Starting a meadery can be an exciting and rewarding venture, but it involves navigating various legal considerations to ensure compliance and success. From licensing and permits to labeling regulations and distribution agreements, understanding the legal landscape is crucial. That’s why Lindsey Zahn P.C. has created this invaluable guide for new meaderies. Below, you’ll find the top ten business and compliance considerations to kickstart your mead venture.
Top Ten Legal and Compliance Considerations When Starting a Meadery
- Employer Identification Number (EIN): Obtaining an EIN from the IRS is one of your initial steps. This number is crucial for tax purposes and is required for the federal permit application through the Alcohol and Tobacco Tax and Trade Bureau (“TTB“).
- Business Organization: Choose the right business structure – whether it’s a sole proprietorship, partnership, corporation, or LLC. Each comes with its own tax implications, so understanding these is vital. It may be ideal to consult a tax professional and/or a corporate attorney to better understand the business structure that will best suit your meadery.
- Business Name Registration: If your business name differs from your personal name (for sole proprietors) or the registered name of your LLC or corporation, you’ll need to complete a “Doing Business As” (DBA) registration with your state government.
- Review TTB Federal Permit Requirements: Before producing and selling mead, you must obtain a federal basic permit from the TTB. The application process involves providing detailed information about your meadery, including ownership, location, and mead production methods.
- State License Application: Review state level requirements for starting a meadery in your specific state. In some states, you can apply for a state license while your federal application is pending. Other states may require the submission of your TTB federal permit at the outset of your state license. Ensure compliance with your specific state’s regulations and plan accordingly.
- Secure a Bond: A bond is a legal guarantee for the payment of federal excise taxes on the mead produced or stored at your meadery. Depending on your meadery’s federal excise tax liability, your company may need a bond before commencing the federal TTB basic permit application. It is also possible that a bond may be required when completing your state alcohol license application (typically if the state requires a bond, it will be separate from what TTB may require).
- Trademark and Intellectual Property: Protect your meadery’s brand by registering trademarks for your meadery name, logos, and mead labels. Conduct thorough trademark searches to avoid infringing on existing trademarks and consult with an intellectual property attorney to secure your intellectual property rights.
- Formula Approvals: Some meads require formula approvals from the TTB. Familiarize yourself with these requirements, especially if you plan to add flavors or extracts or similar ingredients to your mead. Formula applications can often be daunting and it may be best to work with an industry professional, such as an alcohol beverage lawyer, to navigate the formula application process and advise you of any potential issues or missing items.
- Contracts and Distribution Law: Establish contracts and agreements for ingredient sourcing, distribution partnerships, retail relationships, and other business arrangements. Work with an attorney focusing on alcohol beverage law to ensure your contracts protect your interests and comply with applicable regulations.
- FDA Registration: Generally speaking, domestic meaderies within the U.S. must be registered with the Food and Drug Administration (“FDA”). This is a requirement that is often overlooked, but Lindsey Zahn P.C. can guide you through the process.
Starting a meadery is an exciting endeavor, but it requires diligent attention to legal considerations. Obtaining the necessary permits, licenses, and complying with federal and state regulations is essential for a successful and compliant operation. By addressing these top 10 legal considerations, aspiring meadery owners can navigate the legal landscape and establish a solid foundation for their business.
Please note that while these are critical considerations, there are other aspects to contemplate when starting your meadery, such as — but not limited to — environmental issues, local laws, and addressing employment and contractual matters. The “Top Ten” list serves as a reference guide to help you on your journey.
At Lindsey Zahn P.C., we understand that establishing a meadery involves dealing with various federal and state agencies, which can be time-consuming and complex. We have extensive experience working with the TTB, FDA, and state agencies, allowing us to save you time and reduce expenses during the permit and licensing processes. Our firm can guide you through every step, ensuring your meadery venture begins on a solid foundation. For more information about our services and how we can assist your meadery, please contact us at info@zahnlawpc.com or 929-ZAHNLAW.