Brewery / Distillery Permits & Licenses in Chesapeake, VA

Complete guide to permits and licenses required to start a brewery / distillery in Chesapeake, VA. Fees, renewal cycles, and agency contacts.

ABC Brewery License

Virginia Department of Alcoholic Beverage Control (ABC) Authority
May Apply
Fee: $435.00-$435.00
Renewal: annual
Type: license

Allows on-site sales and limited wholesaling. Distillery requires separate ABC Distilled Spirits License.

ABC Distilled Spirits Plant License

Virginia Department of Alcoholic Beverage Control (ABC) Authority
May Apply
Fee: $750.00-$750.00
Renewal: annual
Type: license

Required for distillery operations. Additional federal TTB DSP permit needed.

Product Liability Insurance

Not applicable
Required
Fee: $1000.00-$3000.00
Renewal: one time
Type: certificate

Not legally required by Virginia state law, but critically recommended for breweries and distilleries that manufacture and sell consumable products. Covers claims related to contamination, labeling errors, or illness. Often required by distributors and retailers as a condition of doing business.

Professional Liability / Errors and Omissions Insurance

Not applicable
Required
Fee: $800.00-$2000.00
Renewal: one time
Type: certificate

Not legally required in Virginia for breweries or distilleries. May be required by third parties (e.g., event organizers, contract brewers, consultants). Covers claims of negligence in professional services, such as recipe development or consulting. Optional but recommended for businesses offering technical services.

Virginia Uniform Power of Attorney Revocation Notice (if applicable)

State Corporation Commission (SCC)
May Apply
Fee: $10.00-$10.00
Renewal: one time
Type: registration

Applies to ALL businesses using POA. Not industry-specific.

Sales and Use Tax Registration (Virginia Tax)

Virginia Department of Taxation
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Monthly/quarterly filing required based on revenue. Applies to ALL retail businesses.

Virginia LLC Articles of Organization Filing

Virginia State Corporation Commission (SCC) Clerk's Information System
Required
Fee: $100.00-$100.00
Renewal: one time
Type: registration

Required for all LLCs. Annual registration fee of $50 due May 1 each year.

Virginia LLC Annual Registration

State Corporation Commission (SCC)
Required
Fee: $50.00-$50.00
Renewal: annual
Type: registration

Applies to ALL Virginia LLCs regardless of industry.

Assumed or Fictitious Name Certificate (DBA)

Virginia State Corporation Commission (SCC)
May Apply
Fee: $10.00-$10.00
Renewal: one time
Type: registration

Required if using DBA. Renews every 10 years for $10.

ABC Mixed Beverage Caterer License (Brewery/Distillery)

Virginia Department of Alcoholic Beverage Control (ABC) Authority
May Apply
Fee: $100.00-$2000.00
Renewal: annual
Type: license

Breweries often need ABC Brewery License ($435 state + local). Confirm specific operations.

Virginia Sales and Use Tax Certificate of Registration

Virginia Department of Taxation
Required
Renewal: one time
Type: registration

Required for all businesses selling tangible personal property or taxable services in Virginia. Breweries/distilleries must collect and remit sales tax on retail sales (e.g., tasting room sales). Applies to both beer and spirits sold on-site or off-site if taxable.

Virginia Employer Withholding Tax Registration

Virginia Department of Taxation
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Mandatory for all employers in Virginia. Requires withholding state income tax from employee wages and remitting it to the Department of Taxation. Registration is done via Form R-1 through the TaxPortal.

Virginia Unemployment Insurance (UI) Tax Registration

Virginia Employment Commission
May Apply
Renewal: one time
Type: registration

All employers with one or more employees must register with VEC and pay unemployment insurance taxes. New employers pay a standard rate of 2.5% on the first $8,000 of wages per employee annually until experience rating is established.

Virginia Franchise Tax (now replaced by Bank Franchise Tax and CBT)

Virginia Department of Taxation
May Apply
Renewal: one time
Type: permit

As of 2021, Virginia repealed the traditional franchise tax on corporations. Most LLCs are not subject to franchise tax unless they are classified as financial institutions. General LLCs pay only income tax through pass-through entity taxation. This does not apply to typical craft brewery/distillery LLCs.

Virginia Alcoholic Beverage Control (ABC) Excise Tax on Spirits and Malt Beverages

Virginia Department of Taxation
May Apply
Fee: $0.48-$0.48
Renewal: one time
Type: permit

Breweries and distilleries must pay state excise tax on each gallon of beer or spirits produced and removed from the premises. Filed using Form ABA. Separate from federal excise taxes. Rates confirmed in Virginia Code § 58.1-1000 et seq.

