Starting a distillery is an exciting milestone, but before you can legally produce, bottle, process, warehouse, or otherwise handle distilled spirits in the United States, you will generally need to obtain a Distilled Spirits Plant (“DSP”) Permit from the Alcohol and Tobacco Tax and Trade Bureau (“TTB”).
The federal permitting process involves much more than simply completing an application. Businesses should carefully plan their operations, organize supporting documentation, and ensure they understand the regulatory requirements that apply to their proposed activities.
This article provides a general overview of the DSP permitting process.
What Is a TTB DSP Permit?
A Distilled Spirits Plant (“DSP”) Permit is a federal authorization issued by the TTB that allows a qualified business to engage in one or more regulated distilled spirits activities.
Depending on the operations being conducted, a DSP may be authorized to engage in activities such as:
- Producing distilled spirits
- Bottling distilled spirits
- Processing distilled spirits
- Warehousing distilled spirits
- Storing bulk spirits
- Receiving or transferring spirits between qualified facilities
The scope of authorized activities depends on the information submitted during the application process and the permit ultimately issued by TTB.
Who Needs a DSP Permit?
Generally, a DSP Permit may be required for businesses involved in distilled spirits operations, including:
- Craft distilleries
- Contract distillers
- Bottling facilities
- Processing facilities
- Certain maturation or barrel storage operations
- Businesses purchasing bulk distilled spirits for processing or bottling
- Businesses producing spirits from fermentation and distillation
Whether a DSP Permit is required depends on the nature of the proposed operations.
Step 1: Form Your Business Entity
Before beginning the federal permitting process, businesses typically establish a legal entity, such as a:
- Limited Liability Company (“LLC”)
- Corporation
- Partnership
- Sole Proprietorship
Applicants should ensure the business entity has been properly formed before submitting a DSP application.
Step 2: Secure a Location
A DSP Permit is tied to a specific premises.
Applicants generally need to identify:
- The physical location of the facility
- Ownership or lease information
- Areas where distilled spirits activities will occur
- Storage areas
- Processing areas
- Production areas
- Bonded premises
Businesses should confirm that the proposed location complies with applicable zoning and local requirements before proceeding.
Step 3: Prepare a Premises Diagram
One of the most important components of a DSP application is the premises diagram.
The diagram typically identifies:
- Buildings
- Rooms
- Entrances
- Storage locations
- Production areas
- Processing areas
- Tank locations (where applicable)
- Bonded and non-bonded areas
- Adjacent businesses (when applicable)
The diagram should accurately reflect the proposed operations.
Step 4: Gather Required Business Information
Applicants are generally required to provide detailed information regarding the business, including:
- Organizational documents
- Ownership information
- Officers, directors, managers, or members
- Trade names (if applicable)
- Employer Identification Number (“EIN”)
- Business address
- Contact information
TTB may request additional information depending on the ownership structure.
Step 5: Complete the TTB Permit Application
DSP applications are generally submitted electronically through TTB’s online permitting system.
During the application process, applicants may be asked to provide information regarding:
- Business ownership
- Source of funds
- Business activities
- Premises information
- Signing authority
- Environmental and water quality considerations (where applicable)
- Trade names
- Power of attorney (if applicable)
Applications should be reviewed carefully before submission.
Step 6: Respond to TTB Requests
After reviewing an application, TTB may issue questions or request additional documentation.
Common requests involve:
- Clarification of premises diagrams
- Corrections to organizational documents
- Additional ownership information
- Clarification of business activities
- Revisions to the application
Responding promptly and completely may help avoid unnecessary delays.
Step 7: Receive Your DSP Permit
If TTB approves the application, the business will receive its federal DSP Permit electronically.
The permit authorizes only the activities approved by TTB.
Receiving a DSP Permit does not necessarily authorize a business to begin operations if additional federal, state, or local approvals are required.
Other Federal Requirements
Depending on the proposed operations, a DSP may also need to obtain additional federal approvals, such as:
- Formula approvals (when required)
- Certificate of Label Approval (COLA) approvals for products entering interstate commerce, unless an exemption applies
- Registration under applicable FDA requirements, if applicable
- Compliance with federal recordkeeping and reporting obligations
The requirements vary depending on the products and business activities.
Don’t Forget About State and Local Requirements
Obtaining a federal DSP Permit is often only one step in launching a distilled spirits business.
Businesses may also need:
- State manufacturing licenses
- State wholesaler or importer licenses
- Local business licenses
- Building permits
- Fire and safety approvals
- Health department approvals (where applicable)
- Occupancy permits
- Local zoning approvals
Each jurisdiction has its own requirements.
What Are The Common Reasons That DSP Applications Are Delayed?
Although every application is different, delays frequently occur because of:
- Incomplete applications
- Missing organizational documents
- Unclear premises diagrams
- Inconsistent ownership information
- Missing lease documentation
- Incorrect business activities
- Failure to respond promptly to TTB questions
- Inaccurate or incomplete supporting documents
Carefully preparing an application before submission can help reduce avoidable delays.
How Long Does It Take?
Processing times vary depending on numerous factors, including:
- The completeness of the application
- Whether TTB requests additional information
- Application volume
- The complexity of the proposed business structure
- The nature of the proposed operations
Applicants should plan accordingly and avoid assuming a permit will be issued by a particular date.
Final Thoughts
Obtaining a TTB Distilled Spirits Plant Permit is a significant step toward establishing a distilled spirits business. The application process requires careful planning, accurate documentation, and thoughtful preparation to ensure the proposed operations are properly presented to TTB.
Because every business is different, businesses should evaluate both the federal and state regulatory requirements that may apply before beginning operations.
How Lindsey Zahn P.C. Can Help
Lindsey Zahn P.C. represents wineries, breweries, distilleries, importers, wholesalers, and alcohol beverage companies nationwide on federal alcohol regulatory matters.
Our firm assists clients with:
- Preparing and filing TTB DSP permit applications
- Reviewing ownership structures and organizational documents
- Preparing premises diagrams and application materials
- Responding to TTB requests for additional information
- Formula and label approvals
- Federal alcohol regulatory compliance
- State alcohol licensing and related regulatory matters
If your business is planning to open a distillery or expand its operations, our team can help guide you through the federal permitting process.
Contact Lindsey Zahn P.C. to discuss your proposed distilled spirits business and learn how we can assist with your federal and state licensing needs.
📩 Email us at info@zahnlawpc.com
🔗 Visit our Contact Page to get started.
Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Because every situation is unique, you should consult qualified legal counsel regarding your specific circumstances.