Start a Distillery: Permits, Labels, and Equipment

Starting a Distillery: Permits, Equipment, and Setup

You’re entering a regulated industry. Rules are strict and the timeline is real. If that turns you off, stop now.

If you’re still here, good. This guide walks you from idea to launch. It covers the decisions, permits, gear, and checks you must complete before opening day.

Read it straight through or take it step by step. When stuck, ask yourself, “What’s my next small action today?”

Pre-Start Foundations

Own your choice. Distilling is capital-heavy, paperwork-heavy, and safety-critical. If you want easy, this isn’t it.

Be clear on why customers will pick you. Taste alone won’t carry you. Your edge could be a specific style, aging approach, tours, or clean, consistent packaging.

Talk to your family. Long hours, delays, and risk are normal at the start.

Fit check: Read an inside look at business ownership. Confirm you can handle strict compliance and inspections.
Demand: Review supply and demand basics. Validate interest for your spirits and experiences in your city.
Why you: Define two reasons you win: flavor profile, production method, or visitor experience.
Passion and stamina: Read passion and staying power. Decide if you’re ready for a long build.

Varies by jurisdiction: Tasting rooms, direct sales, and self-distribution rules are state-specific. Verify with your State Alcohol Beverage Control (search: “distillery manufacturer license” and “tasting room”).

Skills You Need (Business and Technical)

You need both business skills and distilling skills. If you don’t have them, plan to learn or hire.

Do not “figure it out later.” Compliance mistakes get costly fast.

Business skills: Budgeting, simple forecasting, vendor management, basic contracts, and insurance basics. See common startup mistakes to avoid.
Compliance literacy: Understand federal permits (TTB), food-facility registration (FDA), reports, and label approvals. You don’t need to be a lawyer, but you must follow instructions exactly.
Distilling skills: Mashing, fermentation control, safe distillation, proofing and gauging, sanitation, quality control, and recordkeeping to federal standards.
Safety skills: Hazard communication, flammable liquids handling, proper storage, and incident response. You will train staff and document it.
Hire vs. learn: If you lack hands-on production experience, hire an experienced head distiller or consultant for setup, SOPs, and training. If you lack compliance experience, get help setting up your application package and records.

Research the Business

Don’t skip research because you’re excited to buy a still. That’s how people burn time and cash.

Study your market and your rulebook in parallel.

Products and services: Whiskey, gin, vodka/neutral spirits, rum, brandy, liqueurs. Services can include tours, tastings, private events, and contract/white-label production where allowed.
Competitors: List local distilleries, their styles, price points, packaging, and visitor experience.
Target customers: Retail visitors, wholesale accounts, private barrel clubs, and corporate gift buyers.
Pricing models: Bottle price bands by category, tour/tasting ticket prices, event room rates, and contract production quotes.
Regulatory scan: Note federal approvals (Basic Permit, Distilled Spirits Plant registration/operating permit, label approvals). Capture state license names and local permits you’ll need.
Government contacts & questions:
- TTB (federal): Ask: Which distilled-spirits permits apply to me? What attachments must match my plant layout and equipment? How do I submit label approvals?
- State Alcohol Beverage Control: Ask: What manufacturer license is required? Are tastings/retail rooms allowed? Any server training or posting rules?
- City/County planning/fire/wastewater: Ask: Is distilling allowed at this address? What’s required for Certificate of Occupancy (CO)? Is an industrial pretreatment permit needed?

Varies by jurisdiction: Licensing names and permissions differ. Verify at your State ABC portal (search: “distillery license” and “manufacturer”), State Department of Revenue (search: “alcohol excise tax registration”), and city/county planning and fire portals (search: “zoning,” “Certificate of Occupancy,” “flammable liquids permit,” and “industrial pretreatment”).

Business Model & Planning

Pick a lane. You can’t be everything at once. Start focused, then expand.

Write a concise plan you can actually use.

