Applying For Alcohol Distilling: Getting Your Permit

If you're interested in distilling alcohol, you'll need to obtain the proper permits and licences, which vary depending on your location and the type of alcohol you intend to produce. In the US, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates the production and importation of alcohol, and you'll need to apply for a basic permit from them before any state licensure. The TTB offers an online permit tutorial that provides a step-by-step guide to the application process, including the documents you'll need to provide. State laws also apply to the ownership and operation of distillation equipment, so be sure to review the specific requirements for your state. For example, in Virginia, you'll need a Beverage Distilled Spirits Plant permit from the TTB and a distillery license from Virginia ABC, while in California, you'll need a seller's permit and an alcoholic beverage tax account.

Federal and state-specific requirements

Federal requirements for distilling alcohol in the US include obtaining a Federal Distilled Spirits Permit, which is the only federal permit that allows for the production of distilled spirits for consumption. This permit is required for individuals intending to produce alcohol for personal or family use and for commercial production. The Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates the industry and provides a step-by-step guide to the application process. The TTB application process involves forming an entity for the business, determining the type of distillery business, acquiring the necessary finance, facility, equipment, and documentation, and registering for an online portal to await approval. Additionally, federal regulations require distilleries to identify and disclose all major plant equipment during the application process.

State-specific requirements for distilling alcohol vary across the US. While some states, like Missouri, allow citizens over 21 to distill alcohol at home without permits, other states, like Florida, mandate that citizens obtain the proper state permits for owning distillation equipment. State laws regarding the ownership and operation of distillation equipment vary, and it is essential to consult the statutes of your specific state, as well as county and city ordinances. Some states may have additional requirements after issuing a license or permit, such as annual report filing, tax payments, bond or license renewals, inspections, and more.

Application process and documentation

The application process and documentation required to obtain a permit to distill alcohol vary depending on the country and state in which you reside. Here is a general overview of the process and the types of documents you may need to provide:

Application Process:

• Determine your business type: Before applying for any permits or licenses, you must first establish the legal entity of your business and determine the type of business activities you intend to engage in. This could include producing, bottling, rectifying, processing, or storing beverage spirits.
• Procure a production location and equipment: Federal regulations typically require distilleries to identify and disclose all major plant equipment during the application process. It is recommended to have the construction completed and the necessary equipment in place or on order before submitting your permit application.
• Familiarize yourself with the regulations and requirements: It is important to understand the specific rules, regulations, and permit requirements for distilling alcohol in your state or country. The Alcohol and Tobacco Tax and Trade Bureau (TTB) provides an online tutorial and resources to help you navigate the application process and understand the federal requirements.
• Complete and submit the application: You can typically apply for permits and licenses either online or through a paper application. Online applications are generally recommended as they allow you to easily track the status of your application.

Documentation:

• Distilled spirits bond form: This form is typically required when applying for a permit to distill alcohol.
• Charter document: This includes the Articles of Incorporation, Certificate of Incorporation, Articles of Organization, Certificate of Organization, or Partnership Agreement, depending on your business structure.
• Lease agreement or proof of property ownership: You will need to provide documentation that confirms where your distilling operations will take place.
• Signing authority authorization: This authorizes an individual to sign documents on behalf of the business, such as the TTB Form 5100.1 or Power of Attorney.
• Diagram of the distillery premises: A diagram or floor plan of your distillery may be required as part of the application process.
• State-specific requirements: Different states have different requirements for distilling licenses and permits. For example, in New York, you may need to include a temporary permit application with your main license application. In Virginia, you need a Beverage Distilled Spirits Plant permit from the TTB and a separate distillery license from the state authority.
• Additional documentation for specific licenses: Depending on the specific type of license you are applying for, you may need to provide additional documentation. For example, a Craft Distiller license may require documentation related to production capacity and sales privileges.

Types of licenses and permits

The Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates the production and importation of alcohol in the United States. To operate a distillery, you must obtain a federal license from the TTB before applying for state licensure. The TTB offers a basic permit that authorizes the production of wine, beer, or spirits for commercial purposes. This permit can be applied for online or via a paper application, with no associated fees.

The TTB also provides a range of specific licenses for different types of alcohol businesses:

• Distilled Spirits Plant (DSP) – A DSP is authorized to produce, bottle, rectify, process, or store beverage spirits. It is a federal requirement for DSPs to identify and disclose all major plant equipment during the application process, and construction and equipment procurement should be completed before submitting the permit application.
• Manufacturer of Nonbeverage Products (MNBP) – This license is for businesses that use tax-paid alcohol to manufacture products such as perfume, medicines, food items, and flavorings.
• Distilled Spirits Importer (Type 12) – This license permits the holder to import and export distilled spirits, but it does not allow sales. It is issued to individuals who hold another type of non-retail distilled spirits license.
• Distilled Spirits Importer's General (Type 13) – This license allows the holder to import distilled spirits and sell them to manufacturers, manufacturers' agents, wholesalers, rectifiers, and general importers.
• Public Warehouse (Type 14) – This license authorizes the storage of alcohol or alcoholic beverages for another licensee, including in customs-bonded warehouses.

