Financing and Business Structures in the Beer and Liquor Industry
From advising you about the type of business to form, to helping you obtain the capital you need to start and grow your company, Hop Law’s brewery and distillery finance attorneys in Minneapolis are your best resources.
There are a number of mechanisms that breweries, distilleries, and wineries can use to finance the start up or expansion of their businesses. Each mechanism, however, comes with its own challenges, including finding investors, restrictions on soliciting investors, and preparing documents necessary to comply with securities laws at the state and federal level. We have helped alcoholic beverage businesses navigate these complex issues from start to finish.
What Can a Lawyer Do for Me in Terms of Investment Matters?
Lawyers can assist you with nearly every financial aspect of your business, but it is particularly important to ensure that as you seek investors for your business that you do so in compliance with federal and state securities laws and regulations. We have proven experience with:
- Ensuring your business is abiding by state and federal securities laws
- Drafting private placement memoranda and other required securities-related documents to provide to potential investors
- Advising clients as to what they may and may not do with respect to the offering of securities to potential investors
Understanding Types of Business Structures
When creating a new company, you have a variety of business structures to potentially pursue. They all have their advantages; it’s just a matter of establishing which combination of profits, liability, and amount of personal management is best for you.
- Limited Liability Company (LLC) – the most flexible type of corporation that provides limited liability to members/owners, allows for division of profits and voting rights in the members’/owners’ discretion, provides members/owners with discretion to determine how the LLC will be governed and operated, and has pass-through taxation
- S Corporation – corporation made up of shareholders that divide profits in proportion to their ownership percentage, has more formal operational requirements than an LLC, allows owners to be paid salaries, and has pass-through taxation
- C Corporation – similar to S Corporation except that there is no pass-through taxation, so profits are taxed at corporate level and at owner level upon distributions
If you are considering starting or restructuring your business, contact our experienced team of distillery, winery, and brewery finance lawyers in Minneapolis for a free initial consultation and honest assessment of your venture. We’d like to meet you in person and learn more about your business, so call us at 612-259-4800 or contact us online to get started.
We want to help make your vision a reality. We provide comprehensive legal services for businesses in the craft beer and spirits industries.