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March 2016
Wine Wholesale Company Legal Requirements Report AN IN DEPTH LOOK AT FEDERAL, STATE, AND INTERNATIONAL LICENSURE AND REGULATIONS
REGARDING WINE WHOLESALE, DISTRIBUTION, AND IMPORTATION
A REPORT BY:
NICHOLAS KELLERMAN
MONSOON CONSULTANTS
(805)-235-0833
1997njk@gmail.com
944 Mill Street Suite 230 San Luis Obispo, CA 93401
Phone: (805)-369-0054 Office: (805)-476-6168
contact@monsoonconsultants.com www.monsoonconsultants.com
2
Contents COVER PAGE .................................................................................................................................................... 1
CONTENTS ....................................................................................................................................................... 2
INTRODUCTION ................................................................................................................................................. 4
NEXUS OPTIONS ............................................................................................................................................... 4
OKLAHOMA .................................................................................................................................................. 4
CALIFORNIA .................................................................................................................................................. 5
FEDERAL REGULATIONS AND NECESSARY PERMITS ................................................................................................. 6
WHOLESALER/IMPORTER (ALCOHOL) PERMIT .................................................................................................... 6
FEDERAL EXCISE TAX (ALCOHOL) ...................................................................................................................... 6
EMPLOYER IDENTIFICATION NUMBER (EIN) ....................................................................................................... 7
REGISTRATION OF FOOD FACILITIES .................................................................................................................. 7
US DEPARTMENT OF TRANSPORTATION NUMBER (USDOT) ................................................................................ 7
FEDERAL TRADEMARK .................................................................................................................................... 8
STATE REGULATIONS AND NECESSARY LICENSES .................................................................................................... 8
STATE EXCISE TAXES ....................................................................................................................................... 8
OKLAHOMA .................................................................................................................................................. 8
ENTITY FILING ........................................................................................................................................... 9
BUSINESS REGISTRATION ............................................................................................................................ 9
WHOLESALER LICENSE ................................................................................................................................ 9
NONRESIDENT SELLER’S LICENSE ................................................................................................................ 10
STORAGE LICENSE .................................................................................................................................... 10
CARRIER’S LICENSE .................................................................................................................................. 11
INTRASTATE PRIVATE CARRIER’S LICENSE ..................................................................................................... 11
REQUIREMENTS FOR OBTAINING EMPLOYEES ............................................................................................... 11
CALIFORNIA ................................................................................................................................................ 12
SELLER’S PERMIT ..................................................................................................................................... 12
ALCOHOLIC BEVERAGE LICENSE .................................................................................................................. 12
PUBLIC/PRIVATE WAREHOUSING ............................................................................................................... 12
REQUIREMENTS FOR OBTAINING EMPLOYEES ............................................................................................... 13
COUNTY AND CITY REGULATIONS AND NECESSARY LICENSES ................................................................................. 13
SAN LUIS OBISPO ........................................................................................................................................ 14
BUSINESS LICENSE – BUSINESS TAX CERTIFICATE ........................................................................................... 14
3
COUNTY BUSINESS LICENSE ....................................................................................................................... 14
FICTITIOUS NAME FILING .......................................................................................................................... 14
SIGN PERMIT .......................................................................................................................................... 14
BURGLAR ALARM PERMIT ......................................................................................................................... 15
DISTRIBUTION TO OTHER AND WITHIN NEXUS STATES ......................................................................................... 15
OKLAHOMA ................................................................................................................................................ 15
CALIFORNIA ................................................................................................................................................ 15
TEXAS ........................................................................................................................................................ 16
ARIZONA .................................................................................................................................................... 16
NEW MEXICO ............................................................................................................................................. 16
IMPORTING WINE ........................................................................................................................................... 16
REGULATIONS AND PERMITS.......................................................................................................................... 17
IMPORTER’S BASIC PERMIT ....................................................................................................................... 17
CERTIFICATE OF LABEL APPROVAL (COLA) ................................................................................................... 17
NATURAL WINE CERTIFICATE ..................................................................................................................... 17
CERTIFICATE OF AGE AND COUNTY OF ORIGIN ................................................. Error! Bookmark not defined.
CUSTOMS IMPORT BOND .......................................................................................................................... 18
OTHER ASSOCIATED FEES AND SPECIFICS ......................................................................................................... 18
CONCLUSION AND FINAL THOUGHTS .................................................................................................................. 19
SUMMARY OF COSTS ....................................................................................................................................... 20
RECOMMENDED ORDER OF OPERATIONS ........................................................................................................... 22
ADDITIONAL RESOURCES .................................................................................................................................. 22
FEDERAL LEVEL ............................................................................................................................................ 22
STATE LEVEL ............................................................................................................................................... 24
COUNTY AND CITY REGULATIONS AND NECESSARY LICENSES ............................................................................... 26
DISTRIBUTION TO OTHER AND WITHIN NEXUS STATES ....................................................................................... 26
REGARDING IMPORTING ............................................................................................................................... 27
WINE AND SPIRITS WHOLESALERS OF AMERICA ................................................................................................ 28
REFERENCES ................................................................................................................................................... 28
4
INTRODUCTION
This report is an exploration into the regulations that guide the wine wholesale, distribution,
and importation industry. Not only will necessary state and federal licensure be covered, but
also some requirements specific to the state of operation will be revealed, as well as general
regulations regarding such a business. The main areas of interest in this report include
Oklahoma, California, Arizona, New Mexico, and Texas concerning business within the states.
As for importation, Chile, Argentina, and Peru are considered as potential sources of foreign
wines. Of the possible business types i.e. Sole Proprietorship, Limited Liability Company LLC,
Partnership, and Corporation, the most simplistic and justifiable option would be to shape this
business as a sole proprietorship or partnership. While this leaves the sole proprietor or
partners legally responsible for any debts the company incurs, unlike LLCs and Corporations, it
does simplify regulations and taxes. The strategy behind such a business would be to buy from
smaller wineries (producing approximately 20,000 cases or fewer per year) located in California,
and wholesale these wines in Oklahoma, Arizona, New Mexico, and Texas. The international
component would be to import from Chile, Argentina, and Peru, and wholesale those wines in
the previously mentioned states as well. The majority of this report will focus on just business
within the U.S., but a section will be dedicated to the process of the importation of wine. The
culmination of this research will show such a business to have potential, though not so much
within the original business plan model.
NEXUS OPTIONS It was established early on in the process of research that there were two potential nexuses for such a business. The first choice being to establish it in Oklahoma, though a certain city was not specified. The second choice being to establish it in California, most likely in the city of San Luis Obispo. Each certainly has its merits and its drawbacks, which are detailed in this section.
