The world of alcohol sales can be confusing. You have to deal with different tax codes, guidelines and the steps it takes to get a liquor license. It’s easy to get overwhelmed by all of the information out there, but you shouldn’t be discouraged. This guide will give you some information that can help you find success in the alcohol industry.
The Basics of Alcohol Sales
Before you can start selling alcohol, you need to know the basics. For example, do you know what constitutes a “retail sale”? The word ‘retail’ in this context is defined as the sale of goods for use or consumption by an individual customer. A retail sale can also refer to the sale of goods in small quantities at retail prices. This means that when someone purchases any type of alcohol from your store for his or her own personal use, it counts as a retail sale. It’s important to understand what a retail sale is because it will dictate how much tax applies to your products.
Understanding the Process
The process of obtaining a liquor license can be complicated. The first step is to contact your state’s Alcoholic Beverage Control Board and ask about the specific guidelines for obtaining a liquor license in your area. You will need to provide detailed information about the business, including any criminal convictions and submit an application fee. You will also need to show proof that you own the property where you intend on selling alcohol.
Laws and Policies
Keep in mind that different state laws govern alcohol sales. You can’t just open up a business and start selling alcohol without first checking the policies of your state. Understand the different types of licenses you need and what they are for. For example, Texas uses TABC licensing for training courses, while liquor licenses are needed to actually sell the alcohol.
You should research the records that must be kept for retail sales of alcohol. Keep in mind that these records should be kept for three years after they are recorded. Make sure you know how to report any violations you find during your research so you can stay compliant with your state’s laws and policies.
Foresight
If you want to get into the alcohol distribution business, it is important that you know what you are getting into. The right foresight can help your business avoid mistakes and make sales efficiently.