To legally start a beverage business in the United States, you need a stack of licenses and permits that work together: a registered legal entity, a federal Employer Identification Number, a state sales tax permit, FDA food facility registration, a local health department permit, zoning clearance, and compliant product labeling before your first bottle ships. If your product contains or can develop 0.5% alcohol by volume or more, add a federal Alcohol and Tobacco Tax and Trade Bureau (TTB) permit on top of everything else. The sequence below walks through each one in the order you’ll actually need it.
Form the Entity and Get Your Tax IDs
Every beverage business starts with a legal entity. Most founders choose an LLC or a corporation because both separate personal assets from business debts. You create the entity by filing Articles of Organization (LLC) or Articles of Incorporation (corporation) with your state’s Secretary of State, naming a registered agent with a physical street address in the state. A P.O. box doesn’t qualify, and that address becomes public record.
Filing fees generally run from $50 to $500 depending on the state and entity type. Online submissions typically confirm within days; mailed forms can take weeks.
Once the state issues your certificate, apply for an Employer Identification Number (EIN) from the IRS. The EIN is free, available through the IRS website, and functions as your business’s federal tax identifier.1Internal Revenue Service. Get an Employer Identification Number You’ll need it to open a business bank account, hire employees, and file federal taxes.
Nearly every state also requires a sales tax permit or seller’s certificate before you can legally sell beverages. Beverages are taxable in most states, though some exempt categories like bottled water or unprocessed juices. The permit itself is usually free, but once you hold it you’re responsible for collecting and remitting sales tax on every taxable sale. Apply through your state’s department of revenue.
FDA Food Facility Registration
Any facility that manufactures, processes, packs, or holds food for consumption in the United States must register with the FDA under 21 U.S.C. § 350d.2Office of the Law Revision Counsel. 21 USC 350d – Registration of Food Facilities Beverages are food, so this applies to you.
Registration is electronic, filed through the FDA’s industry portal using Form 3537. You provide the facility address, an emergency contact, the types of food you handle (carbonated drinks, bottled water, juice, and so on), and the name of a U.S. agent if the facility is foreign-owned. There is no federal fee, and you usually receive a unique registration number within minutes of completing the form. Keep it secure; you’ll need it for distribution, imports and exports, and future interactions with the FDA.
Submitting false information on this form is a federal crime under 18 U.S.C. § 1001, with penalties of up to five years in prison.3Office of the Law Revision Counsel. 18 USC 1001 – Statements or Entries Generally The FDA cross-references registration data with inspection records, and discrepancies get flagged.
If you use a co-packer rather than your own production space, the co-packer handles the facility registration for the manufacturing site, but you still carry your own FDA obligations as the brand owner, including labeling compliance and recordkeeping.
When You Also Need a TTB Permit
If your beverage contains alcohol, or could develop alcohol during production or after bottling, a second federal layer kicks in from the Alcohol and Tobacco Tax and Trade Bureau. The threshold is 0.5% alcohol by volume. Any beverage that reaches or exceeds 0.5% ABV at any point during production, at bottling, or afterward falls under TTB jurisdiction.4TTB: Alcohol and Tobacco Tax and Trade Bureau. Kombucha
This catches kombucha and other fermented beverage makers off guard. Even if your product tests below 0.5% ABV when bottled, continued fermentation in the bottle can push it over the line. Once that happens, the product is legally an alcoholic beverage and must comply with TTB labeling, formula approval, and tax rules.
Certain ingredients and methods trigger mandatory formula approval regardless of ABV, including artificial flavors, essential oils, sweeteners like sucralose, and botanicals that aren’t on the TTB’s approved list.5Alcohol and Tobacco Tax and Trade Bureau (TTB). Which Alcohol Beverages Require Formula Approval? Domestic kombucha and domestic saké both require formula approval.
There is no federal fee to apply for or maintain a TTB permit.6Alcohol and Tobacco Tax and Trade Bureau (TTB). Applying for a Permit and/or Registration Applications go through the TTB’s Permits Online system, and you cannot start operations until approval comes through. If your beverage stays below 0.5% ABV at all times, TTB rules don’t apply and FDA requirements are enough.
Local Health Permit and Zoning
Federal registration doesn’t authorize you to operate. That permit comes from your county or municipal health department, and getting it is a separate process.
The application typically requires detailed floor plans showing equipment layout, ventilation, plumbing, and handwashing stations. The health department reviews these to confirm your facility design prevents contamination. After submission, expect two to four weeks before a physical inspection, though local backlogs stretch that timeline. The inspector checks that your facility matches the plans and that your equipment, storage, and sanitation meet local codes. Pass, and you get a permit to operate. Fail, and you get a deficiency list to correct before re-inspection.
Zoning is the other local hurdle. Your production space must sit in a zone that allows commercial food manufacturing. Residential and general commercial zones usually don’t qualify. Verify zoning before signing a lease. Moving your operation after discovering a zoning conflict is one of the most expensive mistakes a new beverage business can make.
If you plan to start from a home kitchen, check your state’s cottage food law carefully before investing. Most states’ cottage food rules exclude beverages entirely, especially fresh juices, ciders, and anything requiring temperature control for safety.
Food Safety Plan
Every beverage production facility must comply with current Good Manufacturing Practices under 21 CFR Part 117, which covers personnel hygiene, pest control, equipment sanitation, and process controls.7eCFR. 21 CFR Part 117 – Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food Operating a facility that doesn’t meet these standards is a prohibited act under the Federal Food, Drug, and Cosmetic Act.
Most beverage facilities must also develop a written food safety plan with hazard analysis and risk-based preventive controls. Juice producers face additional Hazard Analysis and Critical Control Point (HACCP) requirements because of pathogen risk, particularly in unpasteurized or fresh-squeezed products. A qualified individual has to develop the plan. Food safety manager certification through an ANSI-accredited program generally costs between $30 and $70 for the exam.