OKLAHOMA
Oklahoma may very well have some of the strictest provisions regarding alcohol related
business within its borders since the repeal of prohibition, and the Liquor Law Repeal and
Enforcement Act of 2005. The latter which “prohibits shipments of alcoholic beverages from
one State to another State in violation of any law of the receiving State” 1. Therefore, Oklahoma
has the freedom to make it very difficult for other states to ship wine, or any alcohol for that
matter, into Oklahoma. This would pose an issue were the company to be located in California
because wholesaling wine from there to Oklahoma would require that the wine be sold to an
Oklahoma wholesaler first, thereby adding an intermediary step in its sale and losing profits
because of it 2. Not to mention, one would require a Non Resident Seller’s license from
5
Oklahoma then, a $3,250 cost in itself 3. However, it would be possible to become an
established wholesaler in Oklahoma, which would make bringing in out-of-state wines possible,
though there is still an additional cost for such transactions. Some of these cost include the cost
of the seller to get a nonresident seller’s license, brand registration, and importation into
Oklahoma at approximately 5 dollars per case. Further there are other costs specific to
Oklahoma such as warehousing and personnel costs, as well as the cost of a fleet of licensed
trucks for distribution 4. Additionally, the wholesalers license itself is more expensive in
Oklahoma, approximately $6,000 initially and annually as distributed by the Alcoholic Beverage
Law Commission, or ABLE for short 5(Application). Not to mention one very important key note
regarding the wholesaler’s license in Oklahoma: Oklahoman wholesalers must carry a 15 day
supply of the top 18 brands in total sales by Nonresident Sellers to Oklahoma Wholesalers 2.
This means that becoming an Oklahoman Wholesaler means being more than just a wine
wholesaler. The business would legally have to include the top selling 15 brands which includes
whiskey, vodka, and other hard liquors 6. There are, however, only a handful, seven to be exact,
of current wholesalers in Oklahoma making for fairly limited competition 2.
CALIFORNIA
California is a hub for wineries, and the prospective area of headquarters in San Luis Obispo
would be particularly close to a number of small wineries along the coast. It would make for an
extremely convenient location, were the company not focused on wholesale outside of
California. In other words, the laws of other states make a nexus in California less profitable
than one elsewhere given the current business plan. However, there are many noteworthy
advantages to a nexus in California due to its much more lax alcohol laws when compared to
Oklahoma. For one, there are no warehousing requirements when it comes to state tax-paid
wine in California, only distilled liquor and spirits must be stored in licensed warehouses 7.
However, if wine is stored in some location not within the licensed premise of the business,
then the alcohol must be brought to the licensed premise before being resold 8. Second, the
necessary wholesale license in California is far cheaper than Oklahoma at around $400 initially
and $310 annually after that for just the wholesaler’s license 9. A local business license would
also be required, but those run within the range of $170 to $320 depending on where the
business is located, and must be renewed annually for $45 10. Furthermore, an Article in the
California Constitution exempts alcohol wholesalers from local business tax due to the fact that
the Alcoholic Beverage Control and federal government have the sole right to tax such a
business 11. Also, licensed vehicles aren’t need to transport wine within California, further
cutting costs and simplifying things. All of that being said, there is also significantly more
competition in California due to its nature as a prolific wine production and distribution
location.
6
FEDERAL REGULATIONS AND NECESSARY PERMITS
Outside of the specifics behind wine importation there are much simpler other laws and
regulations regarding the wholesale and distribution of wine in the U.S. on the federal level.
This is mainly due to the fact that each state has its own laws that regulate such business, and
so most of the licensure is at the state level. However, there are still federal requirements to be
cognizant of which are presented here.
WHOLESALER/IMPORTER (ALCOHOL) PERMIT
The federal Wholesaler/Importer (Alcohol) Permit will allow the importing and selling of foreign
and domestic alcohol 12. This permit is issued by the Alcohol and Tobacco Tax and Trade
Bureau. In order to qualify for a basic permit, one must not have been convicted of a felony
within 5 years prior, or a misdemeanor within 3 years prior of the date of application 13. The
main permit of interest to cover both wholesale and importation would be a
Wholesaler/Importer (Alcohol) Permit 13. However, it may be best to start with a Wholesaler
(Alcohol) Permit until the company is ready to implement the importation of foreign wines into
its regular business. This can be done by creating a Permits Online account and filling out all
necessary forms. Links to the application and further information can be found in the Additional
Resources section of the report. Conveniently, there is no cost for this permit, though there
may be a small processing fee for the documents, and the permit stays in effect until
suspended, revoked, annulled, voluntarily surrendered, or automatically terminated, with no
renewal fee or process 13.
FEDERAL EXCISE TAX (ALCOHOL)
There is a federal tax for all alcohol produced in the United States known as the federal excise
tax. This is a tax determined by the gallons or bottles of wine produced. The price currently is
set at $1.07 per gallon or $0.21 per 750mL bottle of wine 14. Additionally, this tax increases as
the percentage of alcohol in the wine increases. The previously given prices are true for wine
containing less than 14 percent alcohol. Then, in the range of 14 to 21 percent alcohol the tax is
$1.57 per gallon or $0.31 per 750mL bottle 14. Lastly, from 21 to 25 percent alcohol the tax is
$3.15 per gallon or $0.62 per 750 mL bottle 14. However, it is important to note a few things.
First, the tax is typically paid by manufacturers, wine growers, importers, or distributors 15.
Failure of one of these entities to pay the tax can lead to big legal issues and potential jail time
plus fines. It’s very important, therefore, for the TTB to receive the federal excise tax payment.
The tax will be determined when the wine leaves the bonded wine premises, and is paid at an
arranged later date. Quarterly tax returns must be filed for those owing less than $50,000 in
excise taxes in the previous calendar year 16. This tax can be paid through the Pay.gov program,
or mailed in 17. See Additional resources for additional tax information and links to Pay.gov.
7
Regardless, this charge should definitely be considered in the pricing of wine to be sold to
retailers.
EMPLOYER IDENTIFICATION NUMBER (EIN)
It’s likely that you’re already familiar with the Employer Identification Number, but it is
necessary nonetheless. If any business wishes to have employees then the owner must file for a
federal EIN, or Employer Identification Number. This can be done by registering through the
State Department of Revenue, and each state will differ with its tax obligations and policies 18.
See Additional Resources for more information on EIN’s and how to apply for one if necessary.
REGISTRATION OF FOOD FACILITIES
If a warehouse will be used to store the alcohol it will be necessary to register the warehouse
with the FDA. Not a very difficult process, and the registration is free, but simply start by going
to the FDA’s website and choose to register a food facility. The Food Facility Registration
Module will guide you through the process, and all that has to be done is to input the requested
information along the way. Upon completion make sure to record the registration and PIN
number given to you for your application 19. Note that this process will not be necessary if a
pubic warehouse is used to store the alcohol because the owner of the public warehouse
should’ve already completed this process. See link in Additional Resources for online
registration.
