How To Start Beer Distributorship In Nigeria

See How To Start Beer Distributorship In Nigeria Below…

1. Apply for a Doing Business As (DBA) certificate from your state to reserve the name of your beer distribution company. The state office that handles DBA registration varies from state to state, but is typically the Secretary of State’s Office. Fill out the DBA registration form with the name you want for your distribution company, your personal contact information and Social Security number. The fee for a DBA is usually between $20 and $50, depending on the state.

2. Obtain an Employer Identification Number (EIN) from the Internal Revenue Service. You need this number to issue W-2 forms to your employees at the end of the fiscal year, and your employees will need the EIN to file their taxes. EIN registration costs nothing to you and can be done on the IRS website.


3. Fill out the “Application for Basic Permit” form on the U.S. Tax and Trade Bureau website. The permit is legally required by the Federal Alcohol Administration Act to operate as a beer distributor. To fill out the form, include your business name, EIN, your personal contact information and most recent residences. Under the “Business To Be Conducted at Premises Address” section, check the “Distilled Spirits Plant” box and the “Processing” box. Send the form to the address listed.

4. Obtain the state permits necessary to operate a beer distribution business. Contact your state’s Attorney General’s Office or Secretary of State’s Office for more information regarding the necessary permits. Your state may have a department that regulates beer distributor licensing. For example, the Texas Alcohol and Beverage Commission regulates distributors across the state and issues permits. Permits cost anywhere from a few hundred dollars to a few thousand dollars and could take a few weeks to process.

5. Sign a lease at a commercial property zoned for beer distribution. Once you find a property in your price range, contact your county clerk to verify that it is zoned for your needs. Your state may also have laws regarding the proximity of beer distribution businesses to places like churches and schools. Your county clerk also has information about special proximity laws.

6. Sign a lease with a trucking company. You need trucks to transport your beer to the final retail customer. Negotiate a truck lease that lasts for only a few months at a price you can afford. Once your business picks up, you can research buying trucks of your own.

7. Partner with brewers in your area to begin distribution. Many states do not allow brewers to distribute their own beer or brewers may not have the infrastructure or personnel to ship their product. Brewers will use your company if you can provide distribution at a reasonable cost. Visit local brewers and inquire about their distribution needs. Determine the cost of your labor and overhead and add that the profit you need to make. This number should be your starting cost estimate for distribution shipments.

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