Craft distilling is a growing industry, with $14 billion in total revenue (in 2018).
However, getting a new distillery started can be tricky. There are national, state, and local regulatory agencies that oversee the industry. The Alcohol and Tobacco Tax and Trade Bureau (a bureau of the United States Department of Treasury) regulates and registers ethanol production facilities.
The "Code of Federal Regulations (CFR) Title 27: Alcohol, Tobacco and Firearms Part 19: Distilled Spirits Plants" specifies the regulations that apply to the licensing of distilled spirits plants (DSP).
The Oregon Liquor Control Commission (OLCC) regulates statewide production, distribution, and commerce related to distilled spirits.
The information in this guide will help you complete the OLCC application as well as the TTB application, so it can be useful for Oregon-based distillers, as well as prospective distillers in other states.
Before beginning the TTB and OLCC applications for a new distilled spirits plant, you need to register your company and its trade name with the Oregon Secretary of State’s office, which has to approve your company to conduct business.
In Oregon, registration can be done at the Oregon Secretary of State website at:
http://sos.oregon.gov/business/Pages/default.aspx
One challenge related to setting up a new distillery plant is registering your business and getting the proper permits. This guide aims to clarify that process and layout the steps you need to take.
Here are the six steps you need to take in order to register your business and obtain the proper permits.
(Can be completed simultaneously)
(Can be completed simultaneously)
When registering your company name, keep in mind that the TTB has certain rules in place regarding trade names. To meet federal requirements, your company name:
Shaded boxes indicate required application items for each type of business structure.
* Lease agreement must authorize distilling or other DSP operations.
* Must not contain “Inc.”, “Incorporated”, “Corporation”, “LLC”, or any similar wording (unless the state requires such wording), suggesting it is the legal name of the company (however, the word “Limited” is allowed).
* Must not represent the proprietor as a distiller, rectifier, wine producer, brewer, or bottler of distilled spirits, wine, or beer, when they
are not.
* Must not contain obscene or indecent wording or language.
Your distilled spirits plant can be structured as a sole proprietor, partnership, LLC, or corporation. Each business structure has different legal requirements, outlined broadly in the Business Structure breakdown above.
After you have registered the business with the Oregon Secretary of State’s office, there are five tasks you need to complete before starting your TTB and OLCC applications.
You can complete these tasks simultaneously.
After the company has been established, you can get an employer identification number (EIN) from the Internal Revenue Service (IRS). The IRS issues EINs for tax administration purposes; EINs are not intended for use with other activities (e.g., tax lien auctions or sales,
lotteries, etc.).
To obtain an EIN, fill out:
This is a statement that each OLCC liquor license applicant has read the supplier-retailer relations guidelines. The affirmation requires the registered trade name of the business, address of the business, and the name and signature of each liquor license applicant.
These guidelines and the affirmation can be found on the OLCC website at:
The application for a new distilled spirits plant requires that you complete on-site construction and order equipment. On the application, you need to supply specific information about the equipment.
Be sure to examine 27 CFR §19.52 (which outlines restrictions on distilled spirits plant locations) and 27 CFR §19.75 (which states what information is needed for major equipment). The TTB distilled spirits plant application also requires a physical description and diagram of the site. For more specific information see “Required Documents for TTB New Distilled Spirits Plant Application.”
If you want to offer on-site tasting, an individual must be designated to set standards and policies for alcohol servers. This individual and all alcohol servers must have a service permit. This can be achieved by taking an OLCC-approved alcohol server education class, filling out the service permit application, and having it signed by an OLCC employee, alcohol server education course instructor, or manager designated to set standards and policies for alcohol servers.
Once this is complete, mail the Service Permit Application with appropriate payment (indicated on the application) to the OLCC at:
Milwaukie OR 97269-2297
You can use a copy of the application as a 45-day temporary permit.
The Service Permit Application and a list of OLCC approved alcohol server education classes can be found at:
An individual in your organization should obtain a service permit or submit the service permit application(s) before you complete the limited partnership, limited liability company, or corporation questionnaire.
You can find the Officer/Owner Information Application on the TTB online permits system. The TTB strongly recommends using the online electronic system instead of paper forms. This system is used for the Officer/Owner Information Application and the Application for New Distilled Spirits Plant.
