1. Alcohol and Tobacco Tax and Trade Bureau (TTB)
Beer Barons of Milwaukee Seminar Brewery Qualification 27 CFR Parts 1-Basic Permit FAA Act; 7-Labeling & Advertising Malt Beverages; 16-Alcoholic Beverage Health Warning Statement; 25-Beer; 27 –Importation of Distilled Spirits, Wines & Beer & 31-Alcohol Beverage Dealers By
Warren L. Siskoff
Investigator
Alcohol and Tobacco Tax and Trade Bureau (TTB)

2. Home Brewer vs Business Brewer/Brewpub
Hobby - Considerations
$ - $$
What class/type to brew,
Type of packages to use,
Production/household without payment of tax, for personal or family use, can not exceed 200 gallons/yr. -2 or more adults in household or 100 gallons/yr. 1 adult in household (27 CFR ).
Minimal Records & No Reports
No Excise Taxes to Pay
No COLA
Business – Considerations
$$$ -$$$$
Business Plan (company profile/description, goals, organization/management, funding, product line, financial projections, market & sales analysis).
Brewer’s Notice & other Federal/State Licenses or Permits
Pay Excise Tax
Keep detailed records, File Excise Tax Returns & Reports
Certificate of Label Approval (COLA)

3. Thinking About Starting A Business – Things To Consider
1. Formulating Your Organization
Write a Business Plan A good business plan is essential to formulate your business. These resources from the Small Business Administration (SBA) will help you develop your plan.
Get Business Assistance and Training Take advantage of SBA's learning center which has training guides and access to counseling services for starting and growing your business.
Choose a Business Location Get tips from SBA on selecting a customer-friendly location and complying with zoning laws. TTB has specific requirements in the Code of Federal Regulations, Title 27 relating to the location of a distilled spirits plant, winery, or brewery. See:
Part 25, Subpart C - Location and Use of Brewery (no dwelling house, vessel or boat, building where revenue will be jeopardized).

4. Thinking About Starting A Business – Things To Consider
Financing Your Business
Funding Options Map out your business financially. Use SBA's guide to learn what lenders are looking for, financing options, government backed loans, venture capital and research grants to help you get started.
3. Establishing Your Business
Determine the Legal Structure of Your Business Use this Internal Revenue Service (IRS) resource to help decide which form of ownership is best for you: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative.
Register a Business Name ("Doing Business As") Register your business name with your state government.

5. Thinking About Starting A Business – Things To Consider
4. Fulfilling Taxes and Licensing Requirements
Get a Tax Identification Number Learn which tax identification number or employer identification number you'll need to obtain from the IRS and your state revenue agency. SS-4 - Application for Employer Identification Number
Small Businesses and Self-Employed Tax Use this IRS guide to select business topics or by business type to assist in your decisions.
Determining Your Federal Excise Taxes Get TTB's resources on determining, filing, and paying Federal excise taxes on alcohol and tobacco products, and firearms and ammunition taxes.
Register for State and Local Taxes Register with your state to obtain a tax identification number, workers' compensation, unemployment and disability insurance.
Obtain a Federal Permit to Operate (Brewer’s Notice and/or Basic Permit) Certain alcohol and tobacco businesses must receive approval from TTB before engaging in business.
Obtain State Licenses and Permits Get a list of alcohol control board for state and local licenses and permits required for your alcohol or tobacco-related business.

6. Thinking About Starting A Business – Things To Consider
5. Understanding Employer Responsibilities
Hiring and Retaining Employees & Hiring Your First Employees Learn how to find and keep the best employees for your business.
6. Growing and Maintaining Your Business
Growing Your Business Use these resources from Business.USA.gov for the profitable and healthy growth of your business. Maintaining Your Business See TTB resources especially for maintaining an alcohol or tobacco-related small business.
Closing a Business Get advice and guidance from SBA on how to dissolve a business. Discontinuing a TTB-regulated Business See the regulatory requirement for discontinuance of a business.

7. Getting Started In The Beer Industry
Before engaging in most businesses relating to the beer industry, you must submit an application to the Alcohol and Tobacco Tax and Trade Bureau (TTB) and receive approval prior to beginning operations. The type of application will depend on the activities you intend to conduct, and we will determine your eligibility after we review your application. If you are eligible and provide the necessary information, we will authorize you to begin the requested operations. Let’s walk through the general steps to apply.

