Starting a spirits distribution business in the United States involves more than securing suppliers and customers. Because distilled spirits are one of the most heavily regulated categories of alcohol, distributors must navigate a layered system of federal, state, and local licensing, as well as ongoing compliance obligations.
At the federal level, most spirits distributors must obtain a Federal Basic Wholesaler Permit from the Alcohol and Tobacco Tax and Trade Bureau (“TTB”). This process includes background disclosures, source-of-funds documentation, premises information, and operational details submitted through TTB’s Permits Online. Federal approval is required before engaging in wholesale activity and, often, before state licenses can be issued.
State licensing requirements vary significantly and are often more complex. Many states require a spirits wholesaler or importer license, registration of brands and labels, warehouse approvals, financial disclosures, and compliance with franchise or tied-house laws. Some states impose residency, ownership, or in-state presence requirements, while others mandate reporting, pricing postings, or product registration prior to sale. Local zoning, warehouse approvals, and sales tax registrations may also apply.
Beyond licensing, spirits distributors must comply with excise tax obligations, recordkeeping requirements, advertising restrictions, and product movement rules. Importers face additional compliance considerations, including customs, FDA registration, label approvals, and coordination between federal and state authorities. Failure to address these requirements early can lead to costly delays, enforcement action, or denial of licensure.
Because the regulatory framework differs by jurisdiction and business model, careful planning at the outset is critical to building a compliant and scalable distribution operation.
How Lindsey Zahn P.C. Can Help with Your Spirits Distribution Business
Lindsey Zahn P.C. is an alcohol beverage law firm that advises domestic and international clients on establishing and operating compliant spirits distribution businesses, including:
- Assessing business models and licensing strategies at the federal and state levels
- Preparing and filing TTB Federal Basic Wholesaler and Importer Permit applications
- Advising on franchise laws, tied-house restrictions, and distribution agreements
- Counseling on excise tax, reporting, and recordkeeping obligations
- Assisting with label approvals, brand registrations, and market entry planning
If you are considering starting a spirits distribution business or expanding into new markets, we invite you to contact us to discuss a tailored licensing and compliance strategy.
Lindsey Zahn P.C. is an alcohol beverage and food law firm advising clients on federal and state regulatory compliance, licensing, and market entry.
📩 Email us at info@zahnlawpc.com
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