Positioning options: Grain-to-glass whiskey, botanical gin focus, vodka for cocktails, rum with local ingredients, or contract production specialty.
Packages & upsells: Standard bottles, limited releases, private barrel program, tasting flights, paid tours, and branded merchandise.
Financial assumptions (basic): Pre-revenue timeline for federal/state approvals and build-out. Utilities (steam, chilled water), packaging lead times, label approvals, and insurance. Barrel aging leads to long cash cycles—plan working capital.
Plan outline: Use this guide to create a lean plan: how to write a business plan, align with a short mission statement, and set pricing with pricing fundamentals.
Ownership choice: Will you go solo or bring partners/investors? Document roles, capital, decision rights, and exit terms in writing.

Funding

Build a full startup budget before you seek money. Investors and lenders expect you to know the build-out and permit path.

Prove you can execute, not just dream.

Budget categories: Leasehold improvements; stills, tanks, pumps; boilers/chillers; electrical and ventilation; safety infrastructure; lab and gauging tools; packaging line; initial ingredients and packaging; label design and approvals; insurance; compliance software; professional services; signage; website; opening inventory for retail room if allowed.
Sources: Savings, partners, bank loans, SBA-backed loans, equipment financing, and qualified investors.
Proof of readiness package: Draft floor plan, equipment list, timeline to permits, basic financial model, and risk plan.

Legal & Compliance (High-Level Path)

Follow the order. Entity and EIN first. Federal permits next. Then state alcohol license and taxes. Local approvals wrap around your build-out and occupancy.

Do not produce alcohol until federal and state approvals are in hand.

Entity & ownership: Form an LLC or corporation with your state’s Secretary of State. If you operate as a sole proprietorship, understand personal liability. Decide now if you will be solo or bring partners/investors.
EIN: Apply directly with the IRS online. It’s free.
Federal (TTB): File for the Basic Permit and register your Distilled Spirits Plant (DSP) through TTB’s online system. Attach plant diagrams, equipment list, security, signing authority, and production procedures. Determine if a bond is required based on current rules.
FDA: Register your food facility with FDA before you begin manufacturing, processing, packing, or holding alcoholic beverages for U.S. consumption, unless an exemption applies.
Labels: Obtain label approvals through the federal label system before bottling for sale. Submit formulas when your product type requires it.
State ABC & state taxes: Apply for the distillery/manufacturer license. Open required state excise tax accounts. If you will sell at retail where allowed, add sales and use tax registration.
City/County: Secure zoning approval. Pull building, mechanical, electrical, and fire permits. Complete inspections and obtain the Certificate of Occupancy (CO). Coordinate with the local sewer authority if an industrial pretreatment permit is required. Check for air permits on boilers or process heaters where applicable.
Trademarks (optional): File your brand names and logos with the federal trademark office.
Government contacts & questions:
- TTB: Ask which permit types apply, which attachments are mandatory, and how to structure bonded vs. general premises on your diagram.
- State ABC: Ask license class, whether tastings/retail rooms are permitted, and any server training or posting requirements.
- City/County: Ask zoning status for distilling, the steps to obtain the Certificate of Occupancy, and which fire permits apply to flammable liquids.

Varies by jurisdiction: License names, sales permissions, and permit sequencing differ. Verify at: State Secretary of State (search: “business entity filing”), State ABC (search: “distillery manufacturer license”), State Department of Revenue (search: “alcohol excise registration” and “sales and use tax”), City/County planning and fire portals (search: “zoning,” “Certificate of Occupancy,” and “flammable liquids permit”).

Brand & Identity

Your brand tells people why to try you once. Quality earns the repeat.

Lock down your name and core assets early so labels and website move on time.

Name search: Check state name availability and trademark conflicts. If clear, file the entity and consider filing a federal trademark.
Domain and socials: Reserve a matching domain and main social handles.
Brand kit: Logo, color, type, label system, and photography standards. See corporate identity package tips.
Website: Publish a clean site with your story, contact, and updates. Use this website guide to keep it simple and fast.
Basics: Business cards, exterior sign, tasting-room materials (if allowed). See business cards and business sign.
Marketing plan: Build a simple launch plan and content calendar. Use create a marketing plan to structure it.

Equipment & Software (Essential, Itemized)

List everything before you buy. Your federal application requires accurate plant diagrams and equipment details.

