McStartup

This next question comes from Chad. He raises some interesting points which go beyond my areas of expertise.  However, what I can do is tell him (and you) how I would approach this situation if I were in his shoes.  This particular question demonstrates how important finding quality legal advice really is. 

Chad's business is Intimate Journeys, a business that creates romantic dinner settings inspired by a trip he and his wife took to Fiji.  Based on his question below, I assume he is partnering with area restaurants to provide the food and drink, while his focus is on providing the atmosphere and service for the dinner. 

Chad writes:

I am in the process of starting up a very unique business and I am having trouble finding out exactly how and what to license my business as, and the permits I need to obtain. My business works with a much larger company, and I am not sure if their license/permits would cover me. We are a private dining company who uses food from an existing hotel/restaurant and takes clients away from the restaurants to remote locations. We would like to serve beer/wine, but not sure if obtaining the alcohol from the restaurant forgives the fact we have to obtain a permit since we are actually not "selling" liquor. Furthermore, does having the clients bring there own wine, and charging a cork fee change that?

Sounds like you have a pretty interesting business.  Business licensing requirements, especially those related to alcohol sales, vary wildly from one locality to the next.  So the truth is that I really have no idea what the answer to your question is.

However, what I can share is how I would approach this situation if it were my business.

First off, you need to get yourself a good attorney.  Now before you go jumping around the room screaming "I can't afford that!" there are a few things you need to know.  One, if you violate liquor laws, then you've really got something you can't afford on your hands with fines, lawyer costs, or worse.  Second, and more importantly, is that if you look around, you can very often find attorneys that are willing to work with startups for some sort of deferred compensation.

In the past, I've used large firms for two reasons.  One, they had the depth of expertise to span a wide variety of issues.  Two, they were willing to provide, in our case, up to $20,000 of legal work that wasn't payable until we hit certain revenue numbers as a company.  I know of some smaller firms that also do this same kind of thing. 

So if I were you, I would start asking around to see if you can find a firm that would do this.  Even calling a firm you believe to be reputable, stating that you are a startup and would like to talk to someone about legal services, would be a place to start.  Selecting an attorney is not something to be taken lightly, and you should talk to quite a few just as you would when hiring a new employee.  

You're also going to want to find a good insurance agent, who is familiar with your type of business.  Because of the somewhat complex relationship you have as a middle-man between customers and vendors, ensuring that you are properly covered if, for example, your customer gets food poisoning from the fare of a third-party restaurant, is important.  Again, ask around and see if you can find referrals, and talk to a good handful of candidates.  You might ask some of your restaurant partners who they use, and that would give you a starting point there.

I know you're thinking "I don't have time for that, I've got customers to deal with!"  But believe me, these are really critical choices, and are the kinds of decisions that are often glossed over, yet can make a huge difference in your likelihood of success.

As for your specific question about liquor licenses, as I said, I don't know.  But, if I had to guess, I'd say you are probably in some kind of gray area.  As a result, I would document any kind of research you do, and any conversations you have with, say, a local or state agency that indicates you don't need to worry about it.  A good paper trail might not get you off the hook of some bloodthirsty district attorney decides you're violating the law, but being able to show a good faith effort toward doing the right thing is going to be your number one defense outside of an actual court ruling on your type of business.  So document well, and keep those records secure -- just in case.

Again though, your attorney will play a valuable role in determining what actions to take both for this decision, as well as decisions in the future.  Do not underestimate the value they can play.  Attorneys tend to be plugged into the business community at large, and are often a source of additional contacts, potential employees, business partners, and the like.  This is why it's so important to find a good one, and I encourage you to do your research.  There are a handful of great attorneys, a whole bunch of middle-of-the-road ones, and a few bad apples.  You want to find the great ones, and, just as when hiring employees, you want to interview thoroughly, research completely, hire slowly, and if they aren't working out, fire quickly.