Before starting a winery, you must:

• Ensure your property is zoned appropriately by your county or by your city if within limits. State law exempts bona fide farms from zoning in a county, but not necessarily in a city. County or city zoning authority determines the limits for a bona fide farm. A vineyard and winery operation should be considered agriculture in most counties.
• Consider these restrictions: You may produce tax-exempt, unfortified wine for personal or family use of up to 200 gallons of wine per year per two-adult household or up to 100 gallons per one-adult household.
• Have your wine production facility inspected by the Federal Tax and Trade Bureau (TTB formerly BATF)) prior to obtaining a final permit. (However, it's a good idea to begin paperwork for both TTB and ABC six months to a year before your first planned commercial grape crush.)

For more information about starting a winery, refer to:  

• A Virtual Winery Model
• Bruce Zoecklein's Virginia Tech winemaking pages
• Writing a Business Plan: A Guide for Small Premium Wineries
• Small Business and Financial Resources section of this site for information on loans, grants and financial aspects

Approval will likely be given in the following order, but you will want to call the appropriate offices immediately to receive forms and instructions at the same time.

1. Contact federal Alcohol and Tobacco Tax and Trade Bureau (TTB) for forms.
   
   Darlene M. Brown
   P. O. Box 25641
   Fayetteville, NC 28314
   Phone: (910) 878-1500
   Fax: (910) 848-1541
   Cell: (202) 997-7376 
   
   Wayne Milstead
   Tax Audit Division
   North Carolina TTB Field Office
   1801 Stanley Road, Suite 210
   Greensboro, NC 27407
   Phone: (336) 547-0837
   Fax: (336) 852-9306
   Cell: (202) 997-7363
   
   Product Compliance: (202) 927-8130/8140
   Special Occupational Tax: (800) 937-8864
   TTB National Revenue Center: (877) TTB-FAQS (882-3277)
   
   Call for instructions and forms to obtain: 

• Bonded winery license 
• Facility inspection
• Label approval for each label (each type wine, each year) -- TTB label approval is not required for wines sold exclusively in North Carolina, but it is recommended.
  
  

• For more information, view the online TTB Wine Industry Compliance Seminar.

• TTB Wine FAQs
  

2. Corporations, Limited Liability companies, and Limited Partnerships must register with N.C. Secretary of State at (919) 807-2000 or  Secretary of State. You must determine type of ownership and obtain appropriate Articles of Corporation, operating agreement, etc. For more information on registering your business, visit the Start Your Business area of our website. 
   
   
3. Obtain licenses from the following:

• City Wine License from your local city hall, if within city limits
• County Wine License from your County Courthouse Tax Collector Division
• State Wine Tax License from N.C. Department of Revenue: (919) 733-3641 

4. Contact N.C. Alcoholic Beverage Control Commission (ABC) at (919) 779-0700 ext. 227 to obtain:

• Resident Unfortified Winery Permit ("on" or "off" premises) A Resident Limited Winery Permit is not necessary: ABC will allow you to sample wines at your winery without this even though the legislation doesn't specify this.
• Winery Special Event Permit if you will hold tastings and sales by glass or bottle in approved public places that do not necessarily have "on-premise" permits.
• Label approval applications and Distribution Agreement Forms
• Submit to ABC:
  • Applications and supporting materials for applicable permits as listed above
  • Wine analysis for each label (each type wine, vintage additions or deletions, not changes)
  • Label approval form for each label (each type wine, vintage as above)
  • Distribution Agreement Filing Form (ask your attorney about franchise law in Article 12)
  • Vendor Representative Permit for each person physically selling or soliciting orders
  • Keep close contact with Lisa Nelson, Product Compliance Manager. She is knowledgeable regarding ABC wine laws and rules and will answer your questions, sincerely and try to help your business succeed.
• See ABC Permits for Wineries for a list of winery-related ABC permits. 

5. Contact NC Department of Revenue at (919) 733-3641 for Revenue License and instructions for submitting monthly shipment reports (regardless of sales).
    Sales Tax Guide for Agricultural Products
   
   
6. Order copies of the following:
   • Alcoholic Beverage Control Laws of N.C. (order form available from ABC, approx. $8)
   • N.C. Alcoholic Beverage Control Commission Rules (order form available from ABC, approx. $8)
   • Code of Federal Regulations, 27 CFR Parts 1, 6, 8, 11, 9, and 240 
     
     
7. See Winery Waste Disposal Permits for resources that will help you develop a winery wastewater management plan to ensure compliance with environmental legislation as well as with our state.
   
   
8. See Legal Issues & Direct Shipping for information and resources about legal issues and direct shipping affecting the winemaking industry.

