Winery Compliance & Licensing

Starting and running a winery involves more than just producing great wine—it requires navigating a complex web of compliance and regulatory requirements. Understanding and securing the proper licenses is essential for both launching your winery and keeping it operating legally.Winery Compliance & Licensing

Starting and running a winery involves more than just producing great wine—it requires navigating a complex web of compliance and regulatory requirements. Understanding and securing the proper licenses is essential for both launching your winery and keeping it operating legally.

Federal Licensing

At the federal level, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulates the production, distribution, and labeling of alcoholic beverages. Before beginning any operations, you must obtain a Basic Permit from the TTB, which formally recognizes your winery as a lawful producer of alcohol.

The federal licensing process includes:

  • Completing the TTB Application:
    • Submit the necessary paperwork through the TTB’s Permits Online system.
    • Ensure accuracy and completeness to avoid processing delays.

  • Paying Applicable Fees:
    • While there is no fee for the Basic Permit itself, certain related filings (e.g., formula approvals) may have associated costs.

  • Providing Operational Details:
    • Include production methods, grape sources, facility layout, and expected volume.
    • You may also need to supply a bond, depending on your production levels and excise tax liability.

  • Label Approval (COLA – Certificate of Label Approval):
    • Each wine label must be reviewed and approved by the TTB to ensure compliance with federal labeling regulations.
    • This includes rules around alcohol content, health warnings, geographic indications, and more.

  • Bond Requirements:
    • Although not always mandatory, some wineries may need to file a bond to cover excise taxes, depending on size and tax status.

  • Recordkeeping and Reporting:
    • Once licensed, wineries must maintain detailed production and sales records and submit regular operational reports to the TTB.

State Licensing

In addition to federal requirements, every state has its own set of laws and agencies that govern the production, sale, and distribution of alcohol. Obtaining the proper state licenses is just as important as federal compliance—and in many cases, you’ll need to complete your federal licensing first before your state application will be accepted.

Each state’s alcohol regulatory body (often called the Alcoholic Beverage Control, or ABC) will have its own application process, fees, and operating guidelines. These requirements can vary significantly, so it’s crucial to check with your specific state agency.

Key elements of state licensing typically include:

  • Winery Permit or Producer License:
    • Authorizes the production and bottling of wine within your state.
    • May be tiered based on production size or type (e.g., small winery, farm winery, or commercial winery).

  • Sales and Distribution Permits:
    • Required for selling wine to wholesalers, retailers, or directly to consumers.
    • Some states also require separate licenses for on-site tasting rooms or events.

  • Tasting Room or On-Site Sales License:
    • Needed if you plan to offer samples, sell bottles on-site, or host events.
    • May include additional rules around hours of operation, food service, and security.

  • Direct-to-Consumer (DTC) Shipping License:
    • If you plan to ship wine directly to customers, you’ll need a DTC permit—possibly in multiple states.
    • Each state has different rules for shipping, including volume limits and reporting requirements.

  • Excise Tax Registration:
    • Most states require wineries to register for state excise taxes and file monthly or quarterly returns.
    • Rates and reporting schedules vary widely by state.

  • Health, Safety, and Local Compliance:
    • Your state license application may also trigger inspections for sanitation, fire safety, and zoning compliance.
    • Additional permits may be needed for food service, outdoor seating, or special events.

Local Regulations

In addition to federal and state requirements, local regulations can play a significant role in how your winery operates. These rules often vary by city or county and can impact everything from your facility’s location to how you serve customers on-site. Overlooking local requirements can lead to costly delays or fines, so it’s essential to engage early and often with your local government or planning office.

Here are a few key local regulations that may apply:

  • Zoning Laws:
    • Determine whether your property can be legally used for wine production, tasting rooms, or events
    • May restrict noise levels, traffic, signage, or hours of operation

  • Health and Safety Regulations:
    • Apply to any on-site food or beverage service, especially if you're offering tastings or events
    • Include sanitation requirements and inspections by the local health department

  • Building and Use Permits:
    • Required for new construction, renovations, or converting a space into a winery or tasting room
    • May involve fire safety inspections, occupancy limits, and ADA compliance

  • Environmental and Waste Management Rules:
    • Include wastewater disposal, stormwater runoff, and air quality standards
    • Local agencies may require specific systems or permits for wine production byproducts

  • Business Licenses and Local Taxes:
    • Some municipalities require an additional business license or impose local sales/excise taxes
    • Renewals and reporting may differ from state and federal requirements

Engaging with local planning and regulatory departments early in the process can help you navigate these requirements smoothly and avoid surprises down the road.