Pennsylvania has a unique liquor licensing system that makes closing a restaurant with a liquor license more complex -- and potentially more valuable -- than in most other states. The Pennsylvania Liquor Control Board (PLCB) controls all liquor licensing in the state, and the rules around license transfer are unlike anything you will encounter elsewhere.
Pennsylvania PLCB Restaurant License
Pennsylvania Restaurant Liquor Licenses (R licenses) are issued by the PLCB on a county quota basis -- there is a fixed number of licenses available per county based on population. This scarcity creates significant secondary market value. A Pennsylvania R license in Philadelphia County can sell for $100,000 to $350,000. In Allegheny County (Pittsburgh), values range from $75,000 to $200,000.
When you close, you have three options: surrender the license (you receive nothing), sell it through a PLCB-approved transfer, or place it in safekeeping with the PLCB for up to two years while you decide. The safekeeping option is unique to Pennsylvania and gives you time to find a buyer without losing the license. Do not surrender a Pennsylvania R license without first getting a broker valuation.
Pennsylvania Final Paycheck Law
Under the Pennsylvania Wage Payment and Collection Law (43 P.S. Section 260.1), final wages are due by the next regular payday after termination. Pennsylvania does not require payout of accrued vacation unless your written policy promises it. However, if your policy says vacation is earned and unused vacation is paid out, you are contractually obligated.
The Pennsylvania Department of Labor and Industry enforces wage claims. Penalties include the unpaid wages plus 25% liquidated damages plus attorney's fees.
Pennsylvania WARN Act
Pennsylvania does not have a state WARN Act. You are subject only to the federal WARN Act (100+ employees, 50+ layoffs within 30 days). The Pennsylvania Department of Labor and Industry administers federal WARN Act notifications in Pennsylvania.
Pennsylvania Sales Tax
File a final sales tax return with the Pennsylvania Department of Revenue. Pennsylvania's sales tax rate is 6% statewide (8% in Philadelphia, 7% in Allegheny County). Food sold for immediate consumption in restaurants is taxable. Cancel your Sales Tax License after the final return is accepted.
Pennsylvania Corporate Net Income Tax
If your restaurant is structured as a corporation, file a final Corporate Net Income Tax return with the Pennsylvania Department of Revenue. LLCs taxed as partnerships file a final PA-20S/PA-65. Obtain a tax clearance certificate before filing dissolution documents with the Pennsylvania Department of State.
Pennsylvania Department of State Dissolution
To dissolve a Pennsylvania LLC, file a Certificate of Dissolution (DSCB:15-8712) with the Pennsylvania Department of State. For a Pennsylvania corporation, file Articles of Dissolution (DSCB:15-1977). The filing fee is $70. Pennsylvania requires that all known creditors be notified before dissolution.
For the full cost picture, see What Does It Actually Cost to Close a Restaurant. For equipment liquidation, Restaurant Equipment Liquidation: What Your Kitchen Is Actually Worth covers what to expect from Pennsylvania buyers.
The Correct Sequence
Place the PLCB license in safekeeping immediately -- this preserves your options while you handle everything else. Notify employees, pay final wages by next regular payday, file final sales tax return, cancel Sales Tax License, file final income tax return, obtain tax clearance, file dissolution with the Department of State, and then complete the PLCB license transfer or surrender last.