Roseville and Sacramento Accountant for Craft Breweries + Distilleries
Operating a successful craft brewery or distillery requires a lot of moving parts, especially as California has one of the most competitive markets for breweries and distilleries. While trying to manage your business, you also have to keep up with complicated tax laws to ensure your business stays in the good graces of the Internal Revenue Service. However, it is certainly possible to properly manage your tax liability while operating your business with a little help. If your business requires tax accounting services, you should consult with an experienced Roseville craft brewery accountant. At Cook CPA Group, we are dedicated to providing your business with the accounting services necessary to manage your tax liability. We understand the difficulty of interpreting complex IRS tax laws, and we are here for you and your business.
Tax Tips for Craft Breweries and DistilleriesCraft breweries and distilleries are part of a growing market fueled by consumers that want to experience unique and novel beers and alcohol. As this burgeoning industry continues to grow, the owners of craft breweries and distilleries should understand the tax implications and benefits of operating one of these businesses. The following is a list of tax tips that owners or aspiring owners of craft breweries and distilleries should know about.
Registering Your BusinessThe California Department of Tax and Fee Administration (CDTFA) requires that operators of breweries and distilleries register for a seller’s permit. The CDTFA also requires that sales and use tax returns are filed with the administration. Brewers and distillers must also register for an Alcoholic Beverage Tax account depending on the type of beer or spirits they sell. If your business is engaged in any of the following actions, you must register for an Alcoholic Beverage Tax Account:
- The manufacture of brandy
- The manufacture of beer
- The importation of beer and wine
- The importation of distilled spirits
- Wholesale of beer or distilled spirits
Sales and Use TaxCalifornia imposes a sales and use tax on all sales of tangible personal property with some exceptions. California defines tangible personal property as anything that can be observed, weighed, touched or measured. Sales tax can be applied to a wide range of sales for breweries and distilleries. Breweries often pay sales tax on beer sold to other licensees, beer used at a beer tasting event, or beer sold to a restaurant for resale to consumers. A distillery will often owe sales tax for the same transactions and for other transactions like merchandise used to market their spirits. Use tax is due when a brewery or distillery engages in purchasing items from an out-of-state or foreign vendor without paying taxes on that item. The item must also be used within the state of California. To pay the use tax on items purchased for your business, you must report the purchase price of the item.
Alcoholic Beverage TaxAlcoholic beverages manufactured by distilleries and breweries are subject to the alcoholic beverage tax. This is a per-gallon excise tax that must be charged on the sale, distribution, or importation of any alcoholic beverages in California. The beer manufacturer or distiller must pay the alcoholic beverage tax. If the manufacturer does not pay the tax, the seller of the beer or spirits is obligated to pay the tax. There are several other tax-related issues that craft breweries and distilleries should know about. To learn more about the services offered by our company, you should continue reading and speak with an experienced Roseville CPA.
Services Offered by Cook CPA GroupCook CPA Group offers a wide range of services to craft breweries, distilleries, and various other businesses in California. Our team of accountants can help you:
- Produce a system to file important income and tax documents
- Create a cost accounting system
- Inventory costing and margin analysis
- Forecasting, budgeting, and detailed profit maximization
- Estate planning services
- Unique advice tailored to the type of brewery or distillery you operate
- Financial statement audits