Federal Excise Tax on Alcohol Production

Alcohol and Tobacco Tax and Trade Bureau (TTB)
May Apply
Fee: $16.00-$16.00
Renewal: one time
Type: permit

All breweries and distilleries must register with TTB and pay federal excise taxes under the Internal Revenue Code. Must file Form 720 and pay via Electronic Federal Tax Payment System (EFTPS). Small producers may qualify for reduced rates under the Craft Beverage Modernization Act (effective 2018).

Local Business, Professional and Occupational License (BPOL) Tax

Local City or County Treasurer/Commissioner of Revenue
May Apply
Fee: $25.00-$25.00
Renewal: one time
Type: registration

All localities in Virginia impose a BPOL tax on businesses operating within their jurisdiction. The tax is based on gross receipts and varies significantly by location and industry classification. Breweries/distilleries are typically classified under 'Manufacturing' or 'Alcoholic Beverage Production'. Must register with the local treasurer.

Virginia Income Tax Registration (Pass-Through Entity)

Virginia Department of Taxation
Required
Renewal: one time
Type: registration

LLCs are pass-through entities; income flows to members who report on personal returns. However, the business must still register with the Department of Taxation for identification and reporting purposes. Virginia does not impose a corporate income tax on LLCs unless they elect corporate status.

City/County Business License (Business Professional Occupational License - BPOL)

Virginia Department of Professional and Occupational Regulation (via local jurisdictions)
Required
Fee: $0.05-$0.20
Renewal: annual
Type: license

Required in all VA cities/counties; breweries/distilleries classified under manufacturing/retail

Zoning Compliance / Use Permit

Varies by locality (e.g., Fairfax County Zoning)
May Apply
Fee: $200.00-$1000.00
Renewal: one time
Type: permit

Breweries often require C-3/C-4 zoning or special exception; check specific locality zoning ordinance (e.g., Fairfax County Zoning Ordinance Sec. 2-406)

Obtain Employer Identification Number (EIN)

Internal Revenue Service (IRS)
Required
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Required for all LLCs, especially those with employees or excise tax obligations. Breweries/distilleries must have an EIN to register with the TTB.

Federal Basic Permit from Alcohol and Tobacco Tax and Trade Bureau (TTB)

Alcohol and Tobacco Tax and Trade Bureau (TTB)
Required
Fee: $1000.00-$1000.00
Renewal: one time
Type: license

Mandatory for all breweries and distilleries producing alcohol for sale or distribution. Separate permits required for brewing vs. distilling. Form TTB F 5110.17 must be submitted. Effective date: Ongoing requirement under 27 U.S.C. § 204.

Registration with FDA as a Food Facility

Food and Drug Administration (FDA)
May Apply
Renewal: one time
Type: registration

Required under the Bioterrorism Act of 2002. All domestic food facilities must register with FDA. Renewal every two years during even-numbered years. 21 U.S.C. § 350d.

Federal Excise Tax Registration and Filing

Internal Revenue Service (IRS)
Required
Renewal: one time
Type: filing

Breweries and distilleries must pay federal excise taxes on alcohol produced. Rates differ: breweries pay lower rates than distilleries. Small producer tax credits may apply (up to $16/gallon for first 100,000 gallons annually). 26 U.S.C. §§ 5001, 5051.

OSHA Workplace Safety Compliance

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $200.00-$2000.00
Renewal: one time
Type: permit

Applies to all employers with employees. Includes requirements for hazard communication, machine guarding, emergency exits, and recordkeeping (OSHA Form 300). Distilleries with high-pressure stills or confined spaces face additional requirements.

ADA compliance for public accommodations

U.S. Department of Justice (DOJ)
May Apply
Renewal: one time
Type: permit

Applies under Title III of the ADA. Requires accessible entrances, restrooms, counters, and pathways. New construction must meet ADA Standards for Accessible Design. 42 U.S.C. § 12182.

EPA Spill Prevention, Control, and Countermeasure (SPCC) Plan

Environmental Protection Agency (EPA)
May Apply
Fee: $2000.00-$10000.00
Renewal: one time
Type: permit

Applies to distilleries and breweries using large boilers, generators, or fuel tanks. Requires an EPA-approved SPCC plan prepared by a Professional Engineer. 40 CFR Part 112.

