Complete guide to permits and licenses required to start a brewery / distillery in Brookings, SD. Fees, renewal cycles, and agency contacts.
All retailers of tangible personal property, including alcoholic beverages, must obtain a sales tax permit. South Dakota’s state sales tax rate is 4.5% and may be combined with local option taxes.
Required for all LLCs. Annual report also required ($50 fee, due by anniversary month).
Renewal every 5 years for $10.
Issued by Alcohol Beverage Division. Specific to brewing malt beverages.
Issued by Alcohol Beverage Division. Fees scale with production volume.
Requires local municipal approval. On-sale vs. off-sale licenses available.
Required for selling to retailers.
Monthly/quarterly filing required based on revenue. Alcohol sales are taxable.
Applies to facility construction.
Businesses with average monthly sales under $5,000 may be permitted to file quarterly; otherwise filing is monthly.
South Dakota has no state corporate income tax or personal income tax, so no registration or filing is required.
All employers with employees performing services in South Dakota must register for UI.
Quarterly wage reports are submitted electronically via the SDUI Online portal.
All breweries and distilleries must obtain an Excise Tax Permit before any taxable activity.
Beer is taxed at a flat per‑gallon rate; the return must include total gallons produced, sold, or transferred.
Spirits are taxed on proof‑gallons; the return must report proof‑gallons produced, sold, or transferred.
All businesses operating in Sioux Falls, including breweries and distilleries, must obtain an annual business license regardless of activity type.
Rapid City requires an annual business license for all entities conducting business within city limits, including alcohol manufacturers.
Only applicable where the local municipality has adopted the state tourism tax; many South Dakota jurisdictions have not adopted it.
While not required by South Dakota statutes, many distributors and retailers require proof of product liability insurance as a condition of doing business.
Required for all businesses; breweries/distilleries fall under general commercial license. Specific alcohol production regulated at state level.
Must verify property zoned LI (Light Industrial) or equivalent; conditional use permit may be needed for alcohol production.
Includes mechanical, plumbing, electrical sub-permits. Brewery equipment installation often triggers review.
NFPA 1 required for distilleries due to alcohol production/storage; includes hazardous materials permit.
Comply with UDO Article 13; wall signs limited to 1.5 sq ft per linear ft of building frontage.
Brewpubs/taprooms serving flights or food require plan review and inspections per SD Admin R. 44:02.
Required for monitored systems; excessive false alarms lead to suspension.
Verifies zoning, building, fire code compliance; assembly occupancy for taprooms.
All businesses; alcohol manufacturing may require additional review.
AG (Agricultural) or I-1 zoning typically required; public hearing for conditional use.
Sole proprietors with no employees are exempt. Owners who are also employees may elect exemption, but most businesses elect coverage to avoid personal liability.
South Dakota Statutes §35‑5‑2 require a $10,000 surety bond for any alcoholic‑beverage manufacturing license. The bond amount may be increased by the ABC Division based on production volume.
South Dakota ABC requires a minimum of $1,000,000 coverage per occurrence for bodily injury and property damage arising from the sale or service of alcoholic beverages.
South Dakota law requires minimum liability limits of $25,000 per person, $50,000 per accident for bodily injury, and $10,000 for property damage (SD Codified Laws §§31‑22‑1 et seq.).
South Dakota law does not mandate general liability insurance for all businesses, but the ABC Division requires a minimum $500,000 general liability policy for alcohol manufacturers to protect the public and the state.
Not a legal requirement for breweries or distilleries in South Dakota.
Must be filed online; includes updated principal office address and registered agent.
Renewal requires submission of production volume for the prior year and proof of liability insurance.
Renewal requires submission of production volume for the prior year and proof of liability insurance.
Includes total barrels produced, sold, and destroyed. Must be filed electronically via TTB’s e‑Filing system.
Same Form 5000‑24 used for breweries and distilleries.
Tax rates: $3.00 per barrel of beer (≥ 31 gal) and $13.00 per proof‑gallon of distilled spirits.
Applies to all retail sales of alcoholic beverages and any other taxable goods.
Based on gallons of beer and proof‑gallons of spirits produced/sold. Must reconcile with TTB filings.
LLC may elect corporate or partnership treatment.
Required if expected tax liability > $500.
Report wages and UI contributions.
Proof of coverage must be kept on site.
Includes Minimum Wage, OSHA, EEOC, and other required posters.
Includes SD Minimum Wage, Workers’ Compensation, Unemployment Insurance notices.
Requires a Food Service Permit.
Includes verification of fire suppression systems, exits, and hazardous material storage.
Records must be available for TTB audit.
Although not filed with the state, minutes are required for internal governance.
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 breweries and distilleries to manufacture, store, and sell alcoholic beverages, and the initial fee is $1000.00.
The Federal Basic Permit requires annual renewal with the Alcohol and Tobacco Tax and Trade Bureau (TTB), with a renewal fee of $100.00. Other permits, like the Alcohol Excise Tax Registration, do not have a standard renewal schedule but may require updates based on changes to your business.
An Employer Identification Number (EIN) is a unique tax ID number assigned by the IRS to businesses operating in the United States. It’s required for filing taxes, opening a business bank account, and hiring employees.
Yes, the Federal Trade Commission (FTC) requires truthful advertising and accurate labeling of your products. This includes listing ingredients, alcohol content, and other relevant information to avoid misleading consumers.
TTB compliance involves various fees, including the initial Basic Permit fee of $1000.00 and annual renewal costs of $100.00. You’ll also incur costs for Federal Excise Tax Filing ($16.00-$18.00) and potential variations in excise tax payments.
Permit Finder asks follow-up questions to give you an exact list of permits.
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