US DEPARTMENT OF TRANSPORTATION NUMBER (USDOT)
A USDOT number is typically only required when participating in interstate commerce or when
transporting hazardous materials intrastate 20. However, this will be a requirement for licenses
described later namely the Intrastate Private Carrier’s License in Oklahoma. Registering for a US
dot number is free and can be done through the Federal Motor Carrier Safety Administration’s
(FMCSA) online application portal 21. Also, an important note is that the USDOT Number is
sufficient for intrastate operations, but if the range of vehicle transportation of merchandise
were to extend outside of state borders, then an Operating Authority from FMCSA would be
needed. Operating Authority would come at a cost of approximately $300, but is unimportant
unless using company vehicles to do interstate business 21. It’s also necessary to update the
company’s information in the FMCSA’s database once every 2 years 22. Failure to do so results
in hefty fines, and the easy way to avoid these fines is through the free and easy process of
renewal 22. The specifics of when to renew are a little odd, but are covered in a link in the
Additional Resources section.
8
FEDERAL TRADEMARK
If this business were to expand further and become nationally renowned it might be worth
considering protecting the company mark with a federal trademark. Though this process might
be many years down the road it is included here anyways. First, one would need to ensure that
a trademark is appropriate before going through this process, and also the mark can’t have
already been taken. After knowing what your basis is for filing, the application process can be
completed online through the Trademark Electronic Application System 23. It will cost anywhere
from $275 to $325 depending on how you chose to file, be it online, through mail, and how you
correspond with the United States Patent and Trademark Office during the process 23. Some
companies hire attorneys when going through this process to ensure everything goes smoothly,
but that’s an added expense that could be avoided by careful reading and following the process
systematically.
STATE REGULATIONS AND NECESSARY LICENSES
This section will be a review of all of the state specific licensure and permits needed to conduct
a wine wholesale and distribution operation. Here we find some of the most confusing
regulations, but it is possible to navigate them given enough time and proper guidance.
STATE EXCISE TAXES
Federal Excise Taxes will not be the only excise taxes that must be paid. Each state requires an
additional tax on top of the Federal Excise Tax, but based upon the same parameters. More
often than not this tax is paid by distributors, but it is also possible that a manufacturer, wine
grower, or other importer will have paid it already. Again, ensuring the tax is paid is crucial to
avoiding legal trouble. In Oklahoma this tax runs at $0.72 per gallon and can be filed with the
Oklahoma Tax Commission 24. In California the tax is $0.20 per gallon and can be paid online
through the California State Board of Equalization eReg system 24. It’s also important to note
that these prices are for wine containing less than 14% alcohol. Containing more than that in
Oklahoma raises the price to $0.77 per gallon 24. This is another charge which, if paid by the
wholesaler or distributor should be included in the company’s sale price of product to retail
locations.
OKLAHOMA
In general, Oklahoma is a very complex state to be involved in the wholesale business in.
Beyond the following licenses and regulations, there are many technicalities that I will do my
best to specify that must be followed. If the information is confusing there will be links in the
Additional Resources section that should serve to help clarify what is being stated here.
9
ENTITY FILING
Entity filing is a recognition of the name of the business entity under which it conducts day to
day operations, which is different from its legal name. It’s also known as “name filing,” “doing
business as,” or “fictitious name filing.” In Oklahoma, entity filing must be done with the
Secretary of State, but can be performed online through the Secretary of State’s website. A
name reservation may preserve the name of a business for up to 60 days prior to the actual
establishment of the business 25. As long as the name is not already taken this process is very
simple and straight forward. A link to the entity filing page is found in the Additional Resources
section.
BUSINESS REGISTRATION
Business registration in Oklahoma sets up guidelines for ensuring taxes are paid and records are
kept effectively. A business can register at the Taxpayer Access Point website where they can
also file returns and make payments 26. Processing is roughly 5 days, or the registration can be
done at the Oklahoma City or Tulsa Taxpayer Office 26. There is an associated fee with this
registration, though the source was unclear as to what exactly the price was, but it will be due
upon registration 26. A link to the registration page itself is given in the Additional Resources
section.
WHOLESALER LICENSE
In order to be in the wholesale and distribution business in Oklahoma it is necessary to obtain
an Oklahoma Wholesaler’s License. This is one of the most complicated licenses in the whole
report due to the requirements to apply for it, and the provisions that come with such a license.
What’s crucial to note is that this license not only allows you to become more than a wine
wholesaler by allowing the resale of liquor and spirits too, but it actually forces you to become
involved in the liquor and spirits industry. First, in order to apply for this license one must be a
10-year resident of the state, and so must have lived in Oklahoma, be registered to vote there,
have an Oklahoman driver’s license, have their main residence there, pay taxes in Oklahoma,
etc. 2. If this condition is not met then the application will be denied and only a percentage of
the fees will be reimbursed. The applicant also must not have been convicted of a felony or
alcohol related offense, or a misdemeanor in the past 3 years 5. Additionally, a notice that you
are applying for such a license must be published. Two notices of intent to apply shall be
published 8 days apart 6. The cost of this license is $6,000 initial and per year thereafter 5.The
application can be submitted by mailing in all of the completed necessary forms, submitting it
in person at the Tulsa city office, or supposedly through the online portal though only lesser
licenses may be available through that method. The application takes roughly 30 days to
process, and once granted expects business to begin operating rather soon, and therefore it is
not worth applying for until you are truly prepared to begin business. If granted, it comes with a
10
long list of requirements. First, all wholesalers must have a 15 day supply of the top 15 brands
sold by nonresident sellers to Oklahoman wholesalers in wine and spirits 6. This often
constitutes a range of wine, vodka, whiskey, and other spirits. Regulations that guide this
license often refer to a posting month which is the first month in every two months. Basically a
[price] posting month is followed by a period of two months where the price is locked in. On
the 15th day of the posting month percentage markups will be shared among wholesalers, and
each wholesaler decides on their markup for a particular category. On the 25th day of the
posting month a wholesaler can adjust the transportation and handling charges within a certain
extent. At the end of every posting month and distribute the schedule of prices to the licensed
entities that purchased from them in the past 60 days 6. After the end of the posting month
prices are locked in and products must be offered to every retailer or other wholesaler at the
price stated in the price posting 6. This prevents discrimination in the wholesale business and
removes any preferential trade arrangements because every seller must offer their product to
every buyer for the same amount. Another detail of this license is that granted within it is a
bonded warehouse permit essentially. This allows every wholesaler licensee to provide a
warehouse on their premise that will store alcohol and nothing else 6. As a licensed wholesaler
purchasing goods from a seller you will need to accompany every purchase with an invoice
which clearly states common business information as well as the details of the transaction
taking place 6. In order to fully grasp the scope of regulations and rules encompassing a
wholesaler’s license please see the link in the Additional Resources section and view Titles 37
and 45.
NONRESIDENT SELLER’S LICENSE
As an established business entity outside of Oklahoma wanting to sell product in Oklahoma a
nonresident seller’s license will be required. This license grants a nonresident of Oklahoma the
ability to sell alcohol to an Oklahoman wholesaler who will then sell to retailers and others 27.
Every business entity that wishes to sell to an Oklahoman wholesaler will need such a license,
and likewise Oklahoman wholesalers desiring an out of state product need to facilitate the
licensing process for the seller entity. The cost of such a license is $3,250 annually and there are
some additional costs as well 3. Among these additional costs are brand registration fees.
