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

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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

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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

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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

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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.

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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.

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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.

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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.

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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

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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

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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.

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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

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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.

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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>.

4. Palmer, Jennifer. "Winery, Distributor, Retailer — How Wine Is Distributed in Oklahoma."

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