Q: My corporation has a restaurant liquor license and for tax and costs reasons, I want to have a second corporation operate the kitchen and conduct the sales of food. The second corporation would receive the revenues from the food sales and pay its own taxes. Would this be permitted?
A: What you are proposing is not permissible under the Liquor Code. A restaurant liquor licensee must conduct and report food sales in its own name along with sales of alcoholic beverages. You may not turn over the kitchen or the food sales to a third party. Otherwise the new corporation would have an unlawful financial interest in the restaurant liquor license.
A What you would need to do is disclose the new corporation to the Pennsylvania Liquor Control Board as either having an ownership interest in your corporation, or you would have to have the new corporation approved by the PLCB, as being listed as a co-licensee on your liquor license.
You should consult with your attorney, as for the best course of action to take.