In addition to federal licenses, businesses selling alcoholic beverages must also obtain the appropriate liquor license depending on their state and local regulations. For example, in California, there are various license types:

• Type 20 – Off-sale beer and wine sales, typically held by grocery and convenience stores.
• Type 21 – Similar to Type 20 but also permits the sale of liquor. This license is commonly held by liquor stores.
• Type 41 – Allows for the service of beer and wine onsite, along with food.
• Type 47 – This license is for full-service restaurants serving beer, wine, and spirits, with at least 50% of profits coming from food sales.
• Type 48 – Required for establishments where individuals must be 21 or older to enter, such as bars and nightclubs.

Costs and timelines

The costs and timelines for obtaining a permit to distill alcohol vary depending on the jurisdiction and the specific type of license or permit being sought. Here is a breakdown of the information for different locations:

United States Federal Permits:

• Basic Permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB): There is no fee at the federal level to apply for or maintain this permit. The application can be submitted online or as a paper application, with the former being recommended. The approval process can take up to 75 days.
• Commercial Federal Distilled Spirits Plant (DSP) Permit: This is the only federal permit that authorises the production of distilled spirits for consumption. The TTB provides an online permit tutorial with a step-by-step guide to the application process. The required documents include a distilled spirits bond form, charter documents, lease agreements or proof of property ownership, signing authority authorisation, and a diagram of the DSP premises.

State-Specific Permits:

• California: The costs and timelines for permits in California depend on the type of license. For instance, the Craft Distiller (Type 74) license authorises the holder to manufacture up to 150,000 gallons per fiscal year of distilled spirits (excluding brandy) and allows on-premises consumption.
• New York: The costs for licenses vary in New York. For instance, the initial application cost for a Micro Distiller's License (Class A-1) is $1,450 for a 36-month license, while the Rectifier's License (Class B) costs $34,000 for a 36-month license.
• Virginia: To legally distill spirits in Virginia, a Beverage Distilled Spirits Plant permit from the TTB and a distillery license from Virginia ABC are required. The production of spirits cannot commence until both documents are obtained.

It is important to note that the information provided here may not be exhaustive and that statutes, fees, and requirements can change over time. Therefore, it is advisable to consult official sources and legal professionals for the most up-to-date and accurate information regarding costs and timelines for obtaining permits to distill alcohol.

Compliance and regulations

Federal Regulations:

In the United States, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates the production and importation of alcoholic beverages, including distilled spirits. Obtaining a federal license from the TTB is typically the first step in the permitting process. The TTB offers a basic permit that authorises businesses to produce wine, beer, or spirits for commercial purposes. This permit can be applied for online or through a paper application, and there is no federal fee associated with the application or maintenance of the permit. However, it's important to note that the approval process can take up to 75 days.

State and Local Regulations:

State and local regulations can vary significantly when it comes to distilling alcohol. It is essential to review the specific laws and requirements of your state. Some states may require you to obtain additional licenses or permits, such as a seller's permit or an alcoholic beverage tax account. For example, in California, the California Department of Tax and Fee Administration (CDTFA) regulates the taxation of distilled spirits, while the Department of Alcoholic Beverage Control (ABC) issues licenses for different types of alcoholic beverage manufacturers and distributors.

Equipment Disclosure:

Federal regulations typically require distilleries to disclose all major plant equipment during the application process. It is recommended to have the construction completed and the necessary equipment in place or on order before submitting the permit application. Certain equipment purchases and leases by distilleries may qualify for a partial exemption from sales and use tax, depending on the state.

Licensing Types:

The type of license you require will depend on your specific activities and the jurisdiction. For instance, a "Craft Distiller" license may authorise the holder to manufacture a certain volume of distilled spirits per year, excluding brandy, and may include the privilege to sell these spirits to consumers for on-site consumption. On the other hand, a "Distilled Spirits Importer" license permits the holder to import and export distilled spirits without the privilege of sales. Each state may have its own unique set of licenses and their associated privileges and restrictions.

Application Process:

The application process can be complex and typically involves submitting various documents. These may include a distilled spirits bond form, charter documents, lease agreements or proof of property ownership, signing authority authorisations, and diagrams of the distillery premises. The TTB and some state agencies offer online tutorials and resources to guide applicants through the process. It is important to carefully review the requirements and consult official sources to ensure compliance with the latest regulations and fees.

Frequently asked questions