How to Get Your License to Manufacture and Distribute Alcohol in Tennessee


To get your license to manufacture and distribute alcohol in Tennessee, you'll need to meet specific eligibility criteria set by the Tennessee Alcoholic Beverage Commission (TABC). This includes being a U.S. citizen, disclosing ownership interests, passing background checks, and complying with local zoning laws. You'll also need to submit required documents, pay applicable fees, and obtain the correct type of manufacturer license for your operation - such as a winery, brewery, or distillery license. By understanding these licensing requirements, you'll be better equipped to navigate the complex process and guarantee compliance with state regulations from the start.

Summary

  • To manufacture and distribute alcohol in Tennessee, applicants must be U.S. citizens, disclose ownership interests, and undergo background checks.

  • A distillery license is required, and applicants must submit to TABC with an annual renewal fee of $1,000 plus applicable application fees.

  • Different licenses are available for wineries, breweries, and distilleries, each with specific requirements and fees, including federal permits and surety bonds.

  • Public notification of intent to apply is necessary, and compliance with local zoning laws and health, safety regulations is required for all license types.

  • Applicants must maintain accurate records and be prepared for periodic inspections to ensure adherence to production, sales, and sampling regulations.

Understanding Tennessee Liquor License Laws

Before diving into the intricacies of Tennessee liquor license laws, you need to know that all applicants must meet the state's basic eligibility criteria. To secure liquor licenses in Tennessee, you and all business owners must be U.S. citizens and disclose ownership interests to the Tennessee Alcoholic Beverage Commission (TABC). This vetting process guarantees that only qualified individuals manufacture and distribute alcohol in the state.

When applying for a license, including a distillery license, you will need to undergo a thorough background check as part of the application process. You must also demonstrate compliance with local zoning laws and adhere to the TABC's requirements for public notification of your intent. It's essential to familiarize yourself with the specific regulations governing liquor licenses in Tennessee to ascertain your business aligns with state standards. The TABC issues liquor licenses based on the type of business, such as on-premise or off-premise sales, so understanding the regulations will help you navigate the application process efficiently.

Types of Manufacturer Licenses

You'll need to choose the correct license for your Tennessee-based operation, such as a Winery License for wine production and sales, a Brewer's License for brewing and selling malt beverages, or a Distillers License for producing spirits. Each of these licenses has specific requirements and associated fees. As you begin your application process, you'll need to carefully review and meet the conditions for the particular license that aligns with your manufacturing goals.

Winery License Requirements

Obtaining a winery license in Tennessee requires careful compliance with specific regulations. To apply, you must provide proof of ownership or lease of the manufacturing facility, as well as comply with local zoning regulations. The annual fee for a winery license is $1,000, plus a $300 application fee for processing.

As a winery license holder, you're permitted to sell wine for both on-premise consumption at your location and off-premise sales to individuals of legal drinking age. However, you must also obtain a federal Basic Permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB) to legally manufacture wine.

Licensed wineries are allowed to produce up to 250,000 gallons of wine annually without additional permits, provided you follow all state and federal regulations. Verify you carefully review and comply with these requirements to avoid delays or potential denial of your application. With a thorough understanding of the regulations, you can verify a smooth application process and establish your winery business in Tennessee. By meeting these requirements, you can exercise your freedom to manufacture and distribute wine in the state.

Brewery License Options

When considering a brewery license in Tennessee, your first step is to determine which type of manufacturer license best suits your business needs. The Tennessee Alcoholic Beverage Commission (TABC) outlines specific requirements for brewery licenses, which allow for the production and sale of malt beverages.

You'll need to apply for a federal brewer's notice from the Alcohol and Tobacco Tax and Trade Bureau (TTB) in addition to obtaining a state brewery license. Here are four key considerations:

  1. Annual Cost: The annual cost for a brewery license in Tennessee ranges from $1,000 to $2,500, depending on your operation's size and scale.

  2. Sales Options: With a brewery license, you can sell your products for on-premise consumption in taprooms and for off-premise sales through retail outlets.

  3. Background Checks: All applicants must undergo background checks and disclose financial interests to guarantee compliance with TABC guidelines.

  4. Regulatory Compliance: Ensure you comply with all state regulations, including those related to health, safety, and zoning.

Distillery Permit Process

Numerous requirements must be met to secure a distillery license in Tennessee, starting with an application fee of $300 and an annual license fee of $1,000, both payable to the Tennessee Alcoholic Beverage Commission (TABC). You'll need to provide a detailed description of your distillery location, guaranteeing it complies with local zoning laws and T.C.A. 57-2-103 regulations. Additionally, you'll require a Federal Basic Permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB).

As a distillery license holder, you'll be allowed to serve free samples to individuals over 21 during public tours, but you must report these sampling locations to TABC. You'll also be permitted to sell product for off-premise consumption to individuals of legal drinking age, with a limit of five gallons or one-sixth of a barrel per visit. To maintain compliance, you must adhere to both state and federal regulations for the production of spirits. Ascertain you understand and meet all requirements to avoid delays in the application process. Approval can take 30 to 120 days, so plan accordingly to get your distillery up and running smoothly.

Meeting Licensing Requirements

Satisfying Tennessee's licensing requirements for manufacturing and distributing alcohol is a critical step in launching your business. To manufacture and distribute alcohol in Tennessee, you'll need to obtain a distillers license from the Tennessee Alcoholic Beverage Commission (TABC). This license costs $1,000 annually, plus a $300 application fee.

To guarantee compliance, review the following requirements:

  1. Ownership disclosure: Disclose all ownership interests and financial interests to the TABC, verifying that all parties involved are U.S. citizens.