Essentially each new domestic brand is a $200 cost to be registered and paid annually, and each
new imported brand has the same registration price 3. Each brand label in the categories of
fortified, specialty, table or light, and sparkling wines will be a separate registration fee 3.
Typically nonresident sellers act as brokers facilitating business, but it seems there is a
considerable investment amount needed to do so.
STORAGE LICENSE
A storage license allows an entity to store alcohol in a public licensed bonded warehouse 27.
This could be useful as a location to put imported wine or if additional space is needed. The
11
fees of the warehouse owner would be hard to predict, but the storage license itself is only $23
annually and the application can be filled out and turned into the ABLE Commission office 27. A
pdf of the application can be found in the Additional Resources section.
CARRIER’S LICENSE
The Carrier’s License authorizes all vehicles of a business to carry and deliver alcohol. The
license can be applied for by submitting it to the Alcoholic Beverage Laws Enforcement
Commission office, and will cost $23 annually 28. The Additional Resources section contains a
pdf of the application. Note that this license only allows the trucks to carry alcohol, not
necessarily authorizing the trucks in general, which is why the Intrastate Private Carrier’s
License will be necessary too.
INTRASTATE PRIVATE CARRIER’S LICENSE
Very similar to but different from the carrier’s license, this license must be granted from the
Oklahoma Corporate Commission in order to comply with all alcohol transportation regulations.
A prerequisite for this license is the USDOT number, and one must know the PIN associated
with said number as well. The Intrastate Private Carrier’s License can be found on the
Oklahoma Corporate Commission’s website, and must be printed and filled out then brought to
the Oklahoma Corporation Commission Transportation Division 29. It may also be possible to
use the IRP online filing system, but the source was very unclear. There is a $100 filing fee
associated with it plus some other smaller fees including $7 per vehicle stamp, $10 for a current
rule book, the largest unknown being the cost of liability insurance which would be required 29.
This license requires renewal after the first year, then for 1, 2, or 3 years following that 30. Each
vehicle must also have a stamp which must be replaced annually 30. A link to this application
and more information can also found in the Additional Resources section.
REQUIREMENTS FOR OBTAINING EMPLOYEES
Having employees at your business in Oklahoma requires a few conditions to be met. First, an
EIN must be applied for if not already possessed. Next, a withholding account for state income
taxes must be setup through the Oklahoma Taxpayer Access Point 31. This will also prompt
signing up for an Oklahoma Tax Commission business account if that was not done already 31.
Then set up an account for employee’s unemployment taxes through the Oklahoma
Employment Security Commission 31. Last but not least get a workers’ compensation policy
through a private insurer or the offered CompSource Oklahoma insurer 31. This overview was
very general because it’s not the focus of the report to cover such material as in depth, but
regardless the links found in the Additional Resources section have more information.
12
CALIFORNIA
SELLER’S PERMIT
A seller’s permit is required for anyone doing business in California involving the sale or lease of
tangible personal property that would otherwise be subject to sales tax if it had been sold at
retail. It is necessary for all California wholesalers to possess a permit. This can be applied for
online at the California Board of Equalization’s website through eReg or at the nearest BOE
office which is located in Sacramento. There is no cost associated with the permit except that a
security deposit may be required to cover unpaid taxes if the business were to close without
first paying those 32. It’s important to note that the application will ask for names and addresses
of suppliers as well as anticipated average monthly sales so that information should be ready
and on hand. Also, if multiple places of business open up within California an additional permit
for each location may be necessary 32. Additionally, a particular requirement of the seller’s
permit is that whenever buying from an entity in a transaction where sales tax will not be
applied a resale certificate is to be provided by the buyer to the seller 33. Essentially it states
that the tangible property is to be sold elsewhere where sales tax will be applied. If the
property is sold to another wholesaler then they are required to provide you, the seller, with
such a certificate. More information can be found under the Additional Resources section at the
end of the report.
ALCOHOLIC BEVERAGE LICENSE
In order to sell alcoholic beverages in California a permit from the California Department of
Alcoholic Beverage Control is first required. The prerequisite for this license is to possess a
Seller’s Permit from the California Board of Equalization as described in the Seller’s Permit
section. This license can only be applied for in person at the nearest ABC office, which is
conveniently located in San Luis Obispo. Processing for this application can last 45+ days and
includes a background investigation period 34. Such a company would require the Type 17 Beer
and Wine Wholesaler license. This would be an initial cost of $100 plus the annual cost of $310
to renew the license 9. Additionally, if the international importation component of the business
is implemented with a nexus in California a Type 09 license would also be necessary. This would
simply be another $47 annual charge on top of the Beer and Wine Wholesaler license cost 9.
Links to more information about the license are in the Additional Resources section.
PUBLIC/PRIVATE WAREHOUSING
A public or private warehouse can store any type of alcohol, and would be considered a bonded
premise. A private warehouse is only necessary for alcohol that is not state tax-paid beer or
wine, so it has little application here. However, a public bonded warehouse would be an
appropriate place of storage for imported wine or to just have additional storage space. As
13
previously mentioned in California, state tax-paid wine may be stored anywhere, technically.
However, if the wine is stored in a location that is not on the wholesale licensed business
premise, then the wine must be brought back to the licensed premise before being sold or
shipped off 8. It would be advantageous then to have the storage area be within the licensed
premise of business. The way around this, however, would be to store all alcohol in a public
warehouse, or private if truly desired, and then the alcohol can leave the bonded premise and
go directly to the retailer or buyer 8. Such a public warehouse would have to be found in the
area of business, and then contracted with. This would work well in the case of importation
because imported wine could simply be stored at the public warehouse upon arrival into the
states. If a private warehouse is desired then it will need to be maintained by someone, and the
application can be filed for at the nearest ABC office. A pdf of the application can be found in
the Additional Resources section for reference.
REQUIREMENTS FOR OBTAINING EMPLOYEES
There are conditions that must be met if the business is to have employees. If already privy to
these requirements feel free to skip ahead, but this section will be detailed nonetheless. First,
the employees need insurance and worker’s compensation. An important note is that if the
business now pays out more than $100 in wages in a quarter it becomes necessary to apply for
an employer payroll tax account number with the State of California Employment Development
Department because the business is now subject to state payroll taxes 35. For more information
on state payroll taxes see some of the links in the Additional Resources section. Also necessary
to have employees is the following of Safety and Health Regulations set by the California
Occupational Safety and Health Administration. However, a business with less than 10
employees would be exempt from some of these requirements 36. Some sort of worker’s
compensation policy would also be required. Cal/OSHA offers consultations that could help find
potential threats to safety in the workplace so that those can be eliminated before an
unfortunate incident occurs. The brevity of this section is due to how unrelated it is to the main
topic, but more information on Cal/OSHA and related specific regulations in the Additional
Resources links.
COUNTY AND CITY REGULATIONS AND NECESSARY LICENSES
San Luis Obispo, California, was the only specified city when research began, and so it will be
the only one covered in this report. Due to this fact the report doesn’t contain any
requirements for such a business in a given city in Oklahoma, but be aware that they might
have their own regulations and necessary licensure. Additional information and links can be
found in the Additional Resources section.
