The LLC business structure provides the limited liability features you would find in a corporation.
The Small Business Administration has all of the details about these common small business structures and others. So, the protections an LLC offers may be a better fit than a sole proprietorship.
Conversely, most state brewery laws today authorize brewers to have a tasting room or restaurant as part of their brewery, and an increasing number of states permit brewers to also open a few remote retail tasting rooms or restaurants in order to brand themselves at premier retail locations.
Starting a craft beer business isn’t all brewing and drinking.
This may be just the ticket for your brand new, baby crafting business as it is also the easiest to set up.
If you’re interested in a little more protection, an LLC (or Limited Liability Company) may be a better fit.The result was a 3-tiered system separating alcohol producers, distributors, and retailers.This system is still in place in most states today.There are basic administrative tasks that all businesses must complete in order to legally operate. We discussed these options previously in our article 15 Tips for Turning Your Craft Hobby Into a Successful Business: A sole proprietorship is the “most basic type of business to establish” according to the SBA (Small Business Administration).For instance, you need to choose the legal structure for your new business. You are the sole owner of the business; and, as such, are solely responsible for the assets and liabilities accrued by the business.But, they do serve as a necessary starting point to help you get your business off the ground.The alcohol industry is governed at both the federal and state level.And, to truly understand what your business options are, you’ve got to learn what’s legal in your state. A microbrewery in one state may be governed by very different rules than a microbrewery the next state over.And, once you’ve decided which overall business structure is the right fit for you, it’s time to get more specific. This should outline your goals and how you plan to achieve them.Fortunately for small brewers, the laws of many states provide flexibility allowing many brewery business models to thrive within the overall three-tier structure.Brewpub laws allow the marriage of producer and retailer tier into single premises…