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InsuranceMan

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InsuranceMan last won the day on November 12 2016

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About InsuranceMan

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    With over a decade of experience in craft distillery insurance,
  • Birthday 08/21/1974

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  • Gender
    Male
  • Location
    Sheridan, WY
  • Interests
    Golf, Flyfishing, Camping, Hunting, pretty much anything outdoors with my family, traveling, a good drink and nice cigar.

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  1. I'm finishing my business plan to open a distillery and tasting room in Denver, CO. Could you please give me a dollar amount I could use in my 5 year plan? We don't have a location, but are looking in industrial spaces. Thanks in advance for your time.

    Black-cherrydistillery@outlook.com

    Paige 

  2. Insurance

    Huffy2k, Silk City, and Skaalvenn: You flatter me!!!!!!! And I love it, thank you!!!!!!!!!! ralphie513, please give me a call on my cell phone at 307-752-5961 and I will gladly speak with you. I am sorry that I have been unaware that you reached out to me previously. Give me a call at that number and lets see what I can do for you. To the rest of you guys, THANK YOU FOR YOUR KIND WORDS!!!!! P.S. Skaalvenn, I want some more of that beer were drank at OMNI!!!!!!!!!!!!!!!
  3. Bond Nonsense

    Hear, hear dhdunbar!!!!!! Well stated. Bonding for your distillery is quite an easy process and the cost of a bond is more than likely the most inexpensive item you will procure for your business. One other point that needs to be discussed, yet gets very little attention, is the fact that although you MAY be able to do without a federal TTB bond (do the math and read up on the new regulations), you may (more than likely) still have to obtain a surety bond for the state in which you are operating. Many states require either a sales and use bond, and/or an alcoholic manufactures bond. You will want to check with your state ABC/three tier/etc. to find out what the rules are for where you are located. As always, if you have questions or are looking for further information, I am always pleased to speak with anyone about surety bonding or any other insurance questions.
  4. New Bond Regulations Made Understandable

    Thank you SeanC. I try to put things into plain English and take the mystery out of all of this. I have had a lot of calls and emails in regards to this and as of posting this reply I still have not been able to get an estimated time of approval of exemption from the TTB.
  5. TTB Guidance on bond exemption