Building Permit for Construction/Modification

Local Department of Permits, Inspections and Zoning
May Apply
Renewal: one time
Type: permit

Required for taproom additions, tank installations; must comply with IBC/IRC

Sign Permit

Local Planning/Zoning Department (e.g., Norfolk Planning)
May Apply
Fee: $50.00-$500.00
Renewal: one time
Type: permit

Subject to local sign ordinance (e.g., size, lighting restrictions)

Fire Protection Inspection/Permit

Local Fire Marshal's Office
Required
Fee: $100.00-$500.00
Renewal: one time
Type: permit

Required for flammable liquids storage, suppression systems; NFPA 1/30A compliance

Certificate of Occupancy

Henrico County Building Inspections
May Apply
Renewal: one time
Type: permit

Verifies zoning, building, fire code compliance

Health Department Permit (Food Service if Taproom Serves Food)

Virginia Department of Health (local health district)
May Apply
Fee: $200.00-$500.00
Renewal: annual
Type: permit

Not typically required for beer/wine only; ABC may suffice for tastings

Fire Alarm System Permit

Prince William County Fire Marshal
May Apply
Fee: $100.00-$400.00
Renewal: one time
Type: permit

Required for assembly/occupancies over 3000 sq ft per IFC

Special Event/Outdoor Seating Permit (if applicable)

Local Special Events Office
May Apply
Fee: $50.00-$500.00
Renewal: one time
Type: permit

Common for brewery beer gardens

Noise Ordinance Compliance Permit

Local Code Enforcement (e.g., Arlington County)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Most localities have noise ordinances (e.g., 55-65 dB limit nighttime)

Workers' Compensation Insurance

Virginia Workers' Compensation Commission
May Apply
Fee: $12.00-$18.00
Renewal: one time
Type: certificate

Required for all employers with two or more employees in Virginia, including part-time and full-time workers. Sole proprietors without employees are exempt. Brewery/distillery operations are classified under NAICS 312140 (Distilleries) or 312120 (Breweries), which are considered moderate risk.

General Liability Insurance

Not applicable
Required
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

Not mandated by Virginia state law for all businesses, but often required by landlords, municipalities, or lenders. Strongly recommended for breweries/distilleries due to public-facing operations and premises liability risks.

Commercial Auto Insurance

Virginia Department of Motor Vehicles (DMV)
May Apply
Fee: $1200.00-$2500.00
Renewal: one time
Type: certificate

Required for all vehicles registered in Virginia. Minimum liability coverage: $25,000 bodily injury per person, $50,000 per accident, $20,000 property damage. Applies if brewery/distillery uses delivery trucks, tasting room shuttles, or service vehicles.

Liquor Liability Insurance

Virginia Department of Alcoholic Beverage Control (ABC)
May Apply
Renewal: one time
Type: certificate

Not explicitly mandated by Virginia ABC as a standalone policy, but required indirectly through surety bond underwriting and strongly enforced via third-party liability risk management. Most insurers require it for businesses holding an ABC license. Considered essential due to dram shop liability risks.

Surety Bond for ABC License

Virginia Alcoholic Beverage Control Authority (ABC)
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: certificate

Required for all ABC licensees. The bond amount varies by license class (e.g., $1,000 for Farm Brewery, $5,000 for Distillery, up to $10,000 for other retail licenses). Ensures compliance with Virginia ABC laws. Bond must be issued by a surety licensed in Virginia.

OSHA Posting Requirements

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Must display OSHA Form 300A (Summary of Work-Related Injuries) from February 1 to April 30 annually if 11+ employees. Also required: OSHA Job Safety Poster (available at https://www.osha.gov/poster).

Virginia Workers’ Compensation Insurance Posting

Virginia Workers' Compensation Commission
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Employers must post a notice informing employees of workers’ compensation rights. Template available from VWC. Required even if exempt due to small size.

Federal Employer Identification Number (EIN) Reporting

Internal Revenue Service (IRS)
May Apply
Renewal: one time
Type: registration

Employers must file Form 941 quarterly, Form 940 annually for FUTA, and issue W-2s by January 31. EIN remains valid indefinitely but reporting is ongoing.

Virginia Withholding Tax Filing

Virginia Department of Taxation
May Apply
Renewal: one time
Type: filing

Employers must register for withholding tax and file returns based on payroll activity. Due dates depend on assigned frequency.

EPA Underground Storage Tank (UST) Compliance

Environmental Protection Agency (EPA)
May Apply
Fee: $10000.00-$100000.00
Renewal: one time
Type: permit

Applies if storing regulated substances (e.g., ethanol, diesel) in tanks below ground. Requires leak detection, secondary containment, and operator training. 40 CFR Part 280.