8. Step 1 – Decide Who Is The Applicant
One of the first steps in filing any Brewer’s Notice/application is to determine “Who is the applicant?” 
Business Structure Options:
Sole Proprietorship (You as an individual)?
Partnership (A partnership of two or more people or companies)? 
An entity such as a Limited Liability Company (LLC)?
An entity such as a Corporation?
It is important to decide early who the applicant will be because if you change your business structure, such as going from a partnership to a corporation, the new entity will need to file a full new Brewer’s Notice/application and be approved before beginning operations.
    TTB strongly suggests that you contact an attorney and/or an accountant before making a final decision on which structure best suits your business needs. 

9. Step 2 – Identify Your Desired Type of Beer Operations
Decide the type of beer operation(s) to conduct.  Most products classified as “beer” under the Internal Revenue Code (Part 25) are “malt beverages” under the Federal Alcohol Administration Act (Part 7).  TTB Ruling
Types of Beer Operations
Brewery/Brewpub/Alternating Proprietorship - A brewery of any size may be established to produce beer, to operate a brewpub, or to conduct an alternating proprietorship with another brewery. File TTB F
Pilot Brewery - establish & operate off brewery premises for research, analytical, experimental, or developmental purposes relating to beer or brewery operations. Appl. Not available in Permits Online.
Other Beer Operation Types
Retail Dealer in Beer – Register by Filing TTB F d – Alcohol Dealer Registration
Wholesale Dealer in Beer – File TTB F & Obtain Wholesaler’s Basic Permit & File d
Importer of Beer – File F & Obtain Importer’s Basic Permit & File d as wholesaler if sales to other dealers
While the application procedures among the various operations might have similarities, there are significant differences between them that will affect how you become qualified to operate.

10. Step 3 – How to Apply
After deciding the applicant and operation type, you can begin the qualification or application process.
Electronically – Permits Online. Has a tutorial. TTB’s Online Permit Application Process
By Mail
What Happens After Submission – reviewed for completeness & accuracy, tracking # assigned, assigned to specialist for review, goes to approving official, if approved, loaded into Permits Online. Will be issued a Brewery Registry Number (BR-WI-Initials of Brewery-Number)
Once you have received approval, you are ready to begin operations!
Related Information
Beer Homepage
Brewer’s Notice - TTB F If you've decided to brew beer for sale then you must first qualify with TTB by submitting a Brewer's Notice application.

11. Electronically – TTB Permits Online
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Electronically – TTB Permits Online
You can apply for approval of your application electronically using our free TTB Permits Online system.  Learn more about Permits Online at our TTB Permits Online page or see our Permits Online Tutorial which will walk you through the electronic application process.
 Permits Online makes it easy for you to apply for the type of notice/permit you need to start your business - just follow the instructions and prompts.  When you finish entering the required information and click submit, we begin processing your application, and send you a tracking number so you can check the status of your application online.  If you are prompted for additional documentation during the process, you can upload the requested documents electronically.  There is no fee to apply. You need to Register for Permits Online, have a Username and Password.
Amendments
Industry members who did not receive their initial approval through Permits Online cannot yet file amendments through Permits Online.  We expect this functionality to be available in the near future. 
Contact Customer Support at or by at

12. Filing By Mail (not the preferred method)
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Filing By Mail (not the preferred method)
It is still possible to file paper applications and submit them by mail to TTB.  However, filing electronically generally will help in submitting a complete application to ensure timely processing.  In addition, filing through Permits Online will allow you to obtain the status and updates of your application at any time.  Any approved documents will be available electronically through Permits Online. 
Whether filing on paper or electronically, during the application process you must send us all the required information so that TTB can consider your application.  Some required documents:
Brewer’s Notice – TTB F
Brewer’s Bond - TTB F or Brewer’s Collateral Bond - TTB F A Consent
Surety – TTB F could also be needed.
File other Qualifying Documents.

13. Permits Online Required Documents – for a Brewer’s Notice (F 5130
Permits Online Required Documents – for a Brewer’s Notice (F ) or permit
Lease agreement or proof of property ownership
Description of premises – detailed with dimensions, list brewery bldg., tract of land, identify equipment with size, loading docks, doors, windows, etc. 27 CFR 25.68
Copy of Driver’s License or Official State ID Card
Source of funds (bank account statements, loans or gifts) – personal savings, loans, financial gift, etc.
Signing Authority Authorization on one of the following: (LLC or Corporate Resolution, Articles, By-laws, Operating Agreement or Signing Authority For Corporate or LLC Officials TTB F ).
Articles of Incorporation, Certificate of Incorporation, By-Laws, Articles of Organization, Certificate of Organization, Partnership Agreement