  2. Zoning compliance: Comply with local zoning laws, and ensure your distillery location adheres to T.C.A. 57-2-103 regulations.

  3. Federal Basic Permit: Secure a Federal Basic Permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before commencing production or distribution.

  4. Record-keeping: Maintain accurate records of sales and samples, as the TABC conducts periodic inspections to guarantee compliance with state regulations.

Meeting these licensing requirements is essential to establishing a legitimate and compliant distillery in Tennessee. It's your responsibility to guarantee you're meeting all the necessary standards, so take the time to thoroughly review and understand the TABC's requirements.

Required Documents and Fees

As you assemble the necessary documents for your license application, you'll need to obtain a surety bond to guarantee your compliance with Tennessee's alcohol manufacturing and distribution regulations. The surety bond serves as a financial safeguard, protecting the state and consumers from potential losses or damages resulting from your business operations. You'll need to secure a surety bond in the amount specified by the Tennessee Alcoholic Beverage Commission, which will be outlined in the application instructions.

Surety Bond Requirements

When securing an alcohol manufacturing and distribution license in Tennessee, obtaining a surety bond is a critical step you'll need to take. A surety bond protects the state against potential financial losses due to your non-compliance with regulations. The bond amount varies depending on the type of license you're applying for, ranging from $10,000 to $50,000.

To obtain a surety bond, you'll need to provide documentation as part of the licensing process. Here are the key aspects of a surety bond to take into account:

  1. Bond amount: The amount you'll need to secure, which depends on the type of license and scale of operations.

  2. Bond duration: The bond must be maintained throughout the duration of your license to guarantee ongoing compliance.

  3. Fees: Annual fees range from 1% to 10% of the total bond value, depending on your creditworthiness.

  4. Compliance requirements: You must comply with state regulations to avoid potential penalties or license revocation.

Inspections and Approval Process

During the inspections and approval process for a distillery license in Tennessee, your application will be scrutinized by the Tennessee Alcoholic Beverage Commission (TABC) to confirm compliance with state laws and regulations. You'll need to ascertain that your application is placed on the TABC's agenda for their monthly meetings, where it will be reviewed and voted on for approval. The TABC conducts thorough background checks on all applicants and associated parties to verify compliance before granting a license.

Your distillery location must also comply with local zoning laws, which can impact the approval process. Additionally, licensed distilleries are subject to periodic inspections by the TABC to guarantee adherence to regulations regarding production, sales, and sampling practices. These inspections serve as a mechanism to monitor ongoing compliance with regulations. By understanding the inspections and approval process, you can better navigate the licensing requirements and increase your chances of approval. The TABC's detailed evaluation of your application ensures public safety and maintains the integrity of the industry.

Maintaining Compliance and Renewal

You've navigated the inspections and approval process, and now that you've secured your distillery license, your focus shifts to maintaining compliance and guaranteeing timely renewal. The Tennessee Alcoholic Beverage Commission (TABC) requires periodic inspections to guarantee adherence to state regulations and operational standards. Regular updates and renewals of licenses are also necessary, with an annual renewal fee of $1,000 plus any applicable application fees.

To maintain compliance, consider the following key requirements:

  1. Record-keeping: Maintain accurate records of sales and samples to demonstrate adherence to TABC regulations.

  2. Ownership disclosures: Disclose any changes in ownership interests or financial interests to the TABC, guaranteeing transparency in operations.

  3. Staff training: Implement training programs for staff on legal compliance and responsible service to mitigate risks.

  4. Inspection readiness: Guarantee your distillery is always prepared for TABC inspections, maintaining a clean and organized facility.

Common Licensing Roadblocks

Maneuvering the complexities of obtaining a distillery license in Tennessee can hit a snag if you don't watch out for common licensing roadblocks. When you apply for this license, the Tennessee Alcoholic Beverage Commission requires you to submit a thorough application package, including documentation of your identity, financial interests, and compliance with local zoning laws. Failure to provide complete information can cause significant delays in the processing of your application.

A background check will be conducted on you and associated parties, and prior convictions or financial issues may disqualify you from obtaining a distillery license. It's also essential to accurately disclose ownership interests and financial interests to avoid denial or revocation of your license. Local regulations may impose additional requirements that conflict with state laws, so make sure you're aware of all compliance issues before applying. Regular inspections by the TABC may uncover improper record-keeping or other compliance issues, resulting in fines or loss of licensing.

Frequently Asked Questions

How Much Is a Distillery License in Tennessee?

You'll pay $1,000 annually for a distillery license in Tennessee, plus a one-time $300 application fee; regular renewal fees and other costs like local permits and compliance fees add to the total expenses.

Is It Legal to Distill Alcohol in Tennessee?

You're allowed to distill alcohol in Tennessee for non-beverage purposes, such as producing fuel or essential oils, but distilling for beverage purposes is heavily regulated and requires a license to avoid violating state and federal laws.

What License Do You Need to Serve Alcohol in Tennessee?

To serve alcohol in Tennessee, you'll need a Liquor-By-The-Drink License for on-premise consumption or a Retail Package Store License for off-premise sales, depending on your business type, and guarantee compliance with local zoning laws.

What Types of Businesses Are Allowed to Sell Alcohol in Tennessee?

You can operate licensed distilleries, retail package stores, establishments with Liquor-by-the-Drink licenses, or breweries to sell alcohol in Tennessee; each business type has specific licensing and operational requirements with varying permits and regulations.

Get Your Bond Today.

It's fast and easy to get your bond.

Apply online for a quick decision. Call (800) 737-4880 to talk to our bond experts.

Apply Now