• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • About Craft Brewing Business

Craft Brewing Business

Professional Insight, Unfiltered

Craft Brewing Business Craft Brewing Business
  • News
  • Business & Marketing
  • Packaging & Distribution
  • Equipment & Systems
  • Ingredients & Supplies
  • Webinars & White Papers
  • News
  • Business & Marketing
  • Ingredients & Supplies
  • Packaging & Distribution
  • Equipment
  • Webinars & White Papers
  • COVID-19

Brewery licensing and bonding process explained

September 15, 2015Todd Bryant

brewery licensing
When applying for a brewer’s license in your state, you should also prepare all the relevant documentation concerning your finances and the property your brewery will be in. This is a prerequisite in all states.

Most up-and-coming brewers face the same set of questions and challenges when they decide to take the step toward opening their own craft brewery. Opening a brewery requires preparation, knowing state and federal laws and executing things in the right order.

While state laws and requirements vary in their specifics, they often overlap. For example, brewers will always need to choose a name or form an entity. They might also be required to get a brewer’s bond, which is a type of alcohol bond, when applying for their brewer’s license.

Below is a list of some important legal considerations you need to keep in mind when setting out to open your very own brewery. With this guide, you can spend less time deciphering rules and regulations and more time brewing beer.

1. Form a business entity, name it and trademark it

Before you can sell any beer whatsoever, you must create a legal entity. This usually means a limited liability company (LLC) or a corporation, which will separate your personal assets from your company’s liabilities.

When forming an entity, you will also have to make an operating agreement and/or a shareholder’s agreement. If you have co-owners, make sure that everyone’s rights, responsibilities and all other conditions are included – and clearly specified – so as to avoid future problems.

In order to form a company, you also need a name. Whether it’s ‘Johnny’s Beer’, ‘Nano Beer’ or something else, you’ll have to choose a name that is not trademarked by someone else already. Once you’ve decided on a name that both suits what you stand for and is available, don’t forget to trademark it yourself at the United States Patent and Trademark Office (USPTO).

The same applies to your beer brands and their logos. These also need to be trademarked, which you can do while filing for your entity’s name to be trademarked.

2. Prepare financial and lease documentation

When applying for a brewer’s license in your state, you should also prepare all the relevant documentation concerning your finances and the property your brewery will be in. This is a prerequisite in all states.

Your financial documentation should specify how you will finance your business. Are you raising money or did you take out a loan? You will usually need to include a ‘Statement of Funding Sources,’ similar to this one from the state of Oregon.

Make sure that when you submit these documents and, more importantly, when you obtain your financing, that you comply with state and federal laws. If you are in doubt, always obtain legal help before applying and submitting documentation.

Along with your financial documentation, you must also present documentation about the property you will be using. In most states, you must either lease, rent or own the property or be in the process of doing one of these.

Hey, also know the difference between tenant and contract brewing

This is important for when your brewer’s license application is reviewed at a later stage. At that point, your property and its documentation will be inspected, and authorities will determine whether it conforms to state and federal requirements for breweries.

3. Apply for a TTB Brewer’s Notice and obtain a brewer’s bond

Apart from getting licensed in your own state, which we’ll discuss in depth later, all brewers are required to apply for a Brewer’s Notice with the Alcohol & Tobacco Tax and Trade Bureau (TTB). When applying at the TTB, you will be asked to submit information related to the packaging, labeling and environmental impact of your operation.

The TTB collects federal excise tax on the sale of alcohol and is also the main federal authority when it comes to the requirements for the manufacturing and sale of alcohol. Applying for a license from the TTB is often the longest and most arduous part of the process – taking up to a year in the worst case scenario (though this is rather uncommon). However, you should expect processing time to be at least 6 months.

You will also be asked to obtain a brewer’s bond or brewer’s collateral bond when applying for your Brewer’s Notice. The exact amount of your bond will vary in accordance with the specifics and parameters of your brewery. Its amount depends on the expected excise tax liability of you operation – i.e. how much beer you will be selling and how much in taxes you will be paying.

The federal brewers bond is one of the two bonds you will be asked to obtain when opening your brewery. The other bond which is not always mandatory, unlike this one, is a local brewers bond in your own state. Its amount and conditions may vary according to state regulations. See below for more information on getting licensed in your state.

A primer on bonds, taxes and popular markets for craft breweries

You are almost a fully legal brewery! Click next page for the final three steps.

