Congratulations on embarking on the exciting journey of starting your brewery! Crafting your own unique brews is a dream for many, but the intricacies of launching a brewery can be overwhelming. To help you navigate this complex process, Lindsey Zahn P.C. has created a comprehensive guide. In this article, we’ll explore the top ten legal and compliance considerations when launching your brewery.
Obtain an EIN (Employer Identification Number)
An EIN is crucial for tax purposes and is required when applying for your federal brewery permit through the Alcohol and Tobacco Tax and Trade Bureau (“TTB“). This is one of the first steps to take as a new business owner.
Choose the Right Business Structure
Decide how your brewery will be organized — as a Sole Proprietorship, Partnership, Corporation, or Limited Liability Company (LLC). Each has unique benefits and tax implications, so it’s important to choose the one that aligns with your goals. It may be best to speak with a tax professional or corporate attorney to determine the benefits of each structure and to understand which may be best for your company.
Register Your Business Name
If your brewery has a name other than its actual formal entity name, you may need to complete a “Doing Business As” (DBA) registration. This ensures your business name is recognized legally and helps avoid potential conflicts.
Verify Your Business Information
Ensure all ownership information filed with the state is accurate and up-to-date. Any changes in ownership should be promptly reflected in your business documents.
Secure a Bond
A bond is a legal guarantee that federal excise taxes will be paid for the beer produced or stored at your brewery. Depending on your company’s federal excise tax liability, you may need a bond before starting the federal brewery permit application. Additionally, it is possible that your state alcohol beverage agency may also require a bond for your state alcohol beverage license application.
Complete the Federal TTB Brewery Permit Application
Breweries manufacturing and/or bottling in the U.S. must obtain a federal permit from the TTB (it is typically called a “brewer’s notice”). The federal TTB permit application process can be time-consuming between filling out the application, gathering the appropriate documents, and waiting for the application to be reviewed. Consider working with a professional to save time and ensure your application is free from potential issues.
File Your State Brewery License Application
This probably comes as no surprise but state requirements vary. Some states may require a copy of your federally-issued TTB brewery permit before granting a state license. Familiarize yourself with your state’s regulations and consider the benefits of a farm or micro brewery license if the state issues such licenses.
Formula Approvals
Certain beers require formulas to be approved by TTB before label approval. Familiarize yourself with these requirements if you’re producing unique or specialty beers (such as flavored malt beverages, sugar brews, etc.).
Beer Label Approvals
Federal approval for beer labels is essential, and the process can take several weeks. Consulting with experts who understand TTB’s regulations can save you time and ensure label compliance.
FDA Food Facility Registration
Generally speaking, all domestic breweries within the U.S. must register with the Food and Drug Administration (“FDA”) under the Bioterrorism Act of 2002 and the Food Safety Modernization Act (FSMA). This requirement often goes overlooked but is critical for compliance.
Are you ready to turn your brewing dreams into reality? At Lindsey Zahn P.C., we’re here to make your journey into the world of brewing smoother than a finely crafted brew. Our firms focuses on alcohol beverage law, and we have the knowledge and experience to help you obtain your TTB brewer’s notice effectively and efficiently.
The TTB brewer’s notice is a crucial step in establishing your brewery, and our firm understands the intricacies of this process. We’ll work closely with you to ensure that your application is as complete as possible. With our guidance, you can navigate the complexities of federal permits with confidence, saving you time and avoiding unnecessary delays.
At Lindsey Zahn P.C., we’re not just legal professionals; we’re passionate about helping breweries like yours thrive. Let us handle the legal aspects, so you can focus on developing your beer and your business. If you’re ready to take the first step towards realizing your brewery’s potential, contact us today at info@zahnlawpc.com or 929-ZAHNLAW. Together, we’ll raise a glass to your brewing success!