Starting a Winery: Navigating Federal and State Registration Requirements
If you've been dreaming of starting your own winery and finally feel ready to take the plunge, you've probably considered everything from your brand name to the type of wine you want to make. That ideation is part of the thrill; you’re putting your creativity and passion to work.
However, you also need the right licenses and permits to make your dream a reality. In this article, we'll walk you through the ABCs of winery registration, from federal permits to the intricacies of local regulations.
Understanding Federal Winery Registration Requirements
The Alcohol and Tobacco Tax and Trade Bureau (TTB) issues permits to open and operate wineries. You must apply for permission to establish a winery before making wine to sell commercially.
Commercial winemaking without a TTB winery permit is illegal. Authorities may seize your wine or ask you to destroy it if you begin winery operations without permission.
The TTB requires the following documents to start your winery registration application and obtain a winery permit:
Form TTB F 5120.25 (Application to Establish and Operate Wine Premises)
Form TTB F 5100.24 (Application for a Basic Permit)
Form TTB F 5120.36 (Wine Bond)
Signature Authority: Form 5000.8 (Power of Attorney) OR Form 5001.1 (Signing Authority for Corporate and LLC Officials) OR Signing Authority in Organizational Documents
Trade Name Registration
Form 5630.5 (Special Tax Registration)
Submit your application by creating a Permits Online account and uploading your documents via the customer portal. Alternatively, send two copies of your documents to:
Alcohol and Tobacco Tax and Trade Bureau
National Revenue Center
John Weld Peck Federal Building
550 Main Street, Room 8970
Cincinnati, OH 45202
After submitting your application, the TTB will add it to its system in about 7 days. Next, a Wine Applications Unit Specialist will contact you for additional information.
Sometimes, the TTB sends inspectors to assess applications in more detail. If this happens, you should expect them to check the suitability of your premises, the accuracy of your application forms, and your ability to operate a compliant winery.
An approving official will determine whether to approve or deny your winery registration application. If successful, you'll receive your approved documents via the Permits Online portal (if you applied online) or mail (if you mailed your application).
State-Specific Winery Registration Requirements: California
In addition to your TTB permit, you'll need state-specific permits to operate a winery in California. State law requires wineries to obtain seller's permits.
The California Department of Tax and Fee Administration (CDTFA) administers seller's permits, and you can apply for a permit online through the Department's online portal. The Department will request the following information from you and any partners, officers, or members involved in managing your winery:
Identification documents, such as your driver's license, passport, or state identification card
Social Security Number or Individual Taxpayer ID
Email address
Contact details for your bookkeeper or accountant
California Secretary of State Entity Number
You'll also need to open an alcoholic beverage tax account with the CDTFA. There are several account types, and the Department will tell you which type you need after you obtain a California Alcohol Beverage Control permit.
California Alcohol Beverage Control (ABC) Permits
The Department of Alcoholic Beverage Control issues California winery permits. There are numerous ABC license types to suit various business models.
If you plan to manufacture wine from fruit on your premises, you'll need a Winegrower license. This license allows you to:
Ferment wine from agricultural products
Fortify wine with brandy brewed from the same fruit
Add flavoring or blending materials to wine, providing they constitute no more than 15% of the product
You may need additional licenses to carry out other activities in your winery. Common licenses include Rectifier, Wine Blender, and Wine Grape Grower's Storage.
To apply for your license(s), contact your nearest ABC District Office. An ABC staff member will discuss your proposed operation with you to help you determine which licenses you require and how to apply. Generally, you'll need to display a Public Notice of Application at your winery and provide any information requested by your ABC officer.
An officer may ask you to undertake other activities, such as mailing a notification to residents within a particular radius. The ABC will investigate your application and share it with other officials, such as your city council. This process enables other entities to raise concerns. It also allows the ABC to assess whether you're qualified to operate a winery and establish the suitability of your premises.
ABC headquarters reviews all applications before deciding whether to approve or deny your license. If approved, the Department will issue your license.
If you want to serve alcoholic beverages in your winery, you must arrange Responsible Beverage Service (RBS) certification for your servers and their managers. Employees must register on the RBS portal, complete an approved training program, and take the ABC Alcohol Server Certification Exam before serving alcohol.
Local County Permits
You'll likely need a Use Permit from your local planning and development permitting agency. Requirements vary between California counties depending on factors like local biological resources, impact on the local transportation system, and potential effects on tribal cultural resources.
To gain permission to operate a winery on specific premises, you'll usually need to submit the following information:
Marketing plans
Detailed architectural drawings of buildings and structures and their proposed uses
Impact reports, such as noise studies and Traffic Impact Studies (TIS)
Your local permitting agency may restrict the types of activities you can carry out in your winery. For instance, they may limit the hours in which you can serve food.