Pages: Page 1 Page 2
mississippi beer bonding requirements
Details on new bond Requirements for small craft breweries in Mississippi
Tennessee beer tax rolls through legislature
Summary of new wrinkles to the Craft Beverage Modernization tax provisions via the TTB
fat guy eating food and drinking beer cbb crop
Booze isn’t healthy, TTB shares sad reminder
The TTB has relaxed certain trade practice rules during COVID-19

Reader Interactions

Comments

  1. Matthew W. Street says

    September 16, 2015 at 6:07 pm

    Matthew W. Street liked this on Facebook.

    Log in to Reply
  2. Cynthia Chevarría Rodríguez says

    September 16, 2015 at 6:07 pm

    Cynthia Chevarría Rodríguez liked this on Facebook.

    Log in to Reply
  3. Tim Hoke says

    September 16, 2015 at 6:07 pm

    Tim Hoke liked this on Facebook.

    Log in to Reply
  4. Stacy Allura Hostetter says

    September 16, 2015 at 6:07 pm

    Stacy Allura Hostetter liked this on Facebook.

    Log in to Reply
  5. bryantsurety says

    September 16, 2015 at 11:05 am

    Here are some important legal considerations you need to keep in mind when setting out to open your very own #brewery http://t.co/KeS2Fmo4GB

    Log in to Reply
  6. bryantsurety says

    September 16, 2015 at 9:30 am

    #Brewery licensing and bonding process explained http://t.co/KeS2Fmo4GB I #suretybonds http://t.co/KZJaSF3Xyh

    Log in to Reply
  7. bryantsurety says

    September 16, 2015 at 7:54 am

    #Brewery #licensing and bonding process explained http://t.co/KeS2Fmo4GB via @CraftBrewingBiz

    Log in to Reply
  8. Joshua Bennett says

    September 16, 2015 at 6:06 am

    Joshua Bennett liked this on Facebook.

    Log in to Reply
  9. Joshua Dylan Yoker says

    September 16, 2015 at 6:06 am

    Joshua Dylan Yoker liked this on Facebook.

    Log in to Reply
  10. Serge Lubomudrov says

    September 16, 2015 at 6:06 am

    Serge Lubomudrov liked this on Facebook.

    Log in to Reply
  11. Krones AG says

    September 16, 2015 at 6:06 am

    Krones AG liked this on Facebook.

    Log in to Reply
  12. Brendan Washington says

    September 16, 2015 at 6:06 am

    Brendan Washington liked this on Facebook.

    Log in to Reply
  13. Bryant Surety Bonds, Inc says

    September 16, 2015 at 6:06 am

    Bryant Surety Bonds, Inc liked this on Facebook.

    Log in to Reply
  14. bryantsurety says

    September 16, 2015 at 4:40 am

    RT @CraftBrewingBiz: Brewery licensing and bonding process explained http://t.co/Vu5UEE4bRX Some nice advice from @bryantsurety

    Log in to Reply
  15. George_Christie says

    September 16, 2015 at 1:06 am

    Great article @CraftBrewingBiz @USbevX

    Log in to Reply
  16. George_Christie says

    September 16, 2015 at 1:05 am

    RT @USbevX: New to the brewing game? Brewery licensing and bonding process explained http://t.co/azKsofO8O3 via @craftbrewingbiz #brew #cra…

    Log in to Reply
  17. Carrie Graves says

    September 15, 2015 at 5:51 pm

    Carrie Graves liked this on Facebook.

    Log in to Reply
  18. Earnest Harbin says

    September 15, 2015 at 5:51 pm

    Earnest Harbin liked this on Facebook.

    Log in to Reply
  19. birraslover says

    September 15, 2015 at 5:38 pm

    Brewery licensing and bonding process explained http://t.co/5MRS99htxw via @craftbrewingbiz

    Log in to Reply
  20. Abraham Cuéllar Arias says

    September 15, 2015 at 3:36 pm

    Abraham Cuéllar Arias liked this on Facebook.

    Log in to Reply
  21. Alex Aaron says

    September 15, 2015 at 3:36 pm

    Alex Aaron liked this on Facebook.

    Log in to Reply
  22. BeallBreweryIns says

    September 15, 2015 at 3:03 pm

    Bonds for your #CraftBrewery? Great info here: http://t.co/YSJhEtduRi Need more customized support? Just contact us!

    Log in to Reply
  23. Lynn Johnson says

    September 15, 2015 at 2:21 pm

    Lynn Johnson liked this on Facebook.

    Log in to Reply
  24. Jessica Harris says

    September 15, 2015 at 2:21 pm

    Jessica Harris liked this on Facebook.

