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Compliance & Tax

Compliance

DISTRYB enforces beverage-alcohol law so you can transact with confidence. Compliance is built into the platform, not bolted on.

Three-tier law

Every wholesale order is validated against the destination state's three-tier rules before it's created. If a seller-to-buyer path isn't permitted for the product categories in the order, the order is blocked with a clear reason.

Per-SKU state registration

A product is only purchasable (DTC or wholesale) in states where its brand owner has registered that SKU. Brand owners manage registrations from their dashboard; discovery and wishlisting are never gated — only the actual purchase.

A brand owner without a licence in a state can name the licensed partner that holds the registration there — an organization on DISTRYB, invited first if it isn’t on the platform yet. There is one registrant per brand and state. A named registrant is Pending review until DISTRYB compliance has reviewed the evidence (we do not check the state’s own records), and changing the registrant of a live state takes it back to pending until the new one is approved. A brand owner that holds the registration itself needs its licence in that state and the registration certificate on file for each product before it can be approved.

License verification

Federal (TTB) and state licenses are verified at onboarding and referenced on transactions. The public licensing directory at distryb.com/directory is built from these records.

Delinquent retailers (Illinois)

Under 235 ILCS 5/6-5, distributors may not sell to a retailer on the Illinois Delinquent List. DISTRYB blocks those orders until the delinquency is cured.

Brokers have their own licensing rules — see Brokers & partnerships.