Do you own a brewery and have a question that you think may be outside of your CPA’s scope of knowledge? Do yourself a favor and contact Somerset as we have dedicated professionals focusing on the accounting needs of brewery owners!
How can I offset the cost of my brewery equipment?
It’s important to understand the federal, state and local tax laws as some are favorable to your business. Are you eligible for Section 179? Have you considered the de minimis safe harbor election? These are questions that should be addressed!
How do I generate current cash from past investments?
Breweries are eligible for a variety of tax credits and incentives that could help put cash back in your pocket like the federal and state research and development (R&D) tax credit. And Indiana has one of the best state credits available! In addition to the R&D credit, there is also a domestic production activities deduction (DPAD) and the Federal Insurance Contributions Act (FICA) tip credit. Contact us as these credits are available for breweries of every size. Additionally, if your building was remodeled or constructed, a cost segregation study should be done to maximize deductions.
What is the best structure to save on taxes in the long run?
There are several options for structuring a business for maximum tax benefit – S-Corp, C-Corp, LLC, etc., and this can be confusing. Factors that should be considered are:
- Is this a new start up entity?
- Is there one owner or multiple owners?
- Are the owners taking distributions or being paid a salary?
How can I compare my financial numbers to other brewpubs and breweries?
It can be difficult to make an a comparison between yourself and a competitor. Revenue streams should be split into separate profit centers and each centers profit should be assessed regularly against baseline metrics. Then you can compare your brewery against local competition.
For additional information, contact your Somerset advisor or get in touch with us at .
