Getting into the Brewing Industry

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Do you like micro-brew or have you ever thought about opening up a microbrewery? Today, we look at state and federal legislation that affects independent brewers in the manufacture, distribution and retailing of their products.

We have with us Dennis Theodossis from Dixon Hughes Goodman LLP, located in Asheville, North Carolina. He has been with the firm for about eight years, and his particular focus is breweries within the manufacturing and distribution space.

Dixon Hughes Goodman LLP is the 17th largest accounting firm in the country with a footprint that spreads along the East Coast.

Key Points

  • There has been an expansion of microbreweries in Western North Carolina in recent years.
  • Across all states, there is a three-tiered system separating the manufacture, distribution, and retailing of beer.
  • Different states have different limits on how much you can produce before you have to use a wholesaler.
  • Depending on the state, manufacturers sell beer out of their tap room until they hit a certain threshold.
  • Get familiar with the accounting and tax implications of your business operations.
  • Depending on the amounts you produce, taxes can be paid quarterly or monthly.
  • Sometimes bars are required to operate as a private membership facility.
  • If you have a restaurant component in your business, your brewery might not be considered as a manufacturer, and that’s not necessarily a good thing.
  • Contact your attorney before getting into a co-packing agreement.
  • When you are contract-brewing for out-of-state parties, you are required to file tax returns in their state.
  • Dennis explains recent developments concerning regulation and compliance in the industry.

You definitely want to hear what Dennis has to say.

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