Buy for safety, durability, and cleaning. Choose what you can maintain.

Production & Processing

Stills (pot and/or column), condensers, dephlegmator (if used), spirit safe.
Mash cooker, lauter/mash tun (if applicable), fermenters with CIP capability.
Low-wine, high-wine, production and proofing tanks; blending/processing tanks.
Pumps (transfer and CIP), sanitary hoses, tri-clamp fittings, valves, gaskets.
Heat exchanger; grain mill and auger; spent-grain handling equipment.

Gauging, Lab & QA

Certified alcoholmeters and hydrometers, calibrated tanks, thermometers.
pH meter, lab glassware, filtration (as needed), density/ABV tools for proofing and gauging.
Scales for grain and packaging checks, reference thermometers, and calibration standards.

Utilities & Environmental

Steam boiler or electric steam generator; hot liquor tank; glycol chiller.
Ventilation/condensation control; water pre-treatment/filtration; floor drains with suitable capture.
Spill kits; approved flammable-liquid storage cabinets or rooms.

Packaging

Rinser/filler/capper or corker, capsule applicator, labeler, lot/date coder.
Case packer, case sealing, pallet wrap, and scales for fill control.

Warehousing & Aging

Barrels, bungs, barrel racks; pallet racking; temperature/humidity monitors.
Spill containment and grounding where required.

Material Handling & Facility

Pallet jack or forklift; dock plates; secure bonded-area controls and locks.
Work tables, storage for botanicals/flavorings, secure finished-goods storage.

Safety

Class B fire extinguishers; bonding/grounding for transfer points; PPE (eye/face, gloves, footwear).
Safety Data Sheet library and hazard communication signage.

Office & IT

Computer, records storage, printer/label printer, secure backups.
Compliance and inventory software; basic accounting; point of sale for tasting room where allowed.

Recommended Software

Compliance/records: production, storage, processing logs; monthly reports templates.
Inventory/ERP: materials, barrels, finished goods, lots, and expirations where applicable.
Label workflow: art versioning, COLA tracking, and proof approvals.
Accounting and POS (if retail room is permitted).

Physical Setup

Pick a site you can permit without a rebuild. Confirm zoning before you sign a lease.

Design a safe flow: receiving → mashing/fermentation → distillation → processing → packaging → storage.

Layout: Show bonded vs. general premises on your federal diagram. Keep clear paths and safe transfer points.
Fire & life safety: Coordinate with the fire department on flammable-liquids storage and electrical classification. Install extinguishers and signage as required.
Utilities: Size steam, power, and chilled water for your runs. Plan make-up water quality and drains.
Wastewater: Talk to the local sewer authority about high-strength discharges and sampling points. Set a stillage plan that meets local limits.
Transport logistics: Plan load-in/out, pallet staging, and delivery coordination. Use a pallet jack or forklift rated for your floor and aisles.

Varies by jurisdiction: Zoning, occupancy, fire permits, and wastewater permits are local. Verify at city/county planning (search: “zoning” and “distillery”), building department (search: “Certificate of Occupancy”), fire marshal (search: “flammable liquids permit”), and local sewer/POTW (search: “industrial pretreatment permit”).

Insurance & Risk

You need coverage in place before you invite inspectors or visitors.

Work with a broker who understands beverage alcohol.

Core coverages: General liability, product liability, property/equipment, business interruption, workers’ compensation where required, and liquor liability if you host tastings or on-site sales are allowed.
Landlord and event riders: Landlords and event venues may require specific limits. Get certificates ready.
Risk controls: Written SOPs for sanitation, transfers, proofing, and lockout/tagout; training sign-offs; inspection logs.

Varies by jurisdiction: Some states or cities set minimum insurance for alcohol service or events. Verify with your State ABC (search: “insurance requirement tasting room”) and your landlord’s lease requirements.

Supplier Relationships & Maintenance

Your product is only as good as your inputs and your equipment condition.

Lock in critical vendors and maintenance schedules before you launch.