    All, I just wrote a little ditty about this called "New Bond Regulations Made Understandable", that makes this easier to understand. Just click on the title below next to the message bubble to read it. 3d0g, it has been a while, sir. I hope you are well.
  6. Happy 11/11 everyone!!! It has been a little while since I have posted anything new here on the forums and I thank you all for that based on the fact that ADI members have been keeping me VERY busy with insurance and bonding needs. Speaking of bonds, what a segue into the hot topic of the day. On 11/7/17 the TTB released new information in regards to the "Information for Alcohol Excise Taxpayers and Applicants for Permits and Brewers’ Notices Regarding Internal Revenue Code Amendments Affecting Excise Tax Due Dates and Bond Requirements". Specifically they cite the "Protecting Americans from Tax Hikes Act of 2015 (“the PATH Act”) (Public Law 114-113). Section 332 of the PATH Act amends the Internal Revenue Code of 1986 (IRC) to change excise tax due dates and remove bond requirements for certain eligible taxpayers (see 26 U.S.C. 5061 and 5551)." Are you sleeping yet? Still with me????? OK ............ This bulletin they released specifies new "Excise Tax Due Dates" that basically say that if you were not liable for more than $50,000 of taxable liability for the calendar year prior, and you don't think you will be above that amount this year, then you can pay your taxes on a quarterly basis beginning 1/1/17. That's cool. It also says that if you reasonably (can someone define what that may mean?? "reasonably" according to who???) expect to not be liable for more than $1,000 in taxes this year as well as in the prior year, you can now pay those taxes annually rather than quarterly. No offense here, but if you have less than $1,000 in taxable liability as a distiller, you have to be quite small as that is only about 463 bottles a year, or in other words, just under 40 bottles a month. Ok, on to the "beefier" subject of this information and what you are really wanting to know; who is exempt and no longer needs this pesky bond stuff anyway!??!!?!? Well, staring as of 1/1/17 it says, " ..... taxpayers who pay taxes annually (so anyone paying less than $1,000 a year, my words here, not theirs) or quarterly (so those folks doing less than an $50,000 a year in taxable liability) will be exempt from the requirements to file bonds covering operations or withdrawals of distilled spirits or wines for nonindustrial use, or beer." Based on the fact that taxable liability only comes into play when spirits are withdrawn (yes, in some cases destroyed, but lets not focus on the negative here people) for distribution/sale (not a transfer in bond, I know my stuff), then as long as you will have less than $50,000 in taxable liability you are good to go without a bond. So is this as clear as mud yet!?!?!?! Basically what is being said here is that if you are going to have less than $50,000 in taxable liability this year (and you had less than that last year) you do not have to have a bond any longer. "BONDS!??! WE DON'T NEED NO STINKING BONDS!!!!!!!!!!" WooHoo, right!?!?!? Well ................... not so fast there speedy. There are a few things to consider before making the call to your agent and telling them to cancel that money sucking bond (actually, my bonds are the lowest in the country so they are not "money sucking" at all). First off, are you close to that bond limit of $50,000? If you are close, or expect to be "reasonably" (hahahaha) close, you may want to leave it in place, just in case. You do not want to cancel the bond only to have to turn around a few months or a few quarters later because you have increased your sales/distribution which equates to withdrawal, and now need to be bonded again. Another aspect to consider is this, when does your bond term come due? I have a lot of folks who will fit the requirements to cancel their bond, however their bond terms renew in November or December. According to the stipulations, they need to renew and keep their bond up until 1/1/17, so they MUST renew it. Here is another caveat to that, depending on the surety carrier that issues the bond, the premium may be pro-rated (you can get money back for the unused portion of the term once you cancel) but they may keep a minimum of $100 service fee ............ or ............. if the premium is 100% full earned, you may not get anything back. Well, why cancel the bond at that point?!?!?! The other issue is that the TTB will not allow you to cancel the bond until all unpaid taxes are rectified from 2016. Once they are you can file for a bond exemption with the TTB through the PONL system but they never specify how long that process will take. So here again is something to watch out for. What if your bond term is after the 1/1/17 date and you file for the exemption but it takes them 6 months (for whatever reason) to process it. Do you need to renew your bond while this is in process? At this point in time I would suggest that you do renew it since you do not want to be out of compliance during the processing time. See, this is not as simplistic as it is made to sound. Obviously, these scenarios are all in regards to existing DSP proprietors. So what about new applicants. Well, for new applicants, since the current processing time for a permit is over 200 days, you should be able to apply for your permit and ask for the exemption during the permitting process. That part actually does sound simplistic and appears to be pretty straightforward. There is a first time for everything!!! So what does this all mean, in real facts and figures and how do you know if you will be below the magical $50,000 mark? Well here is a quick mathematical computation for you (keep in mind these numbers are rounded for simplistic purposes): Current excise tax liability = $13.50 per proof gallon (proof gallon defined as 50% ABV or 100 proof) Taxes are only due when spirits leave the plant, so anything in holding/process does not count against this amount Most spirits go out the door at 80 proof, so the tax rate then would be $13.50 x .8 = $10.80 per gallon (since it is proofed down) Therefore, $50,000 / $10.80 = 4,629 gallons a year or roughly 23,000 bottles of booze, or nearly 2,000 bottles a month Here are pretty much the same numbers but done in actual proof gallons (not rounded): $50,000/$13.50 = 3,703.7 p.g. One case of 12-750’s at 80 proof = 1.902 p.g. per case 3703.7 p.g./1.902 p.g = 1,947 cases or 23,364 bottles per year (cases rounded down to full case) 1947/12 = 162.25 cases per month 23,364/12 = 1947 bottles per month So there you have it folks. A long run for a short slide as it were. The just of all of this is that some of you may not need a bond if you are just getting going and some of you may not need a bond even if you are operating, however make sure you understand where you stand and when the bond term comes due before cancelling you bond. As always, if you have any questions please feel free to reach out to me with any questions. I can be reached here on the forums, via email at aaron.linden@hubinternational.com , or give me a call or shoot me a text at 307-752-5961. I am always more than happy to assist you with your bonding questions and do keep in mind ***** I OFFER A FULL LINE OF ALL DISTILLERY INSURANCE NEEDS, AS WELL, I HAVE THE BEST RATES IN THE COUNTRY. ***** Just sayin'. Best, Aaron
  7. Accolades for Others

    Gentry, Super cool idea for a thread buddy! I have to say that I am in a very privileged spot and I get to taste a lot of cool products from all over the country. It would be inappropriate for me to put any one ahead of the other and most everything I have had is AMAZING. I think that speaks to the "craft" side of the industry and each and every product has its own unique and complex flavor profile which is even more stunning. No one gin, vodka, whiskey, aquavit, bourbon, etc. is the same. I have not tasted everything from all of my clients as of yet but I will say that everything I have had has been very good. I cannot wait to see what others have to say.
  8. ADI Convention in San Diego

    Updated 3d0g, new info on several items and changes in the marketplace. I will say though, quite a bit of it does not change much from year to year and many of the same items (as they are basics) will remain the same. Minimum bond limits, etc is always the same, unfortunately. If you came last year it still may be well worth your time to come again this year. Thanks for asking though buddy, are you attending?
  9. ADI Convention in San Diego