14
SAN LUIS OBISPO
BUSINESS LICENSE – BUSINESS TAX CERTIFICATE
In order to do business within San Luis Obispo City limits a business license is needed. Despite
the familiarity you may already have with this license it will be detail anyways. This license can
be filed for in the Community Development Department in downtown San Luis Obispo. One
must fill out the required paperwork, and allow up to a month for processing 10. The associated
cost for such a license is either $169 or $319 depending on whether the business is located
within the downtown business improvement district 10. There is also a trivial $1 annual state
CASP fee to increase disability access in businesses. Whether or not the business is in the
downtown improvement district will also affect its business tax rate. Within the improvement
district and outside of tax rates are $0.25 and $0.55 per $1,000 gross receipts respectively 10.
The license must be renewed annually on July 1st for $45 10. Additionally, to establish a
separate business identity another business license is required regardless of it you already own
one for another business in San Luis Obispo 37.
COUNTY BUSINESS LICENSE
This license is only necessary if the business were to sell wine outside of city limits, but still
within San Luis Obispo County. Such a license would need to be renewed annually and can be
applied for at the Tax Collector’s Office. Though an exact fee wasn’t presented on the San Luis
Obispo County Website, it is likely safe to assume similar pricing as the general San Luis Obispo
City business license 38.
FICTITIOUS NAME FILING
Also known as Doing Business As, or DBA, this is simply naming the business something other
than that of the person who holds the business license. This can be applied for in the San Luis
Obispo County Office by filling out the required form. It costs approximately $49 plus potential
processing fees to complete the fictitious name filing process 39. Upon approval the business
must be published in a newspaper of general circulation once a week for 4 weeks, and the first
publication date must be within 30 days of the filing date 39. Every 5 years the fictitious name
filing must be renewed, or else the entire process has to be repeated 40.
SIGN PERMIT
Trivial, but noteworthy permit regarding constructing new business signs. This can be taken up
with the Community Development Department of San Luis Obispo and will require paperwork
in addition to a possible small processing fee 41.
15
BURGLAR ALARM PERMIT
Another trivial permit, but if burglar alarms are to be installed on the business premise such a
permit is needed. The permit can be applied for from the City of San Luis Obispo Alarm Program
Website. Installation of alarms themselves are a fee the owner of the business must pay, and
there is a $35 initial and annual fee for the permit 42.
DISTRIBUTION TO OTHER AND WITHIN NEXUS STATES
The distribution of wine outside of the chosen state of business, and even within it, is no simple
process. In every case presented here there is an additional permit or license required to sell to
another state. Additionally in every case sales would be to a wholesaler of the state on the
buying end. This unfortunately prevents any direct business with small alcohol retailers or on
premise sellers such as restaurants and country clubs. Following regulations here adds an
additional cost and deviation from the original business idea, but it is possible profit could still
be made this way.
OKLAHOMA
First we’ll look at distribution were the nexus of business operations outside of Oklahoma. In
this case there actually wouldn’t be any distribution within the state because, as previously
stated, the company would have to be a Nonresident Seller and sell to a licensed Oklahoma
Wholesaler 2. However, if the company were established as an Oklahoman Wholesaler, then
the process would be simpler, though not easy. From within Oklahoma, the company would
either need to distribute through a licensed carrier, or purchase or lease trucks to deliver and
distribute for them. This is where a Carrier’s license and Intrastate Private Carrier’s license
would be necessary. Otherwise, the purchasing retail store or location may have trucks that
could pick up the wine at the warehouse.
CALIFORNIA
Within California there is no vehicle licensure needed to carry wine. Distribution could be
performed through a credited shipping company, or the licensed business could have their own
trucks to transport and distribute the wine. One scenario to consider, though not part of the
original business plan, would be selling from Oklahoma to California. Unlike the other states, no
information could be found stating that a similar “nonresident sellers license” would be needed
to sell to California retailers from out of state. This is an interesting, but likely deceptive
observation that would require much further investigation into the laws of both states.
Thankfully, such a situation should not arise given the current business plan.
16
TEXAS
Similar to the case of Oklahoma, Texas would require you to first obtain a non-resident seller’s
permit. Then the company could enter into a trade agreement with a Texas wholesaler, but
here we have the same issue that would prevent direct distribution within Texas. In order to
qualify for a non-resident seller’s permit in Texas you have to prove you are the sole source of
American supply for the given brand or label of wine you want to sell to Texas wholesalers 43.
The permit would be $300 plus a $376 surcharge and would need to be renewed every two
years for a price of $114 44. A pdf of the application is available in the Additional Resources
section
ARIZONA
There is another similar case to be found in Arizona. In order to distribute wine there the
company would need to possess a series 2 out-of-state producer license 45. This license can be
applied for on the Arizona Department of Liquor’s website. There the form can be access and
necessary information supplied. The cost for this license is $350 for the first half of the year,
and $325 for the remaining half. Plus it must be renewed annually for a surcharge of $120 46.
Said application can be found in a link within the Additional Resources section of the report.
NEW MEXICO
Similar to other states, alcohol cannot be directly sold to New Mexican retailers, but rather has
to go through New Mexican wholesalers first. It is also required that a nonresident liquor
license be obtained to conduct such business 47. Such a license would require you to fill out the
application and submit all appropriate forms to the New Mexico Regulations and Licensing
Department. The application fee is $200, while the cost of the license itself will depend upon
which year you apply and what the expected total billing to New Mexican wholesalers will be,
but ranges from $100 to $3,750 for the size of business in mind in this report 48. The license is
issued every three years, but if bought during the second or third year it is prorated, which
accounts for the wide range of possible prices. More specific information and a pdf of the
application itself can be found in the Additional Resources section.
IMPORTING WINE
Numerous regulations control the importation of wine, and all alcohol for that matter, into the
United States. Not only must procedure be followed, but there permits, bonds, and approval
processes largely guide this specific transaction. Such transactions are difficult on purpose,
however, that’s certainly not to say that they can’t be done. In this section the regulations,
17
permits, and intricacies are presented. To consult the official documents see the Additional
Resources sections and the links it has to offer.
REGULATIONS AND PERMITS
IMPORTER’S BASIC PERMIT
The importer’s basic permit allows the holder to import alcohol not for personal use into the
United States. This federal level permit is issued by the Alcohol and Tobacco Tax and Trade
Bureau (TTB). One can apply for this permit through the Permits Online system which can be
found through the TTB’s website linked in the Additional Resources section. The application
requires typical inputs such as reason for application, business address, business information,
and personal information 49. Like all TTB permits it is offered free of charge too 50. This
application can be combined with the wholesaler’s permit mentioned earlier which would
reduce paperwork 50. This opportunity should be taken advantage of, and then if the
importation side of the business were to not be acted upon the TTB should be notified and the
permit terminated.
