Alcoholic beverage companies operating in Florida must apply for and maintain several federal, state and local government licenses and permits. One of the most common is the business tax receipt (BTR). Florida Counties and Cities Require BTRs for Nearly All Businesses The Florida Statutes generally authorizes counties and cities to levy a business tax for the privilege of engaging...
Continue ReadingWhen it comes to delivering beer from breweries to distributors and from distributors to retailers, it’s not just about the beer. There are also kegs, tap markers, and pallets that change hands in each transaction, and the Florida Beverage Law does not provide much guidance on their management. This is why it’s important for all parties – brewery, distributor,...
Continue ReadingYou first opened your brewery taproom, winery tasting room, or craft distillery bar several weeks ago, and everything is going well. A good crowd is enjoying your products and the environment, enhanced by a perfectly curated playlist of just the right chill pop hits. That’s when you open a letter from a company called BMI, ASCAP or SESAC. This...
Continue ReadingRather than launching a new Florida alcoholic beverage manufacturer, it might be better to buy an existing operation. The Buyer gets a built-out premises, with all the equipment and buildout already in place, and a built-in customer base. The Seller gets to move onto other things. Business transfer transaction are always complicated, and even more so in a heavily...
Continue ReadingA love for collaborations–“collabs”–is among the (many?) things that hip hop artists and craft alcohol manufacturers share in common. In both cases, the final product often appears to be a spontaneous creation of free-flowing, shared artistry. The reality is–or at least should be–a carefully plotted and executed navigation of fundamental questions about ownership, commercialization, and distribution. Whether a record...
Continue ReadingThree Key Record Types Florida alcoholic beverage suppliers–manufacturers, broker-sales agents, importers, and exporters–are required to meet specific recordkeeping requirements under Florida law and regulations. These requirements are summarized below. Meeting these requirements is best done by creating and keeping to following three record types: Inventory Records should be kept and updated reflecting all products in inventory at a given...
Continue ReadingWhat is a Convertible Promissory Note? A Convertible Promissory Note (“CPN”) is an option for companies that want to build capital without issuing stock or ownership units immediately. An investor, instead of receiving stock or another form of equity upon investment, would receive a CPN. The CPN is a form of debt that converts into equity (typically, preferred stock...
Continue ReadingBeverage manufacturers, distributors, and vendors–like other closely held companies–often use grants of their own stock to compensate and incentivize employees, consultants and other providers (for simplicity, this articles refers to all of them as “employees”). These grants have major tax consequences. News Flash: Stock Grants are Subject to Income Taxes Generally, when money or property is given to an...
Continue ReadingWhere the safety of your staff and customers requires it, employers can require employees to be tested for COVID-19 and provide employers the results of testing. Employers Can Require Employees to be Tested for COVID-19 Employers who want to require employees to be tested for COVID-19 must be aware of their requirements under the Americans with Disability Act (ADA)....
Continue ReadingDtC Sales of Alcohol are Promising but Hard to Manage Popularity of the Direct-to-Consumer (DtC) sales model is at an all-time high, in the alcoholic beverage industry and many others. The DtC model allows manufacturers and brand owners to sell (and often deliver) directly to consumers, bypassing traditional distribution and retail sales channels. Particularly in light of the COVID-19...
Continue Reading