The Officer/Owner Information Application must be completed for every stockholder with 10% or more holding in the company, sole proprietor, partner, officer, director, trustee, member and/or managing member, as well as any company or trust holding ownership.
❏ Commercial credit reporting agency
❏ Residence information
❏ Employment history
❏ Bank reference
❏ Character-business references
You will need to gather a range of information to complete the Officer/Owner Information Application.
It can be helpful to have this information handy before beginning the online application process. The following is required information for each section of the application (in the order it appears on the TTB online system):
After submitting a completed application, you will receive an officer/owner information tracking number.
The TTB new distilled spirits plant and OLCC liquor licensing applications can be completed simultaneously. A wholesaler’s permit is not necessary unless you intend to sell spirits, beer, or wine you do not manufacture.
❏ Lease agreement or proof of property
❑ Source of funds
❏Diagram of plant or plan
❏ Organizational documents
❑ Meeting minutes (if applicable)
❏ Bond form (if applicable)
❏Signing authority form (if applicable)
❏Power of attorney (if applicable)
The TTB New Distilled Spirit Application can be downloaded; however, the TTB highly recommends that you complete the online version instead of submitting a paper copy.
The TTB distilled spirit plant permit application requires you to upload specific documents and forms. The process will go more smoothly if you fill out and collect the following items prior to starting the online application.
The online TTB new distilled spirits plant application is divided into three main sections:
Each section has several subsections. The following describes the items in the application (in the order they appear), and the information you will need to complete each item.
This is defined as multiple operations alternating use of the equipment and premises that is operated by the same person (Example: A bonded wine premises/DSP/ brewery/tax-paid wine bottling house).
Only complete this section of the application if applicable to your proposed operation.
This describes an arrangement in which two or more people take turns using the physical premises (Example: Rental of space and equipment from a host).
Only complete this section of the application if applicable to your proposed operation.
This section provides information on each employee who has signing authority or can act on behalf of the company.
If applicable, complete and upload the Signing Authority for Corporate and LLC Officials Form (TTB F 5100.1).
This provides information on each non-employee who has signing authority or can act on behalf of the company.
If applicable, complete and upload Power of Attorney Form (TTB F 5000.8). See Appendix D.
All trade names must be registered with the state of Oregon.
This request may be filled out to seek legal approval from the TTB to deviate from CFR 27 part 19.
27 CFR § 19.192 (f): (i) Corresponding serial number on the lock and on the key, except for master key locking systems; (ii) case-hardened shackle at least ¼ inch in diameter, with heel and toe locking; (iii) body width of at least 2 inches; (iv) captured key feature (key may not be removed while shackle is unlocked); (v) a tumbler with at least 5 pins; and (vi) a lock and key containing no bitting data.
“From the point of beginning, proceed southwest 43.5 to the northeast corner of the building (Premises #1). From the northeast corner of Premises #1, proceed west 26.5 feet, to the northwest corner of the building. Turn left 90 degrees and proceed south 51 feet to the southwest corner of the building. Turn left 90 degrees and proceed east 12 feet to the southeast corner of the building. Turn right 90 degrees and precede south 5 feet. Turn left and proceed east 14.5 feet to the southeast corner of the building. Turn left 90 degrees and proceed north 51 feet back to the point of beginning.”
“The distillery premises consist of two buildings located within an industrial zoned complex. Starting at business entrance doorway #1, head west 15 feet, then south 15 feet, then east, 15 feet then north 15 feet back to doorway #1. Moving 20 feet south, begin again at business entrance doorway #2, head west 15 feet, then north 18 feet, then east, 15 feet, then south 18 feet back to doorway #2. Both buildings are single level and constructed of wood, concrete block, and stone with a poured concrete floor. The first building is 23 feet x 43 feet. The second building is 22 feet x 42 feet and will be used to store barrels for aging."
All stills, tanks, and condensers used in production, storage, and processing of distilled spirits must be listed. All stills must be registered with the TTB in accordance to 27 CFR § 19.79. Stills and equipment listed in this application are considered registered upon application approval.
A bond with sufficient coverage is only required if you expect tax liability to exceed $50,000 in a calendar year. Distilled Spirits Bond Form (TTB F 5110.56) must be completed and uploaded into the application if a bond is required.