CERTIFICATE OF LABEL APPROVAL (COLA)
Each product brought into the United States must have an Alcohol and Tobacco Tax and Trade
Bureau approved label 50. The label on the bottle must comply with federal labeling and
advertising requirements in order to be sold in the United States. Approval of the label is
granted through a Certificate of Label Approval, or COLA. There is no cost associated with
acquiring a COLA, and the entire process can be done through the COLAs Online application
system found on the TTB’s website 50. It is possible, however, that a pre-COLA approval will be
necessary for the imported wine 51. A list of the necessary pre-COLA evaluations and the
products they apply to is available in the Additional Resources section. An important
clarification of this requirement is that each new product brought into the United States must
have its own certified label. This means that importing multiple products will require as many
COLAs. Processing time on COLAs is roughly 30 days (may vary) so that must be taken into
consideration as well 52. If the foreign winemaker has done business with the US already and
has a valid COLA from the TTB then that would greatly simplify things.
NATURAL WINE CERTIFICATE
Every wine that is imported onto U.S. soil from abroad must have an accompanying Natural
Wine Certification. This certification ensures that the conditions the wine was produced in
meets the Federal Alcohol and Tax Trade Bureau’s standards. Among other categories it covers
cellar treatment, alcohol content, and practices and procedures. This certification is issued by
the producing country’s government or government entity, and includes a laboratory analysis
18
of the wine 53. Additionally, a new certificate is required for each wine that is being imported 53.
The cost of certification is unclear, but would depend on official regulatory entities in the
foreign country of interest. However, this certification requirement can be bypassed if the
country of origin has an enological practices agreement with the U.S. 53. These countries include
Argentina and Chile as well as many others, but do not include Peru which was a potential
country of interest 54. The full list can be viewed by following the link in the Additional
Resources Section. To learn more about what constitutes satisfactory for each requirement and
other common questions visit the Q&A link in Additional Resources as well. There is a chance
that the foreign government will mandate the acquisition of a similar and related certificate
called a Certificate of Age and Origin. This certificate is to be issued and signed by an authorized
official of the foreign country 55. Those countries that do require one can be found in a link in
the Additional Resources section, but do not include any of the main three countries of interest:
Argentina, Peru, and Chile 55.
CUSTOMS IMPORT BOND
A customs import bond is essentially a guarantee that the federal government will be
compensated for all that they are owed in the importation process including taxes, duties, and
other fees 56. These bonds are required for importations in which the value of goods exceeds
$2,500 which are likely to occur in the wine importation and wholesale business 56. There are
two type of customs bonds: single entry and continuous 57. Single entry is for one importation
and cost a minimum of $100 while continuous entry is an annual bond with fees that vary
depending on where the bond is acquired from 57. The minimum bond amount is $50,000 of
coverage, but typical continuous rates are only around $400 57. Also, if using a continuous bond
one must apply for permission with the entry office at one’s preferred port of entry 56. Bonds
are acquired from licensed surety or customs brokers acting as an agent of a surety 56. It is also
possible to hire a customs broker that will assist with the process of importing international
wine and ensure that all regulations are met. For more information on licensed sureties and
customs import bonds consult the links in the Additional Resources section.
OTHER ASSOCIATED FEES AND SPECIFICS
Due to the nature of importing a foreign goods in general there are many hidden fees involved
in the process. First of all, imports will have to be directed into one of three ports in California
most likely. Among them are Los Angeles, San Diego, and San Francisco 58. If the wine is to be
shipped into the U.S. through one of these ports there will also be an accompanying Harbor
Maintenance Fee (HMF) of .125 percent of value 59. Among the lesser known fees in the
importation process there is a Merchandise Processing Fee (MPF) on all formal and informal
entries into the U.S. 59. For formal entries, or typically those about $2,000 in value the fee is
.3464 percent of its value, but it will be no less than $25 and no greater than $485 states the
CBP 59. There is also the federal excise tax on alcohol to be considered as it will need to be paid
19
at point because the wine will be consumed in the U.S. See the Federal Excise Tax section for
more details on that. To gain a more complete understanding of all of the fees it is best to
contact a port specialist at the determined port of entry and view the link in the Additional
Resources section 59.
One final thing to be aware of is that the U.S. has negotiated Free Trade Agreements (FTA’s)
with Chile and Peru, but not Argentina, which have eliminated or reduced tariffs on a huge
majority of goods including wine 60. This makes business in Chile and Peru potentially more
attractive than business in Argentina due to the lower tariff rates. Regardless, specifics such as
these need to be acknowledged and understood in order to conduct efficient international
business.
CONCLUSION AND FINAL THOUGHTS
Becoming a wine wholesaler/distributor/importer is a considerably expensive and complicated
process. The research would support that becoming an Oklahoman wholesaler specifically
would be the most time and money extensive process by far. In addition, the Oklahoman
license would take the business beyond wine wholesale and into the liquor and spirits trade.
Even bringing in out-of-state wine to Oklahoma would pose the problem of trying to convince
the selling party to get a $3,250 nonresident seller’s license. However, as a Californian
wholesaler given the current business plan there isn’t a whole lot that could be done either.
Unless multiple nonresident licenses from other states were acquired business would be limited
to within the state. The reality of the situation is somewhat at odds with the business model.
The complexity of the process is most definitely a purposeful design that stops all except for
those dedicated to establishing themselves in the business for the long run. That being said,
there is still potential for such a smaller business to be established with a slightly modified
business plan. A clear choice would have to be made as to whether the Oklahoman wholesale
venture is worth the effort and is in line with the sole proprietor or partners business
capabilities and goals. Undoubtedly, a great deal of work would have to go into it to make it
work and become lucrative. If that venture isn’t in line with the business plan at the moment
then establishing a headquarters in California would be the natural alternative option. By being
based in California and owning one or more of the nonresident licenses for states such as
Arizona, Texas, and New Mexico the business could still be viable. From this position it could be
decided whether or not the Oklahoma nonresident seller’s permit is worth the time and money.
Expansion into the international wine sector would be another time consuming process in itself.
While foreign wine, especially from Peru and Chile due to free trade agreements, is appealing
to the business model, setting up the initial importation will take time and preparation.
Importing foreign wine would become a more streamlined process given some time and
experience, but certainly just adds more work to the business in its first few years. Ultimately,
20
the whole business idea is entirely possible, but would require a large amount of concentrated
work, especially in the initial setup stage, and at least a year of business preparation.