Be sure to register your winery with the North Carolina Wine & Grape Council.  Please fill out the  Winery Form with contact information and details about your winery.  Sign and return the completed Winery Form via fax to 919-715-5001 or by mail to: NC Wine & Grape Council, 4324 Mail Service Center, Raleigh, NC 27699.

If your winery is under construction, please still fill out the form and keep us updated on your progress and future opening date.  Also, please let us know whenever any of your information changes.  Once your Winery Form has been received, you will be registered to receive industry news from the council.

Marketing Materials - Map and Web site
Wineries must have winery and/or wine producer permits to be eligible for inclusion in the Wine & Grape Council marketing materials.  The council produces and distributes more than 200,000 copies of the annual Guide & Map to North Carolina Wineries, and oversees the NC wine consumer Web site, www.VisitNCwine.com.  To be eligible for inclusion on the map and VisitNCwine.com, your winery must meet the following qualifications:

• Completed Winery Form registered with NC Wine & Grape Council
• Obtain all winery and/or wine producer permits (TTB, ABC, etc)
• Produce wine from at least 5 percent of North Carolina grapes
• Have a tasting room at your winery
• Be open to the public

Once your winery meets all of the qualifications, please contact the Wine & Grape Council.  A representative of the Wine & Grape Council must visit your winery for confirmation before approving it for the map and Visit NC Wine Web site.  Once approved, your winery will be eligible for all council marketing materials.  Be sure to also see the other Marketing Tools available for wineries.

Register Your Winery with an Extranet Representative
To be listed on www.VisitNC.com and www.VisitNCwine.com, you must register your winery with your county’s extranet representative.  Be sure to provide hours, location, contact information, and any events occurring at your winery.  To find your county’s extranet representative, view the list of  Extranet Contacts.

All wineries can be listed on www.VisitNC.com.  However, to be listed in the Wineries journey on www.VisitNC.com and on www.VisitNCWine.com, you must meet the Wine & Grape Council qualifications listed above.

Whenever you have any changes or additions to your winery information, be sure to update your extranet representative.  All Web site updates are coordinated by your county's extranet representative.

Dry Counties

• A winery holding a N.C. ABC winery permit may do the following:
  - Build a winery and produce wine
  - Hold tastings
  - Sell wine in closed containers for consumption on or off premises (depending on permit)
  - Sell wine by the glass regardless of eating establishment status.
• A winery in a dry or wet county in North Carolina may ship wine to an individual of legal drinking age in a dry county for personal (not commercial) use.
• A winery may hold up to three additional tasting and sales outlets separate at locations other than the winery, but these must be located in towns/counties where wine sales are permitted.

Tastings are regulated by ABC Rules T04:02S.0900. Tastings are legal when the retail permittee holds the appropriate on-premises unfortified winery permit; a special event permit may also be required if off the premises. The limited winery permit is not needed.

There is no tasting size restriction, but we recommend less than 1 oz. per taste to reduce liability. Additional rules govern tastings held by industry members for non-permittees and tastings held by industry members for retailers: samples.

Primary retail outlet must be on the winery complex but not necessarily attached to the winery building. The winery complex must be engaged in some aspect of the wine manufacturing process (i.e. fermenting, aging, bottling, or labeling). This may be in a dry or wet county.

A winery may now hold up to three additional tasting and sale outlets separate from the winery, but these must be located in towns/counties where wine sales are permitted.

A company wishing to sell wine that has been privately labeled must hold permits allowing retail wine sales. This is not possible in a dry county unless the company holds a winery or wine producer permit from ABC.

• Importer - receives product from outside of state or country
• Exporter - regulated at federal level only
• Wholesaler = Distributor - could be winery with exemption to receive wholesale permit
• Retailer - could be winery on winery premise
• Fortified wine has brandy added to stop the fermentation.
• Unfortified wine is fermented naturally or with sugar and does not exceed 17% alcohol.
• Content of Wine for Labeling Purpose (Rules by TTB): 
• American Wine may not be labeled a vintage 
• Varietal Wine - 75% made from that grape variety (except labrusca which must be at least 51%) 
• North Carolina Wine - 75% North Carolina Grapes 
• AVA (American Viticultural Area designation) - 85% grapes from that AVA
• Vintage Wine - 95% Grapes from that year
•  Estate Bottled Wine -100% Grapes from winery-owned vineyards

Check out the links below for winery resources, supplies, consultants, classifieds, marketing tools and more:

• Supplies - Vineyard & Winemaking Supplies, Nurseries, References, Consultants, Services
  
  
• Classifieds - Grape Exchange, General Grower & Vintner Classifieds, Vineyards & Wineries For Sale, Employment
  
