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Market 01

The United States.

Fifty separate alcohol regimes, some of them very restrictive. The state you pick decides more about this venture than almost anything else you choose.

Alcohol law is state lawSome states are closedSpecialist grocery travels well
The first principle

Alcohol law is state law, and it varies wildly.

There is no national framework. Each state sets its own regime, and in some the model you have in mind is simply not available.

In some states a convenience store may sell beer, wine and spirits freely under a general licence. In others, spirits are sold only through state-run stores and a private shop can sell nothing stronger than beer. Several states cap the number of licences by population, which means the only route in is buying an existing licence at whatever the market charges. A few apply quotas per owner, limiting how many stores one entity may hold.

The practical consequence is that state selection precedes site selection. A store plan built around alcohol revenue can be worth substantially less in a control state, and the difference is not marginal — in many convenience formats alcohol is one of the largest categories by both turnover and margin.

Tobacco and lottery are separately licensed or registered, again at state level, and both are typically high-turnover low-margin lines that bring people through the door rather than generate profit themselves.

The compensating advantage is scale and diversity. US metros contain large, established communities that a specialist grocery serves well, and a South Asian, halal, Latin American or East African range in the right catchment can be a genuinely strong business with far less competition than general convenience.

Setting it up

What a US venture involves.

ElementPosition
Entity type LLC is the usual choice. Tax consequences run in both countries and the decision is made with your accountant, not by us.
Ownership 100% non-resident ownership is generally permitted for the company. Some states impose residency or citizenship conditions on alcohol licence holders specifically — a separate question from company ownership, and one we check before committing.
State of formation The state you operate in. Forming elsewhere means foreign qualification and two sets of fees.
EIN Federal employer identification number, needed for banking and payroll. Obtainable without a US social security number.
Alcohol licence State, and sometimes county or city as well. May be quota-limited, may require a resident licensee, and may exclude spirits entirely.
Tobacco & lottery Separate state registration or licence for each. Both usually low margin.
Sales tax Registration and periodic filing. Rates and what is taxable vary by state and often by locality.
Food handling Health department permit and food handler certification where a deli, hot food or prepared food counter is planned.
Employment Payroll registration, workers' compensation insurance, and state rules on minimum wage and scheduling.
Insurance General and product liability, property and stock, business interruption, and liquor liability where alcohol is sold.
Annual obligations State annual report or franchise tax, federal returns, plus the information filing below.
Read this if you take nothing else from the page

A foreign-owned single-member US LLC must file an annual information return with the federal tax authority together with a pro-forma corporate return, even where no tax is payable and the company did not trade. The penalty for failing to file is substantial and applies per year. Every venture we set up leaves you with a compliance calendar carrying that date.

Choosing a location

What we assess before recommending anywhere.

State first, because of alcohol. Then catchment, because retail is walked to.

01

State alcohol regime

What may be sold, whether licences are quota-limited, what a licence costs on the open market, and whether a resident licensee is required.

02

Catchment composition

Households within walking distance, and for a specialist store whether the community you intend to serve is present in sufficient numbers.

03

Observed footfall

Counted at different times and days, not estimated from an agent's description.

04

Competition

Every convenience, grocery and specialist store within a realistic radius, including the multiple two streets away.

05

Parking & access

Far more important for a grocery basket than for a top-up shop. A specialist store draws from further out, and those customers drive.

06

Unit capability

Electrical capacity, plant location, delivery access and stockroom, surveyed before any offer.

07

Labour market

Whether a competent manager can be hired at a wage the model supports, and what state scheduling rules require.

08

Occupancy cost

Rent and property tax against realistic turnover. Cheap rent in a thin catchment is not cheap.

Get a US state and location assessment

We score candidate states on the alcohol regime first, then catchments within them, and tell you which we would actually build in.

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