Tap handles and glassware on a polished bar, How to Start a Brewery in Michigan

How to Start a Brewery in Michigan: MLCC Brewer and Micro Brewer Licenses

How to Start a Brewery in Michigan: MLCC Brewer and Micro Brewer Licenses

Most people planning a brewery assume the hard part is the recipe. In Michigan, the hard part is the paperwork: a federal permit, a state alcohol license, an entity filing, a location that passes local zoning, and a tax registration, all in the right order. This guide explains how to start a craft brewery business in Michigan, with a focus on the two production licenses issued by the Michigan Liquor Control Commission (MLCC): the Brewer license and the Micro Brewer license.

Know Which License You Are Applying For

Michigan has no general statewide business license. The Corporations Division at LARA files the entity that owns your brewery, but it does not license the business itself. Filing your LLC through the MiBusiness Registry is a filing, not a license. Brewing and selling beer is licensed by the MLCC, so the MLCC license is the approval that lets you produce and sell.

Here is how the main license types differ:

  • Brewer license: the production license for a brewer. Confirm with the MLCC which license fits your planned volume before you file.
  • Micro Brewer license: for a brewer that makes no more than 60,000 barrels a year. A Micro Brewer under 1,000 barrels a year may self-distribute to retailers, which matters for your distribution plan (covered below).
  • On-Premises Tasting Room Permit: needed if you sell beer for consumption in a tasting room on the manufacturing premises.
  • Brewpub license: a separate retail license. If you plan to operate a restaurant-style space, check its scope with the MLCC.

Fees for the items covered in this guide:

ItemFeeNotes
MLCC Brewer or Micro Brewer license (application LCC-150)$50 initial and annual, plus $70 inspection fee per license requestedThe $70 inspection fee is nonrefundable. Request only the licenses you need.
On-Premises Tasting Room Permit$100 initial and annualRequired for on-site sales in a tasting room on the manufacturing premises
Brewpub retail license$100Separate retail license
LLC Articles of Organization (Form CSCL/CD-700)$50Filed with LARA
LLC Annual Statement (Form CSCL/CD-2700)$25 per yearDue February 15 each year
Treasury sales tax registrationFreeCan arrive in as little as 7 business days

Federal permits, excise taxes, and inspection or building costs are not covered in the table, so confirm those separately before you set a budget.

Materials and Documents You Need Before You Apply

Gather these before you start the first filing. Most of the delays brewery owners run into come from a missing document at the wrong step.

  • Articles of Organization for your LLC, or Articles of Incorporation if you choose a corporation
  • A Michigan resident agent with a physical registered office (a P.O. box alone is not sufficient)
  • A federal Employer Identification Number (EIN) from the IRS
  • A signed lease or purchase agreement that shows you control the property
  • A written list of brewing, fermentation, packaging, and cellar equipment, with dated written quotes
  • A production forecast in barrels per year, since that number decides which license fits
  • Background information for every owner with 10 percent or more interest, since those who are not already MLCC licensed are fingerprinted

Equipment and build-out costs vary widely with size, age, and condition of the gear. Get written quotes rather than relying on published estimates.

Step 1: Set Up Your Entity

Most small breweries form a limited liability company (LLC). The filing is Articles of Organization (Form CSCL/CD-700), submitted through the MiBusiness Registry Portal with the $50 filing fee. Check your brewery name on the MiBusiness Registry business search first. The name of a domestic LLC must include Limited Liability Company, L.L.C., or L.C.

A few points to settle at this stage:

  • Resident agent: Michigan uses the term resident agent. The agent must be a Michigan resident or an entity authorized to do business in Michigan, and the registered office must be a physical address.
  • Name hold: If you need time to finalize the name, a name reservation (Form CSCL/CD-540) costs $25 and lasts six months following the month of filing.
  • Assumed name: If you will operate under a brand name that differs from your LLC name, you file a Certificate of Assumed Name (Form CSCL/CD-541) with LARA for $25.
  • Annual Statement: The yearly filing is the Annual Statement at $25, due February 15 each year beginning the year after formation. An LLC formed after September 30 does not owe a statement on the February 15 immediately following.

Corporations are also possible. The Articles of Incorporation filing fee is $60, and the Annual Report (Form CSCL/CD-2500) costs $25 and is due May 15 each year, with late fees that escalate after that date. Most owners pick an LLC for its flexibility, but the choice affects your tax picture, so discuss it with a CPA.

Michigan imposes no franchise tax. A standard LLC is a pass-through entity, so members report the income on their Michigan individual income tax at the flat 4.25% rate for the 2026 tax year. An LLC that elects federal C corporation treatment is subject to the 6% Michigan Corporate Income Tax. Michigan also offers an elective Flow-Through Entity Tax. Check with your CPA on which option fits. If your brewery sits in one of the 24 cities that levy a city income tax, confirm that obligation with the city as well.

Step 2: Start the Federal TTB Brewer's Notice Early

The federal Alcohol and Tobacco Tax and Trade Bureau (TTB) issues the Brewer's Notice, and the Michigan license cannot issue until it is in place. The TTB process can take longer than the state process, so treat it as the item most likely to set your opening date. File it early, before you have signed a final equipment order, so you know what the federal review will ask about your premises and operations.

Keep a copy of every submission. Your TTB status and your MLCC status will need to match the same address and the same owners.

Step 3: Secure a Location and Local Approvals

Michigan's local approvals sit with the city, village, or township where the brewery will operate, and in some areas with the county. Michigan has 83 counties, about 275 to 280 cities, about 255 to 258 villages, and 1,240 townships. Zoning rules for breweries, taprooms, and outdoor seating vary from one municipality to the next, so the first call should go to the local zoning office, not to the state.

