Brewery owners daily make business decisions for the company and their employees. From contracts and ownership structures to insurance and taxes, a brewery owner must make many decisions before they are able to pour the first pint.
Each structure has advantages and disadvantages, each serving a different purpose. Understanding each structure’s organization is crucial. Selecting the right structure will impact your control over the business and personal liability. If you discover your initial ownership structure no longer aligns with your business, you can change it, but it may come at a cost. Research each structure to ensure you select the perfect one for your business.
3. Securing Sufficient Insurance - Finding an industry-specific insurance broker will be immensely helpful in thinking through your insurance needs. Before selecting an insurance policy, consider your entity structure, location considerations, how many employees you have, and if you will have food trucks on site. Each of these considerations poses risks, and you want to know you are sufficiently protected and prepared in every situation. Insurance costs will vary and depend on the size of your brewery and business, deductibles, and coverage/insurance amounts. Below is a list of coverages you may need to obtain.
Coverages
If you are a Colorado brewery, click here for the Colorado Brewers Guild’s Brewers CoOp for an insurance quote.
4. Bookkeeping and Taxes - Keeping up on your bookkeeping and tax needs can be time-consuming and potentially confusing. You may need help to classify employees correctly, pay and file appropriate taxes, deploy motivating and sensible employee incentive plans, meet all the different tax deadlines, and keep track of assets, expenses, price setting, and amortization. All of these factors may affect your profit margin. A certified public accountant (CPA) can manage all these issues efficiently and accurately.
When considering a CPA, bookkeeper, and/or a bookkeeping program, think about your business's current and future needs.
From a tax perspective, consider the following:
Partnering with an attorney specializing in beer law gives you access to someone else’s industry knowledge. Your beer attorney likely has the connections you need. In addition to legal advice, they may have recommendations for equipment companies, consultants, CPAs, real estate agents, and insurance brokers with experience.
Starting and operating a craft brewery requires more considerations than you might think. Are you navigating the world of craft beer and protecting your business on your own? There’s no need! Contact us for a free consultation. Our Beer Law HQ team can support you from day one.