Business FAQs

Revised: 06/27/08

BU1: What must I do if I want to start a business that sells or imports beverage alcohol products (spirits, wine, or beer)?

The Alcohol and Tobacco Tax and Trade Bureau requires retailers of beverage alcohol products to register using TTB F 5630.5d and maintain certain records. Retailers must file TTB F 5630.5d again whenever there are changes to the previous registration and when the retail alcohol business discontinues.

Wholesalers and importers of beverage alcohol products must also register using TTB F 5630.5d and maintain certain records. In addition, wholesalers and importers must obtain a permit and follow additional requirements.

If you would like the TTB forms and additional information to retail, wholesale or import beverage alcohol products, contact the National Revenue Center, 550 Main St., Cincinnati, OH 45202, by calling 1-800-398-2282 or by e-mail at ttbquestions@ttb.treas.gov.

There are state agencies that have separate requirements for the sale of beverage alcohol products. In addition, certain states restrict who may bring in beverage alcohol products into their jurisdictions and require permits or licenses to sell and transport beverage alcohol products. A list of these agencies is available from this web site.

BU2: What is required to sell beverage alcohol products (spirits, wine, or beer) on the Internet?

The Alcohol and Tobacco Tax and Trade Bureau (TTB) issued a Ruling concerning direct shipments and sales that includes sales transacted on the Internet. You are still subject to the same TTB requirements for selling spirits, wine, or beer. In addition, you also need to contact the appropriate State government agencies where you and your purchaser are located. Ask whether you need licenses or permits and who needs to pay any taxes and what other requirements may apply. See our Direct Shipping Web page for more information.

 
BU3: Can a business get back the tax money from alcohol or tobacco if the product is destroyed in a disaster such as a fire, earthquake, flood, or tornado?

Under certain circumstances, the tax money may be refunded for alcohol and tobacco products. See TTB Information sheet I 1200.68 (11-2004). Go to claim form.

 
BU4: I do not run a bar or liquor store, but sometimes I include alcohol beverages with my product or service. Do I owe Special Occupational Tax (SOT) as a liquor dealer?

No. There is no more Special Tax for periods beginning on or after July 1, 2005.  However, if you failed to pay Special (Occupational) Tax for tax periods ending before or on June 30, 2005, you may be liable.
Retail liquor dealers must still keep records and register with TTB.  Even though you do not run a bar or liquor store, we may consider you a retail liquor dealer if you conduct activities similar to the following examples:

• Operate a limousine service and serve complimentary drinks to passengers,
• Sell gift baskets that include wine, or
• Run a bed-and-breakfast and serve complimentary drinks to guests in the afternoon.

If you make a separate charge for the alcohol beverage (or if you charge different prices for your product or service with and without the alcohol beverage) you are definitely a retail liquor dealer.
If you have any state or local license that authorizes your business to sell beverage alcohol products, you are a retail liquor dealer.

Even if you do not make a separate charge or have a State or local liquor license, if the complimentary alcohol beverage is always included in the product or service, or if you advertise that your product or service includes a complimentary alcohol beverage, you are a retail liquor dealer. If an alcohol beverage is presented as "complimentary" to clients who pay for a particular product or service, we consider the cost as built into the charge for the product or service. If you provide alcohol beverages to most of your customers, but a particular customer declines to accept the alcohol beverage or if certain customers may not be lawfully served, we will still consider you to be engaged in the business of selling or offering beverage alcohol products for sale.

A true complimentary or gift situation, where a business that serves alcohol beverages is not considered a retail liquor dealer, is likely to be a rare situation.

If you have questions about whether your business is a retail liquor dealer, contact the TTB National Revenue Center at 1-800-937-8864 or 1-513-684-2979. We will consider the nature of the business, the manner of operation and the advertising of the business to determine if the intent is to "sell" alcohol beverages.

BU5: I want to open a business that sells beverage alcohol products at retail such as a bar, catering service or carryout, how do I get a license and will I owe any Federal Tax or Fees?

If you sell beverage alcohol as part of your business, you must register your business using TTB F 5630.5d.  Beverage alcohol means distilled spirits, wine, beer, mixed drinks, and beer or wine coolers.

Note: If you operated such a business prior to July 1, 2005, and did not pay Special (Occupational) Tax you may still be liable.  This tax applied to persons who sold on or off premises or who provided alcoholic beverages as part of the cost of an item or service. You may have owed this tax even when you did not make a profit or when you were exempt from income tax. We have a list of businesses that may have been subject to this tax.

The TTB does NOT issue a license to sell tobacco or beverage alcohol products at retail. You must contact your State or local licensing authority to obtain a retail license.