    Log in to Reply
  25. U.S. Beverage Industry Expo says

    September 15, 2015 at 2:21 pm

    U.S. Beverage Industry Expo liked this on Facebook.

    Log in to Reply
  26. Jerry Elliott says

    September 15, 2015 at 2:21 pm

    Jerry Elliott liked this on Facebook.

    Log in to Reply
  27. LVRGLLC says

    September 15, 2015 at 2:19 pm

    #CraftBeer #CraftBrewing #Beer #BeerBiz Brewery licensing and bonding process explained http://t.co/6rEailRk6h

    Log in to Reply
  28. USbevX says

    September 15, 2015 at 2:06 pm

    New to the brewing game? Brewery licensing and bonding process explained http://t.co/azKsofO8O3 via @craftbrewingbiz #brew #craftbeer

    Log in to Reply
  29. Nathan Stano says

    September 15, 2015 at 1:22 pm

    Nathan Stano liked this on Facebook.

    Log in to Reply
  30. Jonathan Greenfield says

    September 15, 2015 at 1:22 pm

    Jonathan Greenfield liked this on Facebook.

    Log in to Reply
  31. Evan Bonsell says

    September 15, 2015 at 1:22 pm

    Evan Bonsell liked this on Facebook.

    Log in to Reply
  32. Mack Ocker says

    September 15, 2015 at 12:51 pm

    Mack Ocker liked this on Facebook.

    Log in to Reply
  33. Jamie Caligure says

    September 15, 2015 at 12:51 pm

    Jamie Caligure liked this on Facebook.

    Log in to Reply
  34. crsimp01 says

    September 15, 2015 at 12:30 pm

    Brewery licensing and bonding process explained http://t.co/dB342OGfOe via @craftbrewingbiz

    Log in to Reply

Trackbacks

  1. How to Start a Small Business in 12 Steps + 75 Small Business Ideas says:
    September 24, 2020 at 1:31 pm

    […] you can get people to pay for your unique combinations. You will need to obtain a few additional permits and brewer’s bond in addition to buying microbrewery […]

    Log in to Reply
  2. Surprising Tips: Can You Make Money from Home Brewing Beer? | Beer Creation says:
    June 8, 2020 at 4:28 am

    […] For more information on licensing check out this helpful article from craftbrewingbusiness.com […]

    Log in to Reply
  3. How To Start A Brewery that Makes Money - ivetriedthat says:
    November 1, 2019 at 10:19 am

    […] For a guide on the licensing process, check out this article. […]

    Log in to Reply
  4. How to Start a Brewery Business: The Complete 9 Step Guide (2019) - crowdspring Blog says:
    April 2, 2019 at 2:21 pm

    […] article from CraftBrewingBusiness.com walks you through the overall brewery license and bonding process. […]

    Log in to Reply
  5. How to Start Your Own Craft Beer Business | Modern Restaurant Management | The Business of Eating & Restaurant Management News says:
    March 27, 2019 at 2:01 pm

    […] This article walks you through the overall brewery license and bonding process. And, you can find a tutorial and get started with your permits here. […]

    Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Latest News

  • State of California Craft Beer: Covid recovery challenged by competition, consolidation
  • MicroStar Logistics launches Network Services Division to manage reusable plastic pallets for the beer Industry
  • Analyst speculates on Heineken acquiring Boston Beer, stock jumps
  • United States Bartenders’ Guild now has access to WOTVS Hospitality Assistance Program

Sign up for our newsletter

unsubscribe from list

Most Popular Today

Recent Features

  • CCBA California Craft Beer SummitState of California Craft Beer: Covid recovery challenged by competition, consolidation
    March 23, 2023
  • Koga-brothers-karben4Karben4 Brewing to relaunch Ale Asylum brand
    March 20, 2023
  • 4 steps to understanding the filtration process in craft beer
    March 20, 2023
  • newbelgium_2023_wildnectar-shopping-basket_family_IMG_2Beyond beer: Examples of craft breweries exploring canned cocktails
    March 16, 2023
  • brooklyn 35 featureBrooklyn Lager turns 35 and more beers to know this week
    March 14, 2023
  • Backwoods Brewing to open a 19-acre resort called Party Acres in the Columbia River gorge this May
    March 13, 2023

Footer

  • Email Newsletter Sign Up
  • About Craft Brewing Business
  • Contact Us
  • Advertise on Craft Brewing Business
  • Media Kit Download
  • Privacy and Terms

© 2023 · CBB Media LLC