There are always threads floating around by folks who are thinking about the same dream 98% of us have... starting a brewery. I have been responding here and there and figured I would just start a thread.
I am super lazy so I lifted (and slightly edited) a response I gave on another thread below.
I don't remotely consider myself some sort of "expert". I am not remotely saying you will need to 1) do it how we did it or 2) run into the same issues we did. I am simply trying to show what it took for us so folks can go into the situation with as much knowledge as possible.
Two partners and I just opened a nano and are holding our initial release parties in about two weeks at two different bars... so... I just went through this.
You're going to need to file for and obtain a Brewer's Notice through the TTB. Part of that application process includes documenting the commercial space you've OBTAINED (not "are looking at"... they want a copy of either the deed to the property or the executed lease agreement with the landlord.) They'll also want proof of insurance (the landlord will want that too), six months of financial records, evidence of where the funding for the brewery is coming from... among other things. We were able to get all of that paperwork filled out and submitted in about two weeks. We got approval in about 45 days after that (which was lightning fast from what other breweries have told us).
There is a lot of talk about the TTB allowing a brewery to operate on privite propery (or a residential property). MY understanding (which could be 100% incorrect) is that it is very rare that the TTB will allow a commercial brewery to operate on a residential property and when they do allow it, the brewery needs to operate in a completely separate building from the residence.
Once you have your Brewer's Notice, then you have to get your state license... the state is typically dependant on getting the TTB license first. State licenses vary dramatically from state to state in terms of rights to self-distribute, tasting rooms, ABV limits, fees, etc. I can't really help you there other than to say that I can't fathom the state not having a detailed (and painful) process for all of that. That process here in Mass took us another 75 days or so.
(all the while paying rent on the commercial space we had to take)
While you are going through the licensing process, you get the pleasure of dealing with local/town building/fire/electrical/plumbing inspectors as well as the Board of Health.
They're going to want to take a look at every single nut and bolt of the brewing operation. We were originally going to use banjo burners.... NOPE... "not UL or any other industry safety commission certified. Sorry". (trust me, I know how ridiculous that sentence is). We had to replace our stand, our burners, everything but the pots. "oh...well... the natural gas line in this building isn't rated for the volume of gas you need so you need to run new gas line"... $2,600 to run black pipe across an entire building.
And it just keeps on coming. ADA-compliant bathrooms... "sorry, you need a new toilet, sink and this door isn't wide enough". CO monitors and automatic gas shutoffs. Water backflow preventers so you don't backflow into the town water supple (again... ridiculous but we had to do it). Make sure the septic tank is rated appropriately. If it is sewer, make sure the town is Ok with "brewing chemicals" being dumped into the sewer. Occupancy permits, business permits, LLC registration... don't forget you ge the pleasure of now filing corp. taxes too as well as your state and federal excise tax pre-payments!!
My experience in talking with other nanos in Massachusetts is that local building codes or what an inspector will accept will vary dramatically from town to town.
We're on a 1.5 bbl system and while we ABSOLUTELY knew this going in, at that scale, it is impossible to make any money. We can work around the clock if we want and sell every drop and at the end of the year, each one of us would make a couple grand. If you are brewing on a 15 gallon rig, take that tiny profit and erase it completely.
Distribution: This varies from state to state as well. We're lucky that here in Massachusetts, under our Farmer-Brewer License, we're allowed to self-distribute. We needed to "officially" license each of our individual vehicles (down to the VIN numbers) and pay a fee, so that each of our trucks could legally carry the beer from the brewery directly to our customers. Again, what you can and can't do will vary from state to state and you need to know what you're facing.
Once up and running, you need to file all sorts of regular reports with the TTB and supporting agencies... excise taxes, operations reports, label approvals (not just for bottles but for kegs as well), recipe and process documentation and approvals, etc.
Start to finish... it took us about 14-15 months to get from "let's find some space and do this" to "Our beers are going on tap in two weeks!"
Like I was saying at the beginning... I'm not an "expert" and if someone thinks any of this is wrong, great... that's one of the reasons I wanted to post this. It is something my two partners and I are taking very seriously (although having a ton of fun) but if we can learn something here as well... awesome... I'm all for that!