  
• Marketing Tools - Marketing, Public Relations, Web sites, Signage, Brochures, Exporting
  
  

• Resources and Links - Associations, Wine and Grower Related Links, Publications
  
  

• Wine Evaluation and Testing Facilities
  

Business Models specific to Wine grapes and Wineries:

• Economics of Wine Production in Virginia
• A Virtual Winery Model
• Bruce Zoecklein's Virginia Tech winemaking website (look under "Extension Publications" for excellent resources)

Financial Resources:

The following list of resources is provided by the N.C. Wine & Grape Council to guide those looking for loans, grants or information regarding financial aspects of starting a vineyard and/or winery in North Carolina. To contact the office of the Council, call (919) 715-WINE (9463), fax (919) 715-5001, or email mmetzger@nccommerce.com.

• N.C. Dept of Agriculture, Agribusiness Development  Ron Fish, ron.fish@ncmail.net or (919) 733-7887
• USDA agriculture funding resource guide
• USDA Rural Development Division offers business and cooperative programs including Value-Added Producer Grants.  VAPG may be used for planning activities and for working capital for marketing value-added agricultural products and for farm-based renewable energy. Eligible applicants are independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures. For assistance, contact Bruce Pleasant, Business Programs Specialist, at 919-873-2031 or email bruce.pleasant@nc.usda.gov.
• Small Business and Technology Development Center
  (800) 258-0862. A counseling service with regional offices.
• Small Business Center Network within the local community college system 
  offers counseling, training & resources
• Business ServiCenter, N.C. Department of Commerce
  (800) 228-8443 or (919) 715-2864 works with individuals to determine needs, permits, options, employee regulations and provides further resources.
• Self-Help Credit Union (offices throughout NC) Low interest or high-risk loans for small businesses. Environmental Lending Initiative: A non-profit development bank supporting sustainable agricultural activities. Fred Broadwell, (800) 476-7428. 
• Small Business Administration - Charlotte (800) 827-5722
• N.C. Rural Economic Development Center's microlending program
• Good Work  in Durham (919) 682-8473
• Farmers Tax Guide - IRS Annual Publication (800) 829-1040
• Golden LEAF Foundation is a possible source of grant funds available to non-profit and government organizations. 
• Tobacco Trust Fund Commission at (919) 733-2160
• Rural Advancement Foundation International - USA of Pittsboro offers a producer cost-share grant program.  Scott Marlow is the director of farm sustainability at (919) 542-1396. They offer free assistance in putting together a loan package or restructuring debt.
• North Carolina Agricultural Finance Authority - Frank Bordeaux - (919) 790-3949. Primarily a lender of last resort, they require that a company be turned down by at least two commercial lenders. They do have other programs that may be helpful, depending on the specifics of your situation.
• N.C. Department of Commerce offers two grant programs: Tourism Matching Funds and Rural Tourism Development Grants for tourism projects. Contact Teresa Watts at (919) 733-7502.

Insurance Coverage

The Department of Insurance (NCDOI) has a Market Assistance Program (MAP) established in the mid-eighties when commercial coverage was difficult to find. Anyone having difficulty finding commercial coverage should contact the MAP and see if it knows of carriers that may be willing to write the coverage.

Keep in mind though, that MAP attempts to respond to the availability issue. It does not speak to affordability. There are two types of companies that provide insurance coverage:

• Licensed companies, whose policyholders are covered by the NC Guaranteed Association in the event a licensed company became insolvent
• Surplus Line Coverage (SLC) companies. If the SLC Company were to become insolvent, there would be no protection for its policyholders, under the Guaranty Association.

If you are having a problem finding coverage, please call the NCDOI’s Market Assistance Program at (919) 807- 6750 or (800) 546-5664 for assistance.

The Alcohol and Tobacco Tax and Trade Bureau (TTB) oversees the establishment of American Viticultural Areas (AVA).  To start the process, you must petition the TTB about establishing an AVA with a letter that includes:

1. Evidence that the area is known by the proposed name
   
2. Historical or current evidence that the proposed boundaries of the viticultural area are correct
   
3. Evidence that the geographical features of the area produce growing conditions which distinguish the proposed area from surrounding areas
   
4. A narrative description of the boundaries based on features which can be found on United States Geological Survey (U.S.G.S.) maps of the largest applicable scale
   
5. A copy of the appropriate U.S.G.S. map(s) with the boundaries marked in any prominent color.  These maps are sold by commercial dealers and by the U.S.G.S. (1-800-HELP-MAP).

For more rules and information about establishing an AVA, visit the TTB.