Environmental and Zoning Regulations
During the application process for a county- or city-specific license, your permitting agency will scrutinize your proposal to see if it breaks local environmental or zoning regulations. For example, the agency may consider your winery's impact on local traffic systems and wildlife.
If your local permitting agency refuses your application, you could consider applying to have your premises rezoned or request a zoning variance. This process can be complex, so it's worth consulting a land use attorney for guidance.
Environmental regulations can also impact where you can open a winery and the types of activities you can undertake. For instance, California's Sustainable Groundwater Management Act (SGMA) requires local governments to create groundwater sustainability plans. Therefore, wineries in medium- or high-priority basins must take steps to mitigate the risk of land subsidence, water-quality degradation, and other sustainability indicators.
State-Specific Winery Registration Requirements: Oregon
Like all other U.S. states, Oregon requires you to obtain federal permission to operate a winery from the TTB before applying for a state-specific license. The Oregon Liquor and Cannabis Commission administers winery licenses.
To open a winery in Oregon, you'll need to obtain a Winery License from the OLCC, liquor liability insurance, and either a final recommendation from your local government or proof you've applied for a liquor license.
Oregon Liquor and Cannabis Commission (OLCC) Permits
The OLCC regulates the sale of alcoholic drinks and issues Oregon winery permits. Without an OLCC license, you cannot legally operate a winery or sell your wine to consumers or wholesalers.
To apply, you must complete the following forms:
Corporation Questionnaire OR Limited Liability Company Questionnaire OR Limited Partnership Questionnaire (if applying as an entity)
Your application must also show proof of a liquor license application or a final recommendation from your local government. The format of proof of submission varies between jurisdictions, but it must include the date it was received, your trade name, the premises address, and the name of your local government department.
All wineries in Oregon must hold valid liquor liability insurance providing coverage worth at least $300,000. Therefore, you should include an insurance certificate or ACORD form with your application as proof of coverage.
Submit your documents in PDF format via email to OLCC.LiquorLicenseApplication.Oregon.gov. Alternatively, mail your documents to:
OLCC Liquor Licensing
PO Box 2297
Milwaukee, OR 97269
Additionally, you may wish to apply for a Special Event Winery (SEW) license. This license allows you to:
Sell wine for consumption within an area licensed for special events
Sell wine in containers of up to 2 gallons from a licensed event area for off-site consumption
Deliver wine to Oregon residents
Before applying, you must first obtain a winery license from the OLCC. Next, complete the SEW application form and submit it to your local government. You can then send a copy of your form to your county OLCC office for approval.
If you intend to provide wine tastings or sell wine for on-site or off-site consumption, your servers must complete and pass an approved Alcohol Server Education Course. You can find accredited courses near you via the OLCC portal.
Local County Permits
In Oregon, you must apply for a liquor license or obtain a recommendation from your county or city government before completing the OLCC winery registration process. In other words, you won't get a state winery license without local government approval.
Regulations vary between jurisdictions, and your local government may consider your winery's impact on the area's environment, population, and traffic systems before endorsing your proposal.
Your local agency can provide more information on area-specific regulations. To find the relevant government agency, try searching online for the Planning and Development or Civic Life department in your city or county.
Environmental and Zoning Regulations
Local zoning regulations may impact whether you can establish a winery in certain parts of Oregon. Generally, laws in Oregon allow you to open a winery on land zoned for farm or mixed farm and forest use.
However, local governments can limit the activities permitted in specific areas to minimize the impact of a winery on neighbors, the environment, wildlife, and the general public. For instance, agencies may limit agri-tourism events such as weddings or outdoor concerts or stipulate certain traffic or noise control measures. Understanding these rules is essential because they govern where and how your winery can operate.
Deciphering local environmental and zoning regulations can be confusing. A knowledgeable land use attorney can help you determine permissible locations for your winery.
Tips for a Smooth Registration Process
Wherever you plan to start a winery business, learning the ins and outs of the registration process is complex. Unfortunately, mistakes can lead to penalties and legal issues, so obtaining the right permits and submitting accurate information is essential.
Insider information arms you with the knowledge to register your winery correctly. Read articles from the Balanced Business group and other expert sources to get detailed information on the winery registration process. You could also consider joining your local winery association to get advice from experienced winemakers.
Failing to understand local regulations is another common mistake made by first-time winemakers. To avoid this issue, research the rules in your chosen location thoroughly and discuss your plans with your local jurisdiction and zoning board.
Navigating Regulatory Requirements for Winery Success
To operate a winery legally, you must obtain the correct licenses and permits from the TTB and your state and local licensing agencies. Explore our site to read expert insights from the Balanced Business Group or contact us today to learn more about our personalized winery services.
