Prospective Business Owners

Starting a business is a significant decision that involves planning, financing, and licensing and other legal activities. You may ask yourself these significant questions: What type of business? What business structure is advantageous to my venture? What makes an effective business plan? Where will the financing come from? What licenses, permits, and registrations are required by my state government? By the federal government? We have outlined six steps below to get you on your way.

If you are interested in operating certain alcohol or tobacco businesses, you must file with TTB an application for a permit and receive approval BEFORE engaging in business.

Refer to our industry startup tutorial to learn about the steps for starting a TTB-regulated business. Or, go to our Permits and Applications Web page if you are ready to start a business and only need to know about tax and license filing requirements.

1. Formulating Your Organization

• Write a Business Plan
  A good business plan is essential to formulate your business. These resources from the Small Business Administration (SBA) will help you develop your plan.
• Get Business Assistance and Training
  Take advantage of SBA's learning center which has training guides and access to counseling services for starting and growing your business.
• Choose a Business Location
  Get tips from SBA on selecting a customer-friendly location and complying with zoning laws. TTB has specific requirements in the Code of Federal Regulations, Title 27 relating to the location of a distilled spirits plant, winery, or brewery. See:
  • Part 19, Subpart C - Restriction on Locations, Production, and Use of [Distilled Spirits] Plant
    
     
  • Part 24, Subpart D - Wine Premises and Location
    
     
  • Part 25, Subpart C - Location and Use of Brewery

2. Financing Your Business

• Funding Options
  Map out your business financially. Use SBA's guide to learn what lenders are looking for, financing options, government backed loans, venture capital and research grants to help you get started.

3. Establishing Your Business

• Determine the Legal Structure of Your Business
  Use this Internal Revenue Service (IRS) resource to help decide which form of ownership is best for you: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative.
• Register a Business Name ("Doing Business As")
  Register your business name with your state government.

4. Fulfilling Taxes and Licensing Requirements

• Get a Tax Identification Number
  Learn which tax identification number or employer identification number you'll need to obtain from the IRS and your state revenue agency.
• Small Businesses and Self-Employed Tax
  Use this IRS guide to select business topics or by business type to assist in your decisions.
• Determining Your Federal Excise Taxes
  Get TTB's resources on determining, filing, and paying Federal excise taxes on alcohol and tobacco products, and firearms and ammunition taxes.
• Register for State and Local Taxes
  Register with your state to obtain a tax identification number, workers' compensation, unemployment and disability insurance.
• Obtain a Federal Permit to Operate 
  Certain alcohol and tobacco businesses must receive approval from TTB before engaging in business.
  
   
• Guidance on the Elimination of Bond Requirement for Certain Taxpayers
  This initial guidance explains changes to tax due dates and bond requirements that will take effect on January 1, 2017, as a result of the Protecting Americans from Tax Hikes Act of 2015 ("the PATH Act") (Public Law 114-113).
• Obtain State Licenses and Permits
  Get a list of alcohol control board for state and local licenses and permits required for your alcohol or tobacco-related business.

5. Understanding Employer Responsibilities

• Hiring and Retaining Employees
  Learn how to find and keep the best employees for your business.
• Hiring Your First Employees
  Learn how to find and keep the best employees for your business.

6. Growing and Maintaining Your Business

• Growing Your Business
  Use these resources from Business.USA.gov for the profitable and healthy growth of your business.
  
   
• Maintaining Your Business
  See TTB resources especially for maintaining an alcohol or tobacco-related small business.
• Closing a Business
  Get advice and guidance from SBA on how to dissolve a business.
  
   
• Discontinuing a TTB-regulated Business
  See the regulatory requirement for discontinuance of a business

Specialized Groups Startup Resources

There are programs to assist startups, micro businesses, and underserved or disadvantaged groups. The following resources from SBA provide information to help specialized groups start their own businesses.

• Home-Based Business
• Online Business
• Self Employment
• Minority-Owned Business
• Veteran-Owned Business
• Women-Owned Business

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