Complete guide to permits and licenses required to start a brewery / distillery in Ann Arbor, MI. Fees, renewal cycles, and agency contacts.
Submit Form 5000.24 (Alcohol Industry Operations Report) electronically via TTB’s e‑File system.
Electronic filing required via TTB’s e‑File system.
File electronically via Michigan Treasury Online (MTO).
Use Form 1120‑C for C‑corp election or pass‑through reporting on owners’ returns.
File electronically via Michigan UI Online.
Brewery/distillery = Group F-1/H-3 occupancy
File online or by mail; renewed only if name changes
Required for all LLC formation; annual report separate requirement
Applies to all LLCs; file online
Prerequisites include zoning approval, fire inspection, food law compliance
Requires TTB permit first; background check; premises inspection
Required for all businesses selling tangible goods; online registration
Michigan withholding tax account number required
Most LLCs pass-through; register if electing corporate taxation
Brewery/distillery unlikely unless multi-story facility
All businesses selling tangible goods or certain services in Michigan must register for sales tax. Breweries/distilleries selling packaged products directly to consumers (on-site or off-site) are subject to sales tax on those sales. Applies to both beer and spirits sold.
Required for all employers with employees in Michigan. Includes withholding of state income tax from employee wages. Applies regardless of business type.
Required under Michigan Compiled Laws (MCL) 418.171. All employers with one or more employees must carry workers' comp. Sole proprietors and partners may elect out, but coverage is mandatory once employees are hired. Distilleries and breweries are classified under NAICS 322110 (Beverage Manufacturing), which has a higher risk classification.
Not mandated by Michigan state law for all businesses. However, local municipalities or lease agreements may require it. Strongly recommended due to risks of premises liability, especially for tasting rooms open to the public.
Not legally required by Michigan or federal law, but essential for breweries/distilleries selling consumable products. FDA and TTB regulations do not mandate insurance, but liability exposure from contamination or mislabeling is high. Recommended as industry standard.
Required by MLCC for businesses holding a liquor license that serve alcohol to the public. While not always listed as a standalone mandate, proof of liability coverage is typically required during licensing. MLCC enforces compliance through license renewal and inspections.
Required under Michigan Compiled Law (MCL) 500.3102. Applies to all commercial vehicles. Personal auto policies do not cover business use. Coverage must meet state minimums: $250,000 bodily injury per person, $500,000 per accident, $100,000 property damage.
A surety bond of $10,000 is required for most liquor licenses issued by MLCC under Act 23 of 1970 (MCL 436.1701). The bond ensures compliance with state liquor laws. Bond must be issued by a surety company authorized in Michigan.
All employers in Michigan must register with UIA. New employers typically start at a standard rate (e.g., 2.7%). Rate adjusts based on layoff history.
All breweries and distilleries must register with TTB and pay federal excise taxes on alcohol production. This includes filing Form TTBT 5110.35 (Notice of Registration) and paying federal excise tax quarterly.
Breweries and distilleries must file Form 720 (Federal Excise Tax Return) quarterly. Small producers may qualify for reduced rates (e.g., first 60,000 proof gallons at $2.50/gallon for distillers).
All breweries and distilleries producing alcohol in Michigan must pay state excise tax. Filed via Form 8000 (Michigan Excise Tax Return). Separate from federal excise tax.
LLCs taxed as corporations must file Michigan Corporate Income Tax (Form 4811). Most LLCs are pass-through entities and instead report income on owners' personal returns (Form MI-1040). Confirm entity classification with IRS.
Only applies if the business generates and sells its own utility services (e.g., electricity, water). Rarely applies to breweries/distilleries unless operating off-grid utility systems.
Most Michigan cities require a local business license or privilege tax. Fees and requirements vary (e.g., Detroit City Business Tax, Grand Rapids Business License). Contact local clerk’s office for specifics.
Required for all LLCs with employees or that file business tax returns. Even single-member LLCs in this industry should obtain an EIN for banking and licensing purposes.
**NOTE: Specific city/county must be provided for precise requirements. Examples below based on major MI cities with breweries/distilleries.** General local business license required in cities like Grand Rapids, Kalamazoo, Traverse City.
Required for all businesses operating within city limits
Section 9.310 GR Zoning Ordinance - Alcohol manufacturing requires Planning Commission approval
Not legally required in Michigan for breweries or distilleries. May be relevant if offering consulting services, but not standard for production facilities. Considered optional and recommended only for businesses providing professional advice.