SUMMARY OF COSTS
Federal Level
-Wholesale/Importer (Alcohol) Permit ....................................................................... $0.00
-Excise Tax ................................................................................ Dependent vol. alcohol sold
-Employer Identification Number ................................................................................ $0.00
-Registration of Food Facilities .................................................................................... $0.00
-USDOT Number ........................................................................................................... $0.00
-Operating Authority ..................................................................................................... $300
-Federal Trademark .............................................................................................. $275-$325
TOTAL Approx. .............................................................................. $575+ (due to excise tax)
State Level
-State Excise Taxes .............................................................. Dependent on vol. alcohol sold
Oklahoma
-Entity Filing ................................................................................................... Unknown cost
-Name reservation .......................................................................................................... $10
-Business Registration .................................................................................... Unknown cost
-Wholesaler License ............................................................................................... $6,000/yr
-Nonresident Seller’s License ......................... $3,250 + $200 × # brand labels registered/yr
-Storage License .......................................................................................................... $23/yr
-Carrier’s License ......................................................................................................... $23/yr
-Intrastate Private Carrier’s License ........................................................................ $100+/yr
-Worker’s Compensation Policy ..................................................................... Unknown cost
TOTAL Approx. (Assuming wholesaler) ................................................................ $6,300+/yr
TOTAL Approx. (Assuming nonresident seller) .................................................... $4,000+/yr
California
-Seller’s Permit ............................................................................................................. $0.00
-Alcoholic Beverage License ..................................................... $410/$300 (1st yr/yrs after)
-Public/Private Warehousing ......................................................................... Unknown cost
(Nexus in San Luis Obispo)
-Business License .............................................................. $169-$319/$45 (1st yr/yrs after)
-County Business License ............................................................................... Unknown cost
-Fictitious Name Filing .................................................................................................... $49
-Sign Permit .................................................................................................... Unknown cost
21
-Burglar Alarm Permit ................................................................................................. $35/yr
TOTAL approx. ......................................................................................................... $850+/yr
Other States
Texas
-Nonresident Seller’s Permit ..................................................... $676/$114 (initial/yr after)
Arizona
-Series 2 Out-of-State Producer License .................................... $675/$120 (initial/yr after)
New Mexico
-Nonresident Liquor License ............................................................................ $200 + /3 yrs
TOTAL Approx. ...................................................................... $2,000/$500+ (initial/yr after)
Importation
-Importer’s Basic Permit .............................................................................................. $0.00
-COLAs .......................................................................................................................... $0.00
-Natural Wine Certification ........................................... Dependent on foreign government
-Customs Import Bond (single) ................................................................................... $100+
-Customs Import Bond (continuous) .............. Dependent on issuing surety ($400 approx)
-Merchandise Processing Fee ................................................................... (.3464% of value)
-Harbor Maintenance Fee ........................................................................... (.125% of value)
-Duty and other fees ...................................................................................... Unknown cost
Miscellaneous
-Fleet of Delivery Trucks ................................................................................ Unknown cost
ESTIMATED TOTAL (Nexus in OK) ....................................... $9,500/$7,500 (initial/yr after)
ESTIMATED TOTAL (Nexus in CA) ....................................... $7,500/$5,500 (initial/yr after)
Important Disclaimers: The estimated cost for a nexus in Oklahoma assumes becoming
wholesaler and selling from there to in-state retailers and to the other states mentioned. The
nexus in California estimated total assumes becoming a wholesaler there and selling into
Oklahoma as well as the other states mentioned. Prices do not include tax, and unknown costs
were not factored into the estimated total. Additionally, regardless of the prices and fees that
could be found online, there are likely hidden fees that were too obscure to find through
research, and so the estimated total would be even larger. This also doesn’t factor in the cost of
finding and/or purchasing a location to do business, the cost of the alcohol itself, and other
unknown charges that will likely be incurred along the way.
22
RECOMMENDED ORDER OF OPERATIONS
1. Finalize initial business plan.
2. Establish location if possible.
3. Apply for EIN if not already DONE.
4. Fulfill all requirements as an employer to have employees i.e. workers compensation,
tax accounts, etc.
5. Formally establish business by applying for business license on local level, and
registration with Secretary of State for name filing.
6. Firmly establish contacts such as potential buyers and suppliers (an ongoing process).
7. Apply for Federal Wholesaler/Importer (Alcohol) Permit.
8. Apply for alcohol license in nexus state (must obtain seller’s permit beforehand if in CA).
9. Apply for nonresident licenses in other states if desired.
10. Register warehouse with FDA (just before following step).
11. Begin acquiring product and storing in licensed private or public warehouse (applicable
to OK).
12. (Related to above) Apply for Storage license if using public warehouse (OK only).
13. (Optional) Obtain delivery trucks or contract with delivery service.
14. (Optional follow up) Apply for a USDOT number and then Carrier’s and Intrastate Private
Carrier’s License.
15. Conduct first few transactions in state and possibly out of state.
16. Make sure to record all transactions and file excise taxes to federal government and
individual states if necessary. Also accompany purchases and sales with an invoice.
17. Engage in more business within the states and consider implementing importation next
18. Identify target wineries abroad and inquire about business with the U.S.
19. Apply for and acquire COLA’s for each foreign wine to be imported
20. Acquire Natural Wine Certificate from foreign authorized official and Certificate of Age
and Origin if required by foreign country.
21. Purchase customs import bond (perhaps single entry on first importation) or hire
