The alcoholic beverages of a private club are owned collectively by the members of the private club, not by the business owner or managing entity. The private club itself, typically organized as a nonprofit corporation or unincorporated association, holds the private club permit required for legal alcohol service. Members contribute fees that are pooled to purchase and maintain the alcohol inventory for the club's use and enjoyment. The club does not sell alcohol in the traditional sense but recoups costs through service or replenishment fees charged to members. This structure is designed to comply with laws such as the Texas Private Club Act, which allows private clubs to serve alcohol to members without constituting a sale under state law. The managing entity may handle operations but does not own the alcoholic beverages; ownership resides with the members collectively
. In summary:
- Alcoholic beverages are owned by the members of the private club.
- The club holds the permit and manages the alcohol on behalf of its members.
- Members pay fees that fund the purchase and upkeep of the alcohol inventory.
- The club operates under specific legal frameworks that distinguish it from typical retailers