14. Cont’d - Permits Online Required Documents – for a Brewer’s Notice (F 5130.10) or permit.
Proof of Trade Name Registration
Bottling On Account For Trade Name Letter – Required if adding a Bottling on Account For Trade Name
Alternating Proprietorship Agreement – Required if you indicated you were part of an Alternating Proprietorship , or part of an Alternating Premises arrangement with a different owner. Industry Circular : Alternating Proprietors at Brewery Premises
Business Plan – Required if you indicated you were part of an Alternating Proprietorship or part of an Alternating Premises arrangement.
Operating Agreement – If required in your State
Power of Attorney - TTB F
Personnel Questionnaire is now considered the “OOI” (Owner/Officer Information). The OOI is required to be completed for any officer/director, etc.
Letter of Intent for Foreign Supplier, Certificate to Operate in Foreign State
The Environmental and Water Quality information is in system but are posed as questions

15. Brewer’s Notice TTB F

17. Contract Brewing Industry Circular 2005-2
What is a “contract brewing” arrangement?
A contract brewing arrangement is a business relationship in which one person, such as a wholesale or retail dealer or a brewer, pays a brewing company, the “contract brewer,” to produce beer for him or her.  The contract brewer is entirely responsible for producing the beer, keeping appropriate brewery records, labeling the beer with its name and address, obtaining necessary certificates of label approval (COLAs), and paying tax at the appropriate rate upon removal of the beer from the brewery.  The contract brewer retains title to the beer at least until the beer is taxpaid or removed from the brewery.  TTB considers contract brewing arrangements to be ordinary commercial arrangements.

18. Alternating Proprietorship Industry Circular 2005-2
What is an “alternating brewery proprietorship”?
An “alternating proprietorship” is a term we use to describe an arrangement in which two or more people take turns using the physical premises of a brewery.  Generally, the proprietor of an existing brewery, the “host brewer,” agrees to rent space and equipment to a new “tenant brewer.”  The tenant qualifies as a brewer under part 25 by filing the appropriate documents with TTB.  The tenant produces beer, keeps appropriate brewery records, labels the beer with its own name and address, obtains the necessary COLAs, and pays tax at the appropriate rate upon removal of its beer from the brewery.  The tenant brewer has title to the beer at all stages of the brewing process.

19. Records & Reports 27 CFR Part 25 Subpart U
Daily Records of Operations & Daily Summary Records §
Record of Ballings and Alcohol Content §
Inventories (at least monthly) §
Record of Operations, (monthly, quarterly) F Brewer’s Report of Operations or F Quarterly Brewer’s Report of Operations §
Excise Tax Return, F (semi-monthly, $7.00 or $18.00/barrel) § One barrel = 31 gallons.
Determination of tax on bottled and keg beer. Compute to 5 decimal places & round to 2 decimal places. Use barrel equivalent factors. § – §
Other records in 27 CFR Part 25

20. Other Requirements – Marks, Brands & Labels 27 CFR Part 25 Subpart J
Labels on barrels and kegs § (name or trade name, place of production). Net contents § 7.27.
Labels on bottles § (name or trade name, net contents, nature of product (beer, ale, etc.), place of production.
Cases § (name of trade name). May show place of production (city & State).
Certificates of Label Approval (COLAs) on F when required by 27 CFR Part 7 – Labeling & Advertising of Malt Beverages § (c) & § (e)
Alcoholic Beverage Health Warning Statement, 27 CFR Part GOVERNMENT WARNING:

21. Allowable Changes To Approved Alcohol Beverage Labels
Once your label receives TTB approval, you are allowed to change certain items on that label without obtaining a new COLA (TTB Form Application for and Certification/Exemption of Label/Bottle Approval).  Any revisions must be in compliance with the applicable regulations in 27 CFR parts 4, 5, 7 and 16, and any other applicable provision of law or regulation, including, but not limited to, the conditions described in the "Comments" section of the chart of allowable revisions.
What Label Revisions Always Require a New COLA? You must get a new COLA when changing:
the class/type statement
the brand name
the appellation of origin (wine only)
the state appearing in the mandatory address statement* (have to change Brewer’s Notice, Basic Permit etc.)
the actual bottler or importer
You must get a new COLA when adding:
New graphics/pictures/representations (except as specifically authorized, for example, holiday themed graphics); &
New wording/phrases/text/certifications (except as specifically authorized, for example serving instructions)
Prior to making changes to previously approved labels, review the complete list of allowable revisions before you submit a COLA application—you may not need to send us the revised labels at all!
Use the Allowable Changes Sample Label Generator tool to view sample labels for allowable changes.