The operation’s tax liability should be estimated. Tax liability of $50,000 dollars equates to the removal and sale of approximately 1,950 cases of 750 ml bottles of 40% ABV (80 proof) spirit. This was calculated based upon the 26 U.S. Code § 5001 - Imposition, rate, and attachment of tax, which states: “There is hereby imposed on all distilled spirits produced in or imported into the United States a tax at the rate of $13.50 on each proof gallon and a proportionate tax at the like rate on all fractional parts of a proof gallon.”
If withdrawal coverage is required, then a unit bond is needed to cover operations and withdrawals. Refer to 27 CFR § 19.166 (See Appendix F. If tax liability will not exceed $50,000, no bond is required.
If a bond is needed:
Related bonds and permits (o nly fill out this section if applicable to your proposed operation):
Only fill out this section if applicable to your proposed operation.
This section should not be applicable to new operations.
Only fill out this section if applicable to your proposed operation. A TTB F 5000.18 Consent of Bond (Consent of Surety) must be completed and uploaded if applicable.
This section of the application provides a list of documents you need to submit based on the contents of your application. It will also specify the correct method for submitting the required information.
Required documentation is uploaded in this portion of the application.
After the TTB application is complete, you will be asked to review and submit the application. Once submitted, you will be given a permanent tracking number.
The tracking number will end with an “O,” which stands for “Original.” A TTB officer may be in contact with you to ask for clarification or request additional information. Once the application is deemed acceptable, it is forwarded for approval. Once approved, all documentation will be available online.
The approval process time can take over 6 months.
❑ Lease agreement or proof of property ownership
❑ State of funding sources
❑ Floor plan
❑ Liquor license application
❑ Business information
❑ Individual history
❑ Limited partnership questionnaire (if applicable)
❑ Limited company questionnaire (if applicable)
❑ Corporation questionnaire (if applicable)
❑ Franchise agreement summary (if applicable)
❑ Distillery Tasting Privilege Application (optional, required for distillery wishes to sell directly to public whether tasting are provided or not)
The OLCC application does not have a separate form.
Instead, the application process involves collecting specific information about your operation, completing certain forms, and either mailing or delivering this information to the OLCC office that serves the city or county where your business will be located.
The licensing fee (which is indicated on the application) will be collected after licensing has occurred. Do not send the licensing fee with the application packet.
Lease agreement or proof of property ownership.
You will need to submit a copy of the lease agreement, sales agreement, or other proof of property ownership. It may be a signed or draft document.
Each person who invests money in the licensed business must provide a statement of funding sources with the application packet. These individuals must state the total amount of money invested and the origins of the money (which should include the full name of bank, lender, or person from whom they received the money).
Each individual must sign and swear the provided information is accurate.
The floor plan must be submitted on the OLCC floor plan form. A different form must be used for each floor. The plan must show all areas of your premises and each area must be specified. Location of furniture must be accurately represented.
If you will be providing tastings, the location of the tasting area must be shown; the tasting area must be out of the bonded area.
License type (distillery) must be indicated. List all applicants applying for the license, which includes any person or legal entity that may exert control over the business, may incur debt or similar obligations related to the business, may enter the business into contractual obligations, or is the lessee of the property that is to be licensed. Applicant must state if business is already licensed by the OLCC.
The business’s trade name, location, and contact information is required. A contact person for the application must be stated, along with their contact information and address. Each applicant must sign the application to acknowledge that they understand that marijuana is not be sold, given away, or used on the licensed premises.
The trade name and business location must be indicated. The operation’s hours, type of entertainment, hours during which music will occur (live or with a deejay), and each section’s seating count must also be provided.
OLCC Individual History Form must be completed by all individuals or entities listed on the liquor license application. If the business is a corporation, then any person with responsibility over operation of business (president, vice president, treasurer, etc.), director with 3% or more voting stock, person with 10% or more issued stock has to complete an Individual History Form.
If the business is an LLC, then managing members and any member who owns 10% or more of the company has to complete an Individual History Form.
Provide your full name, social security number, date of birth, phone number, driver license information, address, name of spouse or domestic partner and whether your spouse or domestic partner will be involved with the business. Other items related to your history are: any driving convictions related to driving without a license or insurance within the last.
