A ‘Brew-on-premises’ Business

How to make beer at home and create a ‘Brew-on-premises’ business

by Jhon G. Lindarte

What beer lover doesn’t dream of producing their own liquor at home? Achieving this may not be as complicated as you might think. In the United States, the so-called ‘Brew-on-premises’ or ‘Home Brew Warehouse’ are gaining more and more force and are becoming hobbies that, with an economic and talent boost, could become a business or an enterprise family.

What should be considered before producing beer at home?

The first thing to know is that producing beer at home has freedoms but also limitations: according to what is established by the Alcohol and Tobacco Tax and Trade Bureau (TTB) of the US Department of Treasury, a person can operate a ‘brew-on-premises’ without having to qualify as a brewery or pay taxes with respect to the beer produced, but the liquor created there can only be used for personal or family use, therefore its sale or commercialization for profit is prohibited.

Those who decide to produce craft beer should know that:

• The producer must be at least 18 years old.
• It can produce up to 100 gallons of beer per year if there is only one adult in the house, if there are two or more it can produce up to a 200-gallon limit.
• Homebrewers can bring their beers to events, exhibitions, or competitions.
• The ‘brew-on-premises’ must operate in accordance with state and local laws, and cannot be considered ‘breweries’, since doing so would mean a business that must adhere to the specific regulations of this type of business.

Can a ‘brew-on-premises’ become a business?

Yes, but the rules of the game would change almost completely: to convert home beer production to a business you must first have the approval of operations from the Alcohol and Tobacco Tax and Trade Bureau. To request this approval, you must prepare and submit a series of forms that are available on the TTB website or by visiting www.ttb.gov/contact-nrc

Once you make the request, you must wait for the response of the TTB, who can make an inspection of the place where you want to produce beer. There is no cost to apply for this application, however you must pay a Special Occupational Tax of between $1,000 and $500. You must also have a bond coverage whose minimum penalty amount is $1,000.

If you wish to clarify doubts or have access to the forms, you can contact the National Revenue Center at 877-882-3277, or the TTB Distribution Center at 703-455-7801.

Jhon Gonzalez Lindarte has been working as a journalist since 2012 in the media: newspapers, television, radio and websites. He usually writes about literature, books and authors. He also did illustrations professionally. Jhon graduated Magna Cum Laude from the Central University of Venezuela with a BA in Journalism in 2015. His hobbies are literature, drawing, art, culture, cinema and theater.

Dry Grains and Beer Glass photos by Cottonbro and Sonja Maric from Pexels