If you have any interest... there is a blog on our breweries website (below) that talk about some more of the specifics of what we went through.
I am super lazy so I lifted (and slightly edited) a response I gave on another thread below.
I don't remotely consider myself some sort of "expert". I am not remotely saying you will need to 1) do it how we did it or 2) run into the same issues we did. I am simply trying to show what it took for us so folks can go into the situation with as much knowledge as possible.
Two partners and I just opened a nano and are holding our initial release parties in about two weeks at two different bars... so... I just went through this.
You're going to need to file for and obtain a Brewer's Notice through the TTB. Part of that application process includes documenting the commercial space you've OBTAINED (not "are looking at"... they want a copy of either the deed to the property or the executed lease agreement with the landlord.) They'll also want proof of insurance (the landlord will want that too), six months of financial records, evidence of where the funding for the brewery is coming from... among other things. We were able to get all of that paperwork filled out and submitted in about two weeks. We got approval in about 45 days after that (which was lightning fast from what other breweries have told us).
There is a lot of talk about the TTB allowing a brewery to operate on privite propery (or a residential property). MY understanding (which could be 100% incorrect) is that it is very rare that the TTB will allow a commercial brewery to operate on a residential property and when they do allow it, the brewery needs to operate in a completely separate building from the residence.
Once you have your Brewer's Notice, then you have to get your state license... the state is typically dependant on getting the TTB license first. State licenses vary dramatically from state to state in terms of rights to self-distribute, tasting rooms, ABV limits, fees, etc. I can't really help you there other than to say that I can't fathom the state not having a detailed (and painful) process for all of that. That process here in Mass took us another 75 days or so.
(all the while paying rent on the commercial space we had to take)
While you are going through the licensing process, you get the pleasure of dealing with local/town building/fire/electrical/plumbing inspectors as well as the Board of Health.
They're going to want to take a look at every single nut and bolt of the brewing operation. We were originally going to use banjo burners.... NOPE... "not UL or any other industry safety commission certified. Sorry". (trust me, I know how ridiculous that sentence is). We had to replace our stand, our burners, everything but the pots. "oh...well... the natural gas line in this building isn't rated for the volume of gas you need so you need to run new gas line"... $2,600 to run black pipe across an entire building.
And it just keeps on coming. ADA-compliant bathrooms... "sorry, you need a new toilet, sink and this door isn't wide enough". CO monitors and automatic gas shutoffs. Water backflow preventers so you don't backflow into the town water supple (again... ridiculous but we had to do it). Make sure the septic tank is rated appropriately. If it is sewer, make sure the town is Ok with "brewing chemicals" being dumped into the sewer. Occupancy permits, business permits, LLC registration... don't forget you ge the pleasure of now filing corp. taxes too as well as your state and federal excise tax pre-payments!!
My experience in talking with other nanos in Massachusetts is that local building codes or what an inspector will accept will vary dramatically from town to town.
We're on a 1.5 bbl system and while we ABSOLUTELY knew this going in, at that scale, it is impossible to make any money. We can work around the clock if we want and sell every drop and at the end of the year, each one of us would make a couple grand. If you are brewing on a 15 gallon rig, take that tiny profit and erase it completely.
Distribution: This varies from state to state as well. We're lucky that here in Massachusetts, under our Farmer-Brewer License, we're allowed to self-distribute. We needed to "officially" license each of our individual vehicles (down to the VIN numbers) and pay a fee, so that each of our trucks could legally carry the beer from the brewery directly to our customers. Again, what you can and can't do will vary from state to state and you need to know what you're facing.
Once up and running, you need to file all sorts of regular reports with the TTB and supporting agencies... excise taxes, operations reports, label approvals (not just for bottles but for kegs as well), recipe and process documentation and approvals, etc.
Start to finish... it took us about 14-15 months to get from "let's find some space and do this" to "Our beers are going on tap in two weeks!"
Like I was saying at the beginning... I'm not an "expert" and if someone thinks any of this is wrong, great... that's one of the reasons I wanted to post this. It is something my two partners and I are taking very seriously (although having a ton of fun) but if we can learn something here as well... awesome... I'm all for that!
If you have any interest... there is a blog on our breweries website (below) that talk about some more of the specifics of what we went through.