How to Start a Microbrewery, Distillery, or Cidery

 

Suppose you are planning to start a microbrewery, distillery, or cidery. In that case, you need to make sure that you complete all the legal processes to operate legitimately in the local area or state. This article will cover the legal aspects such as state license, commercial lease, and trademark. It will guide you in startingyour own business.

 

Legal Guide on Starting Microbrewery, Distillery, or Cidery

Craft beer has been growing steadily over the past few years. This industry has been driven by consumer preferences that will continue to grow in the future.

 

Create Your Business Plan

 How to Start a Microbrewery, Distillery, or Cidery

Your business plan will serve as the foundation of your microbrewery, distillery, or cidery. It will be your guide on the estimated cost of startup. It consists of a detailed marketing plan, analysis of the competition, and the type of market you should pursue. With a comprehensive business plan,  you can assess the viability of your business. You can use this to secure the financing you need to start your business. When creating your business plan, you should stick only to the facts instead of your hopes of growth.

 

Choosing the Name of Your Microbrewery

 

Securing a trademark should be done before you even start offering your craft beer to the market. There are too many distilleries in the country, and it is necessary to choose a name that will reflect the attributes of your company and choose a unique name that will separate you from the rest of the company. When selecting the name of your beer, you should also run a trademark search, especially if it is a flagship beer. You should be aware of the advantages of copyright registration.

 

Create a Legal Entity

 How to Start a Microbrewery, Distillery, or Cidery

When starting a microbrewery, distillery, or cidery, you will most likely need to create a legal entity for your business. You may want to choose C or S Corporation, LLC, or a Partnership. Most business owners will choose the LLC due to the simplicity of the process. You don't need to elect your board of directors, keeping the minutes of the meetings and others. Choosing LLC will also affect your tax rates and personal liabilities.

 

Operating Agreement

 

Aside from creating the legal structure of your business, you will also need to draft your operating agreement. The operating agreement refers to the formal document containing the owner's name, those responsible for making the crucial decision, and how the loss and profits are distributed. You should also secure an EIN (Employer Identification Number). You can use this to open a business account that will help you protect your personal asset.

 How to Start a Microbrewery, Distillery, or Cidery

When choosing the location of your business, you should also be aware of the zoning requirements. The diagram of your business premises should be done in connection with the state and federal license application. Finally, you should secure a license at the TTB in a matter of 68 days. The federal government should not charge you for completing this application.

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