    Dear Forum Members and Anonymous Info Gatherers, I am so very excited to announce that I will be in attendance at this years convention in San Diego and I look forward to seeing all my old friends and meeting so many of you that I have either communicated with already, or have yet to meet. I will be on the Expo floor located at booth #531 and I encourage all of you that are attending to stop by and introduce yourselves!!!! This year is going to be GREAT!!!!! Since I am always striving to be on the cutting edge of all things insurance and TTB bonding (if you have not read my whitepaper posted in the forums, go, read it right now! Actually, you can wait until you finish reading all of this post first, but then go immediately and read it!) I am super excited to announce that not only will I be in attendance this year, but as well I will have the incomparable Richelle Smith with me as well. Richelle is my TTB Bond underwriter and not only will she be there to assist in answering questions, SHE WILL ALSO BE ABLE TO UNDERWRITE AND ISSUE BONDS ON THE SPOT should you have a need. We will have all of the applications on hand as well as the ability to run all of the needed information and issue bonds right then and there. So, no matter if you are a "first timer" needing a bond for your up and coming distillery, or if you are just in need of a larger bond that you cannot procure though your "normal" channels, we have you covered. Oh, and BTW, our rates are the cheapest in the country for the last year and a half running. So you totally need to swing by and check that out as well since we do more of these than anyone else out there and we are fast, fun, friendly, and did I mention "cheap"!!!!!!!!! Last thing for your consideration, I will also be giving a presentation at the breakout session on Tuesday April 5th at 10:30 entitled, "Insurance: What you know, don't know, need to know" and I would love to pack the room! I promise it will be fun and not "boring old insurance", trust me, I get that insurance can be boring and a horrible topic. Not with me though, I hit all the fine points, the good stuff that you need to know and I keep it light unless you want very specified details. I can do that as well, but I like to keep that for only those that really want to know more as we get into the "nitty gritty" later on. Anyway, please, everyone stop by the booth, say "hi", get a bond while you are in the neighborhood (I want to keep Richelle super busy), and come listen to and interact with me during my presentation. I simply cannot wait to see everyone and I look forward to meeting many of you for the first time.
  10. I know for a fact that I am going to hit as many as I can. I am so excited to see your places!!!!!
  11. Pennsylvania Guild Forming Now

    All, Being that I currently work with 9 distilleries in PA I would love to have the opportunity to assist the up-and-coming guild in any way that I can. PA has been very good to me and I would love to give back in some way if possible. If there is anything that I can do or assistance I can offer, I would be honored to do so. Please feel free to contact me either here via the messenger system or give me a call or shoot me an email. I love to get involved with state associations and would love to take part in yours as well!
  12. I just read this article on fox news and thought I would share it, just something fun/interesting to start out the week. Enjoy: http://www.foxnews.com/science/2015/10/26/lovejoy-appears-to-be-well-stocked-bar-in-space.html?intcmp=hpff Sorry about the "and" in the title as opposed to using "an" but as it turns out you cannot edit titles (or at least I could not find a way to do so). I am usually more grammatically savvy than this, sorry.
  13. 45 States and Counting

    Dear ADI Forum, I wanted to take a few moments to send out a heart-felt "THANK YOU" to the many of you that have made my exclusive distillery insurance program so successful to date! I just entered into my 45th state of distillery business and could not be any more pleased with the success that we have had and it is all thanks to you fine folks in the forums. You have been wonderful to work with, you have supported me from the beginning and have shared my information with others outside of the forums as well. I have had the great pleasure of getting to know many of you, watch you get going or grow over the last few years. As many of you already know, I have worked with distillery clients for many, many years, but not until I became involved with ADI and the forum was I able to connect with so many great people. I cannot think of any other way to put it besides just saying, "Thank You all so much, you mean the world to me."
  14. Accounting & Distillery Equipment Depreciation

    Spitfire, Although I do not know the answer to your question I have worked extensively with a gentlemen that probably could answer your question. Jack Irvine at Irvine & CO is not only a CPA, he is a CPA that specializes in nothing but distilleries and wineries and he is incredibly skilled in these areas and I am sure he could assist in answering your questions should you wish to reach out to him. He can be contacted at 503-252-8449 or via email at jack@irvinecpas.com. Tell him I pointed you in his direction, we do a lot of work together. Best of luck on this and I am sure we would all be interested in hearing of the results.
  15. I saw this graphic and thought it illustrated the point eloquently. I know that we all know this, but it is amazing that the public majority has no idea. Many people think that a bulk of the price they are paying at retailers somehow makes its way back to those that are producing the product and they have no idea that it has been taxed between 4 to 5 times by they time they are taking it home. I thought it was a great thing to share.
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