Before you sign a lease, ask the local office about these items:

  • Whether manufacturing and an on-site tasting room are permitted in the zone
  • Parking, occupancy, and hours restrictions
  • What a certificate of occupancy requires for a production space with floor drains, wastewater, and ventilation
  • Which health approvals apply to on-site food service, if you plan any

The MLCC application asks you to show control of the property, so the lease or purchase agreement should be signed before you file. If your location changes after filing, tell the MLCC and the TTB right away.

Step 4: Prepare and File the MLCC Application (LCC-150)

Submit the application for the license you need on Form LCC-150. The fee is $50 initial and annual, plus a $70 nonrefundable inspection fee for each license requested. Applicants who are not already MLCC licensed and will hold 10 percent or more interest are fingerprinted as part of the review.

Plan for the inspection. The $70 fee is charged per license requested and is not refunded, so ask yourself whether you need both a Brewer and a Micro Brewer request, or whether one license covers your plan. The MLCC will look at whether you have documented control of the property, whether your owners meet the background requirements, and whether your premises match what you described.

Do not file the MLCC application before the property is secured and the TTB process is underway. If the application goes in with an unresolved location or an incomplete ownership list, expect a delay.

Step 5: Add a Tasting Room Permit or Brewpub License If You Need One

Selling beer for on-site consumption at the manufacturing premises requires the On-Premises Tasting Room Permit at $100 initial and $100 annual. A brewpub is a separate retail license at $100. These are not interchangeable, and each has its own scope, so tell the MLCC exactly how you plan to sell before you file.

If you plan food service, confirm the health approvals with your local health department before you sign any kitchen equipment order.

Step 6: Register for Sales Tax With Treasury

Retailers must register with the Michigan Department of Treasury for a sales tax license. The registration is free and can arrive in as little as 7 business days. Register online through the Treasury online business registration page. The state sales tax rate is 6%.

How beer, tasting room sales, and merchandise are taxed can differ. Alcohol excise taxes are separate from sales tax and are not covered by this guide. Confirm both with Treasury and the MLCC before you set prices.

Step 7: Plan Your Distribution Before You Sell Beyond the Tasting Room

Your distribution plan decides how you get beer to customers beyond your own taps. A Micro Brewer under 1,000 barrels a year may self-distribute to retailers. Above that level, you will need to work within the wholesaler and distribution rules.

Check with the MLCC on wholesaler and distribution rules before you sell beyond your tasting room. Do not sign retail or distributor agreements until you have that answer in writing, because the rules govern how you can sell, who you can sell to, and what paperwork each sale needs.

Step 8: Stay Compliant After You Open

The first license is only the start. Put these recurring items on a calendar:

  • MLCC annual license fees, and the annual tasting room permit fee if you hold one
  • LARA Annual Statement for your LLC ($25, due February 15)
  • Michigan sales tax filings with Treasury
  • Renewals for local permits, certificates of occupancy, and health approvals
  • Federal TTB reporting obligations for your brewery operations

Tips to Keep the Process Moving

  • Start the TTB Brewer's Notice before you commit to a building. It is the longest lead item in most brewery timelines.
  • Write your barrel forecast honestly. It decides whether the Micro Brewer license fits, and the 60,000 barrel cap and the 1,000 barrel self-distribution line both depend on it.
  • Keep one address, one ownership list, and one business name across the LARA, TTB, MLCC, and Treasury filings. Mismatches cause avoidable rework.
  • Ask the local zoning office for a written answer about brewing and taprooms in your zone before you sign.
  • Budget for equipment quotes that are dated and written. Verbal estimates change.

Common Mistakes to Avoid

  • Filing the MLCC application before you control the property. The application requires that you show control, so an unsigned lease can stall the review.
  • Requesting more licenses than you need. The $70 inspection fee is charged for each license requested and is nonrefundable.
  • Assuming LARA licenses the brewery. LARA files your entity. The beer license comes from the MLCC, and the federal permit comes from the TTB.
  • Using a P.O. box as the registered office. A P.O. box alone is not sufficient for a Michigan registered office.
  • Skipping the city income tax check. Only 24 Michigan cities levy a city income tax, but if yours is one of them, you need to know early.
  • Planning distribution before confirming the rules. Commitments to retailers or distributors made before you check with the MLCC can create compliance problems.

What Results to Expect

Timelines and outcomes depend on your location, your paperwork, and the agencies involved. No result is guaranteed. A complete, consistent application with a signed lease, a dated equipment list, and an early TTB submission gives you the best chance of avoiding delays. Many owners find that the longest wait is the federal review, which is why starting it first is the most useful single step in this process.

Where to Get Help

The Michigan Small Business Development Center offers free and low-cost advising at michigansbdc.org. The SBA's Michigan district page is at sba.gov/district/michigan. For the entity filing, the LARA Corporations Division page is at michigan.gov/lara. For tax questions, see the Michigan Department of Treasury.

Disclaimer: This article is informational content, not legal or tax advice. Alcohol licensing, federal permits, and tax rules change, and the figures above reflect the sources cited when this guide was prepared. Confirm every fee, deadline, and requirement with the MLCC, the TTB, LARA, and the Michigan Department of Treasury before you commit money. Because a brewery involves licensing, property, tax, and liability questions, consult a qualified Michigan attorney and a CPA before you form your entity or sign a lease.

Keep exploring: related Michigan guides