July 20, 1994

ATTORNEY GENERAL OPINION NO. 94-90

The Honorable Gary Haulmark
State Representative, Thirtieth District
8709 Gallery
Lenexa, Kansas 66215

Re:

Intoxicating Liquors and Beverages--Licensing and Related Provisions; City Option--Qualifications for Licensure; Kansas Limited Liability Companies

Synopsis:

Kansas limited liability companies may be licensed for the retail sale of intoxicating liquors under the Kansas liquor control act, K.S.A. 41-101 et seq. Cited herein: K.S.A. 1993 Supp. 17-7601; 17-7603; K.S.A. 41-101; 41-102; 41-311; K.A.R. 14-13-1.

* * *

Dear Representative Haulmark:

You request our opinion regarding the ability of a Kansas limited liability company to obtain and hold a retail liquor license under the Kansas liquor control act, K.S.A. 41-101 et seq.

K.S.A. 41-311 sets forth qualifications for licensure as a retailer under the liquor control act and provides in part:

"(b) No retailer's license shall be issued to:

. . . .

"(6) a corporation; . . . ."

Licenses may be issued to "persons" who otherwise meet the requisite qualifications for licensure. "Person" is defined at K.S.A. 41-102(s) as "any natural person, corporation, partnership, trust or association." See also K.A.R. 14-13-1(n).

Limited liability companies are those that are organized and operate under the provisions of the Kansas limited liability company act. K.S.A. 1993 Supp. 17-7601(c). K.S.A. 1993 Supp. 17-7603 provides:

"(a) A limited liability company may conduct or promote any lawful business or purposes, except as otherwise provided by law of this state, which a partnership or individual may conduct or promote.

"(b) A limited liability company formed under this act shall be a separate legal entity and shall not be construed as a corporation."

Because limited liability companies organized and operated pursuant to K.S.A. 1993 Supp. 17-7601 et seq. are not to be construed as corporations, and because limited liability companies are authorized to conduct any lawful business which a partnership or individual may conduct and the liquor control act does not prohibit licensed retail sale of alcoholic liquor by limited liability companies, it is our opinion that a limited liability company may obtain and hold a retail liquor license under the Kansas liquor control act.

Very truly yours,

ROBERT T. STEPHAN
Attorney General of Kansas

Julene L. Miller
Deputy Attorney General

RTS:JLM:jm