customs broker to provide guidance throughout process
22. Proceed with importation and business complying with TTB and CBP regulations
ADDITIONAL RESOURCES
FEDERAL LEVEL
Alcohol FAQs
23
- http://www.ttb.gov/faqs/alcohol_faqs.shtml
Who to contact for more information - http://www.ttb.gov/about/contactfile.shtml
TTB Steps to Starting a Business http://www.ttb.gov/main_pages/start-a-business.shtml
Determining Permit Needed http://www.ttb.gov/applications/index.shtml#Exporters
Permits Online (2nd link tutorial) http://www.ttb.gov/ponl/permits-online.shtml
http://www.ttb.gov/ponl/permits_online-tutorials.shtml
TTB Requirements for Wholesalers/Importers http://www.ttb.gov/business-central/alcohol-wholesaler.shtml
http://www.ttb.gov/business-central/alcohol-importers.shtml
Federal Excise Taxes http://www.ttb.gov/tax_audit/taxguide.shtml
http://www.ttb.gov/tax_audit/atftaxes.shtml
http://www.ttb.gov/tax_audit/fed_ex_tax_due.shtml
Online Pay.gov for Excise Taxes http://www.ttb.gov/epayment/epayment.shtml
Employer Identification Number https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Employer-ID-Numbers-EINs
Food Facility Registration http://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/Foo
dDefense/ucm331957.htm
http://www.fda.gov/Food/GuidanceRegulation/FoodFacilityRegistration/ucm073706.htm
USDOT Number https://www.fmcsa.dot.gov/registration/do-i-need-usdot-number
http://li-public.fmcsa.dot.gov/LIVIEW/PKG_REGISTRATION.prc_option
https://www.fmcsa.dot.gov/registration/updating-your-registration
Federal Trademark http://www.uspto.gov/trademarks-getting-started/trademark-process
http://www.uspto.gov/trademarks-application-process/filing-online
24
STATE LEVEL
State Excise Taxes http://www.taxadmin.org/fta/rate/wine.pdf
Oklahoma Excise Tax http://www.ok.gov/tax/Forms_&_Publications/Forms/Alcohol_&_Beer/
http://www.ok.gov/tax/documents/ALC50011.pdf
California Excise Tax
http://www.boe.ca.gov/pdf/pub92.pdf
https://www.boe.ca.gov/sptaxprog/alcoholfaq.htm
https://efile.boe.ca.gov/ereg/index.boe
Oklahoma Name Filing https://www.sos.ok.gov/corp/filing.aspx
Oklahoma Business Registration https://oktap.tax.ok.gov/oktap/Web/_/
Oklahoma Business Licenses http://www.ok.gov/able/Business_Application_Forms/index.html
Title 45 ABLE Commission http://www.ok.gov/able/documents/Alcoholic%20Beverage%20Administrative%20Code%20Incl
udes%20Charity%20Games.pdf
Title 37 ABLE Commission
http://www.ok.gov/able/documents/T37.pdf
Oklahoma Wholesaler’s License http://www.ok.gov/able/documents/RET%2C%20WHO%2C%20CBW%20APPLICATION.pdf
Oklahoma Nonresident Seller’s License
http://www.ok.gov/able/documents/NRS%20Application.pdf
Oklahoma Storage License http://www.ok.gov/able/documents/STO%20APPLICATION.pdf
Oklahoma Carrier’s License http://www.ok.gov/able/documents/CAR%20Application.pdf
25
Intrastate Private Motor Carrier License http://www.occeweb.com/tr/IntraStPrvtLcnse.htm
http://www.occeweb.com/TR/TRAppsList.htm
http://www.occeweb.com/tr/TDF01.pdf
Obtaining Employees in Oklahoma
http://okcommerce.gov/in-state-business-resources/start-up-steps/
Oklahoma Taxpayer Access Point https://oktap.tax.ok.gov/oktap/Web/_/
Oklahoma Employment Security Commission https://eztaxexpress.oesc.state.ok.us/Access/Default.aspx
California Board of Equalization 450 N Street
Sacramento, CA 94279-0073
Phone: (916)-445-6464"
Information Center: 800-400-7115
https://www.boe.ca.gov/sutax/faqseller.htm
https://efile.boe.ca.gov/ereg/index.boe
Resale Certificate information: http://www.boe.ca.gov/sutax/faqresale.htm
California Alcoholic Beverage License
https://www.abc.ca.gov/Permits/permits.html
http://www.abc.ca.gov/forms/abc616nr.pdf
California Alcoholic Beverage Control Nearest Office
3220 S. Higuera St., Suite 233
San Luis Obispo, CA 93401
(805) 543-7183
(805) 543-3814 FAX
SLO.Direct@abc.ca.gov
https://www.abc.ca.gov/
California Private Warehouse Application https://www.abc.ca.gov/FORMS/ABC241.pdf
California Requirements for Obtaining Employees http://www.dir.ca.gov/dosh/dosh1.html
26
California Employment Development Department http://www.edd.ca.gov/Payroll_Taxes/Am_I_Required_to_Register_as_an_Employer.htm#nots
ureifyou
California Distributor’s Association: (916)-446-7841
COUNTY AND CITY REGULATIONS AND NECESSARY LICENSES
San Luis Obispo Business License http://www.slocity.org/doing-business/doing-business-in-slo/how-do-i-get-a-business-license
http://www.slocity.org/home/showdocument?id=8083
San Luis Obispo County Business License http://www.slocounty.ca.gov/tax/faqs/businesslicense.htm
Fictitious Business Name Filing http://www.slocounty.ca.gov/clerk/fbn/Fictitious_Business_Names_Information_2.htm
Sign Permit http://www.slocity.org/government/department-directory/community-development/building-
safety/permit-forms-and-applications/sign-permits
Burglar Alarm Permit https://www.cityalarmpermit.com/fams/citizen/city/sanluisobispo/ATB_Login.aspx#
DISTRIBUTION TO OTHER AND WITHIN NEXUS STATES
Texas https://www.tabc.state.tx.us/forms/licensing/nonresident.pdf
http://www.statutes.legis.state.tx.us/Docs/AL/htm/AL.37.htm
https://www.tabc.state.tx.us/forms/compliance/excise_tax/c-205.pdf
Arizona http://www.azliquor.gov/forms/lic_series2_app.pdf
http://www.azliquor.gov/series02.cfm
New Mexico http://www.rld.state.nm.us/uploads/FileLinks/1398c844eb7e4a34b1a304f6556ac3a5/Non_Resi
dent_Application_5.pdf
http://www.rld.state.nm.us/alcoholandgaming/Forms_and_Applications.aspx
27
REGARDING IMPORTING
Importers Basic Permit info
http://www.ttb.gov/applications/index.shtml#Exporters
Importing Beverages in the US, TTB page
http://www.ttb.gov/itd/importing_alcohol.shtml
Requirements for alcohol importers
http://www.ttb.gov/business-central/alcohol-importers.shtml
COLAs
https://www.ttbonline.gov/
http://www.ttb.gov/forms/f510031.pdf
http://www.ttb.gov/labeling/processing-times.shtml
http://www.ttb.gov/labeling/colas.shtml
Labeling Laws and Regulations
http://www.ttb.gov/labeling/laws_and_regs.shtml
Pre-COLA Evaluation
http://www.ttb.gov/industry_circulars/archives/2007/07-04.html
http://www.ttb.gov/industry_circulars/archives/2007/pre-cola_eval.pdf
Natural Wine Certificate
http://www.ttb.gov/itd/importing_alcohol.shtml
http://www.ttb.gov/wine/qa.shtml
http://www.ttb.gov/wine/itd_doc.shtml
Certificate of Age and Origin
http://www.ttb.gov/itd/cocreq.shtml
Customs Import Bond
https://help.cbp.gov/app/answers/detail/a_id/734/~/when-is-a-customs-bond-required
https://help.cbp.gov/app/answers/detail/a_id/208/~/bonds---how-to-obtain-a-customs-bond
Additional Fees in Importation
https://help.cbp.gov/app/answers/detail/a_id/810/~/other-taxes-or-fees-required-to-import-
goods-into-the-u.s.,-other-than-duty
Free Trade Agreement Details
http://export.gov/fta/
28
WINE AND SPIRITS WHOLESALERS OF AMERICA
This organization is exactly what its name suggests, and its members may be extremely
beneficial contacts within the industry. It may be more helpful to be a member in the long run,
but surely its members have solid advice for those just getting into the business. It’s a
completely optional resource though, and does come at a cost. Dues are based on sales volume
in dollars, and so it may be too early to get involved and risk losing early profits 61. The company
must’ve been in business for a year already to apply, and your primary business has to be as a
wholesaler of distilled spirits and/or wine, so given the fact that Monsoon Consultants is the
primary business currently, this might not be an option at all 61.
REFERENCES
1. "Direct Shipping." TTB. Alcohol and Tobacco Tax and Trade Bureau, 4 Sept. 2012. Web. 14
Sept. 2015. <http://www.ttb.gov/publications/direct_shipping.shtml>.
2. Sharp, Kathy. “RE: Message From Website: General Inquiry.” Message to Nicholas Kellerman.
17 August 2015. Email.
3. "Nonresident Seller's License Application." (n.d.): n. pag. Ok.gov. State of Oklahoma. Web. 30
Oct. 2015. <http://www.ok.gov/able/documents/NRS%20Application.pdf>.
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