Starting a winery is an exciting journey filled with challenges and rewards. To help you navigate the complex process, Lindsey Zahn P.C. has prepared a cheat sheet highlighting the top ten legal considerations for establishing a new winery.
- Obtain an EIN: Apply for an Employer Identification Number (“EIN”) through the IRS for tax purposes and for the federal winery permit application.
- Choose the Right Business Entity: Select the most suitable entity type (sole proprietorship, partnership, corporation, LLC) considering tax benefits and liabilities.
- Register Your Business Name: If using a business name different from the actual entity’s name, complete a “Doing Business As” (DBA) registration with your state government (if applicable). Generally speaking, these types of registrations can be done through the state’s Secretary of State.
- Verify Accurate State Filings: Ensure all business ownership information filed with the state is up-to-date and accurate.
- Secure a Bond: If you determine that your proposed winery is required to hold a bond with respect to its federal Alcohol and Tobacco Tax and Trade Bureau (“TTB“) basic permit, secure a bond for federal excise taxes on wine production, required for both federal and state winery permits.
- Draft and File the Federal TTB Winery Permit Application: This detailed process takes time, especially if you are a first-time applicant. Through years of filing hundreds of applications and amendments, Lindsey Zahn P.C. can help streamline the process for first-time and returning applicants.
- Complete State Winery License Application: Different states have varying license requirements; we’ll guide you through the process.
- Formula Approvals: Some wines require federal formula approvals before label approval; our specialists can assist.
- Label Approvals: Federal wine labels at or above 7% alcohol by volume need TTB approval. Labels cannot be submitted to TTB until a winery has received its federal basic permit but Lindsey Zahn P.C. can help review labels and provide guidance on items that may be missing and/or potential issues. We can also help file your labels and work with TTB should there be an issues during the process.
- Register with FDA: Domestic wineries must register with the FDA as a food facility under the Bioterrorism Act and FSMA.
Note that this list covers some essential considerations; there may be other important aspects to address depending on the specific business model as well as the location of the winery. In addition to the above, conducting a trademark search, employment, and contractual matters are equally crucial, and our experts offer comprehensive guidance in all areas.
When it comes to obtaining your TTB federal basic permit for your winery, partnering with the right legal team can make all the difference. At Lindsey Zahn P.C., we focus on alcohol beverage law, making us the ideal choice to handle the drafting and filing of your federal permit. Through our experience working on hundreds of TTB applications and amendments, we can simplify the application process and point out potential red flags that may not be evident to applicants unfamiliar with the TTB permit application process. Our focus on alcohol beverage law empowers wineries to navigate the complexities of obtaining federal permits, laying the foundation for a successful and compliant business.
Contact Lindsey Zahn P.C. to schedule an introductory meeting to discuss your needs and products and to learn more about how we can help: info@zahnlawpc.com or (929) ZAHNLAW (929-924-6529).