Start Alcohol Distribution Business

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Starting a liquor distribution business also means of purchasing products from the manufacturers and selling them to wholesalers and merchants. The potential customers may include retail businesses, exporters, and liquor distributors.

If you are interested to start a liquor distribution business, you must first comply with the state and federal regulations in selling liquor at a wholesale level.

A liquor distribution business is a good business venture that aims at trading goods for a huge amount of profit. There are important things to consider in making the business a successful one.

Acquiring a Warehouse Location

One of the most important things to consider in starting a liquor distribution business is by acquiring a warehouse location. Actually, distribution companies are all required to have enough space in storing their alcohol products. It is best to lease a warehouse building or storage space. On other states, alcohol distributors are required to own warehouses that store beverages. Without these warehouses, they are not allowed to apply for business permits or liquor licenses.

Applying for License and “Employer Identification Number” to Start the Business

As the warehouse location is already chosen, the next thing to do is to apply for a license and “employer identification number”. As per the license requirement, there is a need to apply with the taxation department in your state. Every state has laws in regard with the liquor distribution around the state borders. On many states, there is a need to acquire for a special permit in transporting and storing alcoholic beverages around the state.

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Depending on the state, one will be required to go through a background check. One may be lucky enough to be allowed for the extended period of time frame, particularly for six months before one is approved for a license or wholesaler’s permit.

Businesses, partnerships and corporations are required to apply for the employer identification number (EIN). This is a number that constitutes of nine-digits and identifies the business when paying or filing the business taxes.

Applying for a Permit with the Trade Bureau of Tobacco Tax and Alcohol

Another important idea to consider is applying for a permit with the trade bureau of tobacco tax and alcohol. This is the agency that allows a business to operate as alcohol distributor. Companies that are willing to operate tobacco and alcohol businesses may acquire this permit. Alcohol and beverage businesses are directed by the (FAA Act) and (IRC).

As for alcohol wholesalers, they must have a complete application for submission of basic permit and additional documents, like corporation’s by-laws and partnership agreement. Before operating the business, the trade bureau will provide an approval of authorization in distributing liquor.

Connecting with the Customers, Suppliers and Vendors to Start Alcohol Distribution

Having a connection with the customers, suppliers and vendors is an essential part to start alcohol distribution. As a distributor, the best products are chosen at their fairly reasonable prices. Afterwards, the products are sold to companies with the goal of selling them to end users. Package sales, grocery stores, restaurants, and taverns are companies that may trade to consumers.
 

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4 Comments

  • 1. jade galloway said on 3/27/2014 2:13:37 PM
    i do not have a location at the time i will like to find a location in oakland
  • 2. Chandan Das said on 5/3/2014 10:50:03 PM
    What is the procedure to get license and what will be investment amount to start this business?
  • 3. Shekar Pulugam said on 5/4/2014 1:47:35 AM
    Hi, I would like to know how to get the license and investment amount.
  • 4. Rishikesh Yadav said on 5/19/2014 12:53:03 PM
    What is the procedure to get license and what will be investment amount to start this business?
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