Distillery guides
Practical, in-depth guides to the things distillers actually have to get right, from opening a DSP to reading a TTB report, written plainly and cited to primary sources.
How to start a distillery
Starting a distillery means, in order: form a business entity and secure your premises, obtain a federal Distilled Spirits Plant (DSP) permit from the TTB, satisfy any bond requirement, get state and local licensing, install and bond your equipment, then begin production and file your monthly TTB operational reports and excise return. Plan 6 to 12 months and significant capital before the first sale.
GuideHow to get a DSP permit
To get a Distilled Spirits Plant permit, apply through the TTB Permits Online system with your business, ownership, premises, and equipment information, register your premises, satisfy any bond requirement, and wait for TTB review and approval before producing. The federal application is governed by 27 CFR Part 19 and typically takes a few months after a complete submission.
GuideDistillery startup costs
Distillery startup costs fall into equipment (still, fermenters, tanks, bottling), real estate and build-out, soft costs (licensing, bond, legal, insurance), barrels, and working capital to carry inventory that ages for years. A small craft distillery commonly starts in the mid-to-high six figures; aged-whiskey models need substantially more because cash goes out long before product is sold. Figures here are modeled ranges, not quotes.
GuideHow to read a TTB report
The three TTB monthly operational reports track spirits across their life: production (5110.40) accounts for what you distill, storage (5110.11) for spirits aging in bond, and processing (5110.28) for bottling and blending. Each is kept in proof gallons and must foot, opening plus increases minus decreases equals closing, and reconcile to each other and to physical inventory.
GuideDistillery compliance calendar
A distilled spirits plant files three operational reports monthly (due the 15th of the following month, rolling forward on weekends and holidays) and, for most filers, a semi-monthly excise tax return (due the 14th day after the period, but moved to the PRECEDING business day on weekends and holidays). The excise deadline moving backward, opposite the usual rule, is the one most often missed.
GuideThe angel's share: forecasting evaporation loss
The angel's share is the spirit lost to evaporation during aging, typically 2 to 6 percent per year and 30 to 40 percent over a long maturation, higher on upper floors and in hot, dry climates. Because the lost spirit was made from grain you paid for, modeling it per barrel turns a year-end surprise into a forecastable cost that feeds pricing and valuation.
Looking for definitions or quick answers instead? See the distillery glossary, the distillery FAQ, the free calculators, or the TTB form guides.
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