Key suppliers: Grain and malt, yeast and nutrients, botanicals, barrels, glass, closures, labels, cases, and pallets.
Service providers: Boiler/chiller installers, electricians, control techs, water treatment, waste haulers.
Maintenance: Create preventive schedules for boilers, chillers, pumps, and seals. Stock spares that can halt production if they fail.

Pre-Launch Readiness

Run a full compliance rehearsal before you make a drop.

If anything is unclear, stop and get an answer. Guessing here is expensive.

Paperwork locked: Entity filed, EIN obtained, federal permits approved, FDA registration filed if applicable, state licenses issued, local inspections passed, Certificate of Occupancy in hand.
Labels approved: All products have approved federal labels. Formulas submitted and approved where required.
Records ready: Daily logs for production, storage, processing. Monthly reporting templates ready. Document control in place.
Safety ready: Hazard communication program complete, extinguishers in place, spill response, bonding/grounding on transfer points, PPE stocked.
QA ready: Calibrated alcoholmeters and thermometers, proofing SOPs, sanitation SOPs, retention samples plan.
Commercial finish line: Distribution agreements (if applicable), tasting-room policies (if permitted), POS and payment set up, website live, sell sheets and brand story complete. Use a basic marketing plan to stage announcements.

Go-Live Checklist

Do this last run-through two weeks before launch, then again three days before.

Fix gaps fast. No excuses.

Confirm federal permits, state license, and all local approvals are active and posted.
Verify label approvals match what’s on the bottle. Cross-check lot codes and case labels.
Walk safety: ignition sources controlled, extinguishers visible, exits clear, spill kits staged.
Test wastewater plan: sampling point identified, logs ready, and hauler lined up if needed.
Validate records: daily logs and monthly report templates open and tested.
Test utilities: steam, power, chilled water, ventilation under load.
Run a packaging line trial with water. Check fill volumes, caps/corks, labels, and codes.
Confirm insurance certificates and landlord requirements.
Publish your launch times and rules on your website and socials.

Pros and Cons

Be candid. That’s how you make a good decision.

Run this list with your family and partners before you commit.

Pros: Strong brand potential, tourism and tasting-room revenue where allowed, and pride in a craft people enjoy.
Cons: Heavy regulation and reporting, fire and safety risks, long cash cycles for aged spirits, and significant capital needs.

Products and Services You Can Offer

Choose only what you can approve and execute well at the start. Add more later.

Confirm each item is allowed under your state license.

Products: Whiskey (including bourbon and rye), gin, vodka/neutral spirits, rum, brandy, liqueurs, and special releases.
Services (where permitted): Tours and tastings, private events, private barrel programs, and contract/white-label production.

Who to Contact and Smart Questions

Keep calls short and focused. Take notes. Confirm answers by email when possible.

Use official portals and avoid paid “helpers” for basic filings.

Federal (TTB): Ask which permit types apply to your plan, which attachments must match your layout and equipment list, and how to submit labels and formulas correctly.
FDA: Ask whether your operation is a “food facility” that must register and when to register relative to production start.
State ABC/Revenue: Ask which manufacturer license fits your plan, whether a tasting room is allowed, and how excise and sales taxes are filed.
City/County (planning, building, fire, sewer): Ask zoning status for distilling at your address, steps to the Certificate of Occupancy, required fire permits for flammable liquids, and whether an industrial pretreatment permit applies.

Varies by jurisdiction: License types, fees, and timelines differ. Verify through your State ABC and local planning/fire portals using the search terms above.

101 Tips for Running Your Distillery

Distilling is regulated, capital-heavy, and detail-driven. Approach it like a serious manufacturing project with public safety responsibilities. These tips focus on what works in the U.S. so you can build a safe, compliant, and respected brand.

Use this list to pressure-test your plan, set standards, and move with confidence. Keep it handy as you prepare, launch, and run day one.

