Legal Question in Business Law in California

Re: Starting an online business selling wine

I assume you intend to sell tax-paid, bottled and labeled wine to ultimate consumers. The list is different if you're handling bulk wine or wine on which the Federal excise tax hasn't been paid (wine in bond).

The starting point is to understand that interstate sales and shipment of wine is subject to the individual states' rules. Therefore, to be in full compliance at all times, you need to know and obey the laws of 51 jurisdictions, plus maybe the laws of U.S. Territories and foreign nations.

There are perhaps a few states into which a California-licensed winre retailer can ship direct without any license or permit from that state. There are others where you can't ship at all; to do so is a felony. Most are somewhere in-between, with rules you can probably live with.

Fortunately, the wine trade has organizations that keep track of, and try to simplify, the various laws and regulations. I would start by contacting the California Wine Institute, and also look at the organization called "Free The Grapes" (or something like that).

For an appropriate California license, contact the Alcoholic Beverage Control Board (ABC); the nearest office to you is 71 Stevenson St. in San Francisco, but for starters check its Web site at abc.ca.gov; it has lots of info about license types, applications, etc.

I should advise you that this is a very highly competitive business already, with several well-financed, venture-capital backed startups; also, it is thought in the trade that bookseller Amazon.com is planning to enter the retail wine area, if it has not already done so. Finding sources of quality items at attractive prices (where you can make a profit) may be your biggest hurdle.