Required for all LLCs, including single-member LLCs, if they have employees or file employment, excise, or alcohol tax returns. Breweries/distilleries must have an EIN due to excise tax obligations.
All breweries and distilleries must register with TTB and pay federal excise taxes under the Internal Revenue Code. Rates differ for beer vs. distilled spirits. Small producers may qualify for reduced rates.
Required under 26 U.S.C. § 5102. Must submit Form TTB F 5100.24. Includes bond requirement and facility registration.
Required under 26 U.S.C. § 5061. Must submit Form TTB F 5130.12. Allows federal registration as a brewer and authorizes production.
All labels and advertisements for distilled spirits must be approved by TTB under 27 CFR Part 5. Includes health warning statement and alcohol content disclosure.
Required under 27 CFR § 25.161. Most traditional beers do not require formula approval, but flavored malt beverages or additives (e.g., caffeine, novel ingredients) do.
Employers must provide a workplace free from recognized hazards (e.g., fermentation CO2 exposure, boiler safety, forklift operation). Specific standards apply to compressed gases, electrical systems, and confined spaces.
Breweries and distilleries often exceed threshold due to boiler fuel, hydraulic fluids, and vehicle maintenance. Requires SPCC Plan certified by a professional engineer.
Required under the Food Safety Modernization Act (FSMA). Applies to all facilities producing beer or distilled spirits as food products. Must renew every two years.
Applies to all advertising. Prohibits deceptive claims (e.g., false "organic" labeling, misleading health claims). Alcohol advertising must not target minors.
All employers must complete Form I-9 for each employee. E-Verify is not mandatory unless federal contractor.
Requires minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours), and proper recordkeeping. Tip credits may apply for tasting room staff.
Requires up to 12 weeks of unpaid, job-protected leave per year for qualifying medical or family reasons.
Requires accessible entrances, restrooms, counters, and pathways. Applies to new construction and existing facilities undergoing alterations.
Filing can be completed through LARA’s Corporations Online portal. Must be filed each year to keep the LLC in good standing.
Required for tank installation, production areas
NFPA 30 compliance for flammable liquids storage
Required for all businesses
Required if taproom serves prepackaged food
Required for new construction/renovations
Required for breweries/distilleries due to Group H occupancy classification
Size restrictions vary by zoning district
Renewal must be submitted electronically via the MLCC’s e‑Licensing system. Includes submission of updated production records.
Distillery must also submit a copy of the most recent TTB basic permit renewal.
Report total payroll and pay premium via the Workers’ Compensation Online portal.
Training must cover hazard communication, confined spaces, and personal protective equipment.
Requires a Food Service License; inspection covers sanitation, temperature control, and labeling.
Inspection verifies fire suppression systems, emergency exits, and proper storage of hazardous materials.
Includes brew/ferment logs, receipts, invoices, and tax returns. Must be available for TTB audit.
Includes sales tax returns, payroll tax filings, and corporate tax returns.
Required posters include Minimum Wage, Workers’ Compensation, Unemployment Insurance, and OSHA rights.
License must be posted in a conspicuous location near the point of sale.
Most small breweries/distilleries fall below hazardous waste thresholds, but verify based on solvent use.
The TTB Basic Permit, also known as a Brewer’s Notice or DSP Permit, is essential for legally producing alcohol in the United States. It allows your Ann Arbor brewery or distillery to manufacture, store, and sell alcoholic beverages, and the initial fee is $1000.00.
The Federal Basic Permit from the TTB requires annual renewal, with a renewal fee of $100.00. Other permits, like the Alcohol Excise Tax Registration, are typically one-time registrations but require ongoing compliance and reporting.
The initial Federal Excise Tax filing fee with the TTB ranges from $16.00 to $18.00, but the ongoing costs vary depending on your production volume and the type of alcohol produced. You will need to account for these variable costs in your business plan.
The IRS requires Professional Liability/Errors & Omissions Insurance, which typically costs between $500.00 and $2000.00. This insurance protects your business from claims of negligence or errors in your operations.
FTC Truth in Advertising compliance means ensuring all your advertising and labeling accurately represents your products and doesn't mislead consumers. This includes accurate alcohol content, ingredient lists, and origin information, and there is no initial fee for compliance.
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