A Texas Wholesale license is a type of business license issued by the Texas Alcoholic Beverage Commission (TABC) that allows individuals or businesses to sell wholesale goods, such as alcoholic beverages, to other retailers or businesses, but not to the general public.
Holding this license allows the holder to purchase alcoholic beverages from manufacturers and distributors and resell them to retailers such as bars, restaurants and other retailers who have a retail permit or licenses. They can also sell to other wholesalers.
If you’re interested in obtaining a wholesale license in Texas, there are a few steps you will need to follow.
- 1. Steps to Obtain a Wholesale License
- 2. What Will Happen If I Won’t Have a License?
Steps to Obtain a Wholesale License
Register Your Business
To register your business, you will need to first get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) which is free to apply, it can take up to 4-5 weeks to receive it, but you can opt for expediting the process by applying online. EIN is similar to the Social Security number for businesses. Once you have a valid EIN, you can begin to hire employees and start conducting business operations.
To register your business in Texas, you will need to follow a few steps to ensure that your business is in compliance with state laws and regulations:
- Decide on the type of business structure that you want to register, such as a sole proprietorship, partnership, LLC, or corporation.
- Select a business name that is not already in use and that complies with Texas naming rules.
- Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to use as a tax ID number for your business.
- Register for local taxes: Register for any local taxes that may be required by your city or county.
- Register for any specific licenses or permits: Certain businesses may require specific licenses or permits, such as a wholesale license for those who sell alcohol or a food service permit for those who sell food products.
Register with the Texas Comptroller of Public Accounts
In order to obtain a wholesale license in Texas, you will need to register your business with the Texas Comptroller of Public Accounts. This can be done online through the Comptroller’s website. During the registration process, you will need to provide information about your business, including its name, address, and Tax ID number.
Also don’t forget to register for any local taxes and specific licenses or permits.
Some permits you may need are:
- Alarm Permit
- Building Permit
- Business License
- Tax Permit
- Health Permit
- Occupational Permit
- Signage Permit
- Zoning Permit
Obtain a Sales Tax Permit
In addition to registering with the Comptroller’s office, you will also need to obtain a sales tax permit. This permit allows you to collect sales tax from your customers and remit it to the state.
Apply for a Wholesale License
To apply for a wholesale license, you will need to submit an application to the Texas Alcoholic Beverage Commission (TABC). Application forms can be found on the TABC website.
Meet the Requirements Set by TABC
TABC has some requirements for obtaining a wholesale license such as the applicant must not have any criminal record related to the alcohol beverage trade and must not have any pending legal actions.
Pay the Appropriate Fee
There is an application fee for a wholesale license, which varies depending on the type of license you are applying for. You can find more information on the fees associated with each type of license on the TABC website.
Renewal of License
Wholesale licenses in Texas must be renewed annually and will be required to meet the continuing education requirements set by the TABC.
It’s important to note that these requirements are subject to change and that you should check the official website of Texas Alcoholic Beverage Commission (TABC) for the most up-to-date information and specific details on the licensing process.
What Will Happen If I Won’t Have a License?
It is important to note that alcoholic beverages are regulated in Texas by the TABC and it is illegal to sell or distribute alcohol without a proper license.
If the TABC finds that you are selling alcoholic beverages without a wholesale license, they may take the following actions:
- Issue fines: The TABC may impose monetary penalties for violating state laws related to the sale of alcoholic beverages. Fines can vary depending on the nature of the violation and the number of times the violation has occurred.
- Suspend or revoke your business license: If you are found to be operating without a valid wholesale license, the TABC may suspend or revoke your business license, which would prevent you from operating your business until the license is reinstated or a new one is obtained.
- Criminal charges: It is also possible for a person to face criminal charges for selling or distributing alcohol without a proper license. The severity of criminal charges will depend on the situation and the nature of the violation.
- Civil Penalties: Civil penalties can include fines, penalties, or both.
- Injunctions: The TABC may seek an injunction to prevent you from continuing to sell alcoholic beverages without a license.
It’s important to note that not having the proper licensing can also expose you to a significant amount of legal liability, and penalties for violating state laws regarding the sale of alcoholic beverages can be severe. So, it’s always better to have the proper licensing and to stay in compliance with all relevant state laws and regulations in order to avoid any legal issues.