Label Your Product to Federal Standards
Federal labeling rules under 21 CFR Part 101 apply the moment you package a beverage for sale. Every label needs a statement of identity (what the product is), a declaration of net quantity, and a nutrition facts panel.8eCFR. 21 CFR Part 101 – Food Labeling Ingredients must be listed in descending order by weight.
Federal law also requires clear identification of all nine major allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, and sesame.9FSIS.USDA.gov. Food Allergies: The Big 9 Sesame was added by the FASTER Act of 2021, and some beverage ingredients are sesame-derived in ways that aren’t obvious. A missed allergen can trigger a recall and significant liability.
Organic and “Natural” Claims
Using the word “organic” on your label requires USDA certification under the National Organic Standards. The tiers matter. A product labeled “100% organic” must contain only organically produced ingredients, not counting water and salt. A product labeled simply “organic” must be at least 95% organic. “Made with organic [ingredient]” requires at least 70% organic content. Products below 70% may only identify individual organic ingredients in the ingredients statement and cannot use the USDA Organic seal.10USDA Agricultural Marketing Service (AMS). Labeling Packaged Products Under the National Organic Standards Organic certification involves annual inspections and fees. The USDA runs a cost-share program that reimburses up to $750 per certification scope.
The word “natural” has no formal federal definition for most beverages. The FDA has issued guidance that “natural” means nothing artificial or synthetic has been added, but enforcement is inconsistent and the term has driven extensive consumer litigation. If you use it, be prepared to document exactly what you mean.
Penalties for Mislabeling
Mislabeling violates the Federal Food, Drug, and Cosmetic Act. A first-time criminal violation can bring up to one year in prison, a fine of up to $1,000, or both. A second conviction, or any violation with intent to defraud, raises the maximum to three years in prison and fines of up to $10,000.11Office of the Law Revision Counsel. 21 USC 333 – Penalties Beyond criminal exposure, the FDA can order product seizures and injunctions that halt your operation.
Trademark, Insurance, and Barcodes
Registering your business name with a Secretary of State protects it only within that state’s entity records. It gives you no trademark rights, which means another company can sell beverages under the same name in another state or online. Federal trademark protection comes from the U.S. Patent and Trademark Office.12United States Patent and Trademark Office (USPTO). How Trademarks and Trade Names Differ
Most nonalcoholic beverages fall under Trademark Class 32, which covers beers, mineral waters, juices, sodas, and similar products. Alcoholic beverages other than beer sit in a different class. Your application requires a specimen showing how the mark actually appears on the product, such as a photo of the label on the bottle or a product listing with an “add to cart” button. Filing fees start at $250 per class for the standard electronic application, with higher fees for applications that use free-form descriptions instead of the USPTO’s pre-approved descriptions.13United States Patent and Trademark Office (USPTO). USPTO Fee Schedule – Current Getting the classification wrong means starting over without a refund.
Before any retailer or distributor carries your product, they’ll ask for a certificate of insurance. The standard minimum that grocery chains and distributors expect is $1 million per occurrence and $2 million aggregate general liability and product liability coverage, with the retailer named as an additional insured. Product liability coverage specifically responds to claims that your beverage caused illness or injury.
Retailers also require a Universal Product Code (UPC) on every item. Barcodes come from GS1. You buy a GS1 Company Prefix, which lets you assign unique identification numbers to each SKU. A single barcode for one product costs $30 with no annual renewal. A prefix covering 10 items costs $250 upfront plus $50 per year.14GS1 US. UPC, Barcodes, and Prefixes
Wastewater Permits
Beverage production generates wastewater. If your facility discharges directly into waterways rather than the municipal sewer system, you may need a National Pollutant Discharge Elimination System (NPDES) permit under the Clean Water Act.15US Environmental Protection Agency. Industrial Wastewater Even facilities connected to municipal sewer may need a local industrial discharge permit depending on wastewater volume and composition. Beverage wastewater carries high biological oxygen demand from sugars and organic matter, and many treatment facilities set strict limits. Check with your local water authority before production begins. Retrofitting treatment after the fact is expensive.
Keeping Your Permits Active
Getting the permits is the start. Keeping them requires several recurring filings.
State Entity Reports
Most states require annual or biennial reports confirming your current address, officers, and registered agent. The fees are usually small. Missing the deadline can lead to administrative dissolution, which strips your liability protection and creates problems with bank accounts, contracts, and leases.
FDA Registration Renewal
Your FDA food facility registration must be renewed every even-numbered year during the window from October 1 through December 31.2Office of the Law Revision Counsel. 21 USC 350d – Registration of Food Facilities Renewal is free. If nothing has changed since your last registration, the FDA offers an abbreviated process. Missing the window doesn’t automatically shut you down, but operating with a lapsed registration puts you out of compliance and makes you a target for enforcement.
Record Retention
You must keep records of food received and released, with retention periods set by shelf life. Shelf-stable beverages like bottled water and sodas: two years. Perishable products that spoil within 60 days, like fresh-pressed juice: six months. Products in between: one year.16eCFR. 21 CFR Part 1 Subpart J – Establishment, Maintenance, and Availability of Records Records can be kept at the facility or at a reasonably accessible location, and electronic records are acceptable.
Enforcement Exposure
Beyond criminal penalties for labeling and manufacturing violations, the FDA can suspend your facility registration if it determines your products pose a reasonable probability of causing serious health consequences. A suspended registration bars you from selling in interstate commerce.2Office of the Law Revision Counsel. 21 USC 350d – Registration of Food Facilities Staying current on every permit, renewal, and record is cheaper than the alternative.