Food and drink · LLC guide · updated
How to start an LLC for a brewery
A brewery needs federal approval before it brews a single batch for sale, and the federal and state alcohol agencies look closely at who owns the business. The LLC's organizing documents and operating agreement are part of the federal application, so the entity has to exist first.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- TTB Brewer's Notice
- Brewer's bond
- State brewer license
- Label approval
Brewery businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 312120), the latest U.S. totals.
Why brewery owners form an LLC
Taproom liability
Serving guests brings premises and over-service claims.
Equipment financing
Brewhouses and fermenters are large financed purchases.
Distribution contracts
Many states have franchise laws that make distributor agreements hard to end. Read before you sign.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a brewery
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- Liquor liability
Required for taprooms.
- Product liability
Covers claims from beer sold off premises.
- Property and equipment breakdown
Covers the brewhouse, cold storage and inventory.
Taxes
- Excise tax returns
Federal returns on TTB Form 5000.24 are filed every two weeks, quarterly or yearly depending on your tax liability. IRS / agency page
- State excise and sales tax
States tax beer separately; taproom sales also carry sales tax.
TTB and state agencies review everyone who owns more than a set share. Adding investors after approval can mean filing amendments and waiting again, so settle the cap table and operating agreement first.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a brewery LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Do I need an LLC before applying for a Brewer's Notice?
In practice, yes. TTB asks for the entity's formation documents and operating agreement with the application, so the LLC has to exist first.
How long does TTB approval take?
TTB publishes current processing times on its site. Plan for the federal notice and the state license to take months, and do not sign a long lease without a contingency.
What does a brewery pay in federal excise tax?
Domestic brewers making 2 million barrels or less a year pay $3.50 a barrel on the first 60,000 barrels, with higher rates above that.
Can my brewery LLC sell directly to customers?
That depends on your state's license types. Many states allow taproom sales and limited self-distribution for small brewers.
How much does it cost to form an LLC for a brewery?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my brewery?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
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Ready when you are
Have us file your Brewery LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.