I've been investing in wine for few years now (buying wine and then reselling a few years later at auction). Because I've been doing this myself (not through any corporate entity), I always pay sales tax on my initial purchase, even though I'm not the ultimate consumer. Hence, I'd like to see if I can set up a corporate entity so as not to pay the initial sales tax (it would be paid by the final consumer, who purchases the wine at auction). Also, I would hope I can avoid any 'liquor license' fees as I'm also not selling the wine directly to the consumer, but rather through an auction company for a fee. Can I just go ahead and set up an LLC or S-Corp, or are there more complications because this involves alcohol?
Many thanks for any advice or guidance on next steps!
John.One additional thing I should mention - at this time I'm not sure whether I'll just be investing my own money myself on my behalf, or whether I will also do this for others too. I'm not sure if those two approaches would change the approach I would use for incorporation, and whether the latter approach introduces new complexity from a legal or tax perspective. Also, if I just do this business for myself, is there any risk of the IRS or Local Tax entity viewing this as not a real business etc?