FTC Truth-in-Advertising and Labeling Compliance

Federal Trade Commission (FTC)
Required
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Applies to all advertising. Prohibits deceptive or unsubstantiated claims (e.g., "organic," "locally brewed," "medicinal benefits"). Must disclose paid endorsements. Enforced under FTC Act § 5. Distilleries making health claims face higher scrutiny.

DOL I-9 Employment Eligibility Verification

Department of Homeland Security (DHS) in coordination with DOL
May Apply
Renewal: one time
Type: permit

All U.S. employers must complete Form I-9 for each employee. Applies to breweries/distilleries with staff. Must retain forms for 3 years after hire or 1 year after employment ends.

DOL Fair Labor Standards Act (FLSA) Compliance

Department of Labor (DOL)
May Apply
Renewal: one time
Type: permit

Requires payment of federal minimum wage ($7.25/hr), overtime (1.5x for hours over 40/week), and proper recordkeeping. Applies to all hourly and tipped employees in taprooms or production.

DOL Family and Medical Leave Act (FMLA) Compliance

U.S. Department of Labor (DOL)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Requires eligible employees (12 months, 1,250 hours) to receive up to 12 weeks of unpaid, job-protected leave annually. Posting and recordkeeping required.

DOT Hazardous Materials Transportation Compliance

Department of Transportation (DOT)
May Apply
Fee: $500.00-$5000.00
Renewal: one time
Type: permit

Applies when shipping distilled spirits. Requires hazmat training, proper packaging, labeling, and shipping papers under 49 CFR. Ethanol above 24% ABV is a hazardous material.

Virginia ABC Brewery License

Virginia Alcoholic Beverage Control Authority (ABC)
Required
Fee: $500.00-$2500.00
Renewal: one time
Type: license

Required for all breweries and distilleries operating in Virginia. Must also comply with local zoning and health department regulations. Renewal annually.

Virginia ABC On-Premises Permit (for Taprooms)

Virginia ABC
May Apply
Fee: $500.00-$1000.00
Renewal: one time
Type: permit

Required for taprooms, brewpubs, or distillery tasting rooms. Separate from production license.

Virginia State Excise Tax Registration

Virginia Department of Taxation
Required
Renewal: one time
Type: filing

Virginia imposes state excise taxes on beer and spirits. Rates: ~$0.20–$0.30 per gallon for beer; ~$0.20–$0.35 per gallon for spirits. Must file with VDOT.

Annual Report Filing for LLC

Virginia State Corporation Commission (SCC)
Required
Fee: $50.00-$50.00
Renewal: annual
Type: permit

All Virginia LLCs must file an annual report with the SCC each year. The report confirms business information such as principal office address, registered agent, and management structure.

TTB COLA Approval for New Labels

Alcohol and Tobacco Tax and Trade Bureau (TTB)
May Apply
Fee: $200.00-$200.00
Renewal: one time
Type: license

Certificate of Label Approval (COLA) must be obtained for every product label. No recurring renewal, but each new product requires a new application.

Fire Department Inspection

Local Fire Marshal (e.g., City or County Fire Department)
May Apply
Fee: $0.00-$200.00
Renewal: one time
Type: permit

Required under Virginia State Fire Prevention Code (13VAC5-51). Frequency determined by local fire department. Includes inspection of exits, fire extinguishers, flammable storage, and emergency lighting.

Health Department Inspection

Local Health Department (Virginia Department of Health)
May Apply
Renewal: one time
Type: permit

Required for any brewery/distillery offering food. Inspections cover food handling, sanitation, and facility cleanliness. Frequency varies by locality and risk level.

Building Code Compliance Inspection

Local Building Department (e.g., County or City)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Local building departments may require periodic inspections to ensure compliance with Virginia Uniform Statewide Building Code (USBC).

Recordkeeping for TTB Compliance

Alcohol and Tobacco Tax and Trade Bureau (TTB)
Required
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Breweries and distilleries must maintain detailed production, inventory, and tax payment records using TTB Form 5110.31 (or equivalent). Records must be kept for at least 3 years and available for inspection.

Virginia ABC Recordkeeping and Reporting

Virginia Department of Alcoholic Beverage Control (ABC)
Required
Fee: $0.00-$0.00
Renewal: one time
Type: filing

Licensees must maintain records of alcohol production, sales, and inventory. ABC may conduct unannounced audits. Records must be retained for at least 3 years.

Display of ABC License

Virginia Department of Alcoholic Beverage Control (ABC)
Required
Fee: $0.00-$0.00
Renewal: one time
Type: permit

The ABC manufacturer and retail licenses must be visibly displayed at the place of business where alcohol is produced or sold.