23. Brew-On-Premise
Brew-on-premises (BOP) is a business that provides space and equipment to the public to brew and bottle their own beer. The following Federal guidelines apply to BOPs that are not on a TTB qualified brewery. State and local requirements may vary. Contact your State alcohol control board.
Owners of BOPs A person may establish and operate a BOP without qualifying with TTB under the conditions outlined below. Further, no Federal excise tax is imposed on beer produced by individuals at a BOP under the conditions outlined below.
Proprietors of BOPs must operate their business in compliance with State and local laws. The provision to produce beer for personal or family use and without payment of tax at a BOP under the Internal Revenue Code of 1986 (IRC, 26 U.S.C. 5053(e)) does not authorize production of beer by adults, or operation of a BOP business, in violation of any State or local law.

24. Brew-On-Premise - Allowed
Proprietors and employees of BOPs may:
Furnish space, brewing equipment, ingredients, bottling supplies, and advice and expertise to customers.
Furnish unfermented wort to BOP customers.
Provide certain assistance to customers, such as:
Moving containers of beer between storage areas;
Cleaning, maintenance, and repair of equipment;
Climate and temperature control;
Disposal of spent grains and wastes; or
Quality control (including laboratory analysis and tasting of beer for quality control purposes).

25. Brew-On-Premise - Not Allowed
Proprietors and employees of BOPs may not:
Provide assistance to, or on behalf of, customers in the production, storage, or packaging of beer, such as:
Fermenting mash,
Adding sugar, CO2, or any other ingredients to beer,
Filtering or bottling beer, or
Providing physical assistance in the production, tank transfer, racking, or the bottling or kegging of beer.
Produce or provide non-taxpaid beer to customers or prospective customers for sampling purposes.

26. Brew-On-Premise - Individuals May
Individuals “home brewing” at BOPs A person producing beer at a BOP must do so in accordance to 26 U.S.C. 5053(e) and TTB regulations 27 CFR , which provide that:
Adults may produce beer for personal or family use without payment of tax;
Adults are defined as 18 years of age or older (or the age required for the purchase of beer in the locality of the BOP);
Adults may produce, without payment of tax, per household, up to 100 gallons per calendar year if there is one adult residing in the household, or 200 gallons of beer per year if there are two or more adults residing in the household;
Adults who produce beer at a BOP may remove their beer for personal or family use, including use in organized affairs, exhibitions, or competitions (such as homemaker's contests or tastings);
Adults may collaborate with other adults in the production of beer at a BOP provided they are not considered a corporation or an association; and
Adults may not produce beer for sale or offer their beer for sale.
Adults using BOPs should note that owners and employees of BOPs are limited in the assistance they may provide customers. It is the responsibility of BOP customers to carry out the activities that are required to brew, store, and package beer.

27. Reference Materials
TTB P The Beverage Alcohol Manual (BAM) – Basic Mandatory Labeling Information For Malt Beverages Volume 3
TTB Ruling – Ingredients and Processes Used in The Production of Beer Not Subject to Formula Requirements
Industry Circular – Using Pay.gov To Submit Alcohol & Tobacco Excise Tax Returns, Tax Payments, & Operational
TTB Ruling – Classification of Brewed Products
Industry Circular Expansion of Allowable Revisions to Approved Alcohol Beverage Labels
Industry Circular Electronically Processing Paper Certificate of Label Approval (COLA) Applications
Industry Circular Use of Social Media in the Advertising of Alcohol Beverages
TTB Ruling – Malt Beverages Sold Exclusively in Intrastate Commerce

28. TTB Announcement Jan. 14, 2016 - Protecting Americans from Tax Hikes Act of 2015 (“the Path Act”)
Changes the excise tax due dates & eliminates bond requirements
Beginning calendar qt. Jan. 1, 2017, if not liable for not more than $1000 in taxes on distilled spirits, wines and beer for the calendar yr. (and not liable for more than $1000 in taxes in the preceding calendar yr.) can pay taxes annually, rather than quarterly.
Beginning calendar qt. Jan. 1, 2017, if eligible for annual filing as above, & eligible for qt. filing under current law, are exempt from filing a bond covering operations or withdrawals of distilled spirits, or wines for nonindustrial use or beer.
TTB in process of identifying & updating regulations, forms or guidance documents.

29. Contact Information
Brewery Applications Section at the National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau, 550 Main Street, Room 8002, Cincinnati, OH 45202, or by:
Telephone (toll free): (877)
TTB web address:
Warren Siskoff, Investigator Alcohol and Tobacco Tax and Trade Bureau (TTB)
Telephone: (513)
Address: TTB, Mountain District Field Office, Glen Tischler, District Director, TID,
316 North Robert St., Suite 322, St. Paul, MN 55101,
TTB St. Paul, MN telephone (513) 684 – 2730

30. State of Wisconsin Contacts – Alcohol & Tobacco
For State of WI Permit/License Questions, please contact Julie Viney, (608) or
For State of WI Alcohol & Tobacco Enforcement Questions, please contact Justin Shemanski, (608) or