So you’re getting out of hobby mode and into brewery mode. You’re a full-fledged business now, and operating like one is mandatory. Countless other businesses have done it. You can do it, too.

Here are compliance considerations you'll want to make to keep your brewery operation legal and running smoothly. FYI, this isn't official legal advice; you'll want a lawyer for that. This is simply a collection of things that we commonly hear in our line of work. Think of this as the beginning of a checklist for you to enhance as you get rolling.

Get an EIN (Employer Identification Number)

Obtaining an EIN from the IRS is one of your very first steps in becoming a business. You’ll need it for everything from taxes to permits to TTB compliance.

Organize your business

There are many different ways to organize a business: Sole Proprietorship, Partnership, S-Corporation, C-Corporation, Limited Liability Company (LLC). Each of these structures has benefits and drawbacks, but all of them affect the way your business—or you personally—are taxed. Do a little online research and be sure to ask your tax professional to step you through them. One may be best suited for you today, and then others may be better in the future as your business changes.

How are you doing business?

You will have to complete a “Doing Business As” (or “DBA”) registration if you are not using your personal name. Here’s an example: Frank decides to open a sole proprietorship. His registers "Red Hawk Brewing" as a DBA name to make sure his business isn't called "Frank Jones." Register the DBA name with your state government or local county clerk, depending on your business location.

File your business documents

Articles of Incorporation, Articles of Organization, etc. need to be filed with your state government and kept up to date. Permits will depend on this, so don’t delay! If there are business ownership changes, be prepared to amend your legal documents immediately.

Are you bonded?

A bond is needed to ensure tax payments are covered. You will need to secure a bond for permit applications and your state license application. Bond amounts may vary between state and federal permits. Federal bonds are issued by a surety, in cash or through a treasury note/bond. State bond requirements generally vary by state.

Submit your federal TTB distillery permit application

Get started early because obtaining these permits can take a number of months.

State licensing

If you are doing business in more than one state, know that you’ll need to be licensed in each. And of course, this will come with afee. It’s just the cost of doing business.

Label and FDA approvals

Recipes may need FDA approval, so be sure to investigate this before production begins. Most food product and beverage labels need federal government approval. Food safety is critical. Once submitted, plan on at least six weeks before you hear anything. Also, breweries located in the United States must register with the FDA. The point is: get these details out of the way sooner rather than later.

Keeping these things in mind will keep your business on the straight and narrow. That way, you can focus on what you do best: brewing great beer!