Display of Federal Basic Permit

Alcohol and Tobacco Tax and Trade Bureau (TTB)
Required
Fee: $0.00-$0.00
Renewal: one time
Type: permit

The TTB Basic Permit must be posted in a conspicuous location at the principal place of business.

Unemployment Insurance Tax Filing

Virginia Employment Commission (VEC)
May Apply
Renewal: varies
Type: filing

Employers must file Form UI-2 and pay unemployment insurance taxes quarterly. New employers pay 2.7% on first $8,000 of wages per employee.

Virginia ABC On-Premises Retail License Renewal

Virginia Department of Alcoholic Beverage Control (ABC)
May Apply
Fee: $325.00-$325.00
Renewal: one time
Type: license

Breweries and distilleries selling alcohol directly to consumers on-site must renew their ABC license annually. Renewals open October 1.

Federal Basic Permit Renewal (TTB)

Alcohol and Tobacco Tax and Trade Bureau (TTB)
Required
Fee: $125.00-$125.00
Renewal: one time
Type: license

All breweries and distilleries producing alcohol must maintain a valid TTB Basic Permit. Renewal form 5100.33 must be submitted by November 1 each year.

Virginia ABC Manufacturer’s License Renewal

Virginia Department of Alcoholic Beverage Control (ABC)
Required
Fee: $325.00-$325.00
Renewal: one time
Type: license

Required for all breweries and distilleries manufacturing alcoholic beverages in Virginia. Must be renewed annually even if no on-premises sales occur.

Federal Excise Tax Return (F637)

Alcohol and Tobacco Tax and Trade Bureau (TTB)
Required
Renewal: one time
Type: filing

Breweries and distilleries must file Form 720 (Quarterly Federal Excise Tax Return) and make federal excise tax deposits. Most small producers pay monthly; larger ones semi-monthly. Due dates depend on deposit schedule.

Virginia Sales and Use Tax Filing

Virginia Department of Taxation
Required
Renewal: varies
Type: filing

All businesses selling taxable goods (including beer and spirits) must register and file sales tax returns. Filing frequency determined by Virginia Department of Taxation based on expected revenue.

Step-by-Step Compliance Guide

  1. Begin by obtaining a Federal Alcohol Excise Tax Registration from the Alcohol and Tobacco Tax and Trade Bureau (TTB).
  2. Register for an Employer Identification Number (EIN) with the Internal Revenue Service (IRS), as this is required for all businesses.
  3. Ensure compliance with FTC Truth in Advertising and Labeling regulations to avoid potential penalties.
  4. Secure a Federal Basic Permit from the TTB, which currently has a one-time fee of $1000.00.
  5. Establish a system for Federal Excise Tax Filing with the TTB, with initial filing fees ranging from $16.00 to $18.00.
  6. Implement thorough Recordkeeping for TTB Compliance to maintain accurate documentation of your operations.
  7. Obtain Professional Liability / Errors & Omissions Insurance, with premiums typically ranging from $500.00 to $2000.00.
  8. Plan for annual renewals of your Federal Basic Permit with the TTB, currently costing $100.00.

Common Mistakes to Avoid

  • Failing to register with the TTB before commencing operations can result in significant fines.
  • Incorrectly calculating and paying Federal Excise Taxes can lead to audits and penalties.
  • Neglecting to maintain accurate records for TTB inspections can cause permit revocation.
  • Assuming that a single federal permit covers all aspects of alcohol production is a common error.
  • Overlooking the need for ongoing compliance with FTC advertising regulations can lead to legal issues.

Frequently Asked Questions

What is the TTB Basic Permit and why is it needed?

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 authorizes your brewery or distillery to manufacture, store, and sell alcoholic beverages.

How often do I need to renew my Federal Basic Permit?

Your Federal Basic Permit requires annual renewal with the Alcohol and Tobacco Tax and Trade Bureau (TTB), and the current renewal fee is $100.00.

What is the cost associated with Federal Excise Tax Filing?

The cost for Federal Excise Tax Filing with the TTB can vary, but typically ranges from $16.00 to $18.00 for initial filings; ongoing filing requirements and associated costs will depend on your production volume.

Is insurance required for a brewery or distillery in Chesapeake, VA?

Yes, Professional Liability / Errors & Omissions Insurance is required, and the IRS recommends coverage; premiums generally range from $500.00 to $2000.00.

What are the implications of not complying with FTC advertising regulations?

Failure to comply with Federal Trade Commission (FTC) advertising regulations can result in cease and desist orders, civil penalties, and damage to your brand reputation; truthful and accurate labeling is critical.

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