What to Do Before Starting

Validate zoning for distilling at your target address with city planning before you sign a lease; ask if the use is allowed by right or needs a special permit.
Map permit sequencing: federal alcohol permits, food-facility registration, state alcohol license and taxes, and local building, fire, and occupancy approvals.
Choose a focus: aged whiskey with long timelines, or unaged spirits for earlier revenue; your choice drives space, cash needs, and marketing.
Create a realistic timeline that includes equipment lead times, build-out, inspections, and label approvals; pad for delays.
Draft a plant diagram showing bonded versus general premises; you will use this in federal filings and inspections.
Plan safety from day one: ventilation, electrical classification, spill control, and safe ethanol storage; engage the fire marshal early.
Price bottles, tours, and events based on real costs and competitor benchmarks; test prices with buyers before you commit.
Decide solo ownership or partners; put capital, roles, and decision rights in writing before money moves.
Identify primary and backup suppliers for grain, botanicals, barrels, glass, closures, and labels; confirm minimum orders and lead times.
Call the local sewer authority about high-strength wastewater; ask about pretreatment limits, sampling points, and reporting cadence.
List proofing and gauging instruments you will need and set a calibration plan you can maintain.
Estimate working capital through first sales; if you plan barrel aging, plan for a longer cash curve.

What Successful Distillery Owners Do

Keep complete daily records and reconcile them to monthly reports; accuracy protects your permit.
Physically separate bonded and general premises and train staff on where each task must occur.
Calibrate alcoholmeters and reference thermometers on a schedule using traceable standards; keep certificates on file.
Write and use standard operating procedures for mashing, fermenting, distilling, proofing, bottling, and sanitation.
Run sensory and basic lab checks on every batch and bottling run; document results and corrective actions.
Maintain professional relationships with regulators; reply promptly and keep correspondence organized.
Train every employee on hazard communication, labeling of chemicals, and flammable liquid handling.
Stock critical spares for pumps, seals, gaskets, and sensors to avoid lost production.
Track barrels with a clear ledger and durable tags; record fill, movements, sampling, and dump dates.
Review insurance coverage at least annually as your equipment, visitors, and activities change.

Running the Business (Operations, Staffing, SOPs)

Create a master production schedule that links grain delivery days to mash, distill, and bottling days.
Document receiving procedures for grain and botanicals with inspection criteria and lot tracking.
Use start-up and shutdown checklists for stills, boilers, chillers, and ventilation; sign and date each run.
Define cut points and tasting-panel steps; log each run so you can repeat successful profiles.
Build a sanitation program with chemical types, concentrations, contact times, and verification tests.
Proof spirits using approved tables and temperature corrections; save calculations with batch records.
Control labels with versioning and an approval log; match approved proofs against line samples.
Balance inventory of glass, closures, capsules, and labels to your production plan to prevent line stops.
Schedule preventive maintenance for boilers, pumps, seals, motors, and chillers; track run hours.
Cross-train key tasks so bottling and proofing continue when a team member is out.
Create a safe tour route with barriers, marked floors, and trained guides; restrict high-risk areas.
Store ethanol in approved cabinets or rooms and bond/ground transfer points; inspect connections regularly.
Develop a tasting room checklist covering age verification, service limits, and cash handling where allowed.
Set up POS, lot-code tracking, and a recall procedure; run a mock recall before opening.
Back up digital records and keep printed copies of permits and approvals accessible on-site.
Write vendor specifications for grain, barrels, glass, and closures; include tolerances and rejection steps.
Use a simple dashboard to track yields, losses, proof adjustments, and returns; review weekly.
Hold a short daily huddle to align production, maintenance, packaging, and tasting room plans.

What to Know About the Industry (Rules, Seasons, Supply, Risks)

Understand the three-tier system; distribution rules shape how you sell on- and off-premise.
Tasting room permissions and direct-to-consumer sales vary by state; confirm early.
Expect seasonal swings in tourism and retail traffic; plan staff and releases around local peaks.
Glass and barrels can face long lead times; place orders well ahead of busy seasons.
Grain prices move with harvests and logistics; consider forward contracts or buffers.
Label rules cover class/type, alcohol by volume, net contents, and mandatory warnings; errors delay sales.
Many flavored and specialty spirits need formula approvals; add that time to your launch plan.
Some states require server training for tastings; verify training providers and documentation.
Fire code thresholds for ethanol storage can change requirements as your volume grows.
High-strength wastewater from mashing and cleaning can trigger permits and surcharges; budget for it.

