Legal Question in Business Law in California

The business permit is the least of your worries. Making and selling alcoholic beverages without proper licensing is called bootlegging. It is a very serious state and federal crime. You can do federal prison time for it.

Making and selling alcoholic beverages is a highly regulated business at both the state and federal levels. You need to obtain at least the two basic permits (California ABCB and Federal). Perhaps additional permits if you are both manufacturing and retailing. You need to keep detailed records of every ounce of alcohol you make and every bottle you sell, and to report your inventory and activity monthly. You need to report and pay alcohol taxes. You need prior approval of your labeling. You need to label your storage vessels. You probably need to qualify for, procure and maintain a bond. There will be inspectors out to look at your equipment, your premises, your security measures. People will be asking about your waste disposal and cleanliness methods. Are you zoned for a brewery?

Failing to handle any one of these issues can cost you your license, or your chance to get one; can be a misdemeanor or a felony, and/or can result in your place of business being red-tagged (while you serve your sentence?).

I would never in a million years dream of operating a commerical alcohol operation without carefully learning the rules the industry operates under and following them meticulously. Many years ago I started and operated a tiny bonded winery in San Francisco. Took months to get all the permits. I used a consulting firm for basic guidance, plus the people at what used to be called the Bureau of Alcohol, Tobacco and Firearms (part of the U.S. Treasury Department, since it involves collecting taxes) were very helpful.