10 years, conviction of any felony within the last 10 years, participation in drug or alcohol diversion programs in lieu of conviction, possession of a liquor or recreational marijuana license within Oregon or another state, and liquor licensing history (including if the license was denied or cancelled). In addition, you need to specify if you are applying for a full on-premises, limited on-premises, off-premises, or brewery-public house license.
Information regarding the ownership status of all applicants in businesses that manufacture, wholesale, or distribute alcohol in the United States; ownership of other full on-premises, limited on-premises, off- premises, or brewery-public house licenses must all be provided.
The partnership must be approved by the Oregon Secretary of State to conduct business in Oregon. You have to provide the partnership name, year filed, and business location. You also need to provide a list of all partners and type of partnership (general or limited), percentage of ownership, who the server education designee is, and their date of birth.
If a general partner is a legal entity, a flowchart should be included to demonstrate the legal entity relationship.
A general partner must sign the forms.
The Limited Liability Company (LLC) must be approved by the Oregon Secretary of State to conduct business in Oregon. The information required includes LLC name and year filed, business trade name and location, list of all members and percentage of membership interest, officers (individually listed on a separate paper), and the name of server education designee and their date of birth.
If a member is another legal entity who controls 10% or more of membership, a separate questionnaire must be filled out (LLC or corporate). A managing member must sign the forms.
The corporation must be approved by the Oregon Secretary of State to conduct business in Oregon.
Required information includes corporation name and year of incorporation, trade name and location of business, list and title of all corporate officers, list of board of directors, list of stockholders and number of shares held, number of stocks issued and unissued, amount of shares authorized to be issued, and the name of server education designee and their date of birth.
A corporate officer must sign the form.
The information required includes applicant name (which is the person or legal entity listed on the liquor license application form), business’s trade name and location, franchisor name, a list of all franchisees (all people or companies which will operate the business), expenses related to the franchise (including inventory cost, initial fees, and royalty fees), loan agreement of franchisor (if applicable), and rental/leasing agreement of franchisor (if applicable).
A copy of the franchise agreement or letter of intent is also required.
If the owners of a distillery wish to provide tasting and/or sell factory sealed containers directly to the public, they must be approved by the OLCC. Once a distillery is approved to provide tastings by the OLCC, the owners may contact the OLCC Retail Service Division at 503-872-5020 or via email at OLCC.RetailServices@state.or.us to seek approval to sell factory-sealed containers directly to consumers at the licensed distillery premises.
The information required on the Distillery Tasting Privilege Application includes licensee name and trade name, address of licensed premises, address of other premises where tastings will be provided (up to 5 other premises), and means to distinguish the tastings provided to trade visitors versus the tastings provided to the public.
Also required is a floor plan form for Oregon distillery tasting privilege for each location providing tastings (which includes licensee name, trade name, and business address) and a sketch that includes all rooms that make up the distillery licensed premises and labeled, identified tasting areas.
Once completed, mail or deliver the OLCC application packet to the OLCC office that covers the city or county where the business is intended to be located. Do not send the licensing fee with the initial application; this fee will be collected at a later date. An OLCC employee will contact you about the license fee and will give you documentation to take to the local government for review and recommendations.
Local governments will generally not review your application until it is approved by the OLCC.
Once the federal permit, Oregon license, and local approval is obtained, you can begin spirit production and start the label and formula approval process, which is outlined in Appendix F.
After obtaining a federal certificate of label approval (COLA) and a formula approval (if necessary) has been obtained, you can begin the process of getting approval to sell by the bottle in Oregon. This process is briefly outlined in Appendix G along with a link to an OLCC guide that describes the privileges and requirements for Oregon distillery licensee.
Information in this guide was sourced from the TTB website, OLCC website, and 27 CFR part 19.
The following forms and definitions are provided for reference. Because this information can change, be sure to check the TTB and OLCC websites for the most updated resources before applying for your distilled spirits plant license.
If you would like personalized one-on-one coaching and instruction on how to open your own distillery and avoid common mistakes, you can read more about Oregon State University's Distillery Startup Workshop.
In the expert-led workshop, you will:
