At a glance
A viable Nevada microbrewery needs taproom economics, not production volume alone
Plan on about $760,000 before opening for the comparable Typical case: an independent, owner-operated Nevada LLC with one leased 5,500-square-foot production-and-taproom site, a 10-barrel brewhouse, roughly 1,200 barrels of practical annual output, 70 taproom seats, no full kitchen, and a mix of on-premise pours, packaged takeaway, limited wholesale, events, and merchandise. A defensible startup span is approximately $425,000 Lean to $1.25 million Premium. The statewide model uses Nevada rules and wages plus a three-market planning basket for occupancy and contractor allowances; it is not a quote for any address.
At stabilized Base performance, the model produces $90,000 monthly net revenue, $13,600 normalized passive-owner cash operating profit before D&A, and $22,100 of working-owner pre-tax business cash benefit after adding back the market cost of the owner's management role. The central caveat is utilization: Nevada's retail and tourist traffic can support premium taproom pricing, but a site that shifts too much beer into wholesale gives up the margin needed to carry rent, utilities, and payroll.
Capital plan
The brewhouse is only one-quarter of the opening check
Build-out is usually the swing item: floor drains, washable surfaces, electrical service, gas, ventilation, cold storage, water treatment, fire review, ADA work, restrooms, and taproom finishes. The modeled range assumes leased second-generation commercial space, not ground-up construction or property acquisition. Equipment pricing is a U.S. planning benchmark because comparable installed Nevada quotes are not publicly available; local quote required.
| Use of funds | Lean | Typical | Premium |
|---|---|---|---|
| Site and production assets | |||
| Lease deposits and utility deposits | $28,000 | $48,000 | $76,000 |
| Build-out and code work | $112,000 | $235,000 | $405,000 |
| Brewing, cellar, cold and packaging equipment | $128,000 | $210,000 | $355,000 |
| Taproom furniture, POS and glassware | $31,000 | $55,000 | $88,000 |
| Pre-opening and liquidity | |||
| Design, legal, permits, license and bond premium allowance | $19,000 | $30,000 | $46,000 |
| Pre-opening payroll, training, inventory and launch | $42,000 | $70,000 | $109,000 |
| Initial net working capital, excluding opening inventory | $8,000 | $14,000 | $24,000 |
| Opening operating-cash reserve | $42,000 | $70,000 | $95,000 |
| Contingency | $15,000 | $28,000 | $52,000 |
| Total project cost | $425,000 | $760,000 | $1,250,000 |
The table assumes no committed debt, landlord allowance, grant, or equipment financing; therefore founder cash required equals total project cost. A documented allowance can reduce permanent equity but not necessarily peak interim cash, because reimbursement often follows completed work. The $1,000 Nevada manufacturer bond is a face amount, not an expense; only an actual premium or posted collateral belongs in cash uses, and the model carries a modest allowance pending a quote. Deposits remain assets, not expenses.
Takeaway: build-out plus brewing equipment absorbs $445,000, or 59% of the Typical project. Text alternative: the four displayed amounts sum to $760,000.
Approval path
Secure the address before the alcohol applications – but not before zoning diligence
A brewery application needs premises diagrams and control of the site, yet signing an unconditional lease before land-use, utility, drainage, and occupancy review is dangerous. Use a lease contingency and begin concept review first. Nevada distinguishes a brewery, which manufactures without retail sales, from a brew pub, which may sell at retail under NRS Chapter 369. This model is a brew pub because taproom retail is essential.
Concept and site diligence
Form the LLC, test utilities and drainage, confirm brew-pub zoning, negotiate contingencies, and complete preliminary layout. Financing and design can run in parallel.
File federal and state packages
Submit the TTB Brewer's Notice and Nevada liquor application with ownership, source-of-funds, premises, and local recommendation materials.
Plan review and construction
Complete building, plumbing, mechanical, fire, wastewater, health-related review if applicable, and order long-lead tanks.
Install and commission
Set brewhouse and cellar, commission glycol and draft systems, document ownership and serials, hire staff, and build compliance records.
Inspect, brew and open
Obtain final occupancy, fire and local business approvals; receive federal and state authority; brew opening inventory; train responsible servers; soft-open.
| Requirement | Authority | Fee | Dependency | Evidence |
|---|---|---|---|---|
| Nevada LLC and state business license | Secretary of State | Confirm current SilverFlume filing total | Entity precedes tax and alcohol filings | Official rule; exact total should be confirmed at filing |
| EIN | IRS | $0 | Entity formed | Official federal filing |
| Brewer's Notice | TTB | $0 | Premises control, diagrams, source of funds | Official Brewer's Notice |
| Nevada brew pub license | Department of Taxation, after local recommendation | $75 annual; $1,000 bond face amount | Local approval; fees after approval | Official fee and bond schedule |
| Sales tax permit | Department of Taxation | $15 per location | Retail activity | Official registration FAQ |
| Zoning, building, fire, occupancy, wastewater and local liquor/business approvals | City/county and utility or sewer authority | Varies by city/county; local quote required | Address, plans, construction and inspection | Local authority; not a statewide fee |
Operating economics
The Base case sells 68% of revenue through high-margin direct channels
Revenue is recorded net of discounts and refunds and excludes sales tax and gratuities. Beer excise tax and card fees are variable costs rather than deductions from revenue. Nevada's minimum statewide sales-tax rate is 6.85%, with address-specific local additions; tax collected is a liability, not revenue. Beer sold by a qualifying small domestic brewer is modeled at the federal $3.50-per-barrel rate on the first 60,000 barrels, while Nevada malt beverage excise tax is $0.16 per gallon. The excise burden is therefore small beside ingredients, packaging, labor, and channel margin.
| Driver or result | Downside | Base | Upside |
|---|---|---|---|
| Taproom pours | $43,000 | $60,000 | $76,000 |
| Packaged takeaway | $10,000 | $14,500 | $18,500 |
| Wholesale beer | $10,000 | $12,000 | $15,000 |
| Events and merchandise | $3,000 | $3,500 | $4,500 |
| Net revenue | $66,000 | $90,000 | $114,000 |
| Passive-basis contribution | $44,220 | $62,100 | $79,800 |
| Fixed cash costs, excluding owner replacement | $40,000 | $40,000 | $44,000 |
| Fixed owner-replacement labor | $8,500 | $8,500 | $8,500 |
| Normalized passive-owner profit before D&A | – $4,280 | $13,600 | $27,300 |
| Working-owner pre-tax business cash benefit | $4,220 | $22,100 | $35,800 |
The Base production plan is approximately 86 barrels per month: roughly 31 barrels served as pints/flights, 15 barrels sold as takeaway packages, 40 barrels wholesaled, and normal process loss. That equals about 1,030 barrels annually, 86% of the practical 1,200-barrel capacity. Upside requires faster tank turns, tighter loss control and selected overtime but stays within modeled annual capacity. More wholesale volume alone is not equivalent: a distributor-facing barrel produces far less net revenue than a barrel sold by the glass.
| Cost | Amount |
|---|---|
| Variable costs | |
| Malt, hops, yeast, adjuncts, packaging and process loss | $15,300 |
| Card fees, excise tax, wholesale fulfillment and event COGS | $12,600 |
| Fixed and step-fixed costs | |
| Non-owner production, cellar and taproom payroll with burden | $18,000 |
| Rent and common-area charges | $9,500 |
| Utilities and wastewater allowance | $4,000 |
| Insurance, maintenance, cleaning and waste | $3,800 |
| Marketing, software, professional fees, licenses and miscellaneous | $4,700 |
| Owner replacement: general management and commercial lead, fully loaded | $8,500 |
| Total normalized cash operating costs | $76,400 |
Owner replacement is modeled as $82,000 annual cash salary plus roughly 24% payroll and benefit burden, rounded to $8,500 monthly. It is fixed within this capacity band and appears only below contribution. A draw or distribution is not an expense. The working-owner benefit adds back the same $8,500 because the owner performs that role; it combines imputed labor value and residual return and is not a guaranteed salary. D&A is not estimated because asset lives, used-equipment basis and tenant-improvement ownership vary materially, so the article reports cash operating profit before D&A rather than EBIT.
Unit economics
A direct-sale equivalent pint contributes about $5.00 before fixed overhead
The natural unit is a 16-ounce direct-sale equivalent pint. At a $7.25 displayed price excluding collected sales tax, ingredients and brewing consumables are about $0.78, serving/packaging and variable labor $0.72, card and excise costs $0.25, and expected waste/discounts $0.50. Passive/economic contribution is therefore $5.00 per pint, or 69%. Because the owner performs fixed management rather than unit-level pouring or brewing in the model, no variable owner-replacement labor is deducted per pint.
Break-even must match the owner basis
Using Base contribution margin of 69%, cash-survival break-even is $40,000 ÷ 69% = $58,000 monthly revenue. Sustainable working-owner break-even adds a $7,000 monthly target for owner labor, producing $68,100. Passive-owner break-even includes the full $8,500 replacement role: $48,500 ÷ 69% = $70,300. At the Base weighted $7.25 equivalent price, passive break-even is about 9,700 pint-equivalent sales per month, or 323 per day across a 30-day month. This is a revenue-equivalent volume, not a claim that every transaction is one pint.
| Metric | Downside | Base | Upside |
|---|---|---|---|
| Passive break-even revenue | $72,400 | $70,300 | $75,000 |
| Revenue as share of practical capacity | 63% | 86% | 98% |
| Opening reserve minimum balance during ramp | – $8,000 | $18,000 | $31,000 |
| Additional funding required after opening | $20,000 | $0 | $0 |
| Unlevered project payback, monthly cash schedule | Not reached in 120 mo. | 67 mo. | 43 mo. |
Payback starts with the $760,000 Typical project contribution at month 0 and adds monthly passive-basis distributable project cash after a maintenance-capex reserve of $1,500 per month and modeled working-capital changes. No debt or income-tax reserve is included. The Base ramp reaches 55% of stabilized revenue in month 1, 75% by month 4, 90% by month 8 and 100% by month 12. The prefunded $70,000 operating reserve absorbs ramp deficits once; those losses are not counted again as new capital. Downside breaches a $10,000 minimum cash floor in month 7 and needs approximately $20,000 extra funding.
Nevada context
Low excise tax helps; labor, cooling and address selection decide the margin
Nevada's 2025 population estimate was 3.28 million, 5.7% above the 2020 estimate base. The Brewers Association reports 49 craft breweries, 54,683 barrels of annual craft production, and $481 million of economic impact for 2025. Those figures indicate industry presence and demand context, not brewery retail market size; a reliable statewide revenue TAM is not publicly determinable from the available category data because production, wholesale, taproom, restaurant, tourism and imported-beer spending overlap.
For labor context, BLS reported a May 2025 mean of $18.41 per hour for food-preparation and serving occupations in Nevada's largest hospitality market, including $18.29 for bartenders and $22.88 for first-line supervisors. The model uses a statewide planning allowance above those cash wages once payroll taxes, workers' compensation, scheduling friction and benefits are included. Nevada's general Modified Business Tax is 1.17% of quarterly wages above the $50,000 threshold after permitted health-benefit deductions, and employers must file even when no tax is due.
| Market type | Observed planning role | Must confirm | Limitation |
|---|---|---|---|
| Large southern market | Higher customer volume, hospitality wages, occupancy and cooling load | Correct licensing jurisdiction, zoning, liquor category, wastewater and fire review | Published asking rents and permit paths vary sharply by submarket and building condition |
| Northern regional market | Mid-range occupancy; winter utility and tourism/event seasonality | Business license, land use, sewer pretreatment, occupancy and local alcohol approvals | Industrial-flex and retail-facing spaces are not directly interchangeable |
| Smaller capital/rural market | Lower potential occupancy cost but smaller repeat-customer pool and thinner contractor depth | County/city jurisdiction, permitted brew-pub area, water capacity, septic/sewer and response times | Sparse comparable listings require a wider allowance rather than a claimed average |
The Typical rent-and-CAM allowance is a modeled trimmed midpoint of comparable 4,500 – 7,000 sq. ft. second-generation retail/industrial-flex asking conditions across those three market types, normalized to 5,500 sq. ft.; it is not an observed statewide average. Build-out and contractor costs are likewise planning allowances. Verify the exact address before committing capital, because local liquor privilege, distance or land-use constraints, wastewater loading, grease/food rules, special-use review, utility capacity and certificate-of-occupancy status can overwhelm a seemingly cheap lease.
Sources and method
What is official, what is observed, and what still needs a quote
Reviewed August 29, 2026; dollar figures use a 2026 planning basis. Official rules and fees come from the issuing authority. Government and association statistics retain their published periods. Occupancy, equipment, build-out, insurance and payroll-burden figures are modeled planning assumptions informed by comparable-market observations and adjacent benchmarks; none is a contractor, insurer or landlord quote. The largest uncertainties are site conversion cost, local alcohol privilege conditions, wastewater scope, actual channel mix, and the time required to reach taproom volume.
| Source / publisher | Geography / period | Evidence type | How used |
|---|---|---|---|
| Nevada Legislature, NRS 369 | Nevada; current 2026 revision | Official law; high confidence | Definitions, licensing structure, fees and local recommendation |
| Nevada Legislature, NRS 597 | Nevada; current 2026 revision | Official law; high confidence | Brew-pub retail rights, siting framework and production limits |
| Nevada Department of Taxation, liquor information | Nevada; accessed 2026 | Official fee and rule; high confidence | $75 annual license, $1,000 bond face, $0.16/gal malt tax and filing flow |
| Nevada Department of Taxation, MBT | Nevada; current rate | Official tax rule; high confidence | 1.17% general-business rate and quarterly wage threshold |
| TTB, Brewer's Notice | United States; updated 2025 | Official federal rule; high confidence | Federal qualification and $0 application fee |
| TTB, tax rates | United States; current | Official federal rate; high confidence | $3.50/barrel qualifying small-brewer rate |
| Brewers Association, state statistics | Nevada; 2025 | Published industry benchmark; moderate | 49 breweries, 54,683 barrels and $481 million impact context |
| U.S. Census Bureau, QuickFacts | Nevada; 2025 estimate | Reported government data; high | Population and growth demand proxy |
| BLS, occupational wages | Nevada metro benchmark; May 2025 | Government benchmark; moderate for statewide use | Hospitality wage anchor; not treated as a statewide mean |
| U.S. EIA, electricity prices | Nevada; 2026 releases | Reported government data; high | Utility reasonableness check; actual tariff and demand charges vary |
| Local authority process example | One Nevada jurisdiction; accessed 2026 | Official local example; limited scope | Shows address, zoning and occupancy dependency; not a statewide fee |
This is a first-pass planning model, not legal, tax, engineering, lending or construction advice. Confirm the final address, entity ownership, lease, wastewater discharge, building classification, alcohol privileges, taxability of each revenue stream, insurance, worker classification, label/formula requirements, and all current fees with the issuing authorities and qualified advisers before spending nonrefundable capital.
