How To Become a Beer & Wine Distributor in Texas 

Alcohols Startup Businesses- What You Need To Know

Steps To Becoming A Wine & Beer Distributor:

• Apply for an employer identification number with the Internal Revenue Service at IRS.gov using the SS-4 form. It is required that you get this number before you can apply for any other licenses, federal or state.

• One must complete an application for a basic permit under the Federal Alcohol Administration Act. This form can be filled out at the Department of the Treasury’s Alcohol and Tobacco Tax and Trade Bureau at TTB.gov.

• It is best to contact the Texas Alcoholic Beverage Commission to decipher exactly what permits you need. Typically, you will need a Local Class B Wholesaler license, which cost about $1,200 a year. Depending on your structure plan for your business and where your company will be based, you may need a Manufacturer’s Agent Permit, a Nonresident Seller’s Permit, a private Storage Permit, or even a promotional Permit.

• You will need to determine if your company needs to post a bond with the state and if so, how much that bond will be. If your business holds a Class B Wholesaler’s permit and you are responsible for excise tax payments, than you can expect to post a bond. The state may accept certificates of deposit, which will accrue interest, or letters of credit in lieu of a bond. Once you have paid all taxes and fees for a 36-month period, the state will no longer require you to post a bond.

• You must apply for licenses through the Texas Alcoholic Beverage Commission for every employee that will be selling wine to a retailer. Note that if an employee is just delivering the wine, they will not need a license, but if they will be working with certain retailers regarding the kind of brands they will carry or how much they will be purchasing, a proper license is required.

• Contact local authorities to determine if there are any permits, forms or licenses that are required to operate a wine distributor business in your area.

• You will want to get your distributor listed in the wine & beer distributor and manufacturer databases. The Global Wine & Spirits or the International Beverage Network are great ones to start with. This helps manufacturers looking for wine distributors to find your business and begin using your services.

• Its essential to learn as much as you can about wine in general, but even more important to have extensive knowledge regarding the different brands you plan to distribute. Most wine manufacturers will share their knowledge to help educate you on their brands and their market research. 

TABC Texas Attorneys for Alcohol Startups