1. "The Many Faces of Custom Crush" Caraker Law Firm, P.C. Custom Crush/Production vs. Alternating Proprietorship Licensing - Compliance - Guidelines

2. Who is Caraker Law Firm, P.C. ?  Small Firm  Located in Central Missouri  Areas of practice: TTB, IRS and State Departments of Revenue and ABCs

3. Who is April L. Roof ?  Enrolled Agent  Audit/Examination Specialist  Primary Winery Contact

4. What does Caraker Law Firm, P.C. do?  Alcohol and Tobacco Tax and Trade Bureau (TTB)  Internal Revenue Service  State Departments of Revenue and Alcohol Beverage Control (as allowed by state law)

5. Overview  Relevant Terms  Difference between Custom Crush and Alternating Proprietorship  “Pros” vs. “Cons”  TTB Concerns  Policy/Expectations

6. Relevant Terms  Bonded Wine Premises  Bonded Winery  Bonded Wine Cellar

7. Bonded Wine Premises

8. Bonded Winery

9. Bonded Wine Cellar

10. Custom Crush/Producer  “Client” - provides raw material - possibly instructions  “Producer” - provides facility, staff, sometimes storage - responsible for virtually all record keeping

11. Custom Crush/Producer

15.  “Client” may need a Wholesaler's Permit  “Client” may also need to pay a Special Occupational Tax ($500/$250)

16. Alternating Proprietorship  “Host” - Bonded Winery, Premises, Equipment  “Tenant” - Bonded Winery

17. Alternating Proprietorship

21.  BOTH must be a Bonded Winery  BOTH responsible for own recordkeeping  APs MUST have TTB-approved plan

22. “Pros” vs. “Cons”  Small Domestic Producers Credit (SDPC)  Wholesale vs. Retail  Marketing & Promotional Privileges  Control

23. TTB Concerns  Need for Permit  SDPC  Ability to keep inventories separate

24. Policy / Expectations  AP Agreements and Qualification  Suitability of Premises  Staff  Access to Premises

25. Policy / Expectations, cont.  Changing Terms of AP Agreement  SDPC  Permanent Premises  Alternation for Less than One (1) Day

26. What about the State?  Every state is different (of course!)  Most rely on Federal documents for licensure  Some have more stringent requirements

27. Conclusion Custom Crush is for some. Alternating Proprietorship is for some. Establishing an independent, free-standing Winery is for some.

28. Caraker Law Firm, P.C. www.carakerlawfirm.com april@carakerlawfirm.com (800) 470-0173 Make sure to enter our drawing to win 1 of 5 TTB set-up packages OR an e-reader. Booth 1011