Marketing (Local, Digital, Offers, Community)

Pick one clear brand story and repeat it in labels, tours, and staff scripts.
Photograph bottles and your still with consistent angles and backgrounds; use those images everywhere.
Publish a simple website with accurate hours, location, and how to buy; keep updates current.
Post a tour calendar with group size limits and safety rules; require reservations if space is tight.
Design tasting flights that highlight differences in grain, cut points, and aging.
Plan seasonal or limited releases tied to local ingredients or events to build excitement.
Partner with bars and restaurants for feature cocktails and staff training nights.
Use email lists to announce releases and event tickets; segment by interests and location.
Offer private barrel programs with clear timelines, tasting milestones, and legal terms.
Keep sell sheets and case cards consistent in claims, fonts, and mandatory data.
Host education nights on distilling basics and safety to build informed fans.
Track channel performance monthly and shift spend toward what drives visits or orders.

Dealing with Customers (Trust, Education, Retention)

Train staff to explain your process in plain language without exaggeration or unverified claims.
Post accurate alcohol by volume and age statements; never round to look better.
Print lot codes on bottles and show customers where to find them; it builds trust.
Offer tours that balance education and safety; set maximum group sizes for your floor plan.
Ask for quick comments after tastings and record them by product for continuous improvement.
Script ID checks and responsible service steps; practice them until they are automatic.
Call wholesale buyers two weeks after delivery to confirm placement and support needs.
Thank repeat customers with allowed perks such as early access to ticketed events.

Customer Service (Policies, Guarantees, Feedback)

Publish tasting room rules, reservation terms, and photography policy in clear language.
Train a simple complaint process: listen, confirm facts, resolve within policy, and follow up.
Write a merchandise return or exchange policy that follows local law and post it near the register.
Use a feedback card or QR code at the exit to capture comments while the visit is fresh.
Measure response times for phone and email weekly and set a standard you will meet.
Post accessibility details and available assistance so visitors can plan their visit.
Keep a live calendar of closures and special events and update it in all channels.

Sustainability (Waste, Sourcing, Long-Term)

Measure water use in mashing, cooling, and cleaning; set goals to reduce where practical.
Reuse cooling water where safe and insulate lines to cut heat loss and demand.
Arrange spent-grain pickup with a farmer or composter and document each transfer.
Improve boiler efficiency and consider heat recovery to preheat process water.
Choose glass and case packs that balance durability with shipping weight.
Store chemicals in secure areas with labeled secondary containment and updated Safety Data Sheets.
Sample wastewater as required and keep logs for the sewer authority to show compliance.

Staying Informed (Trends, Sources, Cadence)

Read federal regulator updates monthly to catch rule changes before they affect a batch.
Check state alcohol control bulletins each quarter for licensing or server rule changes.
Join a national distilling association to access training, templates, and benchmarking.
Attend at least one technical or safety workshop each year and bring a teammate.
Subscribe to packaging and labeling updates to spot supply or rule shifts early.
Review and refresh your standards binder every six months with the latest guidance.

Adapting to Change (Seasonality, Shocks, Competition, Tech)

Develop alternate recipes that use available grains when a preferred variety is short.
Qualify a second supplier for glass or closures and keep specs on file.
Create a rapid label change process for mandatory updates so inventory doesn’t stall.
Shift emphasis to tours and education when bottle supply is tight to keep visitors engaged.
Pilot new sensors or controls on small runs to validate benefits before wider use.
Run practice drills for recalls and power outages so staff knows roles and timing.

What Not to Do

Do not produce any spirits before federal and state approvals are active.
Do not guess at proof or label statements; verify against official tables and requirements.
Do not store ethanol outside approved areas or without proper bonding and grounding.
Do not ignore wastewater strength and reporting; it leads to fines and shutdowns.
Do not assume tasting rooms or direct sales are legal everywhere; confirm state and local rules first.

Sources: TTB, eCFR, FDA, OSHA, EPA, U.S. Small Business Administration, Distilled Spirits Council, American Craft Spirits Association, American Distilling Institute, CDC, IRS, USPTO, Federal Register