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Toolkit for Starting a Cider Business

Jun 22, 2015 | Business & Taxation, News, Winery/Vineyard/Brewery

Toolkit for Starting a Cider Business

For people who are starting a cider business, this toolkit will guide you to information about forming a company, obtaining an OLCC license, and understanding reporting and regulations.

  • Entity formation: You will likely want to consult with an attorney and/or licensed accountant about what type of entity makes the most sense for your business goals.
  • Naming your business: You can check the availability of a name at www.filinginoregon.com.
  • Registering with the Secretary of State: Even if you are operating as a sole proprietor and do not intend to set up a corporation, you will need to register your business name with the Secretary of State unless you are doing business under a name which includes your first name, middle initial or name, and last name. Registration can be done online at www.filinginoregon.com.
  • Other steps: The Secretary of State has a useful guide, “How to Start a Business In Oregon” which covers many of the steps new business owners need to take to get their affairs in order prior to beginning any OLCC licensing process.

Local Municipalities

Cities, counties, and other local districts may have requirements regarding proper zoning, permitting for build-outs, business licenses, etc.  You should check with local governments early in your planning to learn what these requirements are and what resources may be available to help you obtain any necessary approvals or permits.

OLCC

Initial Licensing

  • License Application Form and Instructions
  • License Types and Fees: A summary of a few license types pertinent to cidermakers:
    • Winery License (Code WY and WYNC)
      • Cost: $250/year and $2.60/year Alcohol Server Education Fee (for WY)
      • Primary License Privileges and Requirements:
        • Manufacture, store, and export wine and cider
        • Sell wine and cider to wholesale and retail licensees in Oregon
        • Sell malt beverages, wine, and cider to individuals in Oregon for consumption on or off the licensed business
        • Eligible to ship wine and cider directly to an Oregon resident
        • Eligible to apply for a “special event” license: SEW
        • Must obtain privilege tax bond
        • WY designates a license that allows tastings or other on-premises consumption of alcohol by patrons
        • WYNC designates a licensee that does not allow tastings or other on-premises consumption of alcohol by patrons
    • Wine Self-Distribution Permit (Code WSD)
      • Cost: $100/year
      • Primary License Privileges and Requirements
        • Allows a manufacturer of wine and cider in a US state other than Oregon to sell and ship such wine and cider directly to an Oregon retail licensee but only if the Oregon retailer holds a valid endorsement issued by the OLCC authorizing the receipt of wine or cider from the holder of a Wine Self-Distribution Permit
        • Must obtain privilege tax bond
    • Full On-Premises Sales, Commercial (Code F-COM)
      • Cost: $400/year and $2.60/year Alcohol Server Education Fee
      • Primary Privileges and Requirements
        • Sell and serve distilled spirits, malt beverages, wine, and cider for consumption on the licensed premises (this is the license most “full-service” restaurant obtain)
        • Eligible to apply to get pre-approved to cater some events off of the licensed premises (events that are small, usually closed to the general public, and where food service is the primary activity)
        • Eligible to apply for a “special event” license: TUAL
    • Off-Premises Sales (Code O)
      • Cost: $100/year
      • Primary Privileges and Requirements
        • Sell factory-sealed containers of malt beverages, wine, and cider at retail to individuals in Oregon for consumption off the licensed premises
        • Eligible to apply to get pre-approval to provide sample tastings of malt beverages, wine, and cider for consumption on the premises
        • Eligible to ship manufacturer-sealed containers of malt beverages, wine, or cider directly to an Oregon resident
  • Other license steps to be aware of:
    • Local government has 45 days to investigate application and provide recommendation to OLCC
    • A public notice of the application will be posted at the proposed business location for 14 days.

Reporting

  • Privilege Tax Statements: A monthly inventory to OLCC (e.g. Schedule 8 – Cider) must be completed by all winery licensees. OLCC receives two copies of the completed inventory report and you keep one for your records.

Rules and Regulations

Food Safety

Employment Law Issues