It’s rarely fun calling a lawyer. But here’s a free piece of legal advice: it’s better to call an attorney before you need an attorney.
When you first start to contemplate opening a brewery, you should consider getting legal advice. From the outside, it may seem all malts, hops, and pints, in truth the beer business is about sanitation and regulation. Complying with various local, state, and federal mandates, from setting up the business, to zoning, securing construction permits, attaining alcohol licensing and brewery operation permits, to paying all sorts of taxes, there are legal minefields everywhere in opening a new brewery. As you develop your business plan, finding an attorney knowledgeable in these areas is key. Each area may require a specialist and the issues your brewery-in-planning faces depends on your location and plans.
It’s always better to be prepared and proactively seek out counsel than reactive and already in trouble before you pick up the phone seeking legal advice. Doing so can save time, money, and headaches in an industry where every day will bring a new set of challenges.
Things To Know Before You Start Calling Lawyers
Before you start calling attorneys, take some time to consider your needs. Are you looking for a generalist that can help you with a range of issues or a specialist to assist with a particular task? Do you need an attorney with knowledge of local or state matters or someone who handles federal matters? Are you looking for the services (and attendant costs) of a large firm or will a smaller operation meet your needs? And when you’ve answered these questions, do your research. Don’t just go with the first attorney whose name you hear or find in a Google search. Ask other breweries and small business owners who they use. Check out their reputations online. As with hiring a contractor or home renovation company, interviewing several attorneys before you hire them can give you a better understanding of the process, costs, and different services available while also clarifying your own needs and preferences.
A quick word about cost. Many prospective brewery owners and even some existing owners balk at the costs associated with getting learned advice from an attorney. That is until they miss a step in a key process or misunderstand something that leads to additional and even more costly delays in opening, entering a new state for distribution, or any number of related areas. Finding the right attorney to help you navigate the complicated legal, regulatory, and bureaucratic circles can save time, money, and mental health and it should be factored into the cost of doing business.
Let’s take a look at situations where your brewery should consider getting some legal advice.
Setting Up Shop
A lawyer handling small and medium business matters can assist in business formation and selecting the right legal structure for your operation. This is key to flushing out the roles and responsibilities of the partners, protecting personal assets and shielding against liability, and dealing with contractual matters as you start to take on suppliers and vendors. You may also need a real estate attorney to assist with any zoning issues or to negotiate leases.
Unsurprisingly, the production of alcohol is a heavily regulated business. The state and federal application processes for setting up a brewery can be daunting. While many states and the federal Alcohol Tax and Trade Bureau (TTB) offer helpful websites for brewers seeking to open, the forms and rules are complicated and can often benefit from the advice of an attorney with experience navigating the process.
Intellectual Property
As I wrote on ProBrewer last year, “[w]ith nearly 10,000 breweries operating in the United States, and countless beer brands available, trying to come up with an original beer name has never been more challenging.” That’s why it is crucial to understand some basics about trademark law, how to protect your brand names in the marketplace, and when it is time to consult with an attorney. If you’re interested in filing a trademark application for a beer or brand name, enlisting the assistance of an attorney specializing in the area is a smart move. Attorneys can also help you scan new filings and the Internet to determine whether other individuals and companies are trying to infringe on your protected IP. They can also write letters on your behalf seeking to intervene in such infringements.
Employment Law
Many brewery owners have little experience running small or medium sized businesses. As the company grows, so does its employment needs, in areas such as contracts, benefits, human resources, and handling disputes. Having a business or labor attorney advise you on best HR and employment practices, whether in the areas of contracts, discrimination, and even creating company handbooks can save a lot of management-side headaches and make for a better workplace environment for employees.
Being smart and proactive about your legal needs is the best way to avoid problems before they grow.