling the finished beer product to the participating consumer. The
licensee may however collect the money up-front from the participating consumer. The
licensee will be responsible for paying the appropriate beer excise taxes on all beer
manufactured and sold in this state. The licensee will also be responsible for registering
all beer brands with TTB and the Commission and labeling all containers in accordance
with TTB standards. The Commission will allow Brew-On-Premise operations to register
a ‘generic label’ approved by TTB and registered with the Commission with the very basic
required information (name and address of bottler, net contents & government warning
statement), and allow such labels to be further customized by the customer or licensee
with additional brand name or fanciful name addition.

Contract Brewing

A Brewer or Micro Brewer licensee may contract brew beer for a retailer licensee that
desires to have a “private label”. Such contract-brewed beer is basically treated like any
other beer. The Brewer or Micro Brewer licensee producing the beer is responsible for
registering the product and trade name with TTB and the Commission; paying the beer
excise taxes to the Commission for the beer sold in Michigan; assigning sales territories
to wholesalers; and selling the beer only to licensed Michigan wholesalers. Contract
brewed beer is no different than any other beer except